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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">As filed with the Securities and Exchange Commission
on January 8, 2025.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333-</B>[&#9679;]</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"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>WASHINGTON, D.C. 20549</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: center"><B>FORM S-1</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: center"><B>REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="padding-bottom: 1.5pt; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 60%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FUNCTIONAL
                                            BRANDS INC.</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(formerly HT Naturals Inc.)</P></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding-bottom: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(Exact
    name of registrant as specified in its charter)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Delaware
    </B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>325411</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>85-4094332</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State
                                            or other jurisdiction of</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">incorporation or organization)</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Primary
                                            Standard Industrial</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Classification Code Number)</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(I.R.S.
                                            Employer</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Identification Number)</P></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"><B>6400 SW Rosewood Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lake Oswego, Oregon 97035</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(269) 579-2915</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address, including zip code, and telephone number,
including area code, of registrant&rsquo;s principal executive offices)</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"><B>Eric Gripentrog </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Executive Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>6400 SW Rosewood Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lake Oswego, Oregon 97035</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(269) 579-2915</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Names, address, including zip code, and telephone
number, including area code, of agent for service)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Copies to:</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Joseph
                                            M. Lucosky, Esq.</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Scott E. Linsky, Esq. </B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Lucosky Brookman LLP </B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>101 Wood Avenue South, 5<SUP>th</SUP> Floor</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Woodbridge, NJ 08830</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(732) 395-4400</B></P></TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>M.
                                            Ali Panjwani, Esq.</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pryor Cashman LLP</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>7 Times Square</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, NY 10036-6569</B></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(212) 326-0820 </B></P></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: justify"><B>Approximate date of commencement of proposed
sale to the public: </B>As soon as practicable after this Registration Statement becomes effective.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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, check the following
box. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
See the definitions of &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 Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&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: bottom">
    <TD STYLE="width: 31%; padding-right: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Large
    accelerated filer</FONT></TD>
    <TD STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accelerated
    filer</FONT></TD>
    <TD STYLE="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Non-accelerated filer</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Smaller
    reporting company</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding-right: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Emerging
    growth company</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><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; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for comply with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of Securities Act. &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><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&nbsp;a further amendment
which specifically states that this Registration Statement shall thereafter become effective in accordance with Section&nbsp;8(a) of
the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission, acting
pursuant to said Section&nbsp;8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></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"></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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXPLANATORY NOTE</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">This registration statement contains two prospectuses,
as set forth below.</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: top">
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: left; 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"><B><I>Public Offering Prospectus.</I></B>
    A prospectus to be used for the public offering of common stock through the underwriter named on the cover page of this prospectus,
    which we refer to as Public Offering Prospectus.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: left">&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: 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"><B><I>The Resale Prospectus. </I></B>A prospectus
    to be used for the resale by selling shareholders of [&#9679;] shares of common stock, which we refer to as the Resale Prospectus.</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">The Resale Prospectus is substantively identical
to the Public Offering Prospectus, except for the following principal points:</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>
    <TD STYLE="vertical-align: bottom; width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">they contain different front and back
    covers;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">they contain different Offering sections
    in the Prospectus Summary;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">they contain different Use of Proceeds
    sections;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">the Capitalization and Dilution sections
    are deleted from the Resale Prospectus;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">a Selling Shareholders section is included
    in the Resale Prospectus;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">the Underwriting section from the Public
    Offering Prospectus is deleted from the Resale Prospectus and a Plan of Distribution section is inserted in its place; and</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">the Legal Matters section in the Resale
    Prospectus deletes the reference to counsel for the underwriter.</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">The registrant has included in this registration
statement a set of alternate pages after the back cover page of the Public Offering Prospectus, which we refer to as the Alternate Pages,
to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus. The Public Offering Prospectus
will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale Prospectus will be substantively
identical to the Public Offering Prospectus except for the addition or substitution of the Alternate Pages and will be used for the resale
offering by the selling shareholders.</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="color: Red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>The information in this prospectus
is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell these securities, and it is not soliciting offers to buy these securities
in any state where the offer or sale is not permitted.</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: center"><FONT STYLE="color: Red"><B>SUBJECT TO COMPLETION,
DATED JANUARY 8, 2025</B></FONT></P>

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

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

<P STYLE="color: Red; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PRELIMINARY 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: center"><B>FUNCTIONAL BRANDS INC. </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: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[&#9679;] Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[&#9679;]&nbsp;Series A Warrants to Purchase
Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[&#9679;]&nbsp;Series B Warrants to Purchase
Shares of Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[&#9679;]&nbsp;Shares of Common Stock Underlying
the Series A Warrants and Series B Warrants</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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">This is an initial public offering of our common
stock. We are offering [&#9679;] units (the &ldquo;Units&rdquo;), with each Unit consisting of one (1) share of common stock, par value
$0.00001 per share (&ldquo;Common Stock&rdquo;), a Series A warrant to purchase one (1) share of common stock (the &ldquo;Series A Warrant&rdquo;),
and a Series B warrant to purchase one (1) share of common stock (the &ldquo;Series B Warrant&rdquo; and, together with the Series A
Warrants, the &ldquo;Warrants&rdquo;) based on an assumed offering price of $[&#9679;] per Unit. Each share of our common stock is being
sold together with a Series A Warrant to purchase one share of our common stock and a Series B Warrant to purchase one share of our common
stock. The shares of common stock and Warrants are immediately separable and will be issued separately in this offering but must be purchased
together in this offering.</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">Each Series A warrant will have an exercise price
equal to $[&#9679;] per share (100% of the assumed public offering price of $[&#9679;] per Unit), will be exercisable immediately and
will expire on the third anniversary of the original issuance date. Each Series B warrant will have an exercise price equal to $[&#9679;]
per share ([&#9679;]% of the assumed public offering price of $[&#9679;] per Unit), will be exercisable immediately and will expire on
the fifth anniversary of the original issuance date. The Units will not be certificated.</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 currently estimate that the initial public
offering price will be between $4.00 and $5.00 per share of 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">Currently, there is no public market for our
common stock. We intend to apply to list our common stock on the Nasdaq Capital Market (&ldquo;NASDAQ&rdquo;), under the symbol &ldquo;FBIC&rdquo;.
We cannot guarantee that our common stock will be approved for listing on NASDAQ and if our common stock is not approved for listing
on NASDAQ, we will not consummate this offering.</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 do not intend to apply for the listing of
the Warrants on any national securities exchange or other trading market, and we do not believe any such market will develop. Therefore,
the liquidity of the Warrants will be limited and should be considered illiquid. The Units have no stand-alone rights and will not be
issued as stand-alone securities. The assumed offering price and related share numbers used throughout this prospectus has been included
for illustration purposes only. The actual offering price may differ materially from the assumed price used in the prospectus and will
be determined by negotiations between us and the representative of the underwriters and may not be indicative of prices that will prevail
in the trading 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">This offering also relates to the shares of Common
Stock issuable upon exercise of the Warrants sold in this offering. The shares of Common Stock can each be purchased in this offering
only with the accompanying Warrants (other than pursuant to the underwriters&rsquo; warrant to purchase additional shares of Common Stock
as part of the Units).</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">After completion of this offering, public investors
in the offering will own approximately [&#9679;]% of our outstanding shares of common stock, and approximately [&#9679;]% of our outstanding
shares of common stock will be owned by Hemptown Organics Corp, a British Columbia, Canada corporation (&ldquo;HOC&rdquo;). Accordingly,
we are a &ldquo;controlled company&rdquo; under NASDAQ corporate governance rules and are eligible for certain exemptions from these
rules, though we do not intend to rely on&nbsp;any such exemptions.&nbsp; See &ldquo;<I>Risk Factors &ndash; We will be a &lsquo;controlled
company&rsquo; within the meaning of the listing rules of NASDAQ and, as a result, can rely on exemptions from certain corporate governance
requirements that provide protection to shareholders of other companies</I>&rdquo; on page 32 for more information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an &ldquo;emerging growth company&rdquo;
as that term is defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and, as such, have elected to take advantage
of certain reduced public company reporting requirements for this prospectus and future filings.</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>Investing in our common stock involves a high
degree of risk. See the section of this prospectus entitled &ldquo;Risk Factors&rdquo; beginning on page 13 for a discussion of information
that should be considered in connection with an investment in our common stock.</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"></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>Neither the United States 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></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; border-collapse: collapse; width: 100%">
  <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">PER UNIT</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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>TOTAL<SUP>(4)</SUP></B></FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif">Initial public offering price<SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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"><FONT STYLE="font-family: Times New Roman, Times, Serif">Underwriting discounts and commissions<SUP>(2)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">Proceeds, before expenses, to us<SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">&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="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The assumed initial public offering price
    is $4.50 per unit, which is the midpoint of the range set forth on the cover page of this prospectus.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We have agreed to pay the underwriter a
    discount equal to 8% of the gross proceeds of the offering. We have agreed to issue to the Representative, on the applicable closing
    date of this offering, warrants in an amount equal to 6% of the aggregate number of shares of common stock sold by us in this offering
    (the &ldquo;Representative&rsquo;s Warrants&rdquo;) (not including over-allotment shares). For a description of other terms of the
    Representative&rsquo;s Warrants and a description of the other compensation to be received by the Underwriter, see &ldquo;Underwriting&rdquo;
    section herein beginning on page 96.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Excludes fees and expenses payable to the
    Underwriter. The total amount of Underwriter&rsquo;s expenses related to this offering is set forth in the section entitled &ldquo;Underwriting.&rdquo;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Assumes that the Underwriter does not exercise
    any portion of its over-allotment option.</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">We expect our total cash expenses for this offering
(including cash expenses payable to our Underwriter for its out-of-pocket expenses) to be approximately $[&#9679;], exclusive of the
above discounts. In addition, we will pay additional items of value in connection with this offering that are viewed by the Financial
Industry Regulatory Authority, or FINRA, as underwriting compensation. These payments will further reduce the proceeds available to us
before expenses. See &ldquo;Underwriting&rdquo; beginning on page 96.</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 offering is being conducted on a firm commitment
basis. Joseph Gunnar &amp; Co., LLC (the &ldquo;Underwriter&rdquo;) is obligated to take and pay for all of the shares of common stock
if any such shares of common stock are taken. We have granted the Underwriter an option for a period of 45 days after the closing of
this offering to purchase up to 15% of the total number of our shares of common stock offered by us pursuant to this offering (excluding
shares of common stock subject to this option), solely for the purpose of covering over-allotments, at the initial public offering price
less the underwriting discounts and commissions. If the Underwriter exercises its option in full, the total underwriting discounts and
commissions payable will be $[&#9679;] based on an assumed offering price of $[&#9679;] per unit, and the total gross proceeds to us,
before underwriting discounts and commissions expenses, will be $[&#9679;]. If we complete this offering, net proceeds will be delivered
to us on the applicable closing date.</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 Underwriter expects to deliver the shares
of common stock against payment as set forth under the &ldquo;Underwriting&rdquo; section herein on or about [&#9679;], 2025.</P>

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

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">JOSEPH GUNNAR &amp; CO., LLC</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">Prospectus dated [&#9679;], 2025.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="padding-bottom: 1.5pt; width: 90%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Page</B></FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_001"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prospectus Summary</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">1</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_002"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risk Factors</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">13</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_003"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cautionary Statement Regarding
    Forward-Looking Statements</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">35</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_004"><FONT STYLE="font-family: Times New Roman, Times, Serif">Use of Proceeds</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">36</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_005"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dividend Policy</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">37</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_006"><FONT STYLE="font-family: Times New Roman, Times, Serif">Capitalization</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">37</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_007"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dilution</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">38</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_008"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management&rsquo;s Discussion
    and Analysis of Financial Condition and Results of Operations</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">39</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_009"><FONT STYLE="font-family: Times New Roman, Times, Serif">Business</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">49</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_010"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">80</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_011"><FONT STYLE="font-family: Times New Roman, Times, Serif">Executive Compensation</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">84</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_012"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain Relationships and
    Related Party Transactions</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">86</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_013"><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal Shareholders</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">87</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_014"><FONT STYLE="font-family: Times New Roman, Times, Serif">Description of Securities</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">88</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_015"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares Eligible for Future
    Sale</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">92</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_016"><FONT STYLE="font-family: Times New Roman, Times, Serif">Material U.S. Federal Tax
    Considerations for Non-U.S. Holders of Our Common Stock</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">93</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_017"><FONT STYLE="font-family: Times New Roman, Times, Serif">Underwriting</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">96</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_018"><FONT STYLE="font-family: Times New Roman, Times, Serif">Legal Matters</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">100</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><A HREF="#A_019"><FONT STYLE="font-family: Times New Roman, Times, Serif">Experts</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">100</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><A HREF="#A_020"><FONT STYLE="font-family: Times New Roman, Times, Serif">Where You Can Find More
    Information</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">100</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"><B>Please read this prospectus carefully. It
describes our business, financial condition, results of operations and prospects, among other things. We are responsible for the information
contained in this prospectus and in any free-writing prospectus we have authorized. Neither we nor the Underwriter has authorized anyone
to provide you with different information, and neither we nor the underwriter takes responsibility for any other information others may
give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction where the offer or sale is
not permitted. The information contained in this prospectus is accurate only as of the date on the front of this prospectus, regardless
of the time of delivery of this prospectus or any sale of securities. You should not assume that the information contained in this prospectus
is accurate as of any date other than its date.</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>TRADEMARKS, TRADE NAMES AND SERVICE MARKS</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 use various trademarks, trade names and service
marks in our business, including &ldquo;<I>Biofilm Defense,&rdquo; &ldquo;Flura,&rdquo; &ldquo;Isogest;&rdquo; &ldquo;HempTown,&rdquo;
&ldquo;Nu-Thera,&rdquo; &ldquo;HT Naturals,&rdquo; &ldquo;HempTown Naturals,&rdquo; &ldquo;Ultra Tested,&rdquo; &ldquo;Functional Brands,&rdquo;
and &ldquo;Kirkman</I>,&rdquo; among others. For convenience, we may not include the SM, <SUP>&reg; </SUP>or <SUP>&trade; </SUP>symbols,
but such omission is not meant to indicate that we would not protect our intellectual property rights to the fullest extent allowed by
law. Any other trademarks, trade names or service marks referred to in this prospectus are the property of their respective owners.</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>INDUSTRY AND MARKET DATA</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 includes industry data and forecasts
that we obtained from industry publications and surveys, as well as public filings and internal company sources. Industry publications,
surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable,
but there can be no assurance as to the accuracy or completeness of the included information. Statements as to our ranking, market position
and market estimates are based on management&rsquo;s estimates and assumptions about our markets and our internal research. We have not
independently verified such third-party information, nor have we ascertained the underlying economic assumptions relied upon in those
sources, and we cannot assure you of the accuracy or completeness of such information contained in this prospectus. Such data involves
risks and uncertainties and is subject to change based on various factors, including those discussed under &ldquo;Risk Factors&rdquo;
and &ldquo;Cautionary Statement Regarding Forward-Looking Statements.&rdquo;</P>

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

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

<DIV STYLE="padding-right: 5pt; padding-left: 5pt; border: Black 1.5pt solid; width: 98%"><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><A NAME="A_001"></A>PROSPECTUS SUMMARY</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"><I>This summary highlights selected information
contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that you should consider
before deciding whether to invest in our securities. You should carefully read the entire prospectus, including the risks associated
with an investment in our company discussed in the &ldquo;Risk Factors&rdquo; section of this prospectus, before making an investment
decision. Some of the statements in this prospectus are forward-looking statements. See the section titled &ldquo;Cautionary Statement
Regarding Forward-Looking Statements.&rdquo;</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"><I>Our company consists of two primary legal
entities: Functional Brands Inc. (formerly HT Naturals Inc.), a Delaware corporation (&ldquo;Functional Brands&rdquo;) and HTO Nevada
Inc., a Delaware corporation dba Kirkman (&ldquo;HTO Nevada&rdquo;) HTO Nevada was acquired by Functional Brands through a corporate
restructuring consummated on May 19, 2023. Functional Brands is a 72% subsidiary owned by Hemptown Organics Corp., a British Columbia
corporation (&ldquo;HOC&rdquo;). The percentage of ownership held by HOC in Functional Brands is calculated by dividing the total amount
of shares of Functional Brands owned by HOC by the total amount of outstanding shares of Functional brands as a result of certain transactions
conducted between the entities and described further in this prospectus. HTO Nevada operates in the nutraceutical and supplement industry
through the Kirkman entities as a manufacturer and distributor of health supplements in different categories further described in this
prospectus. Functional Brands Inc. operates certain hemp derived products in different categories further described in this prospectus.
HOC is a holding company with various interests in nutraceutical manufacturing and federally legal industrial hemp products, HOC owns
intellectual property, including brands and pending trademarks, as well as other intangible assets, such as &ldquo;Hemptown&rdquo;, &ldquo;Hemptown
USA&rdquo; Brand and logo pending trademark. Functional Brands has a perpetual license to use and operate the HOC brand and logo. In
this prospectus, &ldquo;Functional Brands,&rdquo; &ldquo;HempTown,&rdquo; &ldquo;HTO Nevada Inc,&rdquo; &ldquo;Kirkman,&rdquo; &ldquo;we,&rdquo;
&ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;our company&rdquo; and similar references refer to Functional Brands Inc.</I></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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>OUR COMPANY</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>Overview</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">Our company operates in the nutraceutical supplement
industry. We are a manufacturer and distributor of supplements in categories such as pain, energy, prenatal, general health, bone and
joint, gastro, immunity, cardiac, detox, brain and memory, sleep, prenatal and urinary. Our end markets focus on end-consumers through
different channels that include pharmacies, US wholesalers, international distributors and direct-to-consumers sales. Our products are
sold over the counter and consumers do not need a prescription to purchase our products. Our products are not approved by the FDA. Our
company also operates in the hemp industry as a retailer of hemp derived products in categories such as capsules, cigarettes, gummies,
and tinctures with a commercial end market, and end-consumers.</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">Functional Brands is a super majority owned subsidiary
of HOC, a privately held British Columbia corporation. Incorporated as HT Naturals Inc. in November 2020, the Company changed its name
to Functional Brands Inc. on March 22, 2023. The Company aims to deliver the highest quality and innovative products under multiple brands.
Kirkman, P2i by Kirkman Prenatal, HempTown Naturals and Golf Mellow are current brands in the market or prepared to be launched in the
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"><B>Our Products</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"><I>Kirkman Brand</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">Our products under our &ldquo;Kirkman&rdquo;
brand are manufactured in our cGMP certified, FDA registered manufacturing facility located in Lake Oswego, Oregon. Kirkman is a manufacturer
of nutritional supplements. Founded in 1949, Kirkman is also one of the oldest nutritional supplement companies serving the special needs
community.</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">Our Kirkman brand offers more than 150 products,
including probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, preconception,
prenatal supplements, personal care products and other specialty products. Kirkman treats patients with autism spectrum disorders and
special dietary needs through an established network of over 2,000 doctors in over 40 countries. Our Kirkman brand operates in 95% of
the major subsegments in the supplement industry. Kirkman has a long-standing loyal customer and consumer base due to the rigorous testing
of products in compliance with FDA requirements. Kirkman has been endorsed by various businesses and celebrities, including the famous
and original Shark Tank member, Kevin Harrington.</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"><U>Digestive enzymes</U>: Over the counter oral
digestive enzyme supplements are a combination of proteases, which aid protein digestion; lipases, which aid in fat digestion; and amylases,
which aid in carbohydrate digestion. These may be prescribed by a doctor in some cases, when the pancreas does not make enough digestive
enzymes on its own. People are increasingly taking over the counter (&ldquo;OTC&rdquo;) digestive enzymes in lower doses to support general
gut health.</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"><U>Essential fatty acids</U>: Also called omega-3
fatty acids, essential fatty acids are important digestive chemicals that the body cannot make on its own.</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></DIV>

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<DIV STYLE="border: Black 1.5pt solid; padding-right: 5pt; padding-left: 5pt; width: 98%"><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">Our products under the Kirkman Brand include,
but are not limited to, the following:</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: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 5%">&#9679;</TD>
    <TD STYLE="width: 30%">Supplements for Autism; &nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&#9679;</TD>
    <TD STYLE="width: 45%">Essential Fatty Acids; &nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;&nbsp;</TD>
    <TD>Oxytocin; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Vitamin B12; &nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Vitamin B6 and Magnesium; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Glutathione; &nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Melatonin; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Functional Mushrooms; &nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Probiotics; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Multivitamins and Minerals; &nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&#9679;</TD>
    <TD STYLE="font-size: 10pt">Digestive Enzymes;</TD>
    <TD>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD>Antioxidants; and &nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&#9679;</TD>
    <TD STYLE="font-size: 10pt">Amino Acids.</TD></TR>
  </TABLE>

<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"><I>P2i (prenatal) Brand</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 have recently launched a certified prenatal
vitamin in April 2024 for expectant mothers under the P2i by Kirkman brand. These vitamins have been specially formulated by our company
to provide essential nutrients for both the mother and the developing fetus. The International Federation of Gynecology and Obstetrics
(&ldquo;FIGO&rdquo;) published a position statement about toxic chemicals and environmental contaminants in prenatal vitamins. FIGO&rsquo;s
recommendation from the October 2023 position statement highlights that patients should only consume, and clinicians should only prescribe,
vitamins and supplements that have been independently assessed to make certain they do not contain contaminants. Manufacturers should
be held to a standard of production that assures safety and minimizes contaminants and certification of all prenatal vitamins becomes
the standard of care. The FIGO Committee report on Climate Change and Toxic Environmental Exposures brought together global scientists
to review reputable reference sources for chemicals that have the potential to impact maternal and newborn health, including the USA
Environmental Protection Agency, the European Union, and the California EPA.</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 group of experts recommended several approaches,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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">1.</TD><TD STYLE="text-align: justify">creating a list of toxic chemicals
                                            and contaminants that should be screened for in Prenatal Vitamins and reduced to de minimis
                                            standards; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                              </TABLE>

<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">2.</TD><TD STYLE="text-align: justify">conducting assays of existing
                                            vitamins to assess ongoing risk to maternal and newborn health. This work can extend to personal
                                            exposure risk by offering women testing for the presence of potentially toxic environmental
                                            chemicals. Mass Spectrometry currently offers the most comprehensive measurement.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This first publication of a list of toxic chemicals
and contaminants represents the most comprehensive testing available at present but does not purport to identify or eliminate all potential
sources of toxicity.</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 currently the only certified prenatal
vitamin in the market that aligns to the FIGO position statement. We have formulated and produced a prenatal vitamin called P2i by Kirkman.
There are 3.6M pregnancies alone in the United States (https://www.cdc.gov/nchs/fastats/births.htm) and the initial market focus for
this product will be the United States with the expectation to expand globally since FIGO&rsquo;s position statement reaches all countries.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM&rsquo;s low-toxicity standards, which align with FIGO&rsquo;s objectives for maternal
                                            and fetal health. These standards include:</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD>Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">Testing for the presence of 120
                                            toxic chemicals, such as pesticides and endocrine disruptors, with strict limits to prevent
                                            potential harm</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">Utilization of ISO 17025-accredited
                                            laboratories for all testing to ensure reliability and reproducibility of results</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product&rsquo;s compliance with The FORUM&rsquo;s criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman&rsquo;s prenatal vitamin meets
                                            its standards for low toxicity and safety.</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></DIV>

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<DIV STYLE="border: Black 1.5pt solid; padding-right: 5pt; padding-left: 5pt; width: 98%"><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>HempTown Naturals Brand</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">All HempTown Naturals products are produced and
sold in compliance with the US 2018 Farm Bill and the US Agricultural Act of 2014. CBD and CBG are cannabinoids present in the cannabis
plant. Both CBD and CBG are used in hemp derived products. These products are believed to help in treating certain neurodegenerative
and inflammatory conditions.<SUP>1</SUP></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">CBD</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">CBD, or cannabidiol, is the second most prevalent
ingredient in cannabis. While CBD is an integral component of medical marijuana, it is derived directly from the hemp plant, both of
which are the same species: Cannabis sativa L. One of the hundreds of components of Cannabis sativa L., CBD does not cause a &ldquo;high&rdquo;
by itself. According to a report from the World Health Organization, &ldquo;In humans, CBD exhibits no effects indicative of any abuse
or dependence potential&hellip;. To date, there is no evidence of public health related products associated with the use of pure CBD.&rdquo;<SUP>2</SUP></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 reported by Forbes Health, CBD is applied
topically or consumed through smoke inhalation or edible consumption. CBD interacts with neuroreceptors in your endocannabinoid system,
which sends signals between your cells to help regulate your movement, mood, homeostasis, and immune system. Different studies have shown
that CBD can offset everyday anxiety and depression.<SUP>3</SUP></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CBG</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">CBG, or cannabigerol, is another compound found
in hemp which doesn&rsquo;t have intoxicatingly psychoactive effects. CBG, often referred to by experts as &ldquo;the mother of all cannabinoids,&rdquo;
is the cannabinoid from which other types of cannabinoids (including CBD) are derived, says Michelle Sexton, a naturopathic doctor who
works at the Pain Trauma Institute in San Diego. &ldquo;CBG is the first compound in the biosynthesis (the production of chemical compounds
by a living organism) of the other cannabinoids,&rdquo; she adds.</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">CBG is available in many forms, including tinctures,
gummies, capsules and topical creams and lotions. CBG is often coupled with CBD in these products because the two cannabinoids can provide
complimentary benefits, such as decreasing inflammation and pain, says Fraser Smith, a naturopathic doctor, as well as assistant dean
and associate professor at the National University of Health Services in Lombard, Illinois. CBD and CBG occur naturally in hemp extract
which is the source of our cannabinoids.<SUP>4</SUP></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"><I>Golf Mellow Brand</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">The Company has utilized existing product formulations
with plans to introduce 12 different products under the Golf Mellow brand. A brand logo and packaging has been created to support the
existing formulations. These supplements will be targeting the golf industry and golf professionals. These products include capsules,
a powder, a cream and tinctures to help golfers of all levels improve their game and overall well-being. The capsules are packed with
a blend of essential vitamins and minerals that support joint health, flexibility, and energy levels. The tinctures are made from all-natural
ingredients and provide a quick and easy way to support focus and mental clarity, helping athletes stay in the zone and make the perfect
shot. The creams are specially designed to provide targeted relief for sore muscles and joints, helping them stay comfortable and focused
on the course. Some of these products include Sleep Caps to ensure that players are well rested the night before, Super B12 Powder which
provides the energy needed for the perfect round, Calm Caps which help manage anxiety when players need it most, and Epsom Salt Cream
&amp; Recovery Caps, which aids with recovery. Once we receive a purchase order, we will package the products to fulfill the respective
order.</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">According to data from the National Golf Foundation
25.1 million people (aged six and over) played on a golf course in the United States in 2021 &ndash; furthermore there were another 12.4
million people who took part in off-course activities like driving ranges, indoor golf simulators or venues like Topgolf and Drive Shack.<SUP>5</SUP></P>

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

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<P STYLE="margin: 0"></P>





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

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    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">https://www.medicalnewstoday.com/articles/cgb-vs-cbd</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>2</SUP></FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">www.health.harvard.edu</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>3</SUP></FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">www.forbes.com/health/body/cbd-oil-benefits/</FONT></TD></TR></TABLE>


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



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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0px"></TD><TD STYLE="width: 24px; text-align: left"><SUP>4</SUP></TD><TD STYLE="text-align: justify">www.forbes.com/health/body/cannabigerol-cbg/</TD>
</TR></TABLE>

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

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><SUP>5</SUP></TD><TD STYLE="text-align: justify">https://www.golfmonthly.com/news/how-many-golfers-are-there-in-the-united-states</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></DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Competitive Strengths</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 Kirkman brand has been in business for over
70 years with a loyal consumer base and we believe that we maintain high purity and quality standards in the industry. We source all
materials from high quality suppliers. We test finished goods in certified laboratories with state-of-the-art equipment and manufacture
our supplements in US-based cGMP certified and FDA registered facility located in Lake Oswego, Oregon. The FDA requires that we conduct
at least one appropriate test or examination to verify and identify any component that is a dietary ingredient. We conduct ingredient
testing by verifying the identity through ISO certified 3rd party laboratories. We also test for residual solvents and pesticides (where
applicable), presence of up to 24 heavy metals and microbial contamination that could lead to illness or death. Microbial tests can include,
but are not limited to, aerobic plate count, yeast &amp; mold, coliforms, E. coli, pseudomonas, staphylococcus aureus, Bile Tolerant
gram negative, Salmonella, Aflatoxins and listeria. Heavy metals testing includes beryllium, aluminum, vanadium, chromium, manganese,
cobalt, nickel, copper, zinc, arsenic, selenium, molybdenum, palladium, silver, cadmium, tin, antimony, barium, tungsten, platinum, thallium,
lead, uranium and mercury. For incoming raw ingredients, we ID using the following methods: Botanicals &ndash; HPLC (High Pressure Liquid
Chromatography) or TLC (Thin Layer Chromatography), or an approved Chemical test; Vitamins &ndash; IR (Infrared) absorption, Chemical
test, UV (Ultraviolet) absorption, UV fluorescence, GC (Gas Chromatography), HPLC; Minerals &ndash; ICP-MS (Inductively Coupled Plasmas
&ndash; Mass Spectroscopy), IR (Infrared), Chemical tests, TLC (Thin Layer Chromatography); Enzymes &ndash; HPLC (High Pressure Liquid
Chromatography), PCR (Polymerase Chain Reaction); Amino Acids &ndash; IR absorption, Optical Rotation, HPLC, TLC, GC (Gas Chromatography),
Assay; Probiotics &ndash; PCR and HPLC; Metals &ndash; HPLC or ICP-MS; Micros &ndash; Cell culture and cell identification. The FDA requires
that a finished batch of the dietary supplement meets product specifications for identity, purity, strength, composition, and for limits
on those types of contamination that may adulterate or that may lead to adulteration of the finished batch of the dietary supplement.
This can be conducted for a subset of finished dietary supplement batches through a sound statistical sampling plan (or for every finished
batch). For our business, we test every batch of products to ensure heavy metals are below Pop 65 limits. In addition, every batch is
tested for microbial contamination. Our 75+ year history in the industry, along with our rigorous material testing, allows Kirkman to
use statistical sampling to ensure the identity, purity and strength of each product is met. Our formulations use proprietary blends.
Although we are authorized to produce hemp derived products because we hold a hemp handler&rsquo;s license, we currently do not grow
any hemp, but we source our hemp derived products from registered growers in operation. The FDA does not require any testing on dietary
supplements whereas we test for approximately 90 metals and toxins in raw materials.</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 stated elsewhere in this prospectus, we&rsquo;ve
recently launched P2i by Kirkman prenatal vitamin, which is the only certified prenatal vitamin that aligns to FIGO&rsquo;s position
statement.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM&rsquo;s low-toxicity standards, which align with FIGO&rsquo;s objectives for maternal
                                            and fetal health. These standards include:</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD>Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD>Testing for the presence of 120 toxic chemicals, such as pesticides
                                            and endocrine disruptors, with strict limits to prevent potential harm</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD>Utilization of ISO 17025-accredited laboratories for all testing
                                            to ensure reliability and reproducibility of results</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

</DIV>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product&rsquo;s compliance with The FORUM&rsquo;s criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman&rsquo;s prenatal vitamin meets
                                            its standards for low toxicity and safety.</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">We have an exclusive license agreement with the
Trailer Park Boys to market &amp; sell hemp derived products. There are two product categories that include Hemp Derived Delta 9 products.
This includes Delta 9 gummies and Delta 9 Drink Enhancers. These two specific products are intended for health and wellness, as well
as for recreational use. Both product categories comply with the 2018 Farm Bill where THC concentration does not exceed 0.3% on a dry
weight basis. The revenue of these two product categories represents .6% of total company revenue. We executed a license agreement with
the Trailer Park Boys which is in effect since July 21, 2021 and until December 31, 2024, under the license agreement as amended, the
Company will pay the Trailer Park Boys, an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of
the agreement and $150,000 to be paid during the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000
shares of the Company. The royalty rate under this agreement is between 15 - 30% of the gross sales of the company derived from sales
related to the license. To date, $425,000 has been paid to the Trailer towards the license agreement. The license agreement may be terminated
with reasonable cause upon six months&rsquo; written notice or for certain triggering events without recourse or an opportunity to cure.</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>Growth Strategy</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 aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products including mushroom-based supplements targeted for everyday use, prenatal, athletes and beyond.</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 plan to do this by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.65pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Strengthening our
    existing 70-year-old Kirkman brand with its established base of consumers in the autism community by curating our product mix to
    cater to their specific needs;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Launching multiple
    brands, broad as well as niche, including P2i by Kirkman which is the only certified prenatal vitamin supporting FIGO&rsquo;s October
    2023 position statement, to allow us to increase our market share;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Modernizing our
    manufacturing capabilities by reorganizing the space and introducing new and efficient machinery and equipment to significantly enhance
    our output;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investing heavily
    into our sales and marketing activities as well as business development in order to increase sales and distribution; and</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Identify key companies
    with synergistic strengths for partnerships or acquisitions.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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>Challenges, Risks and Limitations</B>&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">Our ability to utilize our competitive advantages
in order to strengthen and expand our business and achieve our growth plan is subject to a number of risks and uncertainties more fully
discussed under &ldquo;Risk Factors&rdquo; in this Prospectus. As discussed in our financial statements, we have suffered recurring losses
from operations and have a significant accumulated deficit. In addition, we continue to experience negative cash flows from operations.
This limited working capital capability may delay or make the accomplishment of our growth plans difficult. In assessing the likelihood
of our future success, investors in this offering should note our history of losses and the likelihood of our operating profitably in
the future. Further, some of our products may be subject to uncertain and evolving federal, state, and local regulations concerning hemp,
CBD, CBG, and other non-tobacco consumable products. Because the type, timing, and impact of such regulations remain uncertain, we cannot
give any assurance that such actions will not have a material adverse effect on this emerging business and our strategy.</P>

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

</DIV>

<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"><B>Our Corporate History and Structure</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">Functional Brands was organized under the General
Corporation Law in the state of Delaware on November 19, 2020, under the name HT Naturals Inc. HT Naturals Inc. changed its name to Functional
Brands Inc. on March 23, 2023. Our principal business is the production, marketing, sales, and distribution of nutraceutical products
through our Kirkman division, alongside our hemp derived products under the Hemptown brand in certain states within the United States
that permit such sales. We ship our Kirkman products to all US states. As for hemp derived products, we only sell to states which permit
this activity with certain restrictions, such as the content of THC, which differs depending on the state.</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 states in which we have sold hemp derived
products in the past are Alabama, Arizona, Arkansas, California (D9 ingestible and CBD/CBG ingestible only), Colorado (CBD/CBG inhalable
only), Connecticut, Delaware (D9 ingestible), Florida, Georgia (D9 ingestible and CBD/CBG ingestible only), Hawaii (CBD/CBG ingestible
only), Illinois(D9 ingestible and CBD/CBG inhalable), Indiana (D9 ingestible only), Iowa (D9 ingestible only), Kansas, Kentucky (D9 ingestible
only), Louisiana, Maine (D9 ingestible and CBD/CBG inhalable), Maryland (CBD/CBG inhalable only), Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nevada, New Hampshire, New Jersey, New York (D9 and CBD/CBG ingestible only), North Carolina, North Dakota (CBD/CBG
ingestible only), Ohio, Oklahoma, Oregon (CBD/CBG ingestible only), Pennsylvania, Rhode Island, South Carolina, South Dakota (D9 ingestible
only), Tennessee (CBD/CBG inhalable only), Texas, Virgina (CBD/CBG ingestible and inhalable only), Washington (CBD/CBG Inhalable only),
West Virginia, Wisconsin, Wyoming. We have engaged specialized hemp counsel to provide regular updates on the 50 states and the legality
of our hemp products in each state. In addition, we have established and followed a standard of operating procedure (SOP) to ensure sales
do not occur in the states where hemp products may not be sold consistent with the regular updates provided by our hemp counsel. We have
an internal policy that prohibits us as a company and any of our executives, directors, employees, sales representatives, and distributors
from distributing any of the Company&rsquo;s hemp derived products in places in which the sale of hemp derived products is prohibited.</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 a 72% subsidiary of Hemptown Organics
Corp. (&ldquo;HOC&rdquo;), a British Columbia, Canada private operating holding company with various interests in nutraceutical manufacturing
and federally legal industrial hemp products. We were granted a licensing agreement by Hemptown Organics Corp. The licensing agreement,
dated December 10, 2020, provides Functional Brands Inc. as licensee, a license to use the Hemptown USA and Hemptown Naturals brand and
trademarks on a perpetual, non-exclusive, non-transferable basis, with no expiration date. The 72% ownership was calculated by dividing
the total number of shares of Functional Brands owned by HOC by the total number of outstanding shares of Functional brands, the figure
is the result of certain transactions conducted between the entities. HOC was issued 40,000,000 shares in connection with the license
agreement with Functional Brands Inc. (formerly HT Naturals) and 80,000,000 shares for the transfer of the Kirkman brand to Functional
Brands Inc. in May 2023, resulting in an amount equal to 120,000,000 shares. After these issuances, Hemptown Organics Corp. undertook
transactions to sell 32,000,000 of its shares of Functional Brands Inc., resulting in the total amount of 88,000,000 shares held in Functional
Brands. Therefore 88,000,000 divided by 122,000,000 (which is the total amount of outstanding shares of Functional Brands) is approximately
72%. This licensing agreement will transfer full ownership to Functional Brands upon the public offering and listing on the exchange,
at which time HOC will dividend out the majority of the Company&rsquo;s shares currently held by HOC.</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 July 3, 2019, HTO Holdings Inc. (&ldquo;HTO
Holdings&rdquo;) a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as &ldquo;Purchaser&rdquo;),
entered into an asset purchase agreement (&ldquo;APA&rdquo;) for the net assets of Kirkman Group Inc. a Nevada corporation, Kirkman Laboratories
Inc., an Oregon corporation and Kirkman Group International, Inc. a Nevada corporation (collectively &ldquo;Kirkman&rdquo; or the &ldquo;Seller,&rdquo;
and together with Purchaser, the &ldquo;Parties&rdquo;) for a consideration equal to $5 million with payout in a business combination
of cash and deferred consideration. The &rsquo;&rsquo;Seller&rsquo;&rsquo; is David Humphrey. Under the APA, Purchaser and HTO Holdings
were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021 by the Parties with the
purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment schedule of the deferred
consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and other agreements attached
to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement, the domain names transfer
agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively, the &ldquo;IP Collateral
Agreements&rdquo;) to, among other things, provide additional collateral as security to Seller. Upon payment in full in cash of the deferred
consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that the security agreement and amended
intellectual property security agreement would be automatically terminated and be of no further force and effect; and (ii) Seller would,
at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective security agreement and intellectual
property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16, 2022, the APA was amended again by
the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral Agreements. On May 31, 2022,
Purchaser paid Seller certain amounts (&ldquo;Immediate Payments&rdquo;), and on July 23, 2022, Purchaser and Seller executed a forbearance
agreement (&ldquo;Forbearance Agreement&rdquo;) to extend the payments due under the APA to August 31, 2022. After Purchaser&rsquo;s
default, and partial payment to Seller in September 2022, the Parties executed an amendment to the Forbearance Agreement on December
27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was $3,032,000 (the &ldquo;Existing Default&rdquo;).
Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated September 24, 2024, where additional principal and
interest payments will continue. As of October 11, 2024, the balance owed to Seller is $2,412,366 and is due on January 1, 2025. We intend
to use a portion of the proceeds of the public offering to cover the payment of some of the Existing Default.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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 September 24, 2024, the Company executed a
Forbearance Agreement which allows the postponement of principal payment. On the same date, the Company executed a Confession of Judgement
in respect of the principal owed.</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></DIV>

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



<DIV STYLE="border: Black 1.5pt solid; padding-right: 5pt; padding-left: 5pt; width: 98%"><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 a part of our restructuring efforts, HTO Nevada,
formerly owned by HTO Holdings, was acquired by Functional Brands on May 19, 2023, through a share exchange agreement executed by HOC,
HTO Holdings and Functional Brands, in which HTO Holdings exchanged 1,000 restricted shares of common stock, par value $0.0001 per share
of HTO Nevada, being all of the issued and outstanding capital stock of HTO Nevada, in exchange for 80,000,000 restricted shares of common
stock of Functional Brands, $0.00001 par value per share (the &ldquo;Functional Brands Shares&rdquo;) to HOC, such that, HTO Nevada shall
be a wholly-owned subsidiary of Functional Brands. The resulting entity, Functional Brands Inc., with its wholly owned subsidiary HTO
Nevada, will be the publicly listed entity. Our fiscal year-end is December 31.</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"><B>Implications of Being an Emerging Growth Company
and a Smaller Reporting Company</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">Upon the completion of this offering, we will
qualify as an &ldquo;emerging growth company&rdquo; under the Jumpstart Our Business Startups Act of 2012 (the &ldquo;JOBS Act&rdquo;).
As a result, we will be 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:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.65pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; 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 2002 (the &ldquo;Sarbanes-Oxley
    Act&rdquo;);</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; 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);</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Submit certain executive
    compensation matters to shareholder advisory votes, such as &ldquo;say-on-pay&rdquo; and &ldquo;say-on-frequency;&rdquo; and</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; 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; text-align: center"></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">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 of 1933, as amended (the &ldquo;Securities Act&rdquo;) 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.</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 remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed
$1.235 billion, (ii) the date that we become 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 common stock that is held by non-affiliates
exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we
have issued more than $1 billion in non-convertible debt during the preceding three year period.</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">To the extent that we continue to qualify as
a &ldquo;smaller reporting company,&rdquo; as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended,
(the &ldquo;Exchange Act&rdquo;), after we cease to qualify as an emerging growth company, certain of the exemptions available to us
as an emerging growth company may continue to be available to us as a smaller reporting company, including: (i) not being required to
comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (ii) scaled executive compensation disclosures;
and (iii) the requirement to provide only two years of audited financial statements, instead of three 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"><B>Corporate 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 are currently incorporated and in good standing
in the State of Delaware. Our registered address is 6400 SW Rosewood Street, Lake Oswego, Oregon 97035 and our telephone number is (800)
245-8282. We maintain the following websites: https://functionalbrandsinc.com, https://kirkmangroup.com and https://hemptownnaturals.com.
Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus, and you should
not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether
to purchase our 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"><B>NASDAQ Listing</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 intend to list our common stock on NASDAQ.
There is no assurance that our listing application will be approved by NASDAQ. The approval of our listing on NASDAQ is a condition to
closing. If our application to NASDAQ is not approved or we otherwise determine that we will not be able to secure the listing of our
common stock on NASDAQ, we will not complete the offering.</P>

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

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<DIV STYLE="padding: 5.4pt; border: Black 1.5pt solid; width: 98%"><P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>THE OFFERING</B></FONT></TD></TR>
  <TR>
    <TD STYLE="width: 24%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 75%; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Shares being offered:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">[
                                            &nbsp;&nbsp;] Units, with each Unit consisting of one share of Common Stock, one Series A
                                            Warrant to purchase one share of Common Stock and one Series B Warrant to purchase one share
                                            of Common Stock, at an estimated public offering price of $[&#9679;] per Unit (or [ ] Units
                                            if the representative of the underwriters exercises its over-allotment option in full).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of Common Stock and the Warrants underlying
the Units are immediately separable and will be issued separately in this offering but must be purchased together as a Unit in this offering.</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">Each Series A Warrant issued in this offering
will have an exercise price of $[&#9679;] per whole share and will be exercisable from the initial issuance date until they expire on
the three-year anniversary of the original issuance date.</P>

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

<P STYLE="margin: 0pt 0">Each Series B Warrant issued in this offering will have an exercise price of $[&#9679;] per whole share and
will be exercisable from the initial issuance date until they expire on the five-year anniversary of the original issuance date.</P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Offering price:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We currently
                                            estimate that the initial public offering price will be $4.50 per Unit.</P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Shares outstanding
    immediately before the offering:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">[&#9679;] shares of common
    stock.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Shares
    outstanding after the offering:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">[&#9679;]&nbsp;shares
                                            of common stock (or [&#9679;]&nbsp;shares if the Underwriter exercises the over-allotment
                                            option in full) assuming no exercise of the Warrants.</P></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Over-allotment option:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We have granted the
    Underwriter a 45-day option to purchase from us up to an additional 15% of the shares sold in the offering ([&#9679;] additional
    shares) at the initial public offering price, less the underwriting discounts and commissions.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: left; vertical-align: top"><B>Description of Warrants:</B></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each Series
                                    A Warrant will have an exercise price per share of [&#9679;] equal to 100% of the public offering
                                    price per Unit, will be exercisable immediately and will expire on the third anniversary of the original
                                    issuance date. Each Series A Warrant is exercisable for one share of Common Stock, subject to adjustment
                                    in the event of stock dividends, stock splits, stock combinations, reclassifications, reorganizations
                                    or similar events affecting our Common Stock as described 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">Each Series B Warrant will have an exercise price
per share of [&#9679;] equal to [&#9679;]% of the public offering price per Unit, will be exercisable immediately and will expire on
the fifth anniversary of the original issuance date. Each Series A Warrant is exercisable for one share of Common Stock, subject to adjustment
in the event of stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting our
Common Stock as described 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">Each holder of Warrants will be prohibited from
exercising its Warrant for shares of our Common Stock if, as a result of such exercise, the holder, together with its affiliates, would
own more than 4.99% of the total number of shares of our Common Stock then issued and outstanding. However, any holder may increase such
percentage to any other percentage not in excess of 9.99%. The terms of the Warrants will be governed by a Warrant Agent Agreement, dated
as of the effective date of this offering, between us and Endeavor Trust Corporation, as the warrant agent (the &ldquo;Warrant Agent&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">This offering also relates to the offering of
the shares of Common Stock issuable upon the exercise of the Warrants. For more information regarding the Warrants, you should carefully
read the section titled &ldquo;Description of Securities Being Offered in This Offering&rdquo; in this prospectus.</P>

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

<P STYLE="margin: 0">&nbsp;</P>

</DIV>

<P STYLE="margin: 0"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 24%"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Representative&rsquo;s warrants:</B></FONT></TD>
    <TD STYLE="text-align: justify; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify; width: 75%"><FONT STYLE="font-family: Times New Roman, Times, Serif">We have
    agreed to issue to the representative of the Underwriter (the &ldquo;Representative&rdquo;) warrants to purchase a number of shares
    of common stock equal to 6% of the total number of shares issued in this offering. The Representative&rsquo;s warrants will be exercisable
    at a per share exercise price equal to 100% of the public offering price per share of common stock sold in this offering. The Representative&rsquo;s
    warrants will be exercised at any time, and from time to time, in whole or in part, commencing from the closing of the offering and
    expiring five years from the effectiveness of the offering. The registration statement of which this prospectus forms a part also
    registers the issuance of the shares of common stock issuable upon exercise of the Representative&rsquo;s warrants. See the &ldquo;<I>Underwriting</I>&rdquo;
    section for more information.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Use of proceeds:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">We expect to receive net proceeds of approximately $[ ] from this offering (or
    approximately $[ ] if the Underwriter exercises their over-allotment option in full), assuming an initial public offering price of&nbsp;$4.50&nbsp;per
    Unit (which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus)
    and no exercise of the Underwriter&rsquo; over-allotment option, and after deducting estimated underwriting discounts and commissions
    and estimated offering expenses payable by us. We plan to use 53% of the net proceeds of this offering to cover a deferred payment
    in connection with the Kirkman acquisition, which has a maturity date of January 1, 2025; 7% for marketing awareness; 14% to cover
    expenses associated with becoming a public company; and 26% for general corporate purposes and working capital. See &ldquo;<I>Use
    of Proceeds</I>&rdquo; section for more information on the use of proceeds.</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risk factors:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investing in our common
    stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully
    consider the information set forth in the &ldquo;<I>Risk Factors</I>&rdquo; section beginning on page 13 before deciding to invest
    in our common stock.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Lock-up:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We, all of our directors
    and officers and all of our shareholders have agreed with the Underwriter, subject to certain exceptions, not to sell, transfer or
    dispose of, directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our
    common stock for a period of 180 days after the closing of this offering. See &ldquo;<I>Underwriting</I>&rdquo; for more information.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Proposed
    trading market and symbol:</B></FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We intend to apply
    to list our common stock on NASDAQ under the symbol &ldquo;FBIC&rdquo; We believe that upon the completion of this offering, we will
    meet the standards for listing on NASDAQ. The closing of this offering is contingent upon the successful listing of our common stock
    on NASDAQ.</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD COLSPAN="3"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The number of shares of common
                    stock outstanding immediately following this offering is based on [&nbsp;&nbsp; ] shares outstanding as of [&nbsp;
                    ], 2025.</P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

</DIV>

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

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<DIV STYLE="border: Black 1.5pt solid; padding-right: 5pt; padding-left: 5pt; width: 98%"><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>SUMMARY FINANCIAL INFORMATION</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">The following tables summarize certain financial
data regarding our business and should be read in conjunction with our financial statements and related notes contained elsewhere in
this prospectus and the information under &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations</I>.&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">Our summary financial data as of December 31,
2023, and 2022, are derived from our audited financial statements included elsewhere in this prospectus. All financial statements included
in this prospectus are prepared and presented in accordance with generally accepted accounting principles in the United States (&ldquo;GAAP&rdquo;).
The summary financial information is only a summary and should be read in conjunction with the historical financial statements and related
notes contained elsewhere herein. The financial statements contained elsewhere fully represent our financial condition and operations;
however, they are not indicative of our future performance.</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="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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine-month Period Ended</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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Years
    Ended</B><FONT STYLE="font-size: 10pt">&nbsp;</FONT></FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September
                                            30, <BR>
                                            <FONT STYLE="font-family: Times New Roman, Times, Serif">2024</FONT></B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September
                                            30, <BR>
                                            <FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center"><B>December
    31, <BR>
    <FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December
                                            31, <BR>
                                            <FONT STYLE="font-family: Times New Roman, Times, Serif">2022</FONT></B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Restated)</B></P></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; white-space: nowrap">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify">Statements of Operations Data</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify">Net Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,886,331</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,268,405</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,820,499</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,051,224</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cost of Goods Sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,272,561</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,852,939</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,641,648</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,049,780</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,703,668</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,804,658</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,261,354</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,339,296</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Operating Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(89,898</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(389,192</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,082,503</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,337,852</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Other Income / (Expenses), Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(185,740</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(247,705</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(158,591</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">395,517</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(275,638</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(636,897</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,241,094</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(942,335</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>

<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="white-space: nowrap; padding-bottom: 1.5pt; text-align: justify">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center">Period Ended</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years Ended</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: justify">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>September
                                            30, <BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,
    <BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,
    <BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify">Balance Sheet Data</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">246,903</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">374,435</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">202,827</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Total Current Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,678,503</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,543,744</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,728,173</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">Total Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,088,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,254,635</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,444,378</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Total Current Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,039,925</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,251,468</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,488,657</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">Total Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,337,949</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,228,756</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,703,451</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Accumulated Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,377,212</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,101,574</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,860,480</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Total Stockholder&rsquo;s Equity / (Deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(249,759</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,879</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,259,073</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Total Liabilities and Stockholders&rsquo; Equity / (Deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,088,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,254,635</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,444,378</TD><TD STYLE="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">Dismissal of Previous Independent Registered Public Accounting Firm.&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: 0pt 0; text-align: justify">On February 14, 2024, BF Borgers CPA PC (&ldquo;BF
Borgers&rdquo;) notified Functional Brands Inc. (the &ldquo;Company&rdquo;) that it was resigning as the independent registered public
accounting firm for the Company. BF Borgers is not required to obtain and did not seek, the Company&rsquo;s consent to its decision to
resign as the Company&rsquo;s independent registered public accounting firm. As a result, the board of directors of the Company (the
&ldquo;Board&rdquo;) did not take part in BF Borgers&rsquo;s decision to provide its notice of resignation.</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 Company&rsquo;s two most recent fiscal
years ended December 31, 2023 and 2022, and the subsequent interim period through June 30, 2024, there were (i) no disagreements with
BF Borgers on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of BF Borgers would have caused them to make reference thereto in connection with their
reports on the financial statements for such years and (ii) no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).</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">BF Borgers&rsquo;s audit reports on the Company&rsquo;s
consolidated financial statements for the fiscal years ended December 31, 2022 and 2021 did not contain any adverse opinion or disclaimer
of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.</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">Appointment of New Independent Registered Public
Accounting Firm.</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 March 12, 2024, the Company engaged and executed
an agreement with TAAD, as the Company&rsquo;s new independent accountant for the fiscal years ended December 31, 2023 and 2022. The
board of directors approved the decision to engage TAAD.</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">During the Company&rsquo;s fiscal years ended
December 31, 2023 and 2022, and the subsequent interim period through June 30, 2024, neither the Company nor anyone on its behalf consulted
with TAAD on either (a) the application of accounting principles to a specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the consolidated financial statements of the Company and its subsidiaries, and no written
report or oral advice was provided by TAAD to the Company that TAAD concluded was an important factor considered by the Company in reaching
a decision as to the accounting, auditing or financial reporting issue, or (b) any matter that was the subject of either a disagreement
(as defined in Item 304(a)(1)(iv) of Regulation S-K) or a reportable event (as described in Item 304(a)(1)(v) of Regulation S-K).</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></DIV>

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<DIV STYLE="border: Black 1.5pt solid; padding-right: 5pt; padding-left: 5pt; width: 98%"><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>SUMMARY OF RISK FACTORS</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">An investment in our common stock involves a
high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the &ldquo;<I>Risk
Factors</I>&rdquo; section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:</P>

<P STYLE="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>
    <TD STYLE="vertical-align: bottom; width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our independent
    registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may be unable
    to effectively manage future growth. We will need additional financing in the future, which may not be available when needed or may
    be costly and dilutive.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If we are unable
    to continue as a going concern, our securities will have little or no value.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We have a limited
    operating history, and we may not be able to successfully operate our business or execute our business plan.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may incur significant
    debt to finance our operations.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We compete in an
    industry that is brand-conscious, so brand name recognition and acceptance of our products are critical to our success.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our brand and image
    are keys to our business and any inability to maintain a positive brand image could have a material adverse effect on our results
    of operations.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Competition from
    traditional and large, well-financed product manufacturers or distributors may adversely affect our distribution relationships and
    may hinder development of our existing markets, as well as prevent us from expanding our markets.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We compete in an
    industry characterized by rapid changes in consumer preferences and public perception, so our ability to continue developing new
    products to satisfy our consumers&rsquo; changing preferences will determine our long-term success.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may be unable
    to respond effectively to technological changes in our industry, which could reduce the demand for our products.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may experience
    a reduced demand for some of our products due to health concerns and legislative initiatives against smokables products.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Legislative or regulatory
    changes that affect our products, including new taxes, could reduce demand for products or increase our costs.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Some products we
    sell are subject to developing and unpredictable regulations. The Company may become subject to increasing regulation as a result
    of its hemp development activities, which could require it to incur additional costs associated with compliance requirements. Our
    ability to develop, commercialize and distribute hemp products and comply with laws and regulations governing cannabis, hemp or related
    products may affect our operational results.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">International expansion
    efforts would likely significantly increase our operational expenses.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our reliance on
    distributors, retailers and brokers could affect our ability to efficiently and profitably distribute and market our products, maintain
    our existing markets and expand our business into other geographic markets.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We incur significant
    time and expense in attracting and maintaining key distributors, and loss of distributors or retails accounts would harm our business.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We rely on suppliers,
    manufacturers and contractors, and events adversely affecting them would adversely affect us.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We have a single
    customer that accounts for a substantial portion of our revenues, and our business would be harmed were we to lose this customer.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Wholesale price
    volatility may adversely affect operations.</FONT></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></DIV>

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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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<DIV STYLE="border: Black 1.5pt solid; padding-right: 5pt; padding-left: 5pt; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may sustain losses
    that cannot be recovered through insurance or other preventative measures.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may be subject
    to product liability claims and other claims of our customers and partners.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If we encounter
    product recalls or other product quality issues, our business may suffer.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">It is difficult
    to predict the timing and amount of our sales, and as a result our sales forecasts are uncertain.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If we do not adequately
    manage our inventory levels, our operating results could be adversely affected.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Increases in costs
    or shortages of raw materials could harm our business and financial results.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Increases in costs
    of energy and increased regulations may have an adverse impact on our gross margin.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disruption within
    our supply chain, contract manufacturing or distribution channels could have an adverse effect on our business, financial condition
    and results of operations.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If we are unable
    to attract and retain key personnel, our efficiency and operations would be adversely affected; in addition, staff turnover causes
    uncertainties and could harm our business.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If we lose the services
    of our Chief Executive Officer and/or Chief Financial Officer, our future operations could be impaired until such time as a qualified
    replacement can be found.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If we fail to protect
    our trademarks and trade secrets, we may be unable to successfully market our products and compete effectively.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Disruptions to our
    information technology systems due to cyber-attacks or our failure to upgrade and adjust our information technology systems, may
    materially impair our operations, hinder our growth and materially and adversely affect our business and results of operations.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our business is
    subject to many regulations and noncompliance is costly.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Significant additional
    labeling or warning requirements may inhibit sales of affected products.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our industry may
    become subject to expanded regulation and increased enforcement by the Food and Drug Administration (FDA) and the Federal Trade Commission
    (FTC).</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our business and
    operations would be adversely impacted in the event of a failure or interruption of our information technology infrastructure or
    as a result of a cybersecurity attack.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our results of operations
    may fluctuate from quarter to quarter for many reasons, including seasonality.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Global economic,
    political, social and other conditions, including the COVID-19 pandemic, may continue to adversely impact our business and results
    of operations.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We may not be able
    to satisfy listing requirements of NASDAQ or obtain or maintain a listing of our common stock on NASDAQ.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prior to this offering,
    we were majority-owned by Hemptown Organics Corporation, and a small group of shareholders.</FONT></TD></TR>
  </TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="A_002"></A>RISK FACTORS</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"><I>Investing in our securities involves a high
degree of risk. You should carefully consider the following risk factors, together with the other information contained in this prospectus,
before purchasing our securities. We have listed below (not necessarily in order of importance or probability of occurrence) what we
believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable
to us. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result
in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors,
constitute forward-looking statements. Please refer to the section titled &ldquo;Cautionary Statement Regarding Forward-Looking Statements&rdquo;.</I></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"><I>We may not be successful in preventing the
material adverse effects that any of the following risks and uncertainties may cause. These potential risks and uncertainties may not
be a complete list of the risks and uncertainties facing us. There may be additional risks and uncertainties that we are presently unaware
of, or presently consider immaterial, that may become material in the future and have a material adverse effect on us. You could lose
all or a significant portion of your investment due to any of these risks and uncertainties.</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"><B>Risks Related to our Financial Condition and
Capital Requirements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our independent registered public accounting
firm has expressed doubt about our ability to continue as a going concern. </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">Our auditor&rsquo;s report on our 2023 audited
financial statements expresses an opinion that doubt exists as to whether we can continue as an ongoing business. Our recurring losses,
negative cash flows and accumulated deficit raise doubt about our ability to continue as a going concern. Our financial statements do
not include any adjustments that might result from the outcome of this uncertainty.</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">It is critical that we meet our sales goals and
increase sales going forward as our operating plan already reflects prior significant cost containment measures and may make it difficult
to achieve top-line growth if further significant reductions become necessary. If we do not meet our sales goals, our available cash
and working capital will decrease and our financial condition and results of operation will be negatively impacted.&nbsp; These factors
raise substantial doubt about our ability to continue as a going concern.</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>We may be unable to effectively manage
future growth.</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">We may be subject to growth-related risks, including
capacity constraints and pressure on our internal systems and controls. Our ability to manage growth effectively will require us to continue
to implement and improve our operational and financial systems and to expand, train and manage our employee base. Rapid growth of our
business may significantly strain our management, operations and technical resources. If we are successful in obtaining large orders
for its products, we will be required to deliver large volumes of products to our customers on a timely basis and at a reasonable cost.
We may not obtain large-scale orders for our products and if we do, we may not be able to satisfy large-scale production requirements
on a timely and cost-effective basis. Our inability to deal with this growth may have a material adverse effect on our business, financial
condition, results of operations and prospects.</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>We will need additional financing in the
future, which may not be available when needed or may be costly and dilutive.</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">We will require additional financing to support
our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability
of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance
of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our
ability to meet our sales goals and otherwise successfully execute our operating plan. We believe it is imperative that we meet these
sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our
operating plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various
debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable
terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and
other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient
funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in our best
interest of our company and the best interest of our shareholders, which may include, without limitation, public or private offerings
of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available
or feasible when needed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Functional Brands Inc. has a limited operating
history, and we may not be able to successfully operate our business or execute our business plan.</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">We are a development stage company and are therefore
subject to many of the risks common to early-stage enterprises, including under-capitalization, cash shortages, limitations with respect
to personnel, financial, and other resources and lack of revenue. Given our limited operating history, it is hard to evaluate our proposed
business and prospects. Our proposed business operations will be subject to numerous risks, uncertainties, expenses and difficulties
associated with early- stage enterprises. There is no assurance that we will be successful in achieving a return on shareholders&rsquo;
investment, and the likelihood of success must be considered in light of the early stage of our hemp operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify"><B><I>We may incur significant debt to finance
our operations. </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">There is no assurance that we will not incur
debt in the future, that we will have sufficient funds to repay our indebtedness, or that we will not default on our debt, jeopardizing
our business viability. Furthermore, we may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise
provide the capital necessary to conduct our business.</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><I>Existing events of default under the Asset
Purchase Agreement could have a material adverse effect on our financial condition, results of operations and prospects. </I></B>&nbsp;&nbsp;&nbsp;</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">On June 28, 2019, HTO Holdings Inc. (&ldquo;HTO
Holdings&rdquo;) a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as &ldquo;Purchaser&rdquo;),
entered into an asset purchase agreement (&ldquo;APA&rdquo;) for the net assets of Kirkman Group Inc. a Nevada corporation, Kirkman Laboratories
Inc., an Oregon corporation and Kirkman Group International, Inc. a Nevada corporation (collectively &ldquo;Kirkman&rdquo; or the &ldquo;Seller,&rdquo;
and together with Purchaser, the &ldquo;Parties&rdquo;) for a consideration equal to $5 million with payout in a business combination
of cash and deferred consideration. The &rsquo;&rsquo;Seller&rsquo;&rsquo; is David Humphrey. Under the APA, Purchaser and HTO Holdings
were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021 by the Parties, with the
purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment schedule of the deferred
consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and other agreements attached
to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement, the domain names transfer
agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively, the &ldquo;IP Collateral
Agreements&rdquo;)) to, among other things, provide additional collateral as security to Seller. Upon payment in full in cash of the
deferred consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that the security agreement
and amended intellectual property security agreement would be automatically terminated and be of no further force and effect, and (ii)
Seller would, at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective security agreement and
intellectual property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16, 2022, the APA was amended
again by the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral Agreements. On May
31, 2022, Purchaser paid Seller certain amounts (&ldquo;Immediate Payments&rdquo;), and on July 23, 2022, Purchaser and Seller executed
a forbearance agreement (&ldquo;Forbearance Agreement&rdquo;) to extend the payments due under the APA to August 31, 2022. After Purchaser&rsquo;s
default, and partial payment to Seller in September 2022, the Parties executed an amendment to the Forbearance Agreement on December
27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was $3,032,000 (the &ldquo;Existing Default&rdquo;).
Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated September 24, 2024 where additional principal and
interest payments began to accrue. As of October 11, 2024, the balance due to Seller is $2,412,366. We intend to use a portion of the
proceeds of the public offering to cover the payment of some of the Existing Default.</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>Risk Factors Relating to Our Business and
Industry</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><I>We compete in an industry that is brand-conscious,
so brand name recognition and acceptance of our products are critical to our success.</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">Our business is substantially dependent upon
awareness and market acceptance of our products and brands by our target market: trendy, young consumers looking for a distinctive product
tonality and/or the perceived benefits of hemp, CBD and CBG in their smokables as compared to nicotine or tobacco-based smokables. In
addition, our business depends on acceptance by our independent distributors and retailers of our brands that have the potential to provide
incremental sales growth. If we are not successful in the growth of our brand and product offerings, we may not achieve and maintain
satisfactory levels of acceptance by independent distributors and retail consumers. In addition, we may not be able to effectively execute
our marketing strategies in light of the various closures and cancellations caused by the COVID-19 pandemic. Any failure of our brands
to maintain or increase acceptance or market penetration would likely have a material adverse effect on our revenues and financial results.</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"></P>

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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: justify"><B><I>Our brand and image are keys to our business
and any inability to maintain a positive brand image could have a material adverse effect on our results of operations.</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">Our success depends on our ability to maintain
the brand image for our existing products and effectively build up a brand image for new products and brand extensions. We cannot predict
whether our advertising, marketing and promotional programs will have the desired impact on our products&rsquo; branding and on consumer
preferences. In addition, negative public relations and product quality issues, including negative perceptions regarding the hemp industry,
whether real or imagined, could tarnish our reputation and image of the affected brands and could cause consumers to choose other products.
Our brand image can also be adversely affected by unfavorable reports, studies and articles, litigation, or regulatory or other governmental
action, whether involving our products or those of our competitors.</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><I>Competition from traditional and large,
well-financed product manufacturers or distributors may adversely affect our distribution relationships and may hinder the development
of our existing markets, as well as prevent us from expanding our markets.</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">The hemp industry is highly competitive. We compete
with other hemp companies, manufacturers and distributors, not only for consumer acceptance but also for shelf space in retail outlets
and for marketing focus by our distributors, many of whom also distribute other brands. Our products compete with hemp derived products,
many of which are marketed by companies with substantially greater financial resources than ours. Some of these competitors are placing
severe pressure on independent distributors not to carry competitive hemp brands such as ours. We also compete with regional hemp derived
producers and &ldquo;private label&rdquo; suppliers.</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">Our direct competitors in the hemp industry include
large domestic and international traditional hemp companies and distributors as well as regional or niche companies. These national and
international competitors have advantages such as lower production costs, larger marketing budgets, greater financial and other resources
and more developed and extensive distribution networks than ours. We may not be able to increase our volumes or maintain our selling
prices, whether in existing markets or as we enter new markets.</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">Increased competitor consolidations, market-place
competition, particularly among branded hemp smokables products, and competitive product and pricing pressures could impact our earnings,
market share and volume growth. If, due to such pressure or other competitive threats, we are unable to sufficiently maintain or develop
our distribution channels, we may be unable to achieve our current revenue and financial targets. As a means of maintaining and expanding
our distribution network, we intend to introduce additional brands. We may not be successful in doing this, or it may take us longer
than anticipated to achieve market acceptance of these new products and brands, if at all. Other companies may be more successful in
this regard over the long term. Competition, particularly from companies with greater financial and marketing resources than ours, could
have a material adverse effect on our existing markets, as well as on our ability to expand the market for our products.</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 supplements industry is highly competitive.
We compete with other supplement companies, manufacturers, and distributors, not only for consumer acceptance, but also for shelf space
in retail outlets and for marketing focus by our wholesalers and professional accounts. Our products are sold over the counter and do
not require a doctor&rsquo;s prescription since they are not FDA approved. Our products compete with other nutraceutical products, many
of which are marketed by companies with substantially greater financial resources than ours. Our direct competition in the supplement
industry includes domestic and international traditional nutraceutical companies and distributors as well as regional or niche companies.
These national and international competitors have advantages such as lower production costs, larger marketing budgets, greater financial
and other resources and more developed and extensive distribution networks than ours. We may not be able to increase our volumes or maintain
our selling prices, whether in existing markets or as we enter new markets.</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><I>We compete in an industry characterized
by rapid changes in consumer preferences and public perception, so our ability to continue developing new products to satisfy our consumers&rsquo;
changing preferences will determine our long-term success.</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">Failure to introduce new brands, products or
product extensions into the marketplace as current ones mature and to meet our consumers&rsquo; changing preferences could prevent us
from gaining market share and achieving long-term profitability. Product lifecycles can vary, and consumers&rsquo; preferences and loyalties
change over time. We may not succeed at innovating new products to introduce to our consumers. Customer preferences also are affected
by factors other than taste, such as health and nutrition considerations, shifting consumer needs, changes in consumer lifestyles, increased
consumer information and competitive product and pricing pressures. Sales of our products may be adversely affected by the negative publicity
associated with these issues. In addition, there may be a decreased demand for our products as a result of the COVID-19 pandemic. If
we do not adequately anticipate or adjust to respond to these and other changes in customer preferences, we may not be able to maintain
and grow our brand image and our sales may be adversely 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"><B><I>We may be unable to respond effectively
to technological changes in our industry, which could reduce the demand for our products.</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">Our future business success will depend upon
our ability to maintain and enhance our product portfolio with respect to advances in technological improvements for certain products
and market products that meet customer needs and market conditions in a cost-effective and timely manner. Maintaining and enhancing our
product portfolio may require significant investments in licensing fees and royalties. We may not be successful in gaining access to
new products that successfully compete or are able to anticipate customer needs and preferences, and our customers may not accept one
or more of our products. If we fail to keep pace with evolving technological innovations or fail to modify our products and services
in response to customers&rsquo; needs or preferences, then our business, financial condition and results of operations could be adversely
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: 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may experience a reduced demand for
some of our products due to health concerns and legislative initiatives against smokables products.</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">Consumers are concerned about health and wellness;
public health officials and government officials are increasingly vocal about smoking, vaping, and their adverse consequences. There
has been a trend among many public health advocates to pursue generalized reduction in consumption of smokables products, as well as
increased public scrutiny, new taxes on smokables products, and additional governmental regulations concerning the marketing and labeling/packing
of smokable products. Additional or revised regulatory requirements, whether labeling, tax or otherwise, could have a material adverse
effect on our financial condition and results of operations. Further, increasing public concern with respect to smokables could reduce
demand for our hemp smokables products.</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><I>Legislative or regulatory changes that
affect our products, including new taxes, could reduce demand for products or increase our costs.</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">Taxes imposed on the sale of certain of our products
by federal, state, and local governments in the United States, or other countries in which we operate could cause consumers to shift
away from purchasing our hemp smokables products. These taxes could materially affect our business and financial results.&nbsp;</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>Some products we sell are subject to developing
and unpredictable regulations.</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">Some of our products may be subject to uncertain
and evolving federal, state and local regulations concerning hemp, CBD, CBG, Hemp Derived Delta 9 and other non-tobacco consumable products.&nbsp;Regulatory
and related enforcement initiatives by authorities related to such products are unpredictable and impossible to anticipate. We anticipate
that all levels of government that have not already done so, are likely to seek in some way to regulate these products, but the type,
timing, and impact of such regulations remains uncertain. These regulations include, or could include, restrictions prohibiting certain
form factors, such as smokable hemp products, or age restrictions. Accordingly, we cannot give any assurance that such actions will not
have a material adverse effect on this emerging business and our strategy.</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><I>Possible yet unanticipated changes in federal
and state law could cause any of our current products containing hemp-derived CBD to be illegal, or could otherwise prohibit, limit or
restrict any of our products containing CBD.</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">We have certain products containing hemp-derived
CBD, and we may develop and launch additional products containing hemp-derived CBD in the future. Until 2014, when 7 U.S. Code &sect;5940
became federal law as part of the Agricultural Act of 2014 (the &ldquo;<I>2014 Farm Ac</I>t&rdquo;), products containing oils derived
from hemp, notwithstanding a minimal or non-existing THC content, were classified as Schedule I illegal drugs. The 2014 Farm Act expired
on September 30, 2018, and was thereafter replaced by the Agricultural Improvement Act of 2018 on December 20, 2018 (the &ldquo;<I>2018
Farm Act</I>&rdquo;), which amended various sections of the U.S. Code, thereby removing hemp, defined as cannabis with less than 0.3%
THC, from Schedule 1 status under the Controlled Substances Act, and legalizing the cultivation and sale of industrial-hemp at the federal
level, subject to compliance with certain federal requirements and state law, amongst other things. More specifically, industrial hemp
is defined as &ldquo;the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis.&rdquo; THC is the psychoactive&nbsp;component of plants in the cannabis
family generally identified as marihuana or marijuana. There is no assurance that the 2018 Farm Act will not be repealed or amended such
that our products containing hemp-derived CBD would once again be deemed illegal under federal 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"><B><I>The psychedelic therapy industry and market
are relatively new and this industry and market may not continue to exist or grow as anticipated</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">We operate our business in a relatively new industry
and market. In addition to being subject to general business risks, we must continue to build brand awareness in this industry and market
through significant investments in our strategy, our operational capacity, quality assurance and compliance with regulations. In addition,
there is no assurance that the industry and market will continue to exist and grow as currently estimated or anticipated or function
and evolve in the manner consistent with management&rsquo;s expectations and assumptions. Any event or circumstance that adversely affects
the psychedelic therapy industry and market could have a material adverse effect on our business, financial conditions and results of
operations. The psychedelic medicine market will face specific marketing challenges given the products&rsquo; status as a controlled
substance which resulted in past and current public perception that the products have negative health and lifestyle effects and have
the potential to cause physical and social harm due to psychoactive and potentially addictive effects. Any marketing efforts by us would
need to overcome this perception to build consumer confidence, brand recognition and goodwill.</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><I>The expansion of the use of psychedelics
in the medical industry may require new clinical research into effective medical therapies</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">Research in United States and internationally
regarding the medical benefits, viability, safety, efficacy, addictiveness, dosing and social acceptance of psychedelic and psychoactive&nbsp;products
remains in early stages. There have been relatively few clinical trials on the benefits of such products. Although we believe that the
articles, reports and studies support our beliefs regarding the medical benefits, viability, safety, efficacy, dosing and social acceptance
of psychedelic and psychoactive products, future research and clinical trials may prove such statements to be incorrect, or could raise
concerns regarding, and perceptions relating to, psychedelic and psychoactive&nbsp;products. Given these risks, uncertainties and assumptions,
readers should not place undue reliance on such articles and reports. Future research studies and clinical trials may draw opposing conclusions
to those stated in this prospectus or reach negative conclusions regarding the medical benefits, viability, safety, efficacy, dosing,
social acceptance or other facts and perceptions related to psychoactive products, which could have a material adverse effect on the
demand for some of our products with the potential to lead to a material adverse effect on the Company&rsquo;s business, financial condition
and results of operations.</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"><B><I>The Company may become subject to increasing regulation as a
result of its hemp development activities, which could require it to incur additional costs associated with compliance requirements.&nbsp;</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company develops hemp products. Hemp is legally
distinct from marijuana and recognized as an agricultural crop by the United States government. There are federal and state laws and
regulations on hemp that address hemp production, monitoring, manufacturing, distribution, and laboratory testing to ensure that that
the hemp has a THC concentration of not more than 0.3% on a dry weight basis. Federal laws and regulations may also address the transportation
or shipment of hemp or hemp products. It is difficult to predict whether regulators, such as the USDA or the MDA, will alter the manner
in which they interpret existing federal and state laws and regulations on hemp or institute new regulations, or otherwise modify regulations
in a way that will render compliance more burdensome. As the Company continues to pursue hemp, it may become subject to increasing regulation
particular to hemp, which could require the Company to incur additional costs associated with compliance requirements.&nbsp;</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"><B><I>Our ability to develop, commercialize and
distribute hemp derived products and comply with laws and regulations governing cannabis, hemp or related products may affect our operational
results.</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">As of September 1, 2024, 42 states have USDA
approved state hemp farming plans <FONT STYLE="background-color: white">while in eight states the USDA issues producer licenses directly
to farmers under USDA&rsquo;s hemp farming plan. These eight states include Hawaii, Mississippi, Missouri, New Hampshire, North Carolina,
Utah, Vermont, Wisconsin. </FONT> The 2018 Farm Bill was signed into law on December 20, 2018. The 2018 Farm Bill removed hemp from the
U.S. Controlled Substances Act (the &ldquo;CSA&rdquo;) and established a federal regulatory framework for hemp production in the United
States. Among other provisions, the 2018 Farm Bill: (a) explicitly amends the CSA to exclude all parts of the cannabis plant (including
its cannabinoids, derivatives, and extracts) containing a THC concentration of not more than 0.3% on a dry weight basis from the CSA&rsquo;s
definition of &ldquo;marihuana&rdquo;; (b) permits the commercial production and sale of hemp; (c) precludes states, territories, and
Indian tribes from prohibiting the interstate transport of lawfully-produced hemp through their borders; and (d) establishes the USDA
as the primary federal agency regulating the cultivation of hemp in the United States, while allowing states, territories, and Indian
tribes to obtain (or retain) primary regulatory authority over hemp activities within their borders after receiving approval of their
proposed hemp production plan from the USDA. Any such plan submitted by a state, territory, or Indian tribe to the USDA must meet or
exceed minimum federal standards and receive USDA approval. Any state, territory, or Indian tribe that does not submit a plan to the
USDA, or whose plan is not approved by the USDA, will be regulated by the USDA; provided that, states retain the ability to prohibit
hemp production within their borders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify">Marijuana continues to be classified as a Schedule
I substance under the CSA. As a result, any cannabinoids (including CBD) derived from marijuana, as opposed to hemp, or any products
derived from hemp containing in excess of 0.3% THC on a dry-weight basis, remain Schedule I substances under U.S. federal law. Cannabinoids
derived from hemp are indistinguishable from those derived from marijuana, and confusion surrounding the nature of our smokable products
containing hemp or CBD, inconsistent interpretations of the definition of &ldquo;hemp&rdquo;, inaccurate or incomplete testing, farming
practices and law enforcement vigilance or lack of education could result in our products being intercepted by federal and state law
enforcement as marijuana and could interrupt and/or have a material adverse impact on our business. We could be required to undertake
processes that could delay shipments, impede sales or result in seizures, proper or improper, that would be costly to rectify or remove
and which could have a material adverse effect on our business, prospects, results of operations or financial condition. If we make mistakes
in processing or labeling, and THC in excess of 0.3% on a dry-weight basis is found in our products, we could be subject to enforcement
and prosecution under local, state, and federal laws which would have a negative impact on our business and operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the 2018 Farm Bill, states have authority
to adopt their own regulatory regimes, and as such, regulations will likely continue to vary on a state-by-state basis. States take varying
approaches to regulating the production and sale of hemp and hemp-derived products under state food and drug laws. The variance in state
law and that state laws governing hemp production are rapidly changing may increase the chance of unfavorable law enforcement interpretation
of the legality of the Company&rsquo;s operations as they relate to the cultivation of hemp. Further, such variance in state laws that
may frequently change increases our compliance costs and risk of error.</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">While some states explicitly authorize and regulate
the production and sale of hemp products or otherwise provide legal protection for authorized individuals to engage in commercial hemp
activities, other states maintain outdated drug laws that do not distinguish between marijuana, hemp and/or hemp-derived CBD, hemp-derived
Delta 9 resulting in hemp being classified as a controlled substance under state law. In these states, sale of CBD and hemp-derived Delta
9, notwithstanding origin, is either restricted to state medical or adult-use marijuana program licensees or remains otherwise unlawful
under state criminal laws. Variance in hemp regulation across jurisdictions is likely to persist. This patchwork of state laws may, for
the foreseeable future, materially impact our business and financial condition, limit the accessibility of certain state markets, cause
confusion amongst regulators, and increase legal and compliance costs.</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">There are no express protections in the United
States under applicable federal or state law for possessing or processing hemp biomass derived from lawful hemp not exceeding 0.3% THC
on a dry weight basis and intended for use in finished product, but that may temporarily exceed 0.3% THC during the interim processing
stages. While it is a common occurrence for hemp biomass to have variance in THC content during interim processing stages after cultivation
but prior to use in finished products, there is risk that state or federal regulators or law enforcement could take the position that
such hemp biomass is a Schedule I controlled substance in violation of the CSA and similar state laws. Further, there is a risk that
state regulators and/or law enforcement may interpret provisions of state law prohibiting unlawful marijuana activity to apply to in-process
hemp at any facility where we manufacture our hemp smokables products so that such activity is considered unlawful under state 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">In the event that our operations are deemed to
violate any laws or if we are deemed to be assisting others to violate a state or federal law, we could be subject to enforcement actions
and penalties, and any resulting liability could cause us to modify or cease its operations.</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">Continued development of the industrial hemp
and cannabis industries will be dependent upon new legislative authorization of industrial hemp and cannabis at the state level, and
further amendment or supplementation of legislation at the federal level. Any number of events or occurrences could slow or halt progress
all together in this space. While progress within the industrial hemp and cannabis industries is currently encouraging, growth is not
assured. While there appears to be ample public support for favorable legislative action, numerous factors may impact or negatively affect
the legislative process(es) within the various states where we have business interests. Any one of these factors could slow or halt use
of industrial hemp and cannabis, which could negatively impact our business and financial results.</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 general manufacture, labeling
and distribution of our hemp smokables products is regulated by various federal, state, and local agencies. These governmental authorities
may commence regulatory or legal proceedings, which could restrict the permissible scope of our product claims or the ability to sell
products in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify">The shifting compliance environment and the need
to build and maintain robust systems to comply with different compliance in multiple jurisdictions increases the possibility that we
may violate one or more of the requirements. If our operations are found to be in violation of any of such laws or any other governmental
regulations that apply to our business, we may be subject to penalties, including, without limitation, civil and criminal penalties,
damages, fines, the curtailment or restructuring of our operations, any of which could adversely affect the ability to operate our business
and its financial results.</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><I>International expansion efforts would likely
significantly increase our operational expenses. </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">We may in the future expand into other geographic
areas, which could increase our operational, regulatory, compliance, reputational and foreign exchange rate risks. The failure of our
operating infrastructure to support such expansion could result in operational failures and regulatory fines or sanctions. Future international
expansion could require us to incur a number of up-front expenses, including those associated with obtaining regulatory approvals, as
well as additional ongoing expenses, including those associated with infrastructure, staff and regulatory compliance. We may not be able
to successfully identify suitable acquisition and expansion opportunities or integrate such operations successfully with our existing
operations.</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><I>Our reliance on distributors, retailers
and brokers could affect our ability to efficiently and profitably distribute and market our products, maintain our existing markets
and expand our business into other geographic markets.</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">Our ability to maintain and expand our existing
markets for our products, and to establish markets in new geographic distribution areas, is dependent on our ability to establish and
maintain successful relationships with reliable distributors, retailers and brokers strategically positioned to serve those areas. Most
of our distributors, retailers and brokers sell and distribute competing products, including smokables products, and our products may
represent a small portion of their business. The success of our distribution network will depend on the performance of the distributors,
retailers, and brokers in our network. There is a risk they may not adequately perform their functions within the network by, without
limitation, failing to distribute to sufficient retailers or positioning our products in localities that may not be receptive to our
product. Our ability to incentivize and motivate distributors to manage and sell our products is affected by competition from other hemp
smokables companies who have greater resources than we do. To the extent that our distributors, retailers and brokers are distracted
from selling our products or do not employ sufficient efforts in managing and selling our products, including re-stocking the retail
shelves with our products, our sales and results of operations could be adversely affected. Furthermore, such third parties&rsquo; financial
position or market share may deteriorate, which could adversely affect our distribution, marketing and sales activities.</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">Our ability to maintain and expand our distribution
network and attract additional distributors, retailers and brokers will depend on a number of factors, some of which are outside our
control. Some of these factors include:</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>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the level of demand
    for our brands and products in a particular distribution area;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to price
    our products at levels competitive with those of competing products; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our ability to deliver
    products in the quantity and at the time ordered by distributors, retailers and brokers.</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">We may not be able to successfully manage all
or any of these factors in any of our current or prospective geographic areas of distribution. Our inability to achieve success with
regards to any of these factors in a geographic distribution area will have a material adverse effect on our relationships in that particular
geographic area, thus limiting our ability to maintain or expand our market, which will likely adversely affect our revenues and financial
results.</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><I>We incur significant time and expense in
attracting and maintaining key distributors, and a loss of distributors or retails accounts would harm our business.</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">Our marketing and sales strategy depends in large
part on the availability and performance of our independent distributors. We currently do not have, nor do we anticipate in the future
that we will be able to establish, long-term contractual commitments from some of our distributors. We may not be able to maintain our
current distribution relationships or establish and maintain successful relationships with distributors in new geographic distribution
areas. Moreover, there is the additional possibility that we may have to incur additional expenditures to attract and maintain key distributors
in one or more of our geographic distribution areas in order to profitably exploit our geographic markets.</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We currently have approximately ten distributors
who service numerous retail accounts. If we were to lose any of our distributors, or if they were to lose national, regional or larger
retail accounts, our financial condition and results of operations could be adversely affected. While we continually seek to expand and
upgrade our distributor network, we may not be able to maintain our distributor or retailer base. The loss of any of our distributors,
or their significant retail accounts, could have adverse effects on our revenues, liquidity and financial results, could negatively impact
our ability to retain our relationships with our other distributors and our ability to expand our market, and would place increased dependence
on our other independent distributors and national accounts.</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><I>Any pandemic such as the COVID-19 pandemic
has and could continue to negatively affect various aspects of our business, make it more difficult for us to meet our obligations to
our customers, and result in reduced demand for our products and services, which could have a material adverse effect on our business,
financial condition, results of operations, or cash flows. </I></B></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2019, a novel strain of coronavirus
was reported to have surfaced in Wuhan, China, and it has since spread throughout other parts of the world, including the United States.
Any outbreak of contagious diseases or other adverse public health developments could have a material adverse effect on our business
operations. These impacts to our operations have included and could again in the future include disruptions or restrictions on the ability
of our employees and customers to travel or our ability to pursue collaborations and other business transactions, travel to customers
and/or promote our products at conferences or other live events, oversee the activities of our third-party manufacturers and suppliers.
We may also be impacted by the temporary closure of the facilities of suppliers, manufacturers or customers.</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 an effort to halt the outbreak of COVID-19,
a number of countries, including the United States, placed significant restrictions on travel and many businesses announced extended
closures. These travel restrictions and business closures have and may in the future adversely impact our operations locally and worldwide,
including our ability to manufacture, market, sell or distribute our products. Such restrictions and closure have caused or may cause
temporary closures of the facilities of our suppliers, manufacturers or customers. A disruption in the operations of our employees, suppliers,
customers, manufacturers or access to customers would likely impact our sales and operating results. We are continuing to monitor and
assess the effects of the COVID-19 pandemic on our commercial operations; however, we cannot at this time accurately predict what effects
these conditions will ultimately have on our operations due to uncertainties relating to the ultimate geographic spread of the virus,
the severity of the disease, the duration of the outbreak and speed of vaccinations, and the length of the travel restrictions and business
closures imposed by the governments of impacted countries. In addition, a significant outbreak of contagious diseases in the human population
could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting
in an economic downturn that could affect demand for our products and likely impact our operating results.</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><I>We rely on suppliers, manufacturers and
contractors, and events adversely affecting them would adversely affect us. </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">We intend to maintain a full supply chain for
the provision of our hemp-based smokables products. Due to the novel and variable regulatory landscape for hemp and CBD/CBG/Delta 9 production
in the United States, our third-party hemp and hemp smokables suppliers, manufacturers and contractors may elect, at any time, to decline
or withdraw services necessary for our operations. Loss of these suppliers, manufacturers and contractors, including for non-hemp-based
ingredients in our hemp smokables products, may have a material adverse effect on our business, financial condition, results of operations
and prospects.</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, any significant interruption, negative
change in the availability or economics of the supply chain or increase in the prices for the ingredients in our products provided by
any such third-party suppliers, manufacturers and contractors could materially impact our business, financial condition, results of operations
and prospects. Any inability to secure required supplies or to do so on appropriate terms could have a materially adverse impact on our
business, financial condition, results of operations and prospects.</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><I>We have two customers that account for
a substantial portion of our revenues, and our business would be harmed were we to lose these customers.&nbsp;</I></B>&nbsp;&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: 0pt 0; text-align: justify">We have a purchase agreement in place with our
largest customer, iHerb, since June 28, 2011. This agreement provides us with a license to commercialize and re-sell Kirkman products
with set minimum order requirements. Our customer iHerb accounts for approximately 22% of the Company&rsquo;s total revenue for the year
ended December 31, 2023 (17% - 2002). If we lose this customer, the company will lose a significant portion of our total revenues<I>.</I></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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">We have a reseller agreement in place with our
second largest customer, OceanSide Health since April 18, 2022. This agreement provides OceanSide the ability to sell our Kirkman branded
products on the Amazon platform. Oceanside represents approximately 19% of the Company&rsquo;s total revenue for the year ended December
31, 2023 (13% - 2002). We do have the ability to convert this business to a traditional Amazon account through another partner, so the
risk of lost business is minimal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify"><B><I>Wholesale price volatility may adversely
affect operations. </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">The hemp smokables industry is margin-based with
gross profits typically dependent on the excess of sales prices over costs. Consequently, profitability is sensitive to fluctuations
in wholesale and retail prices caused by changes in supply (which itself depends on other factors such as weather, fuel, equipment and
labor costs, shipping costs, economic situation and demand), taxes, government programs and policies for the hemp smokables and hemp
industries (including price controls and wholesale price restrictions that may be imposed by government agencies responsible for the
regulation of hemp and/or smokables products), and other market conditions, all of which are factors beyond our control. Our operating
income will be sensitive to changes in the price of hemp and other product ingredients, and the overall condition of the hemp and smokables
industries, as our profitability is directly related to the price of hemp and our other smokables ingredients. There is currently no
established market price for hemp, and the price of hemp is affected by numerous factors beyond our control. Ingredient price volatility
may have a material adverse effect on our business, financial condition, and results of operations.</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><I>We may sustain losses that cannot be recovered
through insurance or other preventative measures.</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">There is no assurance that we will not incur
uninsured liabilities and losses as a result of the conduct of its business. While we currently have some liability insurance coverage,
it does not have broad coverage at high levels. We plan to continue to review its liability coverage in the light of its expanding operations
in order to insure against potential major insurable liabilities. Should uninsured losses occur, shareholders could lose their invested
capital.</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><I>We may be subject to product liability
claims and other claims of our customers and partners.</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">The sale of hemp smokables products to consumers
involves a certain level of risk of product liability claims and the associated adverse publicity. Because use of our hemp smokables
products could cause injury to consumers if packaging or ingredients are defective, we are subject to a risk of claims for such injuries
and damages. We could also be named as co-parties in product liability suits that are brought against manufacturing partners that produce
our hemp smokables products, packaging for those products, or the ingredients in those products.</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, our customers and partners may bring
suits against us alleging damages for the failure of our products to meet stated specifications or other requirements. Any such suit,
even if not successful, could be costly, disrupt the attention of our management and damage our negotiations with distributors and/or
customers. Any attempt by us to limit our product liability in our contracts may not be enforceable or may be subject to exceptions.
While we do have product liability insurance, our amounts of coverage may be inadequate to cover all potential liability claims. Insurance
coverage, particularly as it relates to products relating to the hemp industry, is expensive, and additional coverage may be difficult
to obtain. Also, additional insurance coverage may not be available in the future on acceptable terms and may not be sufficient to cover
potential claims. We cannot be sure that our contract manufacturers or manufacturing partners who produce our hemp smokables products,
packaging and ingredients will have adequate insurance coverage themselves to cover against potential claims. If we experience a large
insured loss, it may exceed any insurance coverage limits we have at that time, or our insurance carrier may decline to cover us or may
raise our insurance rates to unacceptable levels, any of which could impair our financial position and potentially cause us to go out
of business.</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><I>If we encounter product recalls or other
product quality issues, our business may suffer.</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">Product quality issues, real or imagined, or
allegations of product contamination, even when false or unfounded, could tarnish our image and could cause consumers to choose other
products. In addition, because of changing government regulations or implementation thereof, or allegations of product contamination,
we may be required from time to time to recall products entirely or from specific markets. Product recalls could affect our profitability
and could negatively affect brand image.</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><I>It is difficult to predict the timing and
amount of our sales, and as a result our sales forecasts are uncertain. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Many of our white label clients (clients who
we manufacture product for, and which product is labeled with the clients&rsquo; own branding and then sold by the clients) are required
to place minimum orders with us, but we cannot accurately predict what our sales will be.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify">Our independent distributors and national accounts
are not generally required to place minimum monthly orders for our products. In order to reduce their inventory costs, independent distributors
typically order products from us on a &ldquo;just in time&rdquo; basis in quantities and at such times based on the demand for the products
in a particular distribution area. Accordingly, we cannot accurately predict the timing or quantity of purchases by any of our independent
distributors or whether any of our distributors will continue to purchase products from us in the same frequencies and volumes as they
may have done in the past. Additionally, our larger distributors and regional partners may make orders that are larger than we have historically
been required to fill. Shortages in inventory levels, supply of raw materials or other key supplies could also negatively affect us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If we do not adequately manage our inventory
levels, our operating results could be adversely affected.</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">We need to maintain adequate inventory levels
to be able to deliver products to distributors on a timely basis. Our inventory supply depends on our ability to correctly estimate demand
for our products. Our ability to estimate demand for our products is imprecise, particularly for new products, seasonal promotions and
new markets. If we materially underestimate demand for our products or are unable to maintain sufficient inventory of raw materials,
we might not be able to satisfy demand on a short-term basis. If we overestimate distributor or retailer demand for our products, we
may end up with too much inventory, resulting in higher storage costs, increased trade spend and the risk of inventory spoilage. If we
fail to manage our inventory to meet demand, we could damage our relationships with our distributors and retailers and could delay or
lose sales opportunities, which would unfavorably impact our future sales and adversely affect our operating results. In addition, if
the inventory of our products held by our distributors and retailers is too high, they will not place orders for additional products,
which would also unfavorably impact our sales and adversely affect our operating results.</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><I>Increases in costs or shortages of raw
materials could harm our business and financial results.</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">In addition to the primary ingredient, the hemp
blend, we use other principal ingredients, which manufacturing costs are subject to fluctuation. Substantial increases in the prices
of ingredients, raw materials and packaging materials, used to produce our products, to the extent that they cannot be recouped through
increases in the prices of finished hemp smokables products, would increase our operating costs and could reduce our profitability. If
the supply of these raw materials is impaired or if prices increase significantly, it could affect the affordability of our products
and reduce sales.</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 we or any contract manufacturers we may use
are unable to secure sufficient ingredients or raw materials including hemp, the various paper products and filters, and other key supplies,
we might not be able to satisfy demand for our hemp smokables products on a short-term basis. Moreover, in the past there have been industry-wide
shortages of hemp, papers and other ingredients in our products, and these shortages could occur again from time to time in the future,
which could interfere with and delay production of our products and could have a material adverse effect on our business and financial
results.</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, suppliers could fail to provide
ingredients or raw materials on a timely basis, or fail to meet our performance expectations, for a number of reasons, including, for
example, disruption to the global supply chain as a result of the COVID-19 pandemic, which could cause serious disruption to our business,
increase our costs, decrease our operating efficiencies and have a material adverse effect on our business, results of operations and
financial condition.</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><I>Increases in costs of energy and increased
regulations may have an adverse impact on our gross margin.</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">Over the past few years, volatility in the global
oil markets has resulted in high fuel prices, which many shipping companies have passed on to their customers by way of higher base pricing
and increased fuel surcharges. If fuel prices increase, we expect to experience higher shipping rates and fuel surcharges, as well as
energy surcharges on our raw materials. It is hard to predict what will happen in the fuel markets in 2024 and beyond. Due to the price
sensitivity of our products, we may not be able to pass such increases on to our customers.</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><I>Disruption within our supply chain, contract
manufacturing or distribution channels could have an adverse effect on our business, financial condition and results of operations.</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">Our ability, through our suppliers, business
partners, contract manufacturers, independent distributors and retailers, to make, move and sell products is critical to our success.
Damage or disruption to our suppliers or to manufacturing or distribution capabilities due to weather, natural disaster, fire or explosion,
terrorism, pandemics such as COVID-19, influenza, and other viruses, labor strikes or other reasons, could impair the manufacture, distribution
and sale of our products. Many of these events are outside of our control. Failure to take adequate steps to protect against or mitigate
the likelihood or potential impact of such events, or to effectively manage such events if they occur, could adversely affect our business,
financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify"><B><I>If we are unable to attract and retain
key personnel, our efficiency and operations would be adversely affected; in addition, staff turnover causes uncertainties and could
harm our business.</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">Our success depends on our ability to attract
and retain highly qualified employees in such areas as finance, sales, marketing and product development and distribution. We compete
to hire new employees, and, in some cases, must train them and develop their skills and competencies. We may not be able to provide our
employees with competitive salaries, and our operating results could be adversely affected by increased costs due to increased competition
for employees, higher employee turnover or increased employee benefit costs.&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: 0pt 0; text-align: justify"><B><I>If we lose the services of our executive
officers, our future operations could be impaired until such time as a qualified replacement can be found. </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">Our business plan relies significantly on the
continued services of Eric Gripentrog, our Chief Executive Officer and Tariq Rahim, our Chief Financial Officer. If we were to lose the
services of Mr. Gripentrog and/or Mr. Rahim, our ability to obtain new business and new strategic partners, as well as our ability to
manage our operations and finances, could be materially impaired.</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><I>We are required to indemnify our directors
and officers.</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">Our Articles of Incorporation and Bylaws provide
that we will indemnify our officers and directors to the maximum extent permitted by Delaware law, provided that the officer or director
did not act in bad faith or breach his or her duty to us or our stockholders, or that it is more likely than not that it will ultimately
be determined that the officer or director has met the standards of conduct which make it permissible for under Delaware law for us to
indemnify the officer or director. If we were called upon to indemnify an officer or director, then the portion of its assets expended
for such purpose would reduce the amount otherwise available for our business.</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><I>If we fail to protect our trademarks and
trade secrets, we may be unable to successfully market our products and compete effectively.</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">We rely on a combination of trademark and trade
secrecy laws, confidentiality procedures and contractual provisions to protect our intellectual property rights. Failure to protect our
intellectual property could harm our brand and our reputation, and adversely affect our ability to compete effectively. Further, enforcing
or defending our intellectual property rights, including our trademarks and trade secrets, could result in the expenditure of significant
financial and managerial resources. We regard our intellectual property, particularly our trademarks and trade secrets, as crucial to
our business and our success. However, the steps taken by us to protect these proprietary rights may not be adequate and may not prevent
third parties from infringing or misappropriating our trademarks, trade secrets or similar proprietary rights. In addition, other parties
may seek to assert infringement claims against us, and we may have to pursue litigation against other parties to assert our rights. Any
such claim or litigation could be costly. In addition, any event that would jeopardize our proprietary rights or any claims of infringement
by third parties could have a material adverse effect on our ability to market or sell our brands, profitably exploit our products or
recoup our associated research and development costs.</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><I>Disruptions to our information technology
systems due to cyber-attacks or our failure to upgrade and adjust our information technology systems, may materially impair our operations,
hinder our growth and materially and adversely affect our business and results of operations.</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">We believe that an appropriate information technology,
or IT, infrastructure is important in order to support our daily operations and the growth of our business. If we experience difficulties
in implementing new or upgraded information systems or experience significant system failures, or if we are unable to successfully modify
our management information systems or respond to changes in our business needs, we may not be able to effectively manage our business,
and we may fail to meet our reporting obligations. Additionally, if our current arrangements and plans are not operated as planned, we
may not be able to effectively recover our information system in the event of a crisis, which may materially and adversely affect our
business and results of operations.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the current environment, there are numerous
and evolving risks to cybersecurity and privacy, including criminal hackers, hacktivists, state-sponsored intrusions, industrial espionage,
employee malfeasance and human or technological error. High-profile security breaches at other companies and in government agencies have
increased in recent years, and security industry experts and government officials have warned about the risks of hackers and cyber-attacks
targeting businesses such as ours. Computer hackers and others routinely attempt to breach the security of technology products, services
and systems, and to fraudulently induce employees, customers, or others to disclose information or unwittingly provide access to systems
or data. We can provide no assurance that our current IT system or any updates or upgrades thereto and the current or future IT systems
of our potential distributors use or may use in the future, are fully protected against third-party intrusions, viruses, hacker attacks,
information or data theft or other similar threats. Legislative or regulatory action in these areas is also evolving, and we may be unable
to adapt our IT systems or to manage the IT systems of third parties to accommodate these changes. We have experienced and expect to
continue to experience actual or attempted cyber-attacks of our IT networks. Although none of these actual or attempted cyber-attacks
has had a material adverse impact on our operations or financial condition, we cannot guarantee that any such incidents will not have
such an impact in the future.</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><I>Our business is subject to many regulations
and noncompliance is costly.</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">The production, marketing and sale of our hemp
and nutraceutical products, including contents, labels, and containers, are subject to the rules and regulations of various federal,
provincial, state and local health agencies. If a regulatory authority finds that a current or future product or production batch or
&ldquo;run&rdquo; is not in compliance with any of these regulations, we may be fined, or production may be stopped, which would adversely
affect our financial condition and results of operations. Similarly, any adverse publicity associated with any noncompliance may damage
our reputation and our ability to successfully market our products. Furthermore, the rules and regulations are subject to change from
time to time and while we closely monitor developments in this area, we cannot anticipate whether changes in these rules and regulations
will impact our business adversely. Additional or revised regulatory requirements, whether labeling, environmental, tax or otherwise,
could have a material adverse effect on our financial condition and results of operations.</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><I>Significant additional labeling or warning
requirements may inhibit sales of affected products.</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">Various jurisdictions may seek to adopt significant
additional product labeling or warning requirements relating to the chemical content or perceived adverse health consequences of our
hemp products. These types of requirements, if they become applicable to one or more of our products under current or future environmental
or health laws or regulations, may inhibit sales of such products.</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><I>Our industry may become subject to expanded
regulation and increased enforcement by the Food and Drug Administration (&ldquo;FDA&rdquo;) and the Federal Trade Commission (&ldquo;FTC&rdquo;).</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">The FDA under the Federal Food, Drug, and Cosmetic
Act regulates the formulation, manufacturing, packaging, labeling, and distribution of food, dietary supplements, drugs, cosmetics, medical
devices, biologics, and tobacco products. Our products are subject to law and regulation by the FDA. Moreover, the regulatory status
of our products is currently in a state of flux as the FDA attempts to determine the appropriate manner in which to regulate these products.
Thus, the regulatory approach is still evolving, and we may be required to seek the FDA&rsquo;s approval to market our products. It is
also possible that the FDA may simply issue a regulation setting forth the conditions in which such products may be marketed, or it may
simply prohibit these products.</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">Given the growing cannabidiol (CBD) products
market, the U.S. Food and Drug Administration has convened a high-level internal working group to explore potential regulatory pathways
for CBD products. After careful review, the FDA has concluded that a new regulatory pathway for CBD is needed that balances individuals&rsquo;
desire for access to CBD products with the regulatory oversight needed to manage risks. The agency is prepared to work with Congress
on this matter.<SUP>6</SUP>&nbsp;Once the FDA makes a decision in relation to hemp-based products, we will follow the rules the FDA adopts.</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>6</SUP></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">www.FDA.gov.</FONT></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Because the FDA&rsquo;s regulatory process is
subject to change, we cannot predict the likely outcome. In addition, the FTC under the Federal Trade Commission Act (&ldquo;FTC Act&rdquo;)
requires that product advertising be truthful, substantiated and not misleading. We believe that our advertising meets these requirements.
However, the FTC may bring a challenge at any time in evaluating our compliance with the FTC Act. In addition, most states where our
products are legal provide their own regulatory guidelines and regulations in connection with cigarette or other smokable product sales.
Any failure by us to remain current on state regulatory changes could negatively affect our ability to operate our business.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the moment, our hemp manufactured dietary
supplement products are produced in an FDA registered and cGMP facility strictly following SOPs to ensure consumer safety and consistency
and reliability batch to batch. Our supplement product packaging, labeling, and marketing collateral make no disease claims that would
run afoul of the Dietary Supplement Heath and Education Act (DSHEA). Additionally, we design our product packaging to appeal to adults,
not children. By taking these actions, we are substantially reducing the risk of any FDA enforcement because these are two primary areas
of FDA enforcement.</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">Quality Control reviews production at specified
check points. Raw materials are tested for ID, potency, and contamination using ISO 17025 certified labs. Finished products are tested
for strength, composition, and contamination using ISO 17025 certified labs. All products are produced in isolated rooms, with cleaning
and ATP testing performed prior to use. Rooms are thoroughly cleaned after use, and retested before new products are introduced. All
hemp products are tested to ensure &lt; 0.3% THC. They are also tested for solvents, pesticides, and mycotoxins (where relevant). QC
oversight occurs from incoming of the raw material and components, through the entire manufacturing, packaging, labeling, and boxing
processes. All hemp derived raw materials and finished products are stored under lock and key. Only authorized persons are allowed access.</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">FDA regulates both finished dietary supplement
products and dietary ingredients. FDA regulates dietary supplements under a different set of regulations than those covering &ldquo;conventional&rdquo;
foods and drug products. Under the Dietary Supplement Health and Education Act of 1994 (DSHEA):</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: top">
    <TD STYLE="width: 0.25in">&nbsp;</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">Manufacturers and distributors of dietary
    supplements and dietary ingredients are prohibited from marketing products that are adulterated or misbranded.&nbsp; That means that
    these firms are responsible for evaluating the safety and labeling of their products before marketing to ensure that they meet all
    the requirements of the Federal Food, Drug, and Cosmetic Act as amended by DSHEA and FDA regulations.</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>&nbsp;</TD>
    <TD><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">FDA has the authority to take action against
    any adulterated or misbranded dietary supplement product after it reaches the market.<SUP>7</SUP></FONT></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; text-align: justify">Our manufactured dietary supplement products
are produced following SOPs, to ensure there is consistency and reliability batch to batch.&nbsp; Quality Control reviews production
at specified check points.&nbsp; Raw materials are tested for ID, potency, and contamination using ISO 17025 certified labs.&nbsp; Finished
products are tested for strength, composition, and contamination using ISO 17025 certified labs.&nbsp; All products are produced in isolated
rooms, with cleaning and ATP testing performed prior to use.&nbsp; Rooms are thoroughly cleaned after use, and retested before new products
are introduced.&nbsp; QC oversight occurs from incoming of the raw material and components, through the entire manufacturing, packaging,
labeling, and boxing processes.</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"></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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>7</SUP></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">www.fda.gov/food/dietary-supplements.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify"><B><I>Litigation or legal proceedings could expose
us to significant liabilities and damage our reputation.</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">We may become party to litigation claims and
legal proceedings. Litigation involves significant risks, uncertainties and costs, including distraction of management attention away
from our business operations. We evaluate litigation claims and legal proceedings to assess the likelihood of unfavorable outcomes and
to estimate, if possible, the amount of potential losses. Based on these assessments and estimates, we establish reserves and disclose
the relevant litigation claims or legal proceedings, as appropriate. These assessments and estimates are based on the information available
to management at the time and involve a significant amount of management judgment. Actual outcomes or losses may differ materially from
those envisioned by our current assessments and estimates. Our policies and procedures require strict compliance by our employees and
agents with all U.S. and local laws and regulations applicable to our business operations, including those prohibiting improper payments
to government officials. Nonetheless, our policies and procedures may not ensure full compliance by our employees and agents with all
applicable legal requirements. Improper conduct by our employees or agents could damage our reputation or lead to litigation or legal
proceedings that could result in civil or criminal penalties, including substantial monetary fines, as well as disgorgement of profits.</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><I>Climate change may negatively affect our
business.</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">There is growing concern that a gradual increase
in global average temperatures may cause an adverse change in weather patterns around the globe resulting in an increase in the frequency
and severity of natural disasters. Changing weather patterns could have a negative impact on agricultural productivity, which may limit
availability or increase the cost of certain key ingredients such as hemp, natural flavors and other ingredients used in our products.
Also, increased frequency or duration of extreme weather conditions may disrupt the productivity of our facilities, the operation of
our supply chain or impact demand for our products. In addition, the increasing concern over climate change may result in more regional,
federal and global legal and regulatory requirements and could result in increased production, transportation and raw material costs.
As a result, the effects of climate change could have a long-term adverse impact on our business and results of operations.</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><I>Our business and operations would be adversely
impacted in the event of a failure or interruption of our information technology infrastructure or as a result of a cybersecurity attack.</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">The proper functioning of our own information
technology (IT) infrastructure is critical to the efficient operation and management of our business. We may not have the necessary financial
resources to update and maintain our IT infrastructure, and any failure or interruption of our IT system could adversely impact our operations.
In addition, our IT is vulnerable to cyberattacks, computer viruses, worms and other malicious software programs, physical and electronic
break-ins, sabotage and similar disruptions from unauthorized tampering with our computer systems. We believe that we have adopted appropriate
measures to mitigate potential risks to our technology infrastructure and our operations from these IT-related and other potential disruptions.
However, given the unpredictability of the timing, nature and scope of any such IT failures or disruptions, we could potentially be subject
to downtimes, transactional errors, processing inefficiencies, operational delays, other detrimental impacts on our operations or ability
to provide products to our customers, the compromising of confidential or personal information, destruction or corruption of data, security
breaches, other manipulation or improper use of our systems and networks, financial losses from remedial actions, loss of business or
potential liability, and/or damage to our reputation, any of which could have a material adverse effect on our cash flows, competitive
position, financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify"><B><I>Our results of operations may fluctuate
from quarter to quarter for many reasons, including seasonality.</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">Our sales may be seasonal, and we experience
fluctuations in quarterly results as a result of many factors. We expect to generate a greater percentage of our revenues during the
warm weather months of April through September. The timing of customer purchases will vary each year, and sales can be expected to shift
from one quarter to another. As a result, management believes that period-to-period comparisons of results of operations are not necessarily
meaningful and should not be relied upon as any indication of future performance period comparisons or results expected for the fiscal
year.</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, our operating results may fluctuate
due to a number of other factors including, but not limited to:</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>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our ability to maintain,
    develop and expand distribution channels for current and new products, develop favorable arrangements with third party distributors
    of our products and minimize or reduce issues associated with engaging new distributors and retailers, including, but not limited
    to, transition costs and expenses and down time resulting from the initial deployment of our products in each new distributor&rsquo;s
    network;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unilateral decisions
    by distributors, grocery store chains, specialty chain stores, club stores, mass merchandisers and other customers to discontinue
    carrying all or any of our products that they are carrying at any time; </FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our ability to manage
    our resources to sufficiently support general operating activities, promotion allowances and slotting fees, promotion and selling
    activities, and capital expansion, and our ability to sustain profitability;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our ability to meet
    the competitive response by much larger, well-funded and established companies currently operating in the hemp smokables industry,
    as we introduce new competitive products, and our hemp smokables products; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Competitive products
    and pricing pressures and our ability to gain or maintain share of sales in the marketplace as a result of actions by competitors.</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">Due to these and other factors, our results of
operations have fluctuated from period to period and may continue to do so in the future, which could cause our operating results in
a particular quarter to fail to meet market expectations.</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><I>Changes in our effective tax rate may impact
our results of operations.</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">We are subject to taxes in the U.S. and other
jurisdictions. Tax rates in these jurisdictions may be subject to significant change due to economic and/or political conditions. A number
of other factors may also impact our future effective tax rate including:</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>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the jurisdictions in
    which profits are determined to be earned and taxed;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the resolution of issues
    arising from tax audits with various tax authorities;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes in valuation
    of our deferred tax assets and liabilities;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">increases in expenses
    not deductible for tax purposes, including write-offs of acquired intangibles and impairment of goodwill in connection with acquisitions;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes in availability
    of tax credits, tax holidays, and tax deductions;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes in share-based
    compensation; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes in tax laws
    or the interpretation of such tax laws and changes in generally accepted accounting principles.</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"></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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Although we believe our income tax liabilities
are reasonably estimated and accounted for in accordance with applicable laws and principles, an adverse resolution by one or more taxing
authorities could have a material impact on the results of our operations. Further, we may be unable to utilize our net operating losses
in the event a change in control is determined to have occurred.</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><I>Global economic, political, social and
other conditions, including the COVID-19 pandemic, may continue to adversely impact our business and results of operations.</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">The hemp industry can be affected by macro-economic
factors, including changes in national, regional, and local economic conditions, unemployment levels and consumer spending patterns,
which together may impact the willingness of consumers to purchase our products as they adjust their discretionary spending. Adverse
economic conditions may adversely affect the ability of our distributors to obtain the credit necessary to fund their working capital
needs, which could negatively impact their ability or desire to continue to purchase products from us in the same frequencies and volumes
as they have done in the past. If we experience similar adverse economic conditions in the future, sales of our products could be adversely
affected, collectability of accounts receivable may be compromised, and we may face obsolescence issues with our inventory, any of which
could have a material adverse impact on our operating results and financial condition.</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">Additionally, while the extent of the continued
impact on our business and financial condition is unknown at this time, we may be negatively affected by COVID-19 and actions taken to
address and limit the spread of COVID-19, or any re-emergence of the virus, such as travel restrictions, event cancellations, and limitations
affecting the supply of labor and the movement of raw materials and finished products. If available manufacturing capacity is reduced
as a result of any re-emergence of COVID-19, it could negatively affect the timely supply, pricing and availability of finished products.
Moreover, we may also be negatively impacted by current and future closures of restaurants, independent accounts, convenience chains,
and retail store chains resulting from any re-emergence or new outbreaks of COVID-19. Overall, we do not yet know the full extent of
potential delays or impacts on its business, financing activities, or the global economy as a whole. However, these effects could have
a material impact on our liquidity, capital resources, operations and business and those of third parties on which we rely.</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><I>We are currently operating in a period
of economic uncertainty and capital markets disruption, which has been significantly impacted by geopolitical instability due to the
ongoing military conflict between Russia and Ukraine. Our business may be materially adversely affected by any negative impact on the
global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions.</I></B></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">U.S. and global markets are experiencing volatility
and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. On
February 24, 2022, a full-scale military invasion of Ukraine by Russian troops was reported. Although the length and impact of the ongoing
military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility
in commodity prices, credit and capital markets, as well as supply chain interruptions. We are continuing to monitor the situation in
Ukraine and globally and assessing its potential impact on our business.</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">Additionally, Russia&rsquo;s prior annexation
of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk regions of Ukraine and subsequent military interventions
in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia,
Belarus, the Crimea Region of Ukraine, the so-called Donetsk People&rsquo;s Republic, and the so-called Luhansk People&rsquo;s Republic,
including agreement to remove certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication
(&ldquo;SWIFT&rdquo;) payment system, expansive ban on imports and exports of products to and from Russia and ban on exportation of U.S
denominated banknotes to Russia or persons located there. Additional potential sanctions and penalties have also been proposed and/or
threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and
lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds
and sell the shares we are offering. The extent and duration of the military action, sanctions and resulting market disruptions are impossible
to predict, but could be substantial. Any such disruptions may also magnify the impact of other risks described in 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Changes in accounting standards and subjective
assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial results.</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">The United States generally accepted accounting
principles and related pronouncements, implementation guidelines and interpretations with regard to a wide variety of matters that are
relevant to our business, such as, but not limited to, stock-based compensation, inventory, revenue recognition, trade spend and promotions,
and income taxes are highly complex and involve many subjective assumptions, estimates and judgments by our management. Changes to these
rules or their interpretation or changes in underlying assumptions, estimates or judgments by our management could adversely affect our
reported financial results.</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"><B>Risks Related to This Offering and Ownership
of Our Common Stock</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><I>There has been no public market for our
common stock prior to this offering, and an active market in which investors can resell their shares of our common stock may not develop.</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">Prior to this offering, there has been no public
market for our common stock. We intend to apply to list our common stock on NASDAQ under the symbol &ldquo;FBIC.&rdquo; The closing of
this offering is contingent upon the successful listing of our common stock on NASDAQ. There is no guarantee that NASDAQ, or any other
exchange or quotation system, will permit our common stock to be listed and traded. If we fail to obtain a listing on NASDAQ, we may
seek quotation on the OTCQX Best Market or OTCQB Venture Market of the OTC Link ATS (alternative trading system) operated by OTC Markets
Group, Inc. These markets are inter-dealer, over-the-counter markets that provide significantly less liquidity than NASDAQ.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if our common stock is approved for listing
on NASDAQ, a liquid public market for our common stock may not develop. The initial public offering price for our common stock has been
determined by negotiation between us and the Underwriter based upon several factors, including prevailing market conditions, our historical
performance, estimates of our business potential and earnings prospects, and the market valuations of similar companies. The price at
which the common stock is traded after this offering may decline below the initial public offering price, meaning that you may experience
a decrease in the value of your common stock regardless of our operating performance or prospects.</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><I>We may not be able to satisfy listing requirements
of NASDAQ or obtain or maintain a listing of our common stock on NASDAQ.</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 our common stock is listed on NASDAQ, we must
meet certain financial and liquidity criteria to maintain such listing. If we violate NASDAQ&rsquo;s listing requirements, or if we fail
to meet any of NASDAQ&rsquo;s listing standards, our common stock may be delisted. In addition, our board of directors may determine
that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting of our
common stock from NASDAQ may materially impair our shareholders&rsquo; ability to buy and sell our common stock and could have an adverse
effect on the market price of, and the efficiency of the trading market for, our common stock. The delisting of our common stock could
significantly impair our ability to raise capital and the value of your investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Listing our common stock on a securities
exchange will increase our regulatory burden.</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">We intend to apply for the listing of our common
stock under the symbol &ldquo;FBIC&rdquo; on the NASDAQ. There is no guarantee that our application will be approved in connection with
this offering. Although to date we have not been subject to the continuous and timely disclosure requirements of exchange rules, regulations
and policies of NASDAQ, we are working with our legal, accounting and financial advisors to identify those areas in which changes should
be made to our financial management control systems to manage our obligations as a public company listed on NASDAQ. These areas include
corporate governance, corporate controls, disclosure controls and procedures and financial reporting and accounting systems. We have
made, and will continue to make, changes in these and other areas, including our internal controls over financial reporting. However,
we cannot assure holders of our shares that these and other measures that we might take will be sufficient to allow us to satisfy our
obligations as a public company listed on NASDAQ on a timely basis and that we will be able to achieve and maintain compliance with applicable
listing requirements. In addition, compliance with reporting and other requirements applicable to public companies listed on NASDAQ will
create additional costs for us and will require the time and attention of management. We cannot predict the amount of the additional
costs that we might incur, the timing of such costs or the effects that management&rsquo;s attention to these matters will have on our
business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The market price of our common stock may
fluctuate, and you could lose all or part of your investment.</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">After this offering, the market price for our
common stock is likely to be volatile, in part because our shares have not been traded publicly. In addition, the market price of our
common stock may fluctuate significantly in response to several factors, most of which we cannot control, including:</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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">actual or anticipated
    variations in our periodic operating results;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">increases in market
    interest rates that lead investors of our common stock to demand a higher investment return;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes in earnings
    estimates;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes in market valuations
    of similar companies;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">actions or announcements
    by our competitors;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">adverse market reaction
    to any increased indebtedness we may incur in the future;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">additions or departures
    of key personnel;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">actions by shareholders;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">speculation in the
    media, online forums, or investment community; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our intentions and
    ability to list our common stock on NASDAQ and our subsequent ability to maintain such listing.</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"></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; text-align: justify; margin: 0pt 0">&nbsp;The public offering price of our common
stock has been determined by negotiations between us and the Underwriter based upon many factors and may not be indicative of prices
that will prevail following the closing of this offering. Volatility in the market price of our common stock may prevent investors from
being able to sell their common stock at or above the initial public offering price. As a result, you may suffer a loss on your investment.</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><I>You will experience immediate and substantial
dilution as a result of this offering.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As
                                            of September 30, 2024, our net tangible book value was approximately ($4,929,622) or approximately
                                            ($0.04) per share. Since the effective price per share of our common stock being offered
                                            in this offering is substantially higher than the net tangible book value per share of our
                                            common stock, you will suffer substantial dilution with respect to the net tangible book
                                            value of the common stock you purchase in this offering. Based on the assumed public offering
                                            price of $[ ]&nbsp;per share of common stock being sold in this offering, which is the midpoint
                                            of the estimated offering range set forth on the cover page of this prospectus, and our net
                                            tangible book value per share as of September 30, 2024, if you purchase shares of common
                                            stock in this offering, you will suffer immediate and substantial dilution of $[ ]&nbsp;per
                                            share (or $[ ]&nbsp;per share if the Underwriter exercises the over-allotment option in full)
                                            with respect to the net tangible book value of the common stock. See the section titled &ldquo;<I>Dilution</I>&rdquo;
                                            for a more detailed discussion of the dilution you will incur if you purchase securities
                                            in this offering.</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><I>We have broad discretion in how we use
the proceeds of this offering and may not use these proceeds effectively, which could affect our results of operations.</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">We will have considerable discretion in the application
of the net proceeds of this Offering. We intend to use the net proceeds from this offering to grow our company, cover expenses associated
with becoming a public company, working capital and general corporate purposes. As a result, investors will be relying upon management&rsquo;s
judgment with only limited information about our specific intentions for the use of the net proceeds of this Offering. We may use the
net proceeds for purposes that do not yield a significant return or any return at all for our shareholders. In addition, pending their
use, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value. Please see the &ldquo;<I>Use
of Proceeds</I>&rdquo; section in this prospectus for more information.</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>We do not intend to pay any cash dividends
on our shares of common stock in the near future, so our shareholders will not be able to receive a return on their shares unless they
sell their shares.</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">We intend to retain any future earnings to finance
the development and expansion of our business. We do not anticipate paying any cash dividends on our common stock in the foreseeable
future. There is no assurance that future dividends will ever be paid, and if dividends are paid, there is no assurance with respect
to the amount of any such dividend. Unless we pay dividends, our shareholders will not be able to receive a return on their shares unless
they sell their shares, and they may be unable to sell their shares on favorable terms or at all.</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><I>We are majority-owned by Hemptown Organics
Corp. (&ldquo;Parent&rdquo;), and a small group of our officers and directors, together with certain other stockholders, hold a majority
of the control of Functional Brands Inc.</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">We are a majority-owned subsidiary of Hemptown
Organics Corp., which owns approximately 72% of our outstanding shares of common stock. Our key officers, directors and executives beneficially
own approximately 17% of our company. The 72% ownership was calculated by dividing the total number of shares of Functional Brands owned
by HOC by the total number of outstanding shares of Functional brands, the figure is the result of certain transactions conducted between
the entities. HOC was issued 40,000,000 shares in connection with the license agreement with Functional Brands Inc. (formerly HT Naturals)
and 80,000,000 shares for the transfer of the Kirkman brand to Functional Brands Inc. in May 2023, resulting in an amount equal to 120,000,000
shares. After these issuances, Hemptown Organics Corp. undertook transactions to sell 32,000,000 of its shares of Functional Brands Inc.,
resulting in the total amount of 88,000,000 shares held in Functional Brands. Therefore 88,000,000 divided by 122,000,000 (which is the
total amount of outstanding shares of Functional Brands) is approximately 72%.</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">Such concentration of ownership and control could
have the effect of delaying, deterring or preventing a change in control of our company that might otherwise be beneficial to stockholders.
There can be no assurance that conflicts of interest will not arise with respect to our key officers and directors, or that such conflicts
will be resolved in a manner favorable to us.</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"></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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will be a &ldquo;controlled company&rdquo;
within the meaning of the listing rules of NASDAQ and, as a result, can rely on exemptions from certain corporate governance requirements
that provide protection to stockholders of other companies.</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">Because Hemptown Organics Corp. owns a majority
of our common stock and will own a majority of our common stock after this offering, we will be a &ldquo;controlled company&rdquo; as
defined under the listing rules of NASDAQ. Under NASDAQ listing rules, controlled companies are companies of which more than 50% of the
voting power for the election of directors is held by an individual, a group, or another company. For as long as we remain a controlled
company, we are permitted to elect to rely on certain exemptions from NASDAQ&rsquo;s corporate governance rules, including the following:</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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an exemption from the
    rule that a majority of our board of directors must be independent directors;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an exemption from the
    rule that our compensation committee be composed entirely of independent directors; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an exemption from the
    rule that our director nominees must be selected or recommended solely by independent directors or a nominating committee composed
    solely of independent directors;</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">Although we do not intend to rely on the &ldquo;controlled
company&rdquo; exemptions to NASDAQ&rsquo;s corporate governance rules, we could elect to rely on these exemptions in the future. If
we elected to rely on the &ldquo;controlled company&rdquo; exemptions, a majority of the members of our board of directors might not
be independent directors, our nominating and corporate governance and compensation committees might not consist entirely of independent
directors upon closing of the offering, and you would not have the same protection afforded to shareholders of companies that are subject
to NASDAQ&rsquo;s corporate governance rules.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There has been no independent valuation
of our common stock, which means that our common stock may be worth less than the offering price in the offering.</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">The per share purchase price in the offering
has been determined by us without independent valuation of our shares of common stock. We established the offering price based on management&rsquo;s
estimate of the valuation of shares of our common stock. This valuation is highly speculative and arbitrary. There is no relation to
the market value, book value, or any other established criteria. We did not obtain an independent appraisal opinion on the valuation
of our shares. Our shares of common stock may have a value significantly less than the offering price, and the shares may never obtain
a value equal to or greater than the offering price.</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><I>If securities industry analysts do not
publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our common stock
could be negatively affected.</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 our common stock may be
influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never
obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price
and market trading volume of our common stock could be negatively affected. In the event we are covered by analysts, and one or more
of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and
market trading volume of our common stock could be negatively affected.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future issuances of our common stock or
securities convertible into, or exercisable or exchangeable for, our common stock, or the expiration of lock-up agreements that restrict
the issuance of new common stock or the trading of outstanding common stock, could cause the market price of our common stock to decline
and would result in the dilution of your holdings.</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">Future issuances of our common stock or securities
convertible into, or exercisable or exchangeable for, our common stock, or the expiration of lock-up agreements that restrict the issuance
of new common stock or the trading of outstanding common stock, could cause the market price of our common stock to decline. We cannot
predict the effect, if any, of future issuances of our securities, or the future expirations of lock-up agreements, on the price of our
common stock. In all events, future issuances of our common stock would result in the dilution of your holdings. In addition, the perception
that new issuances of our securities could occur, or the perception that locked-up parties will sell their securities when the lockups
expire, could adversely affect the market price of our common stock. In connection with this offering, we will enter into a lock-up agreement
that prevents us, subject to certain exceptions, from offering additional shares of capital stock for up to six months after the closing
of this offering, as further described in the section titled &ldquo;<I>Underwriting</I>.&rdquo; In addition to any adverse effects that
may arise upon the expiration of these lock-up agreements, the lock-up provisions in these agreements may be waived, at any time and
without notice. If the restrictions under the lock-up agreements are waived, our common stock may become available for resale, subject
to applicable law, including without notice, which could reduce the market price for our 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: center"></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"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Future issuances of debt securities, which
would rank senior to our common stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior
to our common stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be
able to achieve from an investment in our common stock.</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">In the future, we may attempt to increase our
capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect
to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders
of our common stock. Moreover, if we issue preferred stock, the holders of such preferred stock could be entitled to preferences over
holders of common stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to
issue debt or preferred stock in any future offering, or borrow money from lenders, will depend in part on market conditions and other
factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders
of our common stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return,
if any, they may be able to achieve from an investment in our 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"><B><I>We are authorized to issue &ldquo;blank
check&rdquo; preferred stock without stockholder approval, which could adversely impact the rights of holders of our common stock.</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">Our articles of incorporation authorize us to
issue shares of &ldquo;blank check&rdquo; preferred stock, meaning our board of directors can designate the rights and preferences of
classes or series of such preferred stock without shareholder approval. Any preferred stock that we issue in the future may rank ahead
of our common stock in terms of dividend priority or liquidation premiums and may have greater voting rights than our common stock. In
addition, such preferred stock may contain provisions allowing those shares to be converted into shares of common stock, which could
dilute the value of common stock to current stockholders and could adversely affect the market price, if any, of our common stock. In
addition, the preferred stock could be utilized, under certain circumstances, as a method of discouraging, delaying or preventing a change
in control of our company. Although we have no present intention to issue any shares of authorized preferred stock, there can be no assurance
that we will not do so in the future.</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><I>If our shares of common stock become subject
to the penny stock rules, it would become more difficult to trade our shares.</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">The Securities and Exchange Commission, or the
SEC, has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized
for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions
in such securities is provided by the exchange or system. If we do not retain a listing on NASDAQ or another national securities exchange
and if the price of our common stock is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require
a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure
document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny
stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable
investment for the purchaser and receive (i) the purchaser&rsquo;s written acknowledgment of the receipt of a risk disclosure statement;
(ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement.
These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and
therefore shareholders may have difficulty selling their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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: justify"><B><I>We will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our shareholders
could receive less information than they might expect to receive from more mature public companies.</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">As a company with less than $1.235 billion in
revenue during our last fiscal year, we qualify as an &ldquo;emerging growth company&rdquo; as defined in Section 2(a) of the Securities
Act of 1933, as amended (the &ldquo;Securities Act&rdquo;). An emerging growth company may take advantage of reduced disclosure and reporting
requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:</P>

<P STYLE="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="width: 0.25in">&nbsp;</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">being permitted to present only two years
    of audited financial statements and only two years of related &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition
    and Results of Operations&rdquo; disclosure in our periodic reports and registration statements, including 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>&nbsp;</TD>
    <TD><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">not being required to comply with the auditor
    attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the &ldquo;Sarbanes-Oxley Act&rdquo;) on the effectiveness
    of our internal controls over financial reporting;</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>&nbsp;</TD>
    <TD><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">reduced disclosure obligations regarding
    executive compensation arrangements in our periodic reports, proxy statements and registration statements, including this prospectus;
    and</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>&nbsp;</TD>
    <TD><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">exemptions from the requirements of holding
    a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.</FONT></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; text-align: justify">We will remain an emerging growth company until
the earliest to occur of: (i) the last day of the fiscal year in which we have more than $1.235 billion in annual revenue; (ii) the date
we qualify as a &ldquo;large accelerated filer,&rdquo; with at least $700 million of equity securities held by non-affiliates; (iii)
the date on which we have issued, in any three-year period, more than $1.0 billion in non-convertible debt securities; and (iv) the last
day of the fiscal year ending after the fifth anniversary of the completion of this offering.</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">We have taken advantage of the reduced disclosure
obligations in the registration statement of which this prospectus is a part and intend to elect to take advantage of other reduced disclosure
and reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different than
you might receive from other public reporting companies in which you hold equity interests.</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 also a &ldquo;smaller reporting company,&rdquo;
meaning that the market value of our stock held by non-affiliates plus the proposed aggregate amount of gross proceeds to us as a result
of this offering is less than $700 million and our annual revenue is less than $100 million during the most recently completed fiscal
year. We may continue to be a smaller reporting company after this offering if either (i) the market value of our stock held by non-affiliates
is less than $250 million or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the
market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company when we cease to be
an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller
reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited
financial statements in our Annual Reports on Form 10-K and, like emerging growth companies, smaller reporting companies have reduced
disclosure obligations regarding executive compensation.</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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_003"></A>CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus contains forward-looking statements
that are based on our management&rsquo;s beliefs, expectations, and assumptions and on information currently available to us. All statements
other than statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in,
but not limited to, the sections entitled &ldquo;<I>Prospectus Summary</I>,&rdquo; &ldquo;<I>Risk Factors</I>,&rdquo; &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</I>&rdquo; and &ldquo;<I>Business</I>.&rdquo; These statements
relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that
may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels
of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include,
but are not limited to, statements about:</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>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our goal and strategies;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our future business
    development, financial condition and results of operations;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">expected changes in
    our revenue, costs or expenditures;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">growth of and competition
    trends in our industry;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our expectations regarding
    demand for, and market acceptance of, our products;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our expectations regarding
    our relationships with investors, institutional funding partners and other parties with whom we collaborate;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our expectation regarding
    the use of proceeds from this offering;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">fluctuations in general
    economic and business conditions in the markets in which we operate; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">relevant government
    policies and regulations relating to our industry.</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">In some cases, you can identify forward-looking
statements by terms such as &ldquo;may,&rdquo; &ldquo;could,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;would,&rdquo; &ldquo;expect,&rdquo;
&ldquo;plan,&rdquo; &ldquo;intend,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo;
&ldquo;potential,&rdquo; &ldquo;project&rdquo; or &ldquo;continue&rdquo; or the negative of these terms or other comparable terminology.
These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results.
Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under
the heading &ldquo;<I>Risk Factors</I>&rdquo; and elsewhere in this prospectus. If one or more of these risks or uncertainties occur,
or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected
by the forward-looking statements. No forward-looking statement is a guarantee of future performance.</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 forward-looking statements made in this prospectus
relate only to events or information as of the date on which the statements are made in this prospectus. Although we will become a public
company after this offering and have ongoing disclosure obligations under United States federal securities laws, except as required by
applicable law, we do not intend to update or otherwise revise the forward-looking statements in this prospectus, whether as a result
of new information, future events or otherwise.</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"></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"><B><A NAME="A_004"></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">After deducting the estimated Underwriter discounts
and commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $4,500,000 from this offering
(or approximately $[&nbsp;&nbsp;&nbsp;] if the Underwriter exercises the over-allotment option in full), based on an assumed initial
public offering price of $[&nbsp;&nbsp;&nbsp;] per Unit, which is the midpoint of the estimated offering range set forth on the cover
page 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">We plan to use the net proceeds of this offering
as follows:</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; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">14% of net proceeds (approximately
                                            $650,000) for Go-Public Attorney / Advisory Fees</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">7% of net proceeds (approximately
                                            $300,000) for market awareness marketing</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">53% of the net proceeds (approximately
                                            $2.4 million) for a deferred payment in connection with the Kirkman acquisition which has
                                            a maturity date of January 1, 2025. The payment is comprised solely of principal, since there
                                            is currently a $15,000 monthly interest payment payable; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">26% of net proceeds (approximately
                                            $1,150,000) for sales, marketing and working capital</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">Each $1 increase or decrease in the assumed initial
public offering price of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] per Unit, which is the midpoint of the estimated offering price range set
forth on the cover page of this prospectus, would increase or decrease the net proceeds that we receive from this offering by approximately
$[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], assuming that the number of shares offered by us, as set forth on the cover page of this prospectus,
remains the same and after deducting the estimated underwriting discounts and commissions payable by us.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing represents our current intentions
to use and allocate the net proceeds of this offering based upon our present plans and business conditions. Our management, however,
will have broad discretion in the way that we use the net proceeds of this offering. See &ldquo;<I>Risk Factors&mdash;Risks Related to
This Offering and Ownership of Our Common Stock&mdash;We have considerable discretion as to the use of the net proceeds from this offering
and we may use these proceeds in ways with which you may not agree</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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"><B><A NAME="A_005"></A>DIVIDEND POLICY</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 never declared or paid cash dividends
on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business
and do not anticipate paying any cash dividends on our common stock in the near future. We may also enter into credit agreements or other
borrowing arrangements in the future that will restrict our ability to declare or pay cash dividends on our common stock. Any future
determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition,
operating results, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors
may deem relevant. See also &ldquo;<I>Risk Factors&mdash;Risks Related to This Offering and Ownership of Our Common Stock&mdash;We do
not intend to pay any cash dividends on our shares of common stock in the near future, so our shareholders will not be able to receive
a return on their shares unless they sell their shares</I>.&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: center"><B><A NAME="A_006"></A>CAPITALIZATION</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 table sets forth our capitalization
as of September 30, 2024:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 24px; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 24px; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
    an actual basis;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
    a pro forma basis to reflect the sale of [&nbsp;&nbsp; ] shares by us in this offering at an assumed price to the public of $[&nbsp;&nbsp;
    ] per Unit, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus, resulting in net
    proceeds to us of $[ &nbsp;&nbsp;] after deducting (i) underwriter commissions of $[&nbsp;&nbsp; ] and (ii) our estimated other offering
    expenses of $[&nbsp;&nbsp; ]; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on
    a pro forma basis to reflect the sale of [&nbsp;&nbsp; ] shares by us in this offering, assuming the Underwriter elects to exercise
    the over-allotment option in full, at an assumed price to the public of $[&nbsp;&nbsp; ] per Unit, which is the midpoint of the estimated
    offering range set forth on the cover page of this prospectus, resulting in net proceeds to us of $[ &nbsp;&nbsp;] after deducting
    (i) underwriter commissions of $[&nbsp;&nbsp; ] and (ii) our estimated other offering expenses of $[ &nbsp;&nbsp;].</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">The pro forma information below is illustrative
only and our capitalization following the completion of this offering is subject to adjustment based on the initial public offering price
of our common stock and other terms of this offering determined at pricing. All figures presented in the table below are rounded to the
nearest thousand dollars. You should read this table together with our financial statements and the related notes included elsewhere
in this prospectus and the information under &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results
of Operations</I>.&rdquo;</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">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">As of September&nbsp;30, 2024:</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <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">Actual</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="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Post-Offering<BR>
    Pro Forma<BR>
    without<BR> Over-Allotment<BR> Option</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="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Post- Offering<BR>
    Pro Forma<BR>
    with<BR> Over- Allotment <BR> Option</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: 64%; text-indent: -9pt; padding-left: 9pt">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">246,903</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Total long-term liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,298,024</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: -9pt; padding-left: 9pt">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,337,949</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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: -9pt; padding-left: 9pt">Shareholders&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"></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: -9pt; padding-left: 0.25in">Common stock, $ [0.00001] par value, [220,000,000] shares authorized
    and [122,767,274] shares issued and outstanding on an actual and pro forma basis (prior to this offering)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,228</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Additional Paid in Capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,126,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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: -9pt; padding-left: 0.25in">Accumulated Deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(7,377,212</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Total shareholders&rsquo; deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(249,759</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase or decrease in the assumed
offering price per Unit of $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], which is the midpoint of the price range set forth on the cover page of
this prospectus, assuming no change in the number of shares to be sold, would increase or decrease the net proceeds that we receive in
this offering and each of total shareholders&rsquo; equity and total capitalization by approximately $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
(or $[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] if the Underwriter exercises its over-allotment option in full), after deducting (i) estimated
underwriter commissions and (ii) offering expenses, in each case, payable by us.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="A_007"></A>DILUTION</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">Dilution in net tangible book value per share
to new investors in our securities, is the amount by which the offering price paid by the purchasers of the shares of our common stock
sold in this offering exceeds the pro forma net tangible book value per share of common stock immediately after this offering. Net tangible
book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets
and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.</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 net tangible book value of our common stock
as of September 30, 2024, was approximately $[ &nbsp;&nbsp;], or approximately $[ &nbsp;&nbsp;] per share of 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">Pro forma as adjusted net tangible book value
dilution per share to new investors represents the difference between the amount per share paid by purchasers of our common stock in
this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after completion of this
offering. Investors participating in this offering will incur immediate, substantial dilution. After giving effect to our sale of&nbsp;[
&nbsp;&nbsp;]&nbsp;shares of our common stock in this offering at an assumed initial public offering price of $[ &nbsp;&nbsp;]&nbsp;per
share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and after deducting
the estimated underwriting discounts and commissions and estimated offering expenses, our pro forma as adjusted net tangible book value
as of September 30, 2024, would have been approximately $[ &nbsp;&nbsp;], or approximately $[ &nbsp;&nbsp;]&nbsp;per share. This amount
represents an immediate increase in pro forma net tangible book value of $[&nbsp;&nbsp; ]&nbsp;per share to existing shareholders and
an immediate dilution in pro forma net tangible book value of $[ &nbsp;&nbsp;]&nbsp;per share to purchasers of our common stock in this
offering, as illustrated in the following table.</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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">Assumed initial public offering price per share</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">[&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">]</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net tangible book value per share at September 30, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">Pro forma net tangible book value per share after this offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase in net tangible book value per share to the existing shareholders</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dilution in net tangible book value per share to new investors in this offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;&nbsp;</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">If the Underwriter exercises its over-allotment
option in full, the pro forma as adjusted net tangible book value per share of our common stock, as adjusted to give effect to this offering,
would be $[&nbsp;&nbsp;&nbsp; ] per share, and the dilution in pro forma net tangible book value per share to new investors purchasing
shares of common stock in this offering would be $[ &nbsp;&nbsp;&nbsp;] per share.</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, assuming the
sale of [&nbsp;&nbsp;&nbsp; ] shares of our common stock in this offering, as of September 30, 2024, the total number of shares of common
stock previously issued and sold by us to existing investors, the total consideration paid for the foregoing and the average price per
share, before deducting estimated underwriter commissions and offering expenses (assuming no exercise of the over-allotment option to
purchase additional shares of common stock and assuming no exercise of the Representative&rsquo;s warrants), in each case payable by
us. As the table shows, new investors purchasing shares of our common stock in this offering may in certain circumstances pay an average
price per share substantially higher than the average price per share paid by our existing shareholders.</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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Shares Purchased</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Total Consideration</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">Average Price</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Number</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="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Percent</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="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</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="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Percent</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="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Per Share</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="width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Existing shareholders<SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">[&nbsp;&nbsp;</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">[&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">]</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">]</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">]</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">]</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">New investors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="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">&nbsp;</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</TD><TD STYLE="text-align: left">]</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.00</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&nbsp;&nbsp;</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>

<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; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">[&#9679;]</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">A $1.00 increase or decrease in the assumed public
offering price of $[&nbsp;&nbsp;&nbsp; ] per share assuming the number of shares of our common stock offered by us remains the same and
after deducting estimated underwriter commissions and offering expenses payable by us would increase or decrease our pro forma net tangible
book value (deficit), as adjusted to give effect to this offering, to $[ &nbsp;&nbsp;&nbsp;] per share ($[ &nbsp;&nbsp;&nbsp;], if the
Underwriter exercises its over-allotment option in full). A $1.00 increase in the assumed public offering price of $[&nbsp;&nbsp;&nbsp;
] per share would increase the dilution to new investors by $[&nbsp;&nbsp; ] per share ($[ &nbsp;&nbsp;&nbsp;], if the Underwriter exercises
its over-allotment option in full).</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">To the extent that any outstanding options or
warrants are exercised, new options, restricted stock units or other securities are issued under our stock-based compensation plans,
or new shares of preferred stock are issued, or we issue additional shares of common stock or warrants in the future, there will be further
dilution to investors participating in this offering.</P>

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


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<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; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="A_008"></A>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</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"><I>The following discussion and analysis summarize
the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the
periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related
notes thereto included elsewhere in this prospectus. The discussion contains forward-looking statements that are based on the beliefs
of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially
from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this prospectus, particularly in the sections titled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Statement Regarding
Forward-Looking Statements&rdquo;.</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-top: 0pt; margin-bottom: 0pt; text-align: center">OUR COMPANY</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: 0pt 0; text-align: justify"><B>Overview</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">Our company operates in the nutraceutical supplement
industry. We are a manufacturer and distributor of supplements in categories such as pain, energy, prenatal, general health, bone and
joint, gastro, immunity, cardiac, detox, brain and memory, sleep, prenatal and urinary. Our end markets focus on end-consumers through
different channels that include pharmacies, US wholesalers, international distributors and direct-to-consumers sales. Our products are
sold over the counter, and consumers do not need a prescription to purchase our products. Our products are not approved by the FDA. Our
company also operates in the hemp industry as a retailer of hemp derived products in categories such as capsules, cigarettes, gummies,
and tinctures with a commercial end market, and end-consumers.</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">Functional Brands is a super majority owned subsidiary
of HOC, a privately held British Columbia corporation. Incorporated as HT Naturals Inc. in November 2020. The Company aims to deliver
the highest quality and innovative products under multiple brands. Kirkman, P2i by Kirkman Prenatal, HempTown Naturals and Golf Mellow
are current brands in the market or prepared to be launched in market.</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"><B>Our Products</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"><I>Kirkman Brand</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">Our products under our &ldquo;Kirkman&rdquo;
brand are manufactured in our cGMP certified, FDA registered manufacturing facility located in Lake Oswego, Oregon. Kirkman is a manufacturer
of nutritional supplements. Founded in 1949, Kirkman is also one of the oldest nutritional supplement companies serving the special needs
community.</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">Our Kirkman brand offers more than 150 products
including probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, preconception,
prenatal supplements, personal care products and other specialty products. Kirkman treats patients with autism spectrum disorders and
special dietary needs through an established network of over 2,000 doctors in over 40 countries. Our Kirkman brand operates in 95% of
the major subsegments in the supplement industry. Kirkman has a long-standing loyal customer and consumer base due to the rigorous testing
of products in compliance with FDA requirements. Kirkman has been endorsed by various businesses and celebrities, including the famous
and original Shark Tank member, Kevin Harrington.</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"><U>Digestive enzymes</U>: Over the counter oral
digestive enzyme supplements are a combination of proteases, which aid protein digestion; lipases, which aid in fat digestion; and amylases,
which aid in carbohydrate digestion. These may be prescribed by a doctor in some cases, when the pancreas does not make enough digestive
enzymes on its own. People are increasingly taking over the counter (&ldquo;OTC&rdquo;) digestive enzymes in lower doses to support general
gut health.</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"><U>Essential fatty acids</U>: Also called omega-3
fatty acids, essential fatty acids are important digestive chemicals that the body cannot make on its own.</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">Our products under the Kirkman Brand include,
but are not limited to, the following:</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: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplements for Autism;</FONT></TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 52%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Essential Fatty Acids;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Oxytocin;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vitamin B12;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vitamin B6 and Magnesium;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glutathione;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Melatonin;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Functional Mushrooms;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Probiotics;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Multivitamins and Minerals;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Digestive Enzymes;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Antioxidants; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amino Acids.</FONT></TD></TR>
  </TABLE>

<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"><I>P2i (prenatal) Brand</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 have recently launched in April 2024 a certified
prenatal vitamin for expectant mothers under the P2i by Kirkman brand. These vitamins have been specially formulated by our company to
provide essential nutrients for both the mother and the developing fetus. The International Federation of Gynecology and Obstetrics (&ldquo;FIGO&rdquo;)
published a position statement about toxic chemicals and environmental contaminants in prenatal vitamins. FIGO&rsquo;s recommendation
from the October 2023 position statement highlights that patients should only consume, and clinicians should only prescribe, vitamins
and supplements that have been independently assessed to make certain they do not contain contaminants. Manufacturers should be held
to a standard of production that assures safety and minimizes contaminants and certification of all prenatal vitamins becomes the standard
of care. The FIGO Committee report on Climate Change and Toxic Environmental Exposures brought together global scientists to review the
reputable reference sources for chemicals that have the potential to impact maternal and newborn health, including the USA Environmental
Protection Agency, the European Union, and the California EPA.</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 group of experts recommended several approaches,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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">1.</TD><TD STYLE="text-align: justify">creating a list of toxic chemicals
                                            and contaminants that should be screened for in Prenatal Vitamins and reduced to de minimis
                                            standards; and</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 STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD STYLE="text-align: justify">conducting assays of existing
                                            vitamins to assess ongoing risk to maternal and newborn health. This work can extend to personal
                                            exposure risk by offering women testing for the presence of potentially toxic environmental
                                            chemicals. Mass Spectrometry currently offers the most comprehensive measurement.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This first publication of a list of toxic chemicals
and contaminants represents the most comprehensive testing available at present but does not purport to identify or eliminate all potential
sources of toxicity.</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 currently the only certified prenatal
vitamin in the market that aligns to the FIGO position statement. We have formulated and produced a prenatal vitamin called P2i by Kirkman.
There are 3.6M pregnancies alone in the United States (https://www.cdc.gov/nchs/fastats/births.htm) and the initial market focus for
this product will be the United States with the expectation to expand globally since FIGO&rsquo;s position statement reaches all countries.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM&rsquo;s low-toxicity standards, which align with FIGO&rsquo;s objectives for maternal
                                            and fetal health. These standards include:</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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="text-align: justify; width: 0.75in"></TD><TD STYLE="text-align: justify; width: 0.25in">o</TD><TD STYLE="text-align: justify">Analysis
                                            of 24 Heavy Metals, ensuring levels are below stringent safety thresholds</TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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="text-align: justify; width: 0.75in"></TD><TD STYLE="text-align: justify; width: 0.25in">o</TD><TD STYLE="text-align: justify">Testing
                                            for the presence of 120 toxic chemicals, such as pesticides and endocrine disruptors, with
                                            strict limits to prevent potential harm</TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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="text-align: justify; width: 0.75in"></TD><TD STYLE="text-align: justify; width: 0.25in">o</TD><TD STYLE="text-align: justify">Utilization
                                            of ISO 17025-accredited laboratories for all testing to ensure reliability and reproducibility
                                            of results</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product&rsquo;s compliance with The FORUM&rsquo;s criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman&rsquo;s prenatal vitamin meets
                                            its standards for low toxicity and safety. </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; text-align: justify"><I>HempTown Naturals Brand</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">All HempTown Naturals products are produced and
sold in compliance with the US 2018 Farm Bill and the US Agricultural Act of 2014. CBD and CBG are cannabinoids present in the cannabis
plant. Both CBD and CBG are used in hemp derived products. These products are believed to help in treating certain neurodegenerative
and inflammatory conditions<SUP>1</SUP>.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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: left; width: 0.25in"><SUP>1</SUP></TD><TD STYLE="text-align: justify">https://www.medicalnewstoday.com/articles/cgb-vs-cbd</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: justify">CBD</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">CBD, or cannabidiol, is the second most prevalent
ingredient in cannabis. While CBD is an integral component of medical marijuana, it is derived directly from the hemp plant, both of
which are the same species: Cannabis sativa L. One of the hundreds of components of Cannabis sativa L., CBD does not cause a &ldquo;high&rdquo;
by itself. According to a report from the World Health Organization, &ldquo;In humans, CBD exhibits no effects indicative of any abuse
or dependance potential&hellip;. To date, there is no evidence of public health related products associated with the use of pure CBD.&rdquo;<SUP>2</SUP></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 reported by Forbes Health, CBD is applied
topically or consumed through smoke inhalation or edible consumption. CBD interacts with neuroreceptors in your endocannabinoid system,
which sends signals between your cells to help regulate your movement, mood, homeostasis, and immune system. Different studies have shown
that CBD can offset everyday anxiety and depression.<SUP>3</SUP></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">CBG</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">CBG, or cannabigerol, is another compound found
in hemp which doesn&rsquo;t have intoxicatingly psychoactive effects. CBG, often referred to by experts as &ldquo;the mother of all cannabinoids,&rdquo;
is the cannabinoid from which other types of cannabinoids (including CBD) are derived, says Michelle Sexton, a naturopathic doctor who
works at the Pain Trauma Institute in San Diego. &ldquo;CBG is the first compound in the biosynthesis (the production of chemical compounds
by a living organism) of the other cannabinoids,&rdquo; she adds.</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">CBG is available in many forms, including tinctures,
gummies, capsules and topical creams and lotions. CBG is often coupled with CBD in these products because the two cannabinoids can provide
complimentary benefits, such as decreasing inflammation and pain, says Fraser Smith, a naturopathic doctor, as well as assistant dean
and associate professor at the National University of Health Services in Lombard, Illinois. CBD and CBG occur naturally in hemp extract
which is the source of our cannabinoids.<SUP>4</SUP></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"><I>Golf Mellow Brand</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company has utilized existing product formulations with plans to introduce 12 different products under the Golf Mellow brand. A brand
logo and packaging has been created to support the existing formulations. These supplements will be targeting the golf industry and golf
professionals. These products include capsules, a powder, a cream and tinctures to help golfers of all levels improve their game and
overall well-being. The capsules are packed with a blend of essential vitamins and minerals that support joint health, flexibility, and
energy levels. The tinctures are made from all-natural ingredients and provide a quick and easy way to support focus and mental clarity,
helping athletes stay in the zone and make the perfect shot. The creams are specially designed to provide targeted relief for sore muscles
and joints, helping them stay comfortable and focused on the course. Some of these products include Sleep Caps to ensure that players
are well rested the night before, Super B12 Powder which provides the energy needed for the perfect round, Calm Caps which help manage
anxiety when players need it most, and Epsom Salt Cream &amp; Recovery Caps, which aids with recovery. Once we receive a purchase order,
we will package the products to fulfill the respective order.</FONT></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">According to data from the National Golf Foundation
25.1 million people (aged six and over) played on a golf course in the United States in 2021 &ndash; furthermore there were another 12.4
million people who took part in off-course activities like driving ranges, indoor golf simulators or venues like Topgolf and Drive Shack.<SUP>5</SUP></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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; text-align: left"><SUP>2</SUP></TD><TD STYLE="text-align: justify">www.health.harvard.edu</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left"><SUP>3</SUP></TD><TD STYLE="text-align: justify">www.forbes.com/health/body/cbd-oil-benefits/</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left"><SUP>4</SUP></TD><TD STYLE="text-align: justify">www.forbes.com/health/body/cannabigerol-cbg/</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left"><SUP>5</SUP></TD><TD STYLE="text-align: justify">https://www.golfmonthly.com/news/how-many-golfers-are-there-in-the-united-states</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: justify"><B>Competitive Strengths</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 Kirkman brand has been in business for over
70 years with a loyal consumer base and we believe that we maintain high purity and quality standards in the industry. We source all
materials from high quality suppliers.</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 test our finished goods in certified laboratories
with state-of-the-art equipment and manufacture our supplements in our US-based cGMP certified and FDA registered facility located in
Lake Oswego, Oregon. The FDA requires that we conduct at least one appropriate test or examination to verify and identify any component
that is a dietary ingredient. We conduct ingredient testing by verifying the identity through ISO certified 3rd party laboratories. We
also test for residual solvents and pesticides (where applicable), presence of up to 24 heavy metals and microbial contamination that
could lead to illness or death. Microbial tests can include, but are not limited to, aerobic plate count, yeast &amp; mold, coliforms,
E. coli, pseudomonas, staphylococcus aureus, Bile Tolerant gram negative, Salmonella, Aflatoxins and listeria. Heavy metals testing includes
beryllium, aluminum, vanadium, chromium, manganese, cobalt, nickel, copper, zinc, arsenic, selenium, molybdenum, palladium, silver, cadmium,
tin, antimony, barium, tungsten, platinum, thallium, lead, uranium and mercury. For incoming raw ingredients, we ID using the following
methods: Botanicals &ndash; HPLC (High Pressure Liquid Chromatography) or TLC (Thin Layer Chromatography), or an approved Chemical test;
Vitamins &ndash; IR (Infrared) absorption, Chemical test, UV (Ultraviolet) absorption, UV fluorescence, GC (Gas Chromatography), HPLC;
Minerals &ndash; ICP-MS (Inductively Coupled Plasmas &ndash; Mass Spectroscopy), IR (Infrared), Chemical tests, TLC (Thin Layer Chromatography);
Enzymes &ndash; HPLC (High Pressure Liquid Chromatography), PCR (Polymerase Chain Reaction); Amino Acids &ndash; IR absorption, Optical
Rotation, HPLC, TLC, GC (Gas Chromatography), Assay; Probiotics &ndash; PCR and HPLC; Metals &ndash; HPLC or ICP-MS; Micros &ndash; Cell
culture and cell identification.</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 FDA requires that a finished batch of the
dietary supplement meets product specifications for identity, purity, strength, composition, and for limits on those types of contamination
that may adulterate or that may lead to adulteration of the finished batch of the dietary supplement. This can be conducted for a subset
of finished dietary supplement batches through a sound statistical sampling plan (or for every finished batch). For our business, we
test every batch of products to ensure heavy metals are below Pop 65 limits. In addition, every batch is tested for microbial contamination.
Our 75+ year history in the industry, along with our rigorous material testing, allows Kirkman to use statistical sampling to ensure
the identity, purity and strength of each product is met. Our formulations use proprietary blends.</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">Although we are authorized to produce hemp derived
products because we hold a hemp handler&rsquo;s license, we currently do not grow any hemp, but we source our hemp derived products from
registered growers in operation. The FDA does not require any testing on dietary supplements whereas we test for approximately 90 metals
and toxins in raw materials.</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 previously mentioned, we&rsquo;ve recently
launched P2i by Kirkman prenatal vitamin, which is the only certified prenatal vitamin that aligns to FIGO&rsquo;s position statement.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM&rsquo;s low-toxicity standards, which align with FIGO&rsquo;s objectives for maternal
                                            and fetal health. These standards include:</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&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="text-align: justify; width: 0.75in"></TD><TD STYLE="text-align: justify; width: 0.25in">o</TD><TD STYLE="text-align: justify">Analysis
                                            of 24 Heavy Metals, ensuring levels are below stringent safety thresholds</TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&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="text-align: justify; width: 0.75in"></TD><TD STYLE="text-align: justify; width: 0.25in">o</TD><TD STYLE="text-align: justify">Testing
                                            for the presence of 120 toxic chemicals, such as pesticides and endocrine disruptors, with
                                            strict limits to prevent potential harm</TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&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="text-align: justify; width: 0.75in"></TD><TD STYLE="text-align: justify; width: 0.25in">o</TD><TD STYLE="text-align: justify">Utilization
                                            of ISO 17025-accredited laboratories for all testing to ensure reliability and reproducibility
                                            of results</TD></TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&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="text-align: justify; width: 0.25in"></TD><TD STYLE="text-align: justify; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product&rsquo;s compliance with The FORUM&rsquo;s criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman&rsquo;s prenatal vitamin meets
                                            its standards for low toxicity and safety. </FONT></TD></TR></TABLE>

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

<P STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We have an exclusive license agreement with the
Trailer Park Boys to market &amp; sell hemp derived products. There are two product categories that include Hemp Derived Delta 9 products.
This includes Delta 9 gummies and Delta 9 Drink Enhancers. These two specific products are intended for health &amp; wellness, and recreational
use. Both product categories comply with the 2018 Farm Bill where THC concentration does not exceed 0.3% on a dry weight basis. The revenue
of these two product categories represents .6% of total company revenue. We executed a license agreement with the Trailer Park Boys which
is in effect since July 21, 2021 and until December 31, 2024, under the license agreement as amended, the Company will pay the Trailer
Park Boys, an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to
be paid during the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000 shares of the Company.
The royalty rate under this agreement is between 15 - 30% of the gross sales of the company derived from sales related to the license.
To date, $425,000 has been paid to the Trailer Park Boys towards the license agreement. The license agreement may be terminated with
reasonable cause upon six months&rsquo; written notice or for certain triggering events without recourse or an opportunity to cure.</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>Growth Strategy</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 aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products including mushroom-based supplements targeted for everyday use, prenatal, athletes and beyond.</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 plan to do this by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.65pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; width: 0.25in; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; width: 0.25in; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Strengthening
    our existing 70-year-old Kirkman brand with its established base of consumers in the autism community by curating our product mix
    to cater to their specific needs;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Launching
    multiple brands, broad as well as niche, including P2i by Kirkman which is the only certified prenatal vitamin supporting FIGO&rsquo;s
    October 2023 position statement, to allow us to increase our market share;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Modernizing
    our manufacturing capabilities by reorganizing the space and introducing new and efficient machinery and equipment to significantly
    enhance our output;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investing
    heavily into our sales and marketing activities as well as business development in order to increase sales and distribution; and</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; text-align: justify; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Identify
    key companies with synergistic strengths for partnerships or acquisitions.</FONT></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"><B>Challenges, Risks and Limitations&nbsp;</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; text-align: justify">Our ability to utilize our competitive advantages
in order to strengthen and expand our business and achieve our growth plan is subject to a number of risks and uncertainties more fully
discussed under &ldquo;Risk Factors&rdquo; in this Prospectus. As discussed in our financial statements, we have suffered recurring losses
from operations and have a significant accumulated deficit. In addition, we continue to experience negative cash flows from operations.
This limited working capital capabilities may delay or make the accomplishment of our growth plans difficult. In assessing the likelihood
of our future success, investors in this offering should note our history of losses and the likelihood of our operating profitability
in the future. Further, some of our products may be subject to unpredictable and evolving federal, state and local regulations concerning
hemp, CBD and other non-tobacco consumable products. Because the type, timing, and impact of such regulations remain uncertain, we cannot
give any assurance that such actions will not have a material adverse effect on this emerging business and our strategy.</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>Our Corporate History and Structure</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">Functional Brands was organized under the General
Corporation Law in the state of Delaware on November 19, 2020 under the name HT Naturals Inc. HT Naturals Inc. changed its name to Functional
Brands Inc. on March 23, 2023. Our principal business is the production, marketing, sales, and distribution of nutraceutical products
through our Kirkman division, alongside our hemp derived products under the Hemptown brand in certain states within the United States
that permit such sales. We ship our Kirkman products to all US states. As for hemp derived products, we only sell to states which permit
this activity with certain restrictions such as the content of THC which differs depending on the state.</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 states in which we have sold hemp derived
products in the past are Alabama, Arizona, Arkansas, California (D9 ingestible and CBD/CBG ingestible only), Colorado (CBD/CBG inhalable
only), Connecticut, Delaware (D9 ingestible), Florida, Georgia (D9 ingestible and CBD/CBG ingestible only), Hawaii (CBD/CBG ingestible
only), Illinois(D9 ingestible and CBD/CBG inhalable), Indiana (D9 ingestible only), Iowa (D9 ingestible only), Kansas, Kentucky (D9 ingestible
only), Louisiana, Maine (D9 ingestible and CBD/CBG inhalable), Maryland (CBD/CBG inhalable only), Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nevada, New Hampshire, New Jersey, New York (D9 and CBD/CBG ingestible only), North Carolina, North Dakota (CBD/CBG
ingestible only), Ohio, Oklahoma, Oregon (CBD/CBG ingestible only), Pennsylvania, Rhode Island, South Carolina, South Dakota (D9 ingestible
only), Tennessee (CBD/CBG inhalable only), Texas, Virgina (CBD/CBG ingestible and inhalable only), Washington (CBD/CBG Inhalable only),
West Virginia, Wisconsin, Wyoming.</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 engaged specialized hemp counsel to provide
regular updates on the 50 states and the legality of our hemp products in each state. In addition, we have established and followed a
standard of operating procedure (SOP) to ensure sales do not occur in the states where hemp products may not be sold consistent with
the regular updates provided by our hemp counsel. We have an internal policy that prohibits us as a company and any of our executives,
directors, employees, sales representatives and distributors to distribute any of the Company&rsquo;s hemp derived products in places
in which the sale of hemp derived products is prohibited. We are a 98% subsidiary of HOC, a British Columbia, Canada private operating
holding company with various interests in nutraceutical manufacturing and federally legal industrial hemp products. We were granted a
licensing agreement by Hemptown Organics Corp. The licensing agreement, dated December 10, 2020, provides Functional Brands Inc. as licensee,
a license to use the Hemptown USA and Hemptown Naturals brand and trademarks on a perpetual, non-exclusive, non-transferable basis, with
no expiry date. This licensing agreement will transfer full ownership to Functional Brands upon the public offering and listing on the
exchange, at which time HOC will dividend out the majority of the Company&rsquo;s shares currently held by HOC.</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">On June 28, 2019, HTO Holdings Inc. (&ldquo;HTO
Holdings&rdquo;) a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as &ldquo;Purchaser&rdquo;),
entered into an asset purchase agreement (&ldquo;APA&rdquo;) for the net assets of Kirkman Group Inc., a Nevada corporation, Kirkman
Laboratories Inc., an Oregon corporation and Kirkman Group International, Inc., a Nevada corporation (collectively &ldquo;Kirkman&rdquo;
or the &ldquo;Seller,&rdquo; and together with Purchaser, the &ldquo;Parties&rdquo;) for a consideration equal to $5 million with payout
in a business combination of cash and deferred consideration. The &rsquo;&rsquo;Seller&rsquo;&rsquo; is David Humphrey. Under the APA,
Purchaser and HTO Holdings were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021
by the Parties with the purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment
schedule of the deferred consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and
other agreements attached to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement,
the domain names transfer agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively,
the &ldquo;IP Collateral Agreements&rdquo;)) to, among other things, provide additional collateral as security to Seller. Upon payment
in full in cash of the deferred consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that
the security agreement and amended intellectual property security agreement would be automatically terminated and be of no further force
and effect; and (ii) Seller would, at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective
security agreement and intellectual property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16,
2022, the APA was amended again by the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral
Agreements. On May 31, 2022, Purchaser paid Seller certain amounts (&ldquo;Immediate Payments&rdquo;), and on July 23, 2022, Purchaser
and Seller executed a forbearance agreement (&ldquo;Forbearance Agreement&rdquo;) to extend the payments due under the APA to August
31, 2022. After Purchaser&rsquo;s default, and partial payment to Seller in September 2022, the Parties executed an amendment to the
Forbearance Agreement on December 27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was
$3,032,000 (the &ldquo;Existing Default&rdquo;). Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated
September 24, 2024, where additional principal and interest payments will continue. As of January 5, 2025, the balance due to Seller
is $2,342,366. We intend to use a portion of the proceeds of the public offering to cover the payment of some of the Existing Default.</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 a part of our restructuring efforts, HTO Nevada,
formerly owned by HTO Holdings, was acquired by Functional Brands on May 19, 2023, through a share exchange agreement executed by HOC,
HTO Holdings and Functional Brands, in which HTO Holdings exchanged 1,000 restricted shares of common stock, par value $0.0001 per share
of HTO Nevada, being all of the issued and outstanding capital stock of HTO Nevada, in exchange for 80,000,000 restricted shares of common
stock of Functional Brands, $0.00001 par value per share (the &ldquo;Functional Brands Shares&rdquo;) to HOC, such that, HTO Nevada shall
be a wholly-owned subsidiary of Functional Brands and HOC shall own 120,000,000 shares of Functional Brands. The resulting entity, Functional
Brands Inc., with its wholly owned subsidiary HTO Nevada, will be the publicly listed entity. Our fiscal year-end is December 31.</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>Corporate 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 are currently incorporated and in good standing
in the State of Delaware. Our registered address is 6400 SW Rosewood Street, Lake Oswego, Oregon 97035 and our telephone number is (800)
245-8282. We maintain the following websites: https://functtionalbrandsinc.com, https://kirkmangroup.com and https://hemptownnaturals.com.
Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus, and you should
not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether
to purchase our 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"><B>NASDAQ Listing</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">We intend to list our common stock on NASDAQ.
There is no assurance that our listing application will be approved by NASDAQ. The approval of our listing on NASDAQ is a condition to
closing. If our application to NASDAQ is not approved or we otherwise determine that we will not be able to secure the listing of our
common stock on NASDAQ, we will not complete the offering.</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>Results of Operations</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><I>For the Nine Months Ended September 30,
2024, compared to the Nine Months Ended September 30, 2023</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></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-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>September
                                            30, 2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>September
                                            30, 2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P></TD><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">$ <BR>
    Change</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">% <BR>
    Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify">Statements of Operations Data</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify">Net Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,886,331</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,268,405</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">(382,074</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">-7.25</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cost of Goods Sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,272,561</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,852,939</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">580,378</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-20.34</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,703,668</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,804,658</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,990</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-3.60</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Operating Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(89,898</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(389,192</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">299,294</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-76.90</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Other Income / (Expense), Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(185,740</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(247,705</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,965</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-25.02</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(275,638</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(636,897</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">361,259</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-56.72</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"><I>Revenue</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 nine months ended September 30, 2024,
we generated $4,886,331 in revenue compared to $5,268,405 in revenue in 2023. Sales dropped by 7% year over year due to lower demand
from contract manufacturing customers.</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>Operating Costs and Expenses</I></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"><U>Cost of goods sold (COGS)</U></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 had total cost of goods sold of $2,272,561
for the nine months ended September 30, 2024, representing approximately 20% decrease compared to $2,852,939 in cost of goods sold in
2023. This decline of $580,378 is partially attributable to 7% lower net revenue recorded for the nine months ended September 30, 2024,
as well as tightening control over costs and negotiating better terms with vendors.</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"><U>Selling and marketing costs (S&amp;M)</U></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">Selling and marketing costs consisted of payroll,
ecommerce expenses, as well as advertising &amp; promotion.</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">Selling and marketing costs for the nine months
ended September 30, 2024, were $454,714 compared to $434,740 for the nine months ended September 30, 2023. The 5% increase is the result
of the efforts to promote the launch of the new P2i product made by The Company.</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"><U>General and administrative expenses (G&amp;A)</U></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">General and administrative costs consisted of
professional, consulting &amp; legal fees, as well as rent &amp; utilities, insurance and payroll.</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">General and administrative expenses for the nine
months ended September 30, 2024, decreased to $2,248,954, compared to $2,369,918 for the quarter ended September 30, 2023. The 5% decrease
was primarily attributed to less consulting expenses incurred during the period.</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"><U>Operating Loss </U></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">Operating loss decreased by 77% from $389,192
in during the nine months ended September 30, 2023 to $89,898 during the nine months ended September 30, 2024 due to the Company&rsquo;s
continuous work to stabilize the company by tightening costs including COGS and G&amp;A, as described above.</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"><U>Other income / (expenses)</U></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">Total other expenses decreased to $185,740 for
the nine months ended September 30, 2024, compared to total other expenses $247,705 for the nine months ended September 30, 2023. This
decrease was the result of payoff of loans during the nine months ended on September 30, 2024</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"><I>Net loss</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 had a net loss of $275,638 for the nine months
ended September 30, 2024, compared to a net loss of $636,897 for the nine months ended September 30, 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"></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><I>For the Year Ended December 31, 2023, compared
to the Year Ended December 31, 2022</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></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-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December
                                            31, 2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Audited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>December
                                            31, 2022</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Restated)</B></P></TD><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">$ <BR>
    Change</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">% <BR>
    Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify">Statements of Operations Data</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify">Net Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">6,820,499</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">7,051,224</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">(230,725</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">-3.27</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cost of Goods Sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,641,648</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,049,780</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-10.08</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,261,354</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,339,296</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77,942</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-1.80</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Operating Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,082,503</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,337,852</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">255,349</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-19.09</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Other Income / (Expense), Net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(158,591</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">395,517</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-554,108</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-140.10</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,241,094</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(942,335</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(298,759</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31.70</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"><I>Revenue</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 year ended December 31, 2023, we generated
$6,820,499 in revenue compared to $7,051,224 in revenue in 2022. Sales dropped by 3% year over year due to lower demand from contract
manufacturing customers.</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>Operating Costs and Expenses</I></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"><U>Cost of goods sold (COGS)</U></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 had total cost of goods sold of $3,641,648
for the year ended December 31, 2023, representing a 10% decrease compared to $4,049,780 in cost of goods sold in 2022. This decline
of $408,132 is partially attributable to 4% lower net revenue recorded for the year ended December 31, 2023, as well as tightening control
over costs and negotiating better terms with vendors.</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"><U>Selling and marketing costs (S&amp;M)</U></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">Selling and marketing costs consisted of payroll,
ecommerce expenses, as well as advertising &amp; promotion.</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">Selling and marketing costs for the year ended
December 31, 2023, were $588,772 compared to $796,860 for the year ended December 31, 2022. The 26% decrease is the result of the end
of a fundraising campaign for which the company incurred significant financing costs.</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"><U>General and administrative expenses (G&amp;A)</U></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">General and administrative costs consisted of
professional, consulting &amp; legal fees, as well as rent &amp; utilities, insurance and payroll.</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">General and administrative expenses for the year
ended December 31, 2023, increased to $3,672,582, compared to $3,542,433 for the year ended December 31, 2022. The 4% increase was primarily
attributed to services and fees incurred in relation to the initial public offering, such as audit, consulting and legal 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"><U>Operating Loss </U></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">Operating loss decreased by 19% from $1,337,852
in 2022 to $1,082,503 in 2023 due to the Company&rsquo;s continuous work to stabilize the company by tightening costs including COGS
and G&amp;A, as described above.</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"><U>Other income / (expenses)</U></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">Total other expenses increased to $158,591 for
the year ended December 31, 2023, compared to total other income $395,517 for the year ended December 31, 2022. This increase was heavily
positively impacted by Payment Protection Program (PPP) loan forgiven totaling 528,586 in 2022.</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"><I>Net loss</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 had a net loss of $1,241,094 for the year
ended December 31, 2023, compared to a net loss of $942,335 for the year ended December 31, 2022 which was partially offset by a gain
on forgiveness of Paycheck Protection Program loan in the amount of $528,586.</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"></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: justify"><I>Liquidity and Capital Resources</I></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"><B><I>Sources and Uses of Cash for the Nine Months
Ended September 30, 2024 and 2023</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">The table below, for the periods indicated, provides
selected cash flow information:</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">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nine-month
                                            Period Ended<BR> September&nbsp;30,<BR> 2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nine-month
                                            Period Ended<BR> September&nbsp;30,<BR> 2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Unaudited)</B></P></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">Net cash used in operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(57,446</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(99,795</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash used in investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,881</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash (used in) provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(68,205</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">180,227</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net increase (decrease) in cash</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(127,532</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">76,932</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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Material cash requirements from known contractual
and other obligations:</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">Excluding debt obligations from ongoing operations,
the Company owes $2,597,368 payable for acquisition as of December 31, 2023. On September 24, 2024, the Company executed a Forbearance
Agreement with the former owner of Kirkman. This allows the postponement of principal payment. On the same date, the Company executed
a Confession of Judgement in connection with the principal owed. This allowed the seller to enter a judgement against the Company in
The Circuit Court of The State of Oregon for the County of Clackamas.</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><U>Cash Flows from Operating Activities</U></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 had cash provided by operating activities
of $57,446 in the quarter ended September 30, 2024, as compared to cash used in operating activities of $99,795 during the quarter ended
September 30, 2023. The decrease in net cash used in operating activities is attributable to lower inventory turnover, lower balance
for accounts &amp; accruals and lower balance for accounts receivable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Cash Flows from Investing Activities</U></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 had cash used in investing $1,881 for the
quarter ended September 30, 2024, as compared to $3,500 cash used in investing activities for the quarter ended September 30, 2023. This
was primarily attributed to the purchase of capital property &amp; equipment for lesser value.</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><U>Cash Flows from Financing Activities</U></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 had cash used in financing activities of $68,205
in the quarter ended September 30, 2024, as compared to cash provided by financing activities of $180,227 in 2023. &nbsp;The change in
net cash used in financing activities was primarily the result of payments to long term debt a repayment of line of credit and no longer
raising funds for Reg CF nor Reg D.</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><I>Sources and Uses of Cash for the Years
Ended December 31, 2023 and 2022</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">The table below, for the periods indicated, provides
selected cash flow information:</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">
    <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">Year Ended<BR> 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">Year Ended<BR> December&nbsp;31,
    <BR> 2022<BR> (Restated)</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">Net cash provided by (used in) operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">248,169</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(689,880</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash used in investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(967</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash (used in) provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(73,061</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">552,933</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net increase (decrease) in cash</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">171,608</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">(137,914</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: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Material cash requirements from known contractual
and other obligations:</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">Excluding debt obligations from ongoing operations,
the Company owes $2,597,368 payable for acquisition as of December 31, 2023. On September 24, 2024, the Company executed a Forbearance
Agreement with the former owner of Kirkman. This allows the postponement of principal payment. On the same date, the Company executed
a Confession of Judgement in connection with the principal owed. This allowed the seller to enter a judgement against the Company in
The Circuit Court of The State of Oregon for the County of Clackamas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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"><I><U>Cash Flows from Operating Activities</U></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 had cash provided by operating activities
of $248,169 in the year ended December 31, 2023, as compared to cash used in operating activities of $689,880 during the year ended December
31, 2022. The increase in net cash provided by operating activities is attributable to higher inventory turnover, higher balance for
accounts &amp; accruals and stock-based compensation in 2023 as well as the gain on loan forgiveness in 2022.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I><U>Cash Flows from Investing Activities</U></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 had cash used in investing activities of $3,500
for the year ended December 31, 2023, as compared to $967 cash used in investing activities for the year ended December 31, 2022. This
was primarily attributed to the purchase of capital property &amp; equipment.</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><U>Cash Flows from Financing Activities</U></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 had cash used in financing activities of $73,061
in the year ended December 31, 2023, as compared to cash provided by financing activities of $552,933 in 2022. &nbsp;The change in net
cash used in financing activities was primarily the result of the lower amount of funds raised from the Reg CF campaign, $9,067 in 2023
compared to $1,162,867.</P>

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


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We anticipate that our cash needs for the next
twelve months for working capital and capital expenditures will be approximately [$3,600,000]. As of December 31, 2024, we had approximately
$[200,000] in cash, and we believe that our current cash and cash flow from operations will only be sufficient to meet anticipated cash
needs for the next six months for working capital and capital expenditures. We will likely also require additional cash resources due
to possible changed business conditions or other future developments. We plan to seek to sell additional equity securities to generate
additional cash to continue operations. We may also sell debt securities to generate additional cash. The sale of equity securities,
or of debt securities that are convertible into our equity, could result in additional dilution to our shareholders. The incurrence of
additional indebtedness would result in increased debt service obligations and could result in operating and financing covenants that
would restrict our operations and liquidity.</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">Our ability to obtain additional capital on acceptable
terms is subject to a variety of uncertainties, including the following: investors&rsquo; perception of, and demand for, securities of
cigarette and hemp companies; conditions of the U.S. and other capital markets in which we may seek to raise funds; future results of
operations, financial condition and cash flow. Therefore, our management cannot assure that financing will be available in amounts or
on terms acceptable to us, or if at all. Any failure by us to raise additional funds on terms favorable to us could have a material adverse
effect on our liquidity and financial condition.</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>Going Concern</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 the event we are not successful in reaching
our sustained revenue targets, we anticipate that depending on market conditions and our plan of operations, we will likely incur continued
operating losses. We base this expectation, in part, on the fact that we may not be able to generate enough gross profit to cover our
operating expenses. Consequently, we may not continue to operate as a going concern in the long term. As described in the section entitled
&ldquo;<I>Risk Factors</I>,&rdquo; we are subject to many factors which could detrimentally affect us. Many of these risk factors may
be outside management&rsquo;s control, including demand for our products, our ability to hire and retain talented and skilled employees
and service providers, as well as other factors. We do not know of any trends, demands, commitments, events or uncertainties that will
result in, or that are reasonable likely to result in, our liquidity increasing or decreasing in any material way. We do not know of
any significant changes in expected sources and uses of cash. We do not have any commitments or arrangements from any person to provide
us with any equity capital.</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>Off-Balance Sheet Arrangements</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 currently have no off-balance sheet arrangements
that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources<B>. </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>Critical Accounting Policies</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">Our financial statements are based on the application
of accounting principles generally accepted in the United States (&ldquo;GAAP&rdquo;). GAAP requires the use of estimates; assumptions,
judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue, and expense
amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information
regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to
GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions
that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions
or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.</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">Our significant accounting policies are summarized
in Note 5 to our financial statements. While these significant accounting policies impact our financial condition and results of operations,
we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact
on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from
those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable
judgments or estimate methodologies would cause an effect on our results of operations, financial position or liquidity for the periods
presented in this report.</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>Recent Accounting Pronouncements</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">From time to time, new accounting pronouncements
are issued by FASB that are adopted by us as of the specified effective date. If not discussed, management believes that the impact of
recently issued standards, which are not yet effective, will not have a material impact on our financial statements upon adoption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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"><B><A NAME="A_009"></A>BUSINESS</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>Overview</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">Our company operates in the nutraceutical supplement
industry. We are a manufacturer and distributor of supplements in categories such as pain, energy, prenatal, general health, bone and
joint, gastro, immunity, cardiac, detox, brain and memory, sleep, prenatal and urinary. Our end markets focus on end-consumers through
different channels that include pharmacies, US wholesalers, international distributors and direct-to-consumers sales. Our products are
sold over the counter and consumers do not need a prescription to purchase our products. Our products are not approved by the FDA. Our
company also operates in the hemp industry as a retailer of hemp derived products in categories such as capsules, cigarettes, gummies,
and tinctures with a commercial end market, and end-consumers.</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">Functional Brands is a super majority owned subsidiary
of HOC, a privately held British Columbia corporation. Incorporated as HT Naturals Inc. in November 2020. The Company aims to deliver
the highest quality and innovative products under multiple brands. Kirkman, P2i by Kirkman Prenatal, HempTown Naturals and Golf Mellow
are current brands in market or prepared to be launched in market.</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"><B>Our Products</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"><I>Kirkman Brand</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">Our products under our &ldquo;Kirkman&rdquo;
brand are manufactured in our cGMP certified, FDA registered manufacturing facility located in Lake Oswego, Oregon. Kirkman is a manufacturer
of nutritional supplements. Founded in 1949, Kirkman is also one of the oldest nutritional supplement companies serving the special needs
community.</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">Our Kirkman brand offers more than 150 products
including probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, preconception,
prenatal supplements, personal care products and other specialty products. Kirkman treats patients with autism spectrum disorders and
special dietary needs through an established network of over 2,000 doctors in over 40 countries. Our Kirkman brand operates in 95% of
the major subsegments in the supplement industry. Kirkman has a long-standing loyal customer and consumer base due to the rigorous testing
of products in compliance with FDA requirements. Kirkman has been endorsed by various businesses and celebrities, including the famous
and original Shark Tank member, Kevin Harrington.</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"><U>Digestive enzymes</U>: Over the counter oral
digestive enzyme supplements are a combination of proteases, which aid protein digestion; lipases, which aid in fat digestion; and amylases,
which aid in carbohydrate digestion. These may be prescribed by a doctor in some cases, when the pancreas does not make enough digestive
enzymes on its own. People are increasingly taking over the counter (&ldquo;OTC&rdquo;) digestive enzymes in lower doses to support general
gut health.</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"><U>Essential fatty acids</U>: Also called omega-3
fatty acids, essential fatty acids are important digestive chemicals that the body cannot make on its own.</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">Our products under the Kirkman Brand include,
but are not limited to, the following:</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: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Supplements for Autism;</FONT></TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="width: 52%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Essential Fatty Acids;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Oxytocin;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vitamin B12;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vitamin B6 and Magnesium;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glutathione;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Melatonin;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Functional Mushrooms;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Probiotics;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Multivitamins and Minerals;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Digestive Enzymes;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Antioxidants; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amino Acids.</FONT></TD></TR>
  </TABLE>

<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"><I>P2i (prenatal) Brand</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 have recently launched in April 2024, a certified
prenatal vitamin for expectant mothers under the P2i by Kirkman brand. These vitamins have been specially formulated by our company to
provide essential nutrients for both the mother and the developing fetus. The International Federation of Gynecology and Obstetrics (&ldquo;FIGO&rdquo;)
published a position statement about toxic chemicals and environmental contaminants in prenatal vitamins. FIGO&rsquo;s recommendation
from the October 2023 position statement highlights that patients should only consume, and clinicians should only prescribe, vitamins
and supplements that have been independently assessed to make certain they do not contain contaminants. Manufacturers should be held
to a standard of production that assures safety and minimizes contaminants and certification of all prenatal vitamins becomes the standard
of care. The FIGO Committee report on Climate Change and Toxic Environmental Exposures brought together global scientists to review the
reputable reference sources for chemicals that have the potential to impact maternal and newborn health, including the USA Environmental
Protection Agency, the European Union, and the California EPA.</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 group of experts recommended several approaches,
including:</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; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD STYLE="text-align: justify">creating a list of toxic chemicals
                                            and contaminants that should be screened for in Prenatal Vitamins and reduced to de minimis
                                            standards; and</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></TD><TD>2.</TD><TD STYLE="text-align: justify">conducting assays of existing vitamins to assess ongoing risk to maternal
                           and newborn health. This work can extend to personal exposure risk by offering women testing for the presence
                           of potentially toxic environmental chemicals. Mass Spectrometry currently offers the most comprehensive measurement.</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>

<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">This first publication of a list of toxic chemicals
and contaminants represents the most comprehensive testing available at present but does not purport to identify or eliminate all potential
sources of toxicity.</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 currently the only certified prenatal
vitamin in the market that aligns to the FIGO position statement. We have formulated and produced a prenatal vitamin called P2i by Kirkman.
There are 3.6M pregnancies alone in the United States (https://www.cdc.gov/nchs/fastats/births.htm) and the initial market focus for
this product will be the United States with the expectation to expand globally since FIGO&rsquo;s position statement reaches all countries.</P>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM&rsquo;s low-toxicity standards, which align with FIGO&rsquo;s objectives for maternal
                                            and fetal health. These standards include:</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD>Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">Testing for the presence of 120
                                            toxic chemicals, such as pesticides and endocrine disruptors, with strict limits to prevent
                                            potential harm</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">Utilization of ISO 17025-accredited
                                            laboratories for all testing to ensure reliability and reproducibility of results</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product&rsquo;s compliance with The FORUM&rsquo;s criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman&rsquo;s prenatal vitamin meets
                                            its standards for low toxicity and safety.</FONT></TD></TR></TABLE>
<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"><I>HempTown Naturals Brand</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">All HempTown Naturals products are produced and
sold in compliance with the US 2018 Farm Bill and the US Agricultural Act of 2014. CBD and CBG are cannabinoids present in the cannabis
plant. Both CBD and CBG are used in hemp derived products. These products are believed to help in treating certain neurodegenerative
and inflammatory conditions<SUP>1</SUP>.</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">CBD</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">CBD, or cannabidiol, is the second most prevalent
ingredient in cannabis. While CBD is an integral component of medical marijuana, it is derived directly from the hemp plant, both of
which are the same species: Cannabis sativa L. One of the hundreds of components of Cannabis sativa L., CBD does not cause a &ldquo;high&rdquo;
by itself. According to a report from the World Health Organization, &ldquo;In humans, CBD exhibits no effects indicative of any abuse
or dependance potential&hellip;. To date, there is no evidence of public health related products associated with the use of pure CBD.&rdquo;<SUP>2</SUP></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 reported by Forbes Health, CBD is applied
topically or consumed through smoke inhalation or edible consumption. CBD interacts with neuroreceptors in your endocannabinoid system,
which sends signals between your cells to help regulate your movement, mood, homeostasis, and immune system. Different studies have shown
that CBD can offset everyday anxiety and depression.<SUP>3</SUP></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">CBG</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">CBG, or cannabigerol, is another compound found
in hemp which doesn&rsquo;t have intoxicatingly psychoactive effects. CBG, often referred to by experts as &ldquo;the mother of all cannabinoids,&rdquo;
is the cannabinoid from which other types of cannabinoids (including CBD) are derived, says Michelle Sexton, a naturopathic doctor who
works at the Pain Trauma Institute in San Diego. &ldquo;CBG is the first compound in the biosynthesis (the production of chemical compounds
by a living organism) of the other cannabinoids,&rdquo; she adds.</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">CBG is available in many forms, including tinctures,
gummies, capsules and topical creams and lotions. CBG is often coupled with CBD in these products because the two cannabinoids can provide
complimentary benefits, such as decreasing inflammation and pain, says Fraser Smith, a naturopathic doctor, as well as assistant dean
and associate professor at the National University of Health Services in Lombard, Illinois. CBD and CBG occur naturally in hemp extract
which is the source of our cannabinoids.<SUP>4</SUP></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"></P>

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<TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="text-align: left; width: 0.25in"><SUP>1</SUP></TD><TD STYLE="text-align: justify">https://www.medicalnewstoday.com/articles/cgb-vs-cbd</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left"><SUP>2</SUP></TD><TD STYLE="text-align: justify">www.health.harvard.edu</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left"><SUP>3</SUP></TD><TD STYLE="text-align: justify">www.forbes.com/health/body/cbd-oil-benefits/</TD>
</TR>
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left"><SUP>4</SUP></TD><TD STYLE="text-align: justify">www.forbes.com/health/body/cannabigerol-cbg/</TD>
</TR>
</TABLE>

<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"></P>

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<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"><I>Golf Mellow Brand. </I>The Company has utilized
existing product formulations with plans to introduce 12 different products under the Golf Mellow brand. A brand logo and packaging has
been created to support the existing formulations. These supplements will be targeting the golf industry and golf professionals. These
products include capsules, a powder, a cream and tinctures to help golfers of all levels improve their game and overall well-being. The
capsules are packed with a blend of essential vitamins and minerals that support joint health, flexibility, and energy levels. The tinctures
are made from all-natural ingredients and provide a quick and easy way to support focus and mental clarity, helping athletes stay in
the zone and make the perfect shot. The creams are specially designed to provide targeted relief for sore muscles and joints, helping
them stay comfortable and focused on the course. Some of these products include Sleep Caps to ensure that players are well rested the
night before, Super B12 Powder which provides the energy needed for the perfect round, Calm Caps which help manage anxiety when players
need it most, and Epsom Salt Cream &amp; Recovery Caps, which aids with recovery. Once we receive a purchase order, we will package the
products to fulfill the respective order.</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">According to data from the National Golf Foundation
25.1 million people (aged six and over) played on a golf course in the United States in 2021 &ndash; furthermore there were another 12.4
million people who took part in off-course activities like driving ranges, indoor golf simulators or venues like Topgolf and Drive Shack.<SUP>5</SUP></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>Competitive Strengths</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 Kirkman brand has been in business for over
70 years with a loyal consumer base and we believe that we maintain high purity and quality standards in the industry. We source all
materials from high quality suppliers. We test our finished goods in certified laboratories with state-of-the-art equipment and manufacture
our supplements in our US-based cGMP certified and FDA registered facility located in Lake Oswego, Oregon. The FDA requires that we conduct
at least one appropriate test or examination to verify and identify any component that is a dietary ingredient. We conduct ingredient
testing by verifying the identity through ISO certified 3rd party laboratories. We also test for residual solvents and pesticides (where
applicable), presence of up to 24 heavy metals and microbial contamination that could lead to illness or death. Microbial tests can include,
but are not limited to, aerobic plate count, yeast &amp; mold, coliforms, E. coli, pseudomonas, staphylococcus aureus, Bile Tolerant
gram negative, Salmonella, Aflatoxins and listeria. Heavy metals testing includes beryllium, aluminum, vanadium, chromium, manganese,
cobalt, nickel, copper, zinc, arsenic, selenium, molybdenum, palladium, silver, cadmium, tin, antimony, barium, tungsten, platinum, thallium,
lead, uranium and mercury. For incoming raw ingredients, we ID using the following methods: Botanicals &ndash; HPLC (High Pressure Liquid
Chromatography) or TLC (Thin Layer Chromatography), or an approved Chemical test; Vitamins &ndash; IR (Infrared) absorption, Chemical
test, UV (Ultraviolet) absorption, UV fluorescence, GC (Gas Chromatography), HPLC; Minerals &ndash; ICP-MS (Inductively Coupled Plasmas
&ndash; Mass Spectroscopy), IR (Infrared), Chemical tests, TLC (Thin Layer Chromatography); Enzymes &ndash; HPLC (High Pressure Liquid
Chromatography), PCR (Polymerase Chain Reaction); Amino Acids &ndash; IR absorption, Optical Rotation, HPLC, TLC, GC (Gas Chromatography),
Assay; Probiotics &ndash; PCR and HPLC; Metals &ndash; HPLC or ICP-MS; Micros &ndash; Cell culture and cell identification. The FDA requires
that a finished batch of the dietary supplement meets product specifications for identity, purity, strength, composition, and for limits
on those types of contamination that may adulterate or that may lead to adulteration of the finished batch of the dietary supplement.
This can be conducted for a subset of finished dietary supplement batches through a sound statistical sampling plan (or for every finished
batch). For our business, we test every batch of products to ensure heavy metals are below Pop 65 limits. In addition, every batch is
tested for microbial contamination. Our 75+ year history in the industry, along with our rigorous material testing, allows Kirkman to
use statistical sampling to ensure the identity, purity and strength of each product is met. Our formulations use proprietary blends.
Although we are authorized to produce hemp derived products because we hold a hemp handler&rsquo;s license, we currently do not grow
any hemp, but we source our hemp derived products from registered growers in operation. The FDA does not require any testing on dietary
supplements whereas we test for approximately 90 metals and toxins in raw materials.</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 previously mentioned, we&rsquo;ve recently
launched P2i by Kirkman prenatal vitamin, which is the only certified prenatal vitamin that aligns to FIGO&rsquo;s position statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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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<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: left; width: 0.25in"><SUP>5</SUP></TD><TD STYLE="text-align: justify">https://www.golfmonthly.com/news/how-many-golfers-are-there-in-the-united-states</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="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM&rsquo;s low-toxicity standards, which align with FIGO&rsquo;s objectives for maternal
                                            and fetal health. These standards include:</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

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<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD>Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">Testing for the presence of 120
                                            toxic chemicals, such as pesticides and endocrine disruptors, with strict limits to prevent
                                            potential harm</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.75in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">Utilization of ISO 17025-accredited
                                            laboratories for all testing to ensure reliability and reproducibility of results</TD></TR></TABLE>

<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="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">Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product&rsquo;s compliance with The FORUM&rsquo;s criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman&rsquo;s prenatal vitamin meets
                                            its standards for low toxicity and safety.</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">We have an exclusive license agreement with the
Trailer Park Boys to market &amp; sell hemp derived products. There are two product categories that include Hemp Derived Delta 9 products.
This includes Delta 9 gummies and Delta 9 Drink Enhancers. These two specific products are intended for health &amp; wellness, and recreational
use. Both product categories comply with the 2018 Farm Bill where THC concentration does not exceed 0.3% on a dry weight basis. The revenue
of these two product categories represents .6% of total company revenue. We executed a license agreement with the Trailer Park Boys which
is in effect since July 21, 2021 and until December 31, 2025, under the license agreement as amended, the Company will pay the Trailer
Park Boys, an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to
be paid during the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000 shares of the Company.
The royalty rates under this agreement are between 15% - 30% of the net sales of the company derived from sales related to the license.
To date, $425,000 has been paid to the Trailer Park Boys towards the license agreement. The license agreement may be terminated with
reasonable cause upon six months&rsquo; written notice or for certain triggering events without recourse or an opportunity to cure.</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>Growth Strategy</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 aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products, including mushroom-based supplements targeted for everyday use, prenatal, athletes and beyond.</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 plan to do this by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.65pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; width: 0.25in; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; width: 0.25in; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Strengthening
    our existing 70-year-old Kirkman brand with its established base of consumers in the autism community by curating our product mix
    to cater to their specific needs;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Launching
    multiple brands, broad as well as niche, including P2i by Kirkman which is the only certified prenatal vitamin supporting FIGO&rsquo;s
    October 2023 position statement, to allow us to increase our market share;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Modernizing
    our manufacturing capabilities by reorganizing the space and introducing new and efficient machinery and equipment to significantly
    enhance our output;</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investing
    heavily into our sales and marketing activities as well as business development in order to increase sales and distribution; and</FONT></TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-indent: 0pt">&nbsp;</TD>
    <TD STYLE="padding: 0pt; vertical-align: top; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="padding: 0pt; vertical-align: bottom; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Identify
    key companies with synergistic strengths for partnerships or acquisitions.</FONT></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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Challenges, Risks and Limitations&nbsp;</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; text-align: justify">Our ability to utilize our competitive advantages
in order to strengthen and expand our business and achieve our growth plan is subject to a number of risks and uncertainties more fully
discussed under &ldquo;Risk Factors&rdquo; in this Prospectus. As discussed in our financial statements, we have suffered recurring losses
from operations and have a significant accumulated deficit. In addition, we continue to experience negative cash flows from operations.
This limited working capital capabilities may delay or make the accomplishment of our growth plans difficult. In assessing the likelihood
of our future success, investors in this offering should note our history of losses and the likelihood of our operating profitably in
the future. Further, some of our products may be subject to uncertain and evolving federal, state and local regulations concerning hemp,
CBD and other non-tobacco consumable products. Because the type, timing, and impact of such regulations remains uncertain, we cannot
give any assurance that such actions will not have a material adverse effect on this emerging business and our strategy.</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>Our Corporate History and Structure</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">Functional Brands was organized under the General
Corporation Law in the state of Delaware on November 19, 2020 under the name HT Naturals Inc. HT Naturals Inc. changed its name to Functional
Brands Inc. on March 23, 2023. Our principal business is the production, marketing, sales, and distribution of nutraceutical products
through our Kirkman division, alongside our hemp derived products under the Hemptown brand in certain states within the United States
that permit such sales. We ship our Kirkman products to all US states. As for hemp derived products, we only sell to states which permit
this activity with certain restrictions such as the content of THC which differs depending on the state.</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 states in which we have sold hemp derived
products in the past are Alabama, Arizona, Arkansas, California (D9 ingestible and CBD/CBG ingestible only), Colorado (CBD/CBG inhalable
only), Connecticut, Delaware (D9 ingestible), Florida, Georgia (D9 ingestible and CBD/CBG ingestible only), Hawaii (CBD/CBG ingestible
only), Illinois(D9 ingestible and CBD/CBG inhalable), Indiana (D9 ingestible only), Iowa (D9 ingestible only), Kansas, Kentucky (D9 ingestible
only), Louisiana, Maine (D9 ingestible and CBD/CBG inhalable), Maryland (CBD/CBG inhalable only), Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nevada, New Hampshire, New Jersey, New York (D9 and CBD/CBG ingestible only), North Carolina, North Dakota (CBD/CBG
ingestible only), Ohio, Oklahoma, Oregon (CBD/CBG ingestible only), Pennsylvania, Rhode Island, South Carolina, South Dakota (D9 ingestible
only), Tennessee (CBD/CBG inhalable only), Texas, Virgina (CBD/CBG ingestible and inhalable only), Washington (CBD/CBG Inhalable only),
West Virginia, Wisconsin, Wyoming. We have engaged specialized hemp counsel to provide regular updates on the 50 states and the legality
of our hemp products in each state. In addition, we have established and follow a standard of operating procedure (SOP) to ensure sales
do not occur in the states where hemp products may not be sold consistent with the regular updates provided by our hemp counsel. We have
an internal policy that prohibits us as a company and any of our executives, directors, employees, sales representatives and distributors
to distribute any of the Company&rsquo;s hemp derived products in places in which the sale of hemp derived products is prohibited. We
are a 98% subsidiary of HOC, a British Columbia, Canada private operating holding company with various interests in nutraceutical manufacturing
and federally legal industrial hemp products. We were granted a licensing agreement by Hemptown Organics Corp. The licensing agreement,
dated December 10, 2020, provides Functional Brands Inc. as licensee, a license to use the Hemptown USA and Hemptown Naturals brand and
trademarks on a perpetual, non-exclusive, non-transferable basis, with no expiry date. This licensing agreement will transfer to full
ownership to Functional Brands upon the public offering and listing on the exchange, at which time HOC will dividend out the majority
of the Company&rsquo;s shares currently held by HOC.</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 June 28, 2019, HTO Holdings Inc. (&ldquo;HTO
Holdings&rdquo;) a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as &ldquo;Purchaser&rdquo;),
entered into an asset purchase agreement (&ldquo;APA&rdquo;) for the net assets of Kirkman Group Inc. a Nevada corporation, Kirkman Laboratories
Inc., an Oregon corporation and Kirkman Group International, Inc. a Nevada corporation (collectively &ldquo;Kirkman&rdquo; or the &ldquo;Seller,&rdquo;
and together with Purchaser, the &ldquo;Parties&rdquo;) for a consideration equal to $5 million with payout in a business combination
of cash and deferred consideration. The &rsquo;&rsquo;Seller&rsquo;&rsquo; is David Humphrey. Under the APA, Purchaser and HTO Holdings
were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021 by the Parties with the
purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment schedule of the deferred
consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and other agreements attached
to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement, the domain names transfer
agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively, the &ldquo;IP Collateral
Agreements&rdquo;)) to, among other things, provide additional collateral as security to Seller. Upon payment in full in cash of the
deferred consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that the security agreement
and amended intellectual property security agreement would be automatically terminated and be of no further force and effect; and (ii)
Seller would, at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective security agreement and
intellectual property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16, 2022, the APA was amended
again by the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral Agreements. On May
31, 2022, Purchaser paid Seller certain amounts (&ldquo;Immediate Payments&rdquo;), and on July 23, 2022, Purchaser and Seller executed
a forbearance agreement (&ldquo;Forbearance Agreement&rdquo;) to extend the payments due under the APA to August 31, 2022. After Purchaser&rsquo;s
default, and partial payment to Seller in September 2022, the Parties executed an amendment to the Forbearance Agreement on December
27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was $3,032,000 (the &ldquo;Existing Default&rdquo;).
Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated September 24, 2024, where additional principal and
interest payments will continue. As of September 1, 2024, the balance due to Seller is $2,417,366. We intend to use a portion of the
proceeds of the public offering to cover the payment of some of the Existing Default.</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; text-align: justify; margin: 0pt 0">As a part of our restructuring efforts, HTO Nevada,
formerly owned by HTO Holdings, was acquired by Functional Brands on May 19, 2023, through a share exchange agreement executed by HOC,
HTO Holdings and Functional Brands, in which HTO Holdings exchanged 1,000 restricted shares of common stock, par value $0.0001 per share
of HTO Nevada, being all of the issued and outstanding capital stock of HTO Nevada, in exchange for 80,000,000 restricted shares of common
stock of Functional Brands, $0.00001 par value per share (the &ldquo;Functional Brands Shares&rdquo;) to HOC, such that, HTO Nevada shall
be a wholly-owned subsidiary of Functional Brands and HOC shall own 120,000,000 shares of Functional Brands. The resulting entity, Functional
Brands Inc., with its wholly owned subsidiary HTO Nevada, will be the publicly listed entity. Our fiscal year-end is December 31.</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"><B>Industry</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">According to Grand View Research, the Global
Nutritional Supplements Market is valued at approximately $405.15B in 2023, and is expected to expand at a compound annual growth rate
(CAGR) of 6.3% from 2023 to 2030. Growing attention to health has significantly helped the market thrive. Moreover, the rising prevalence
of non-communicable diseases has resulted in the faster adoption of nutritional supplements to enrich overall well-being. According to
the Global Alliance for Chronic Diseases (GACD), approximately 75% of deaths globally occur due to non-communicable diseases (NCDs).
Thus, these alarming statistics have shifted the focus on well-being and health, which is expected to increase the demand for nutritional
supplements.</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"><IMG SRC="image_001.jpg" ALT=""></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>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_002.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></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: justify">The United States Nutritional Supplements Market
is valuated at approximately $95.2 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2023
to 2030. The United States accounted for 23.5% of the global nutritional supplements market in 2023. The U.S. is expected to lead the
global market in terms of revenue in 2030. North America nutritional supplements market is projected to lead the regional market in terms
of revenue in 2030.</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"><IMG SRC="image_003.jpg" ALT="">&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"><IMG SRC="image_004.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&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; text-align: left"><B>*</B></TD><TD STYLE="text-align: justify">Source: Grand View Research</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: justify">According to Grand View Research, the United
States Dietary Supplement Market is valued at approximately $53.6 billion in 2023 and is expected to expand at a compound annual growth
rate (CAGR) of 5.7% from 2024 to 2030. The United States emerged as a leading market for dietary supplements in the North America region
owing to the higher spending capacity of the consumers. Increasing spending on healthcare products, the rising geriatric population,
rising interest in preventive healthcare, and growing interest in attaining wellness through diet are expected to augment market growth
over the forecast period. We expect that a growing number of fitness centers, health clubs and gymnasiums coupled with growing awareness
about fitness among younger generations will increase the demand for energy and weight management. Increasing acceptance of sports as
a career is expected to increase the demand for sports nutrition, which we expect will benefit the market for dietary supplements.</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"><IMG SRC="image_005.jpg" ALT="">&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: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">According
to Grand View Research, the global prenatal vitamin supplement market was valued at USD 542.8 million in 2023 and is projected to grow
at a CAGR of 8.5% from 2024 to 2030. Increasing awareness about healthy eating habits and proper medication among pregnant women is the
major factor driving the market. The overweight and sedentary lifestyle of pregnant women increases the deficiency of minerals and vitamins.
In addition, malnutrition in infants, increasing incidence of other congenital disabilities, and increasing awareness about the benefits
of prenatal supplements are some of the factors driving the market. The U.S. prenatal vitamin supplements market was identified as a
lucrative region in 2023. Strong endorsements and guidelines from healthcare providers such as the CDC and ACOG bolster confidence in
the efficacy and necessity of prenatal vitamins among expectant mothers, driving widespread adoption and market growth in the U.S. According
to the American College of Obstetricians and Gynecologists (ACOG), during pregnancy, essential nutrients such as iron, folic acid, choline,
calcium, omega-3 fatty acids, vitamin D, B vitamins, and vitamin C are crucial for fetal development and maternal health. A balanced
diet rich in sources such as leafy greens, dairy, lean meats, fortified foods, and a prenatal vitamin containing folic acid ensures adequate
intake to support both mother and baby&rsquo;s needs.</FONT></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"><IMG SRC="image_006.jpg" ALT="">&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: 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"><FONT STYLE="background-color: white">According
to Grand View Research, the global CBD consumer health market was valued at USD $19.5B in 2023 and is anticipated to grow at a CAGR of
18.1% during the forecast period. The leading factor attributed to the growth is the positive government reforms for the legalization
of CBD in various regions. CBD consumer products are gaining significant acceptance due to the rising awareness of their health benefits.
Furthermore, the demand for hemp-derived CBD products is increasing globally due to the legalization of hemp in various countries. These
statements have not been reviewed and/or approved by the FDA. The U.S. market value for CBD in 2023 was valued at USD $8.3B, and is expected
to grow at a CAGR of 7.6% through 2030. </FONT></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"><IMG SRC="image_007.jpg" ALT="">&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"><IMG SRC="image_008.jpg" ALT="">&nbsp;</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"></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">We believe that increasing awareness regarding
CBD&rsquo;s benefits has influenced buyers to buy CBD products. Because CBD products have a greater profit margin, commercial retailers
are now focusing on selling cannabis-based products. Numerous health and wellness retailers, such as Rite Aid, CVS Health, and Walgreens
Boots Alliance are now offering CBD-based products. For example, CVS Health decided to offer CBD topicals at its 800 stores and Walgreens
Boots Alliance is selling CBD-containing topicals across 1,500 of its stores in the United States. As referenced by Forbes health,&nbsp;there
are several benefits for CBD that include offsetting anxiety and depression, treating select epilepsy syndromes, reducing PTSD symptoms,
treating opioid addiction, alleviating ALS symptoms, relieving unmanageable pain, easing diabetic complications, protecting against neurological
disease, and inhibiting arthritic symptoms. Given the growing cannabidiol (CBD) products market, the U.S. Food and Drug Administration
has convened a high-level internal working group to explore potential regulatory pathways for CBD products. On January 26, 2023, the
FDA announced that it would not seek to regulate CBD as a dietary supplement. Rather, after careful review, the FDA has concluded that
a new regulatory pathway for CBD is needed that balances individuals&rsquo; desire for access to CBD products with the regulatory oversight
needed to manage risks. The agency is prepared to work with Congress on this matter<SUP>10</SUP>.&nbsp;With FDA&rsquo;s lack of regulating
CBD products, numerous states have authorized hemp-derived extract (CBD and other cannabinoids) products and affirmatively regulate their
consumer safety. Meanwhile, FDA&rsquo;s enforcement priorities focus directly on disease claims and intoxicating products appealing to
children. As discussed above, we make sure that our products and marketing collateral neither make disease claims or appeal to youth<SUP>11</SUP>.
<FONT STYLE="background-color: white">FDA still has not issued any regulations regarding CBD. The agency is awaiting direction from Congress.</FONT></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"><FONT STYLE="background-color: white">FDA has
approved Epidiolex, which contains a purified form of the drug substance cannabidiol (CBD) for the treatment of seizure associated with
Lennox-Gastaut syndrome or Dravet syndrome in patients 2 years of age and older. That means the FDA has concluded that this particular
drug product is safe and effective for its intended use.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The FDA
has also approved Marinl and Syndros for therapeutic uses in the United States, including for nausea associated with cancer chemotherapy
and for the treatment of anorexia associated with weight loss in AIDS patients. Mariol and Syndros include the active ingredient dronabinol,
a synthetic delta-9-tetrahydrocannabinol (THC) which is considered the psychoactive intoxicating component of cannabis (i.e. the component
responsible for the &rsquo;&lsquo;high&rsquo;&rsquo; people may experience from using cannabis). Another FDA-approved drug, Cesamet,
contains the active ingredient nabilone, which has a chemical structure to THC and is synthetically derived. Cesamet, like dronabinol-containing
products, is indicated for nausea associated with cancer chemotherapy.</FONT></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">According to Grand View Research, CBD derived
from hemp is anticipated to witness rapid growth owing to the increasing demand from the pharmaceutical sector and rising awareness among
consumers regarding health. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to
have a positive impact on the demand for CBD in the pharmaceutical sector. Oils, tinctures, concentrates, capsules, topical solutions
such as salves, lip balms, lotions and edibles such as baked goods, coffee, chocolates, gums and candies are some of the CBD products
that are in high demand.</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>Competitive Strengths</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">Our competitive strengths lie in the fact that
the Kirkman brand has been in business for over 70 years with a loyal consumer base and we believe that we maintain high purity and quality
standards in the industry. We source all materials from high quality suppliers. We test our finished goods in certified laboratories
with state-of-the-art equipment and manufacture our supplements in our US-based cGMP certified and FDA registered facility located in
Lake Oswego, Oregon. Our formulations use proprietary blends. Although we are authorized to produce hemp derived products because we
hold a hemp handler&rsquo;s license, we currently do not grow any hemp. Instead, we source our hemp derived products from registered
growers in operation. Our products are not FDA approved and they do not require a prescription; all our products are sold over the counter.
The FDA does not require any testing on dietary supplements; however, we test for approximately 90 metals and toxins in raw materials.</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>Growth Strategy</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">We aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products including regular as well as mushroom-based supplements targeted for everyday use, prenatal, athletes
and beyond.</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 plan to do this by using the net proceeds
from the Offering in the following manner. Net proceeds are defined after deducting the estimated underwriter discounts and commissions
and offering expenses payable by us, we expect to invest the net process of approximately $4,500,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">Approximately 14% of net
                                            proceeds (approximately $650,000) for Go-Public Attorney / Partner Fees</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">Approximately 7% of net proceeds
                                            (approximately $300,000) for market awareness marketing</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">Approximately 53% of the
                                            net proceeds (approximately $2.4 million) for a deferred payment in connection with the Kirkman
                                            acquisition which has a maturity date of January 1, 2025. The payment is comprised solely
                                            of principal, since there is currently a $20,000 monthly interest payment payable; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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">&#9679;</TD><TD STYLE="text-align: justify">Approximately 26% of net
                                            proceeds (approximately $1,150,000) for sales, marketing and working capital</TD></TR></TABLE>

<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>Why do people on the spectrum need supplements?</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">Some on the spectrum are restrictive in what
they will eat, preferring certain textures or colors over others. This can lead to vitamin and mineral deficiencies since they aren&rsquo;t
eating a wide variety of food types.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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"><SUP>10</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">www.forbes.com/health/body/cbd-oil-benefits/</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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"><SUP>11</SUP></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Source:
                                            www.FDA.gov</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">According to Grand View Research, there is evidence
that people with autism may not absorb or metabolize nutrients in the way that persons without autism absorb or metabolize nutrients.
This could mean that even if persons with autism are consuming the nutrients they need, their body cannot utilize them effectively.</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>Technology &amp; Intellectual Property</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">On December 10, 2020, we were granted a licensing
agreement from Hemptown Organics Corp. The licensing agreement, dated December 10, 2020, provides Functional Brands Inc. as licensee,
a license to use the Hemptown USA and Hemptown Naturals brands and trademarks on a perpetual, non-exclusive, non-transferable basis,
with no expiry date. This licensing agreement will be transferred to full ownership to Functional Brands upon the completion of the Offering,
at which time HOC will dividend out the majority of the Company&rsquo;s shares currently held by HOC.</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 is a list of our current trademark
registrations:</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"><IMG SRC="image_009.jpg" ALT="">&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"><IMG SRC="image_010.jpg" ALT="">&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: 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-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_011.jpg" ALT="">&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: 0pt 0; text-align: justify"><B>Marketing</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 market our products through various sales
channels, primarily trade shows and through print and digital advertisements, focusing on several customer types. These customers include
consumers, wholesalers, distributors, and those seeking private label products. We repeatedly test new marketing venues, platforms and
approaches and measure results to improve the cost-effectiveness of our efforts.</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>Trade Shows</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 participate in a variety of trade shows each
year with differing attendee focuses. These include health and wellness shows, Autism conferences, OBGYN conferences, convenience and
grocery stores, consumer product distribution, and private labels.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Digital and Printed Advertisements</I></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">We utilize sophisticated digital tools to place
ads primarily through Google and Facebook (now Meta) that target potential customers and those showing interest in our products. In addition,
we have recently begun to place traditional print ads in journals and magazines focused on convenience stores, distributors, and private
label products.</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 to new prospect acquisition programs,
our marketing team produces newsletters that are distributed to our contacts with the goal of keeping our company top-of-mind, and this
newsletter has historically resulted in conversion of contacts into current customers.</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>Customers and Markets</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 sell our Kirkman branded supplements to 45
countries through international distributors that have partnered with the Kirkman brand for two decades. We have recurring consumers
that purchase Kirkman brand products via our website at www.kirkmangroup.com, as well as through Amazon. Our core B2B customers are iHerb,
Emerson and FullScript. We also have several hundred direct customers, classified as professionals, where we sell our supplements. These
customers include doctors, chiropractors, and practitioners who sell our products to their patients. In addition, we plan to focus our
commercial efforts for P2i by Kirkman prenatal to OBGYN&rsquo;s and expectant mothers.</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">Our hemp related products are sold in the United
States. We have several thousand customers on our e-commerce sites. For Hemptown Naturals, we have 3,189 subscribers and 6,355 non-investor
emails in our database. For Kirkman, we have 36,762 active emails in our email database. As for our white/private label business, we
have twelve customers who use us to manufacture white/private label products for them.</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>Competition</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</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">There are several competitors in the supplement
    space. Within the Vitamin segment, 66% of vitamins purchased are classified as multivitamins, as indicated by Nielsen Retail Measurement
    Data. Market leaders in the multi-vitamin segment are &lsquo;private label store brands&rsquo; followed by Nature Made, Centrum,
    One-A-Day and Nature&rsquo;s Bounty, respectively.</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>&nbsp;</TD>
    <TD><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">Minerals remain a steady category, and they
    include Calcium, Magnesium and Iron as the main mineral categories. Private Label brands, again, lead the way, followed by Nature
    Made, Caltrate, Citracal and Nature&rsquo;s Bounty.</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>&nbsp;</TD>
    <TD><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">Supplement growth outpaces the Vitamin and
    Minerals categories (Source: Nielsen). The segments within the supplement category include, but are not limited to, Digestive Health,
    General Health, Heart Health, Energy, and Sleep Aids. The leaders within this space are Nature&rsquo;s Bounty, Nature Made, Emergen-C,
    Baush+Lomb and Airbourne. 91% of the supplement revenue (Nielsen Homescan Panel Data) is generated within the following four sales
    channels: Warehouse Club, Grocery, Super Centers and Drug Stores.</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>&nbsp;</TD>
    <TD><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">There are several product delivery methods
    for vitamins, minerals and supplements. These delivery methods could be tablets, capsules, liquids, effervescent tablets, and powders.
    Kirkman has the ability to produce capsules, tablets, liquids and powders to properly compete with core competitors.</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>&nbsp;</TD>
    <TD><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">Within the special needs category, competition
    includes New Beginnings, Claire Labs, Houston Enzymes and Lifetrients. These companies primarily focus on the dietary sensitivities
    of their respective consumers.</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>&nbsp;</TD>
    <TD><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">Within the Hemp Industry, products include
    gummies, tinctures, creams/lotions and capsules, Charlotte&rsquo;s Web, cbdMD, Social CBD, Joy Organics, MedTerra produce CBD related
    products. There is limited market share data due to the fact that the majority of product sales occur online.</FONT></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">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Facilities</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 lease a 24,000 square foot facility located
in Lake Oswego, OR. This facility houses our manufacturing operation, warehouse, back-end offices and fulfillment center.&nbsp;Although
we are authorized to produce hemp derived products because we hold a hemp handler&rsquo;s license, we currently do not grow any hemp,
instead, we source our hemp derived products from registered growers in operation.</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>Employees</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 the date of this prospectus, we have 40
full-time employees and 1 part-time employee, and we consider our employee relations to be good. Our human capital resource objectives
are designed to attract, and retain, highly motivated and well-qualified employees. We have worked diligently to provide a flexible and
safe work environment. The health and safety of our employees and clientele is of the upmost importance to us.</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>Legal Proceedings</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">From time to time, we may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business.</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 May 25, 2021, True Health Medical Center,
S.C. (&ldquo;True Health&rdquo;) amended an existing complaint against Kirkman Group, Inc. (&ldquo;Kirkman&rdquo;), James Hall and David
Humphries to assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings, Inc. are
referred to as the &ldquo;HTO Parties&rdquo;). Kirkman is the seller of certain assets to the HTO Parties and is a separate legal entity.
Affiliates of the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit Court for the
Eighteenth Judicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets to the HTO
Parties but the royalty agreement has a provision that allows True Health to continue to receive royalties after the termination of the
agreement. True Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties.
There is no dispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO
Parties have never paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties
should be bound by the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the
damages claim against the HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties
have engaged in some discovery including a limited number of depositions. True Health has filed a motion for summary judgment that addresses
its claims against Kirkman, but does not address any claim against the HTO Parties. Briefing is not yet complete on the summary judgment
motion and a ruling is likely more than 60 days away. Regardless of how the court rules on summary judgment, there will be remaining
claims in the case and it is likely that additional discovery will be conducted. No trial date has been scheduled at this time.</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>Regulation</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><I>Trade Regulations</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">Our suppliers generally source or manufacture
finished goods in parts of the world that may be affected by the imposition of duties, tariffs or other import regulations by the United
States. We believe that our redundant network of suppliers provides sufficient capacity to mitigate any dependency risks on a single
supplier.</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 buy necessary components or ingredients for
our products from suppliers or factories both domestically and internationally. We do not depend on any single supplier. However, if
we are unable to continue to obtain our finished products from international locations or if our suppliers are unable to source raw materials,
it could significantly disrupt our business. Further, we are affected by economic, political and other conditions in the United States
and internationally, including those resulting in the imposition or increase of import duties, tariffs and other import regulations and
widespread health emergencies, which could have a material adverse effect on our business.</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><I>Laws and Regulations Relating to Our Products</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"><B><I>Nutraceutical</I></B></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">The dietary supplement industry is regulated
on a federal level in the U.S. by the Food and Drug Administration (&ldquo;FDA&rdquo;) and the Federal Trade Commission (&ldquo;FTC&rdquo;)
as well as by government agencies in each of the 50 states. FDA regulates both finished dietary supplement products and dietary ingredients.
FDA regulates dietary supplements under a different set of regulations than those covering &ldquo;conventional&rdquo; foods and drug
products. Under the Dietary Supplement Health and Education Act of 1994 (DSHEA):</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">Manufacturers and distributors of dietary supplements
and dietary ingredients are prohibited from marketing products that are adulterated or misbranded. That means that these firms are responsible
for evaluating the safety and labeling of their products before marketing to ensure that they meet all the requirements of the Federal
Food, Drug, and Cosmetic Act as amended by DSHEA and FDA regulations. The FDA has the authority to take action against any adulterated
or misbranded dietary supplement product after it reaches the market. Most dietary supplement manufacturing, labeling and marketing is
covered by extensive regulations issued and enforced by the FDA and the FTC. The FDA has regulatory authority under the Federal Food,
Drug and Cosmetic Act as amended in 1994 by the Dietary Supplement Health and Education Act (DSHEA) and in 2006 by the Dietary Supplement
and Nonprescription Drug Consumer Protection Act. Under the DSHEA, dietary supplements are regulated as a category of food. The FDA regulates
both finished dietary supplement products and dietary ingredients. By law, it is illegal to manufacture or market dietary supplement
products that are adulterated or misbranded, and the FDA has regulatory authority to remove such products from the marketplace.</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">Key Regulations</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">Responsible companies in the dietary supplement
industry abide by extensive regulations that cover manufacturing, labeling, quality control, safety, post-market surveillance and more.</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>New Dietary Ingredient Notifications</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 Food Drug &amp; Cosmetic Act, as amended
by the Dietary Supplement Health and Education Act (DSHEA), established that dietary supplements that were in commerce prior to 1994
have a history of safe use, and therefore, can remain on the market without additional safety review.&nbsp;All new ingredients marketed
after that date, however, must submit a formal 75-day notice along with evidence that the product is reasonably expected to be safe.
This is referred to as a new dietary ingredient (NDI) notification. If the FDA has concerns about the ingredient or its safety profile,
the agency has clear authority to request more information or to reject the notification and deny the product&rsquo;s entry into the
market.&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: 0pt 0"><B>Dietary Supplement Labeling Requirements</B></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">The following are the minimum labeling requirements:</P>

<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: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Statement
                                            of Identity</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The statement must include the product name and
identify itself as a dietary supplement. Although you may replace the term dietary with the type of ingredients that are in the product,
having one of them on the product label is a mandatory requirement. The product must be labeled either as conventional foods and beverages
or dietary supplement based on its actuals.</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: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Net
                                            Quantity of Contents</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net quantity of content informs consumers
of the amount of dietary supplement that is in the container or package. The net quantity of content must be located on the product label
as a distinct item in the bottom 30 percent of the principal display panel in lines generally parallel to the base of the container.</P>

<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: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Supplements
                                            Chart</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The supplement facts must contain the list of
names and quantities of dietary ingredients present in the product&rsquo;s serving size and servings per container.</P>

<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: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Ingredients
                                            List</B></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The list of ingredients must be displayed in
descending order of predominance by weight. If all source ingredients are listed in the supplement facts panel, and there are no other
ingredients, such as excipients or fillers, an ingredient statement is not needed.</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>

<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">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Other Details</B></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other details required include manufacturer,
packer, or distributor name and address, and domestic U.S. mail address and phone number to which a consumer can report a serious adverse
event. If an adverse event is reported, the company must notify the FDA.</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>Hemp and marijuana regulatory regimes in each
state where we sell hemp derived products.</I></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="width: 7%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>State</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>D9<BR>
    Ingestibles</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Legislative
    and Enforcement Notes</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Registration/<BR>
    License <BR>
    Required</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CBD
    /<BR>
    CBG<BR>
    Ingestibles</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 15%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Notes
    <BR>
    (THC <BR>
    caps)</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CBD
    /<BR>
    CBG<BR>
    Inhalables</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 7%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Inhalables<BR>
    prohibited?</B></FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Alabama</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23
    Leg session: SB 66 enacted limits psychoactive cannabinoid products to 21+; attempt by DPH to stop CBD sales challenged in court:
    TRO issued against DPH; SB 255 (2019) authorized hemp farming, including its derivatives and extracts, with less than 0.3% D9 on
    a dry weight basis; products not affirmatively authorized. Products must be less than 0.3% D9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
    states in this column that HT is selling into are OK but must meet THC cap, if applicable</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Arizona</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg session: SB 1401 would have criminalized D8, etc. as a dengerous drug but it DIED in committee; 23 Leg Session: SB 1271 would
    have authorized the manufacturing of hemp-derived products, license required but it stalled in the House; SB 1098 (2018) authorized
    hemp farming with less than 0.3% D9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Arkansas</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HB
    1640 (2021) authorized hemp/farming, including its derivatives and extracts, with less than 0.3% THC (all THCs)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*California</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: AB 2223 would cap THC at .25mg/1mg per serving/product (PASSAGE LIKELY); AB 45 (2021) authorized hemp manufacturing;
    0.3% THC limit applies to final form extract ingredient, not final form product; otherwise must be sold in cannabis retail</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes,
    Extract and Product Manufacturer License; out-of-state extract manufacturer only</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes,
    until a tax is adopted.</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">
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Colorado</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 36%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23
    Leg Session: SB 23-271 caps total THC at 1.75 mg/serging and 5 serving/product</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    THC cap: 1.75 mg/serving &amp; 5 mg/product</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Connecticut</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: HB 5150 ENACTED total THC limit: 1mg/serving and 5mg/product for edible products; 25mg/product for vape products; and
    0.3% for flower; 23 Leg Update: HB 6699 enacted Caps total THC at 1mg/serving and 5mg/product; up to 25mg/product for tinctures/concentrates;
    D8/D9/HHC/THC-O included in total THC 0.3% limit for hemp products; otherwise must be sold in marijuana retail. SB 1201 (2021) separated
    hemp from marijuana and defined it the same as the federal act (less than 0.3% D9 including extracts/derivatives); D8/D9/HHC/THC-O
    included in total THC so **all THCs considered in hemp products.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    THC Cap: 1mg/serving &amp; 5mg/product for edible products; 25mg/product for vape products; and 0.3% for flower</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Delaware</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23
    Leg session: HB 1 enacted relating to MJ possession for 21+, wholly removed hemp from MJ definition. This arguably authorizes possession
    of D9 etc. products. Title 3, Chapter 28 authorized hemp farming/research with less than 0.3% D9; flower derivatives and extracts
    not specifically authorized</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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">
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Florida</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 36%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: AB 1698 would have included THCa in D9 count and cap D9 at 5mg/50mg per serving/product (GOV VETOED); 23 Leg Session:
    SB 1676 enacted and regulates hemp extract products under 0.3% D9, including D8, etc. limited to 21+; HB 333 (2019) authorized hemp/farming/products,
    including its derivatives and extracts, with less than 0.3% D9 on a dry weight basis; food establishment permit required for all
    products sold in state including inhalable products. Labeling/packaging requirements</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes,
    Food Establishment Permit if presence in state beyond online sales</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Georgia</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: SB 494 (ENACTED) prohibits food infused w/THC/CBD - gummies excluded; now Total D9 THC/THCa standard (0.3% total D9
    THC/THCa) for hemp products; HB 1127/SB 437/SB 350 would have limited all consumable hemp products to 21+ (DEAD); 23 Leg Session:
    SB 22 would have limited all hemp products to 18+ but stalled before the Legislature adjourned; HB 213 (2019) authorized hemp/farming/products,
    including its derivatives and extracts, with the federally defined THC (D9) level</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hawaii</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session HB 1424/SB516 would have invoked state protectionism in labels; and HB 2449/SB 3138 would have allowed hemp in food/bev
    (ALL DEAD); HB 2689 (2020) authorized hemp products with less than 0.3% D9, however, State code &sect;328G-3 prohibits adding cannabinoids
    as an ingredient to foods and inhalable products</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Idaho</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">State&rsquo;s
    CSA prohibits hemp products with any THC. The only CBD allowed is 0.00% Isolate products</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0 THC
    state</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes</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">
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Illinois</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 36%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: HB 5306/SB 3790 would have limited all consumable hemp products to 21+; SB 3926 would have limited all hemp products
    to 0.5mg THC (ALL DEAD); Chicago Ordinance 4215 would cap D9 products at .5mg/serving / 2.5mg/product; SB 2298 (2018) authorized
    hemp farming/products with less than 0.3% D9.</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Indiana</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SEA
    516 (2019) authorized hemp products with less than 0.3% D9.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Iowa</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: HF 2605 (ENACTED) caps Total THC at 4mg/serving 10/mg/product; SF 2417 would have imposed 25% tax on hemp products in
    bars/restaurants (DEAD); Iowa Administrative Code 481, Chapter 32 (2021) requires a consumable hemp product registration for retailers
    (in store/online) and must be less than 0.3% total THC</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes,
    Retailer registration</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Kansas</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SB
    263 (2018) authorized hemp research farming with less than 0.3% D9; no specific product authorization, but, state statute 2-3908
    prohibits extracts with D9 greater than 0.3% and also references federal law (FDA); from AG Opinion: &ldquo;Thus, we conclude that
    the limit of 0.3% applies to the total amount of all tetrahydrocannabinols in a final hemp product, including Delta-8, Delta-9, and
    all other tetrahydrocannabinols.&rdquo;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  </TABLE>

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  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Kentucky</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 36%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23
    Leg Session: HB 544 enacted and the state will strictly regulate intoxicating products and limit them to 21+; regulations in process;
    State law authorizes hemp products with less than 0.3% D9</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Flower
    prohibited/vapes OK</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Louisiana</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: SB 237 would have limited consumable hemp products to 0.0% THC; SB 495 would have prohibited out of state products (BOTH
    DEAD); HB 491 (2019 &ndash; Hemp Farming Act) 0.3% THC limit applies to D9 only. HB 491 (2019) authorized hemp, including extracts
    and derivatives, with D9 less than 0.3% ; products must be approved by the state (RS 3-1483) and wholesalers are required to obtain
    a permit</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes,
    Product registration and hemp vendor license</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maine</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HP
    459/LD 630 (2019) fully authorized hemp products with less than 0.3% D9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maryland</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: SB 1109 would have restricted who can sell intoxicating hemp products (DEAD); 23 Update: Consumable and inhalable products
    with more than 0.5mg total THC/serving and 2.5mg THC/product are cannabis/MJ; tinctures OK w/less than 2.5mg total THC/serving and
    100mg THC/product; HB 698 (2018) authorized hemp pilot program with less than 0.3% D9, flower derivatives and extracts not specifically
    authorized</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consumable
    and inhalable products with more than 0.5mg total THC/serving and 2.5mg THC/product are cannabis/MJ; **tinctures OK w/less than 2.5mg
    total THC/serving and 100mg THC/product**</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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">
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Massachusetts</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 36%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Update: Department of AG adopted a new policy prohibiting hemp flower and hemp products with any THC other than topicals; &rsquo;23
    Leg Session: H.90 would have regulated hemp products and license in-state manufacturers but stalled before leg. adjournment 8/1 (DEAD);
    state operates under USDA&rsquo;s state hemp plan program and the federal 0.3% D9 limit; CBD food/dietary supplement product wholesaling
    prohibited, but retail sales currently not regulated</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
    yet</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sold
    in MJ retail only</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Michigan</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HB
    4517 (2021) authorized hemp products with less than 0.3% THC on a dry weight basis (THC generally, not just D9)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MJ
    license/Hemp handler-processor license to sell hemp products including smokable flower</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Minnesota</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">24 Leg Session:
                                    HF 4629 would have allowed lower potency hemp products (DEAD); 23 Leg session: HF 100 enacted limits
                                    D9 to 5 mg and require a retail license. HF 3595 (2022) limits edible hemp products to 5mg/serving
                                    and 50mg/package total THC including D8, etc.; sales limited to 21+; RS 18K.02 (2021) authorized
                                    hemp, including extracts and derivatives, with</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">less 0.3% D9.</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Retailer
    license</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">D9
    cap: 5 mg/serving &amp; 50 mg/product</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mississippi</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Update: HB 1676 would have capped THC in consumable hemp products at 0.5mg/2.5mg &amp; 20:1 CBD: THC (DEAD); SB 2725 (2020) adopted
    the federal D9 THC limit, including extracts and derivatives, but consumable hemp products must be &ldquo;FDA approved&rdquo;.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  </TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Missouri</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 36%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Update: SB 984 would have moved all intoxicating cannabinoids to MJ retail (all ingestible/consumable products - not smoking)
    (DEAD); HB 2034 (2018) authorized hemp, including extracts and derivatives, with less 0.3% D9.</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 15%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 7%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Montana</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HB
    701 (2021) kept hemp products with less than 0.3% D9 out of marijuana system and thus allowed, but not affirmatively authorized</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nebraska</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: LB 999 would have prohibited all cannabinoids other than CBD in hemp products (DEAD); LB 657 (2019) authorized hemp/farming,
    including its derivatives and extracts, with less than 0.3% D9 on a dry weight basis; products not affirmatively authorized.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*Nevada</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hemp
    farming authorized with less than 0.3% total THC; products not affirmatively authorized; SB 49 (2021) clarifies that 0.3% THC limit
    is total THC, not just D9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*New Hampshire</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HB
    459-FN (2019) limits hemp products to 0.3% D9 THC only. Product registration</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Product
    registration</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*New Jersey</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24
    Leg Session: A3580/S2313 would limit all hemp products w/any THC to 21+; S3235 would push all hemp products over 2.5mg total THC
    to MJ (ON GUV&rsquo;S DESK); AB 5322 (2020) limits hemp products to 0.3% D9 THC only. Dept of Ag license for selling hemp products
    may be required.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dept
    of Ag. license may be required for sales</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*New Mexico</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HB
    581(2019) limits hemp products to 0.3% D9 THC only</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No</FONT></TD></TR>
  </TABLE>
<P STYLE="margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</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="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left; width: 7%">*<FONT STYLE="font-family: Times New Roman, Times, Serif">New York</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top; width: 36%"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">24
                                            Les Session: A09047/S8463 would have re-legalized synthetic hemp THC in MJ retail (DEAD);
                                            S3235 would have allowed up to 5mg THC in hemp beverages (DEAD); 23 update: Cannabis agency
                                            enforcement against high THC products imminent along with THC caps; Hemp products authorized
                                            in 2020 with less than 0.3% D9; hemp retailer license required for in store/online sales;
                                            food/beverage products limited to 25 mg total cannabinoids/product; supplement products have
                                            much higher total cannabinoid limits</P></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Manufacturer
    and Retailer Permit</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 15%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cannabis
    regulatory agency enforcement against high THC hemp products and THC cap imminent</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Flower prohibited;
    oil OK</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">North Carolina</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg Session: H563
    would have established THC caps including synthetic THC (DEAD); &rsquo;23 Leg session: HB 563 would have limited hemp cannabinoid
    products to 21+ but it appears to have died; SB 455 (2022) permanently authorized hemp products with less than 0.3% D9 only. All
    hemp derived cannabinoids removed from CSA</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">North Dakota</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">24
                                            Update: Adopted administrative rule caps total THC/serving at 1.25mg and 15:1 CBD:THC ratio
                                            for &ldquo;cannabinoid product&rdquo;; &rsquo;23 Leg Session: SB 2096 enacted - prohibits
                                            all &ldquo;chemically derived cannabinoids&rdquo; including Delta 8, 9, etc. - **full/broad
                                            spectrum OK with THC limit in an amount to be determined.** HB 1045 authorizes hemp products
                                            with less than 0.3% THC (all THCs);</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">products with converted D9 prohibited</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Ohio</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg Session: SB
    278 would limit hemp products to 0.3% Total THC and products over 2.5mg/serving limited to 21+; HB 642 would direct depts. to do
    study re: adult use hemp limits; &rsquo;23 Leg Session: A replacement of SB 9 would have prohibited any amount of D8/9/10 in hemp
    products. SB 57 (2019) limits hemp products to 0.3% D9 THC only (DIED)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
</TABLE>

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<P STYLE="margin: 0"></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="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left; width: 7%">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Oklahoma</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top; width: 36%"><FONT STYLE="font-family: Times New Roman, Times, Serif">23 Leg
    Session: SB 365 would have required registration of hemp cannabinoid products but it died before adjournment. SB 238 (2019) authorized
    hemp products with less than 0.3% D9</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Not yet</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 15%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Oregon</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">HB 3000 (2021) and
    OLCC have limited hemp products to 0.5mg THC/product; otherwise it must be sold in MJ retail</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">MJ license if exceed
    0.5mg THC/product</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sold in MJ retail only</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Pennsylvania</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">HB 967 (2016) authorized
    hemp farming with less than 0.3% total THC; products not affirmatively authorized</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Rhode Island</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">Hemp-derived products
    with less than 0.3% D9 are authorized; retail license required</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes, retailer license</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">South Carolina</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg Session: H4628
    would have limited all hemp-derived cannabinoid products to 21+, excluding CBD, CBN, CBG, etc. (DEAD); Hemp products with less than
    0.3% D9 are authorized as the state follows federal definition (HB 3449)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">South Dakota</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg Session: HB1125
    enacted prohibits synthetic/converted cannabinoids; HB 1292 (signed into law March &rsquo;22) limits intoxicating product sales to
    21 and over. HB 1008 (2020) authorized hemp products with less than 0.3% D9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Tennessee</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg Session: Department
    regulations finalized on 7/2/24 adopt a total THC standard; &rsquo;23 leg session: HB 403 enacted and limits any product w/non-Delta-9
    THC to 21+; license required; SB 357 (2019) authorized hemp products with less than 0.3% D9; Smoking limited to 21+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Not for D9 products</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No, but 21+ only</FONT></TD></TR>
</TABLE>

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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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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left; width: 7%">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Texas</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top; width: 36%"><FONT STYLE="font-family: Times New Roman, Times, Serif">23 Leg
    session: HB 4918 would have reversed in-state smokable hemp ban but died; HB 1325 (2019) authorized hemp products with less than
    0.3% D9; Sup Ct. in June 22 upheld manufacturing smokable hemp ban</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consumable
    hemp product license</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 15%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Utah</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">23 leg session: HB
    227 enacted and limits any product with THC to 21+; HB 58 (2016) and HB 3001 (2018) authorized hemp extract products with less than
    0.3% THC (all THCs) and with at least 5% CBD by weight. HB 385 (2022) requires product class and cannabinoid product registration
    with the state. Smokable flower prohibited - vape products not identified. Attempting to register vape product will ferret out whether
    state agrees that smokable prohibition applies only to flower.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Retailer permit; Product
    class or cannabinoid product registration</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes, but possibly not
    vapes</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Vermont</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">23 Leg Session: Cannabis
    Control Board issued emergency rule prohibiting synthetic THCs and limits hemp products to 1.5mg of THC per serving, or 10mg of THC
    per package (unless the product has at least 20:1 CBD-to-THC. State hemp rules adopt federal D9 limits for hemp products; however,
    all synthetically derived/converted THCs are prohibited (2020).</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.5 mg/serving &amp;
    10 mg/product</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Virginia</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg Session: **SB
    582 (ENACTED) limits inhaled products to 21+; SB 448 would have improved regulatory environment (lower tax) while HB 1509 would further
    restrict hemp businesses; Cap of 2.5mg THC/product or a 25:1 CBD:THC ratio</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes, Retailer registration</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2.5mg THC/product or
    a 25:1 CBD:THC ratio</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Washington</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">23 leg session: SB
    5367 enacted prohibits any detectable THC in hemp products.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">0 THC state</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left; width: 7%">*<FONT STYLE="font-family: Times New Roman, Times, Serif">West Virginia</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top; width: 36%"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Leg
    Session: SB 679 limits hemp cannabinoid products to 21+ and sales require business reg. certificate; &rsquo;23 Leg Session: SB 220
    enacted limits D9, D8, etc. products to 21+ and requires permit. HB 2694 (2019) Authorized hemp products with less than 0.3% THC
    (all THCs). Inhalable hemp products must be approved by the Commissioner.</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes, permit</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 15%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 7%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 7%"><FONT STYLE="font-family: Times New Roman, Times, Serif">No, but must
    be approved</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Wisconsin</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">Statute 94.55 authorizes
    hemp products with less than 0.3% D9. Products must be sold by a licensed retailer and meet strict packaging rules including flower.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Retailer license</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">*<FONT STYLE="font-family: Times New Roman, Times, Serif">Wyoming</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif">23 leg session: HB
    108 enacted limits any edible or vaping product with any THC to 18+; HB 0171 (2019) authorized hemp products with less than 0.3%
    D9. Attempt to limit inhalable sales to 21+ failed.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">No, but 18+ only</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">*</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>asterisk
                                            </I>= we sell product in this state</FONT></P></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: justify"><B>Good Manufacturing Practices</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">Good manufacturing practices (&ldquo;GMPs&rdquo;)
for dietary supplements are specific rules for the manufacturing processes of vitamins, minerals, herbs and botanicals, amino acids and
all other supplements. Finalized in 2007, these rigorous practices impose higher standards on dietary supplements than food GMPs applied
to conventional foods.&nbsp;Dietary supplement GMPs include thorough requirements for identity testing for all ingredients as they arrive
at the manufacturer&rsquo;s site.&nbsp; Manufacturers must qualify their suppliers before receiving goods, incoming ingredients must
be quarantined until their identity is confirmed using scientifically valid methods of analysis, and all components of dietary supplements
must meet specifications established by the manufacturer regardless of where the ingredient was sourced.</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">Manufacturers are accountable to the FDA for
the manufacturing process as well as the ingredients. During an inspection, the FDA has access to all the manufacturers&rsquo; records,
including access to the country of origin of all supplement ingredients. The existing bioterrorism law already requires all parties in
the production and distribution of dietary ingredients to keep records of suppliers and customers (&ldquo;one up and one down&rdquo;)
that permit the agency to trace the pedigree of ingredients back to their original source. In addition, the GMP rules examine sanitation,
batch records for production, employee training, validation of the manufacturing procedures, and testing final products for conformance
with the label.</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>Adverse Event Reporting</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">In 2006, Congress passed The Dietary Supplement
and Nonprescription Drug Consumer Protection Act, commonly referred to as the &ldquo;adverse event reporting law.&rdquo;&nbsp;The passage
of this law was strongly supported by CRN and others in the industry as it provides an important regulatory tool for the FDA to protect
consumers. Under this law, dietary supplement companies are required to report serious adverse events to the FDA no later than 15 business
days after the company receives the report.</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 post-market surveillance program alerts
the FDA to possible signals or potential patterns of a problem, enabling the agency to identify concerns with ingredient safety, manufacturing
issues, contamination (of either raw ingredients or finished products), tampering, and even bioterrorism.&nbsp;However, adverse events&nbsp;do
not&nbsp;demonstrate a causal relationship between the product and the event.</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">Since the law went into effect, the dietary supplement
industry&rsquo;s track record demonstrates a strong safety profile for the industry&rsquo;s products both in comparison to other FDA-regulated
industries and considering that more than 170 million Americans take dietary supplements.&nbsp;In 2016, the FDA announced it would make
data from the FDA Adverse Event Reporting System (FAERS) public.</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>Additional Safety Protections</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">Once a dietary supplement enters the stream of
commerce, the FDA may remove a product if it is &ldquo;adulterated&rdquo; or &ldquo;misbranded.&rdquo; A product is considered adulterated
if it contains unlisted ingredients or is not prepared or packaged under good manufacturing conditions.&nbsp;It is misbranded if its
labeling is false or misleading.&nbsp; In either case, the agency has enforcement authority to seize and destroy the product, impose
fines or even imprisonment. In addition, the FDA can remove a product from the market if it &ldquo;presents a significant or unreasonable
risk of illness or injury&rdquo; under conditions of use recommended in its labeling. A separate provision gives the FDA authority to
declare a product &ldquo;an imminent hazard to public health or safety.&rdquo; In less dramatic situations, the FDA can request manufacturers
to modify products and claims or to provide warnings to consumers. The Food Safety &amp; Modernization Act, signed into law in 2011,
gave the FDA additional authority to issue a mandatory recall when a company fails to voluntarily recall an unsafe food (including dietary
supplements) after being asked to by the FDA.</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>Food Safety Regulations</B></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>Title 21 Code of Federal Regulations, Part
111: Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements</B></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">This regulation applies to manufacturers, packagers,
labelers, or holders and includes importers as well. The manufacturing facilities of certain types of human food including dietary supplements
are required to have a production and process control system in place.</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>Hemp</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">The production, distribution and sale in the
United States of many of our products are subject to the Federal Food, Drug, and Cosmetic Act, the Federal Trade Commission Act, the
Lanham Act, state consumer protection laws, competition laws, federal, state and local workplace health and safety laws, various federal,
state and local environmental protection laws, various other federal, state and local statutes applicable to the production, transportation,
sale, safety, advertising, labeling and ingredients of such products, and rules and regulations adopted pursuant to these laws. Outside
the United States, the distribution and sale of our many products and related operations are also subject to numerous similar and other
statutes and regulations. We only sell our hemp derived products to states which permit this activity with certain restrictions such
as the content of THC which differs depending on the state.</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">On December 20, 2018, the Agricultural Improvement
Act of 2018, which is also known as the &ldquo;2018 Farm Bill,&rdquo; was enacted and, among other things, further legalized hemp under
U.S. federal law, but with compliance still being required with all applicable state hemp laws. The 2018 Farm Bill includes certain benefits
for the hemp industry in the United States, including: (i) the extension of the protections for hemp research and researchers and the
conditions in which hemp research can be done, (ii) the protection of hemp farmers and hemp production under federal crop insurance programs,
(iii) the permitting of the cultivation, interstate transportation and sale of hemp and hemp products in the U.S. in compliance with
all other applicable federal and state laws, and (iv) the removal of hemp and hemp derived products from Schedule 1 of the Controlled
Substances Act (&ldquo;CSA&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">As of August 1, 2024, <FONT STYLE="background-color: white">all
50 states and the District of Columbia have legalized hemp</FONT></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">Our activities in the United States only involve
legal hemp in compliance with the CSA. The hemp and the marijuana plants are both part of the same <I>cannabis </I>genus, except that
hemp does not have more than 0.3% dry weight content of tetrahydrocannabinol (&ldquo;THC&rdquo;).&nbsp;&nbsp; While 2018 Farm Bill legalized
hemp and cannabinoids extracted from hemp in the United States, such extracts remain subject to state laws and regulation by other U.S.
federal agencies such as the FDA, U.S. Drug Enforcement Administration (&ldquo;DEA&rdquo;), and the U.S. Department of Agriculture (&ldquo;USDA&rdquo;).
The same plant, with a higher THC content is marijuana, which is legal under certain state laws, but which is currently not legal under
U.S. federal law. The similarities between these plants can cause confusion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A California law known as Proposition 65 requires
a specific warning to appear on any product containing a component listed by the state as having been found to cause cancer or birth
defects. The state maintains lists of these substances and periodically adds other substances to these lists. Proposition 65 exposes
all food and beverage producers to the possibility of having to provide warnings on their products in California because it does not
provide for any generally applicable quantitative threshold below which the presence of a listed substance is exempt from the warning
requirement. Consequently, the detection of even a trace amount of a listed substance can subject an affected product to the requirement
of a warning label. However, Proposition 65 does not require a warning if the manufacturer of a product can demonstrate that the use
of that product exposes consumers to a daily quantity of a listed substance that is:</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>
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">below a &ldquo;safe
    harbor&rdquo; threshold that may be established;</FONT></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">naturally occurring;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the result of necessary
    cooking; or</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">subject to another
    applicable exemption.</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">In January 2019, New York State&rsquo;s governor
announced the &ldquo;Consumer Right to Know Act,&rdquo; a proposed law that would impose similar and potentially more stringent labeling
requirements than California Proposition 65. The law has not yet been adopted, and to our knowledge California Proposition 65 remains
the most onerous state-level chemical exposure labeling statutory scheme. However, due in part to the large size of California&rsquo;s
market, promotional products sold or distributed anywhere in the United States may be subject to California Proposition 65.</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 unable to predict whether a component
found in a product that we assisted a client in producing might be added to the California list in the future. Furthermore, we are also
unable to predict when or whether the increasing sensitivity of detection methodology may become applicable under this law and related
regulations as they currently exist, or as they may be amended.</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">We are subject to various federal, state and
local laws and regulations, including but not limited to, laws and regulations relating to labor and employment, U.S. customs and consumer
product safety, including the Consumer Product Safety Improvement Act, or the &ldquo;CPSIA.&rdquo; The CPSIA created more stringent safety
requirements related to lead and phthalates content in children&rsquo;s products. The CPSIA regulates the future manufacture of these
items and existing inventories and may cause us to incur losses if we offer for sale or sell any non-compliant items. Failure to comply
with the various regulations applicable to us may result in damage to our reputation, civil and criminal liability, fines and penalties
and increased cost of regulatory compliance. These current and any future laws and regulations could harm our business, results of operations
and financial condition.</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">Legal requirements apply in various jurisdictions
in the United States and overseas requiring deposits or certain taxes or fees be charged for the sale, marketing and use of certain non-refillable
beverage containers. The precise requirements imposed by these measures vary. Other types of beverage container-related deposit, recycling,
tax and/or product stewardship statutes and regulations also apply in various jurisdictions in the United States and overseas. We anticipate
additional, similar legal requirements may be proposed or enacted in the future at local, state and federal levels, both in the United
States and elsewhere.</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">New legislation or regulation, the application
of laws from jurisdictions whose laws do not currently apply to our business, or the application of existing laws and regulations to
the Internet and e-commerce generally could result in significant additional taxes on our business. Further, we could be subject to fines
or other payments for any past failures to comply with these requirements. The continued growth and demand for e-commerce is likely to
result in more laws and regulations that impose additional compliance burdens on e-commerce companies.</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><I>Laws and Regulations Relating to Data Privacy</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">In the ordinary course of our business, we might
collect and store in our internal and external data centers, cloud services and networks sensitive data, including our proprietary business
information and that of our customers, suppliers and business collaborators, as well as personal information of our customers and employees.
The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. The number
and sophistication of attempted attacks and intrusions that companies have experienced from third parties has increased over the past
few years. Despite our security measures, it is impossible for us to eliminate this risk.</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 number of states in the United States have
enacted data privacy and security laws and regulations that govern the collection, use, disclosure, transfer, storage, disposal, and
protection of personal information, such as social security numbers, financial information and other sensitive personal information.
For example, all 50 states and several U.S. territories now have data breach laws that require timely notification to affected individuals,
and at times regulators, credit reporting agencies and other bodies, if a company has experienced the unauthorized access or acquisition
of certain personal information. Other state laws, particularly the California Consumer Privacy Act, as amended (&ldquo;CCPA&rdquo;),
among other things, contain disclosure obligations for businesses that collect personal information about residents in their state and
afford those individuals new rights relating to their personal information that may affect our ability to collect and/or use personal
information. The Virginia Consumer Data Protection Act (&ldquo;CDPA&rdquo;) also establishes rights for Virginia consumers to control
how companies use individuals&rsquo; personal data. The CDPA dictates how companies must protect personal data in their possession and
respond to consumers exercising their rights, as prescribed by the law, regarding such personal data. The CDPA went into effect on January
1, 2023. Further, the California Privacy Rights Act (CPRA) was recently voted into law by California residents. The CPRA significantly
amends the CCPA and imposes additional data protection obligations on covered companies doing business in California, including additional
consumer rights processes and opt outs for certain uses of sensitive data. It also creates a new California data protection agency specifically
tasked to enforce the law, which would likely result in increased regulatory scrutiny of California businesses in the areas of data protection
and security. The substantive requirements for businesses subject to the CPRA went into effect on January 1, 2023, and became enforceable
on July 1, 2023. Meanwhile, several other states and the federal government have considered or are considering privacy laws like the
CCPA. We will continue to monitor and assess the impact of these laws, which may impose substantial penalties for violations, impose
significant costs for investigations and compliance, allow private class-action litigation and carry significant potential liability
for our business.</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">Outside of the United States, data protection
laws, including the EU General Data Protection Regulation (the &ldquo;GDPR&rdquo;), also might apply to some of our operations or business
collaborators. Legal requirements in these countries relating to the collection, storage, processing and transfer of personal data/information
continue to evolve. The GDPR imposes, among other things, data protection requirements that include strict obligations and restrictions
on the ability to collect, analyze and transfer personal data/information of persons located in the European Union (EU), a requirement
for prompt notice of data breaches to data subjects and supervisory authorities in certain circumstances, and possible substantial fines
for any violations (including possible fines for certain violations of up to the greater of &euro;20 million or 4% of total company revenue).
Other governmental authorities around the world have enacted or are considering similar types of legislative and regulatory proposals
concerning data protection.</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 interpretation and enforcement of the laws
and regulations described above are uncertain and subject to change, and may require substantial costs to monitor and implement and maintain
adequate compliance programs. Failure to comply with United States and international data protection laws and regulations could result
in government enforcement actions (which could include substantial civil and/or criminal penalties), private litigation and/or adverse
publicity and could negatively affect our operating results and business.</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><I>Environmental Regulations</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">We use certain plastic, glass, fabric, metal
and other products in our business which may be harmful if released into the environment. In view of the nature of our business, compliance
with federal, state, and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection
of the environment, has had no material effect upon our operations or earnings, and we do not expect it to have a material impact in
the foreseeable future.</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><I>Tax Laws and Regulations</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">Changes in tax laws or regulations in the jurisdictions
in which we do business, including the United States, or changes in how the tax laws are interpreted, could further impact our effective
tax rate, further restrict our ability to repatriate undistributed offshore earnings, or impose new restrictions, costs or prohibitions
on our current practices and reduce our net income and adversely affect our cash flows.</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 also subject to tax audits in the United
States and other jurisdictions and our tax positions may be challenged by tax authorities. Although we believe that our current tax provisions
are reasonable and appropriate, there can be no assurance that these items will be settled for the amounts accrued, that additional tax
exposures will not be identified in the future or that additional tax reserves will not be necessary for any such exposures. Any increase
in the amount of taxation incurred as a result of challenges to our tax filing positions could result in a material adverse effect on
our business, results of operations and financial condition.</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><I>Other Regulations</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">We are subject to international, federal, national,
regional, state, local and other laws and regulations affecting our business, including those promulgated under the Occupational Safety
and Health Act, the Consumer Product Safety Act, the Flammable Fabrics Act, the Textile Fiber Product Identification Act, the rules and
regulations of the Consumer Products Safety Commission, the Food, Drug, and Cosmetic Act, the Foreign Corrupt Practices Act of 1977 (FCPA),
various securities laws and regulations including but not limited to the Securities Exchange Act of 1934, as amended, the Securities
Exchange Act of 1933, as amended, and the NASDAQ Rules, various labor, workplace and related laws, and environmental laws and regulations.
Failure to comply with such laws and regulations may expose us to potential liability and have an adverse effect on our results of operations.</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_010"></A>MANAGEMENT</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>Directors and Executive Officers</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">Set forth below is information regarding our
directors and executive officers as of the date of this prospectus.</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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">Name</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Age</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Position</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 58%; text-align: left">Eric Gripentrog</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 15%; text-align: center">57</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 25%; text-align: left">Chief Executive Officer</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Tariq Rahim</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">37</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Chief Financial Officer</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">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
    <SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">[&nbsp;&nbsp; ]</TD><TD>&nbsp;</TD>
    <TD>&nbsp;</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-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nominee
                                            director whose tenure shall be effective and commence immediately on the date in which this
                                            registration statement is declared effective by the SEC.</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"><B>Eric Gripentrog, <I>Chief Executive Officer
and Director</I></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">Mr. Gripentrog combines over 30 years of experience
in the Consumer-Packaged Goods industry (&ldquo;CPG&rdquo;). Previously, he worked with three other companies in the CPG space holding
several positions including CEO, SVP, and other senior management positions including Board Member. From 1992 to 2018, Eric held multiple
roles in the Kellogg Company, both domestically and internationally (Europe and Latin America) leading business units with P&amp;L responsibility.
His last two roles at the Kellogg Company were Vice President/General Manager of the Caribbean business unit from 2009 to 2014; and Vice
President, Strategy and Operations for North America from 2014 - 2018. From 2018 to 2019, Mr. Gripentrog was the SVP and General Manager
of Panera Bread&rsquo;s Consumer Packaged Goods division. This senior management position led this business unit covering six different
product categories. He grew this division double-digit in both top-line and bottom-line performance, and his CPG division outperformed
all other Panera business units and functions. From 2019 to 2020, Eric was the CEO and board member for Gina Cucina, Inc, a company involved
in manufacturing and selling fresh soup into the retail grocery outlets and direct-to-consumer. His expertise in leading a business,
managing the P&amp;L and identifying margin enhancing opportunities for both business-to-business and direct-to-consumer clientele is
critically important for the current role. Since 2020 Eric has been acting as the CEO of Hemptown USA, a director of Functional Brands,
and a director of HTO Nevada, dba Kirkman. Whether Eric is leading a multi-billion-dollar operation or a small start-up; his experience
in developing strategic plans and policies to bring the company vision to reality, implementing supporting plans, budgeting and forecasting,
communicating with the Board of Directors, tracking company performance and establishing a high performing working culture, will enable
his success in his current CEO role. Eric has an undergraduate degree from Western Michigan University.&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: 0pt 0; text-align: justify"><B>Tariq Rahim, <I>Chief Financial Officer</I></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">Mr. Rahim brings over 15 years of professional
experience with over 10 years as a qualified Chartered Professional Accountant (CPA, CA &ndash; Canada).&nbsp;Having worked in a wide
variety of industries including cannabis, hemp, prop-tech, professional services spaces, among others.&nbsp;In addition to his current
position as CFO at FBIC since April 2023 and VP, Finance since June 2021, his previous roles included Controller at Nobul (prop-tech
startup) from June 2020 to June 2021 and Controller at Tokyo Smoke (cannabis start-up) from September 2018 to May 2020. Beginning his
post-qualification careers in the Fall of 2011, he has held consistently progressive roles from a junior in public accounting leading
up to the current position as an executive.&nbsp;Having worked with companies ranging in size from small to multi-million dollar publicly
listed companies, he has tremendous experience in leveraging his financial skills to lead companies and clients through the full gamut
of accounting and finance challenges &ndash; strategic planning, financial reporting, financial planning &amp; analysis, budgeting &amp;
forecasting, to mention just a few.&nbsp;From 2018 onward, Mr. Rahim focused his career on startups and utilizing his experience to build
and scale. Since 2021 Tariq has been serving as CFO of Hemptown USA, director of Functional Brands, and director of HTO Nevada, dba Kirkman.
He has an Honors Bachelor of Accounting degree in Accounting from Brock University.</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>Family Relationships</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">There are no family relationships among any of
our officers or directors.</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>Involvement in Certain Legal Proceedings</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 the best of our knowledge, except as described
below, none of our directors or executive officers has, during the past ten years:</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>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">been convicted in a
    criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">had any bankruptcy
    petition filed by or against the business or property of the person, or of any partnership, corporation or business association of
    which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that
    time;</FONT></TD></TR>
  </TABLE>
<P STYLE="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>
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">been subject to any
    order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or
    state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of
    business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with
    persons engaged in any such activity;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">been found by a court
    of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission
    to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">been the subject of,
    or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended
    or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any
    federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance
    companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty
    or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire
    fraud or fraud in connection with any business entity; or</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">been the subject of,
    or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined
    in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity
    Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority
    over its members or persons associated with a member.</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"><B>Corporate Governance</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><I>Governance Structure</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">We will choose to appoint a separate Chairman
of the Board who is not our Chief Executive Officer. Our board of directors&rsquo; decision is based on the belief that an independent
Chairman of the Board can act as a balance to the Chief Executive Officer, who also serves as a non-independent director.</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><I>The Board&rsquo;s Role in Risk Oversight</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">The board of directors oversees that the assets
of our company are properly safeguarded, that the appropriate financial and other controls are maintained, and that our business is conducted
wisely and in compliance with applicable laws and regulations and proper governance. Included in these responsibilities is the board&rsquo;s
oversight of the various risks facing our company. In this regard, our board seeks to understand and oversee critical business risks.
Our board does not view risk in isolation. Risks are considered in virtually every business decision and as part of our business strategy.
Our board recognizes that it is neither possible nor prudent to eliminate all risk. Indeed, purposeful and appropriate risk-taking is
essential for our company to be competitive on a global basis and to achieve its objectives.</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">While the board oversees risk management, company
management is charged with managing risk. Management communicates routinely with the board and individual directors on the significant
risks identified and how they are being managed. Directors are free to, and indeed often do, communicate directly with senior management.</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">Our board administers its risk oversight function
as a whole by making risk oversight a matter of collective consideration. Much of this work has been delegated to committees, which will
meet regularly and report back to the full board. The audit committee oversees risks related to our financial statements, the financial
reporting process, accounting and legal matters, the compensation committee evaluates the risks and rewards associated with our compensation
philosophy and programs, and the nominating and corporate governance committee evaluates risk associated with management decisions and
strategic direction.</P>

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

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Independent Directors</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">NASDAQ&rsquo;s rules generally require that a
majority of an issuer&rsquo;s board of directors consist of independent directors. Our board of directors currently consists of three
(3) directors, with ____ and _____considered independent within the meaning of NASDAQ&rsquo;s rules. We have entered into independent
director agreements with [&#9679;], pursuant to which [he/she] has been appointed to serve as an independent director of our company,
whose tenure shall be effective and commence immediately on the date in which this the registration statement is declared effective by
the SEC. As a result of these board changes, our board of directors will consist of ___ ( ) directors, ___ ( ) of which will be independent
within the meaning of NASDAQ&rsquo;s rules.</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><I>Committees of the Board of Directors</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">Our board has established an audit committee,
a compensation committee, and a nominating and corporate governance committee, each with its own charter approved by the board. The committee
charters have been filed as exhibits to the registration statement of which this prospectus is a part. Upon completion of this offering,
we intend to make each committee&rsquo;s charter available on our website at https://functionalbrandsinc.com/.</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, our board of directors may, from
time to time, designate one or more additional committees, which shall have the duties and powers granted to it by our board of directors.</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><U>Audit Committee</U></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">[ &nbsp;&nbsp;&nbsp;&nbsp;], [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], each of whom satisfies the &ldquo;independence&rdquo; requirements of Rule 10A-3 under the Exchange
Act and NASDAQ&rsquo;s rules, will serve on our audit committee upon their appointment to the board, with [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
serving as the chairman. Our board has determined that [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] qualifies as an &ldquo;audit committee financial
expert.&rdquo; The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements
of our company.</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 audit committee is responsible for, among
other things: (i) retaining and overseeing our independent accountants; (ii) assisting the board in its oversight of the integrity of
our financial statements, the qualifications, independence and performance of our independent auditors and our compliance with legal
and regulatory requirements; (iii) reviewing and approving the plan and scope of the internal and external audit; (iv) pre-approving
any audit and non-audit services provided by our independent auditors; (v) approving the fees to be paid to our independent auditors;
(vi) reviewing with our chief executive officer and principal financial officer and independent auditors the adequacy and effectiveness
of our internal controls; (vii) reviewing hedging transactions; and (viii) reviewing and assessing annually the audit committee&rsquo;s
performance and the adequacy of its charter.</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><U>Compensation Committee</U></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">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], each of whom satisfies the &ldquo;independence&rdquo; requirements of Rule 10C-1 under the Exchange
Act and NASDAQ&rsquo;s rules, will serve on our compensation committee upon their appointment to the board, with [ ] serving as the chairman.
The members of the compensation committee are also &ldquo;outside directors&rdquo; as defined in Section 162(m) of the Internal Revenue
Code of 1986, as amended, or the Code, and &ldquo;non-employee directors&rdquo; within the meaning of Section 16 of the Exchange Act.
The compensation committee assists the board in reviewing and approving the compensation structure, including all forms of compensation
relating to our directors and executive 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 compensation committee is responsible for,
among other things: (i) reviewing and approving the remuneration of our executive officers; (ii) making recommendations to the board
regarding the compensation of our independent directors; (iii) making recommendations to the board regarding equity-based and incentive
compensation plans, policies and programs; and (iv) reviewing and assessing annually the compensation committee&rsquo;s performance and
the adequacy of its charter.</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><U>Nominating and Corporate Governance Committee</U></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">[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
each of whom satisfies the &ldquo;independence&rdquo; requirements of NASDAQ&rsquo;s rules, will serve on our nominating and corporate
governance committee upon their appointment to the board, with [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] serving as the chairman. The nominating
and corporate governance committee assists the board of directors in selecting individuals qualified to become our directors and in determining
the composition of the board and its committees.</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 nominating and corporate governance committee
will be responsible for, among other things: (i) identifying and evaluating individuals qualified to become members of the board by reviewing
nominees for election to the board submitted by shareholders and recommending to the board director nominees for each annual meeting
of shareholders and for election to fill any vacancies on the board; (ii) advising the board with respect to board organization, desired
qualifications of board members, the membership, function, operation, structure and composition of committees (including any committee
authority to delegate to subcommittees), and self-evaluation and policies; (iii) advising on matters relating to corporate governance
and monitoring developments in the law and practice of corporate governance; (iv) overseeing compliance with the our code of ethics;
and (v) approving any related party transactions.</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 nominating and corporate governance committee&rsquo;s
methods for identifying candidates for election to our board of directors (other than those proposed by our shareholders, as discussed
below) will include the solicitation of ideas for possible candidates from a number of sources - members of our board of directors, our
executives, individuals personally known to the members of our board of directors, and other research. The nominating and corporate governance
committee may also, from time-to-time, retain one or more third-party search firms to identify suitable candidates.</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 making director recommendations, the nominating
and corporate governance committee may consider some or all of the following factors: (i) the candidate&rsquo;s judgment, skill, experience
with other organizations of comparable purpose, complexity and size, and subject to similar legal restrictions and oversight; (ii) the
interplay of the candidate&rsquo;s experience with the experience of other board members; (iii) the extent to which the candidate would
be a desirable addition to the board and any committee thereof; (iv) whether or not the person has any relationships that might impair
his or her independence; and (v) the candidate&rsquo;s ability to contribute to the effective management of our company, taking into
account the needs of our company and such factors as the individual&rsquo;s experience, perspective, skills and knowledge of the industry
in which we operate.</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">No person entitled to vote at an election for
directors may cumulate votes to which such person is entitled, unless, at the time of such election, the corporation is subject to Section
2115(b) of the CGCL. During such time or times that the corporation is subject to Section 2115(b) of the CGCL, every stockholder entitled
to vote at an election for directors may cumulate such stockholder&rsquo;s votes and give one candidate a number of votes equal to the
number of directors to be elected multiplied by the number of votes to which such stockholder&rsquo;s shares are otherwise entitled,
or distribute the stockholder&rsquo;s votes on the same principle among as many candidates as such stockholder thinks fit. No stockholder,
however, shall be entitled to so cumulate such stockholder&rsquo;s votes unless (i) the names of such candidate or candidates have been
placed in nomination prior to the voting and (ii) the stockholder has given notice at the meeting, prior to the voting, of such stockholder&rsquo;s
intention to cumulate such stockholder&rsquo;s votes. If any stockholder has given proper notice to cumulate votes, all stockholders
may cumulate their votes for any candidates who have been properly placed in nomination. Under cumulative voting, the candidates receiving
the highest number of votes, up to the number of directors to be elected, are elected.</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"><B>Code of Ethics</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 adopted a code of ethics that applies
to all of our directors, officers and employees, including our principal executive officer, principal financial officer and principal
accounting officer. Such code of ethics addresses, among other things, honesty and ethical conduct, conflicts of interest, compliance
with laws, regulations and policies, including disclosure requirements under the federal securities laws, and reporting of violations
of the code.</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_011"></A>EXECUTIVE COMPENSATION</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"><I>The following discussion and analysis of compensation
arrangements should be read together with the compensation tables and related disclosures that follow. This discussion contains forward-looking
statements that are based on our current plans and expectations regarding future compensation programs. Actual compensation programs
that we adopt may differ materially from the programs summarized in this discussion. The following discussion may also contain statements
regarding corporate performance targets and goals. These targets and goals are disclosed in the limited context of our compensation programs
and should not be understood to be statements of management&rsquo;s expectations or estimates of results or other guidance. We specifically
caution investors not to apply these statements to other contexts.</I>&nbsp;</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>Summary Compensation Table &ndash; Years Ended
December 31, 2023, and 2022</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 table sets forth information concerning
all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities during
the noted periods. No other executive officers received total annual salary and bonus compensation in excess of $100,000.</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: center"><B>Summary Compensation Table </B></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="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">Fiscal</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Stock</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Option</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">All Other</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name and Principal Position</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">Year</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">Salary</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">Bonus</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">Awards</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">Awards</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">Compensation</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">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: 29%; text-align: left">Eric Gripentrog</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%; text-align: center">2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">280,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">280,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Chief Executive Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">280,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">280,000</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: 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><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">Tariq Rahim</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</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-left: 9pt">Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employment Agreements</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 entered into contractual agreements with
our CEO and CFO.</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>Employment Agreement &ndash; Eric Gripentrog,
CEO </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">Effective as of April 1, 2023, the employment
agreement has an original term of 12 months subject to automatic renewal unless terminated for cause. In addition to the salary described
above, the CEO will be issued 1,000,000 company restricted stock units with an exercise price and vesting period to be determined after
the initial public offering. The CEO is also entitled to a performance-based bonus payout.</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 bonus is based upon a combination of achieving
the consolidated revenue targets as set forth in the chart below:</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: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Consolidated
    Revenue Target (USD)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Functional Brands
    Inc. Stock Payout (common shares)</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Below $10,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$10,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$15,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$20,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$25,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$30,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$35,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">7,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$40,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,000,000</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Employment Agreement &ndash; Tariq Rahim,
CFO</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">Effective as of April 1, 2023, the employment
agreement has an original term of 12 months subject to automatic renewal unless terminated for cause. In addition to the salary described
above, the CFO will be issued 500,000 company restricted stock units with an exercise price and vesting period to be determined after
the initial public offering and 3,500,000 stock options with an exercise price and date of issuance to be determined by the Company&rsquo;s
board of directors, with an expiration term of three years after termination of the employment agreement unless terminated for cause.
The CFO is also entitled to a performance-based bonus payout.</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: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Consolidated
    Revenue Target (USD)</B></FONT></TD>
    <TD STYLE="width: 2%"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Functional Brands
    Inc. Stock Payout (common shares)</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Below $10,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">500,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$10,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$15,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,500,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$20,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$25,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,500,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$30,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,000,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$35,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,500,000</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">$40,000,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">4,000,000</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"><B>Outstanding Equity Awards at Fiscal Year-End</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">Except as described in the employment agreement
above, no executive officer named above had any unexercised options, stock that has not vested or equity incentive plan awards outstanding
as of December 31, 2023, and 2022.</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>Director Compensation</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">No member of our board of directors received
any compensation for his or her services as a director during the fiscal years ending December 31, 2023, and 2022, nor do they currently
receive any compensation for such 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"><B>Equity Incentive Plans</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"><I>Long-Term Incentive Plans.</I> We do not provide
our officers or employees with pension, stock appreciation rights, long-term incentive or other plans, nor do we provide non-qualified
deferred compensation to our officers or employees, and therefore, the Summary Compensation Table above does not include columns for
nonequity incentive plan compensation and nonqualified deferred compensation earnings since there were none.</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>Employee Pension, Profit Sharing or other
Retirement Plans.</I> We do not have a defined benefit, pension plan, profit sharing or other retirement plan, although we may adopt
one or more of such plans in the future.</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_012"></A>CERTAIN RELATIONSHIPS AND
RELATED PARTY TRANSACTIONS</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>Transactions with Related Persons</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">Except as described below, there were no transactions
during the fiscal years ending December 31, 2023 and 2022, or any currently proposed transaction, in which we were or are to be a participant
and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at year-end for
the last three completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other
than compensation described under &ldquo;<I>Executive Compensation</I>&rdquo; above). We believe the terms obtained or consideration
that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the
amounts that would be paid or received, as applicable, in arm&rsquo;s-length transactions.</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>Debt facility with related parties </I></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 March 11, 2024, the Company executed a loan
agreement with a related party in the amount of $130,000, with an annual interest rate of 20%, with a maturity date of March 10, 2031.</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 December 2022, the Company entered into a
short-term debt facility with a related party, an officer and director of the parent company &ndash; Hemptown Organics Corp., whereby
the Company received $247,634. The loan is non-interest bearing with a 2-year term.</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"></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_013"></A>PRINCIPAL SHAREHOLDERS</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 table sets forth certain information
with respect to the beneficial ownership of our common stock as of the date of this prospectus for (i) each of our named executive officers
and directors; (ii) all of our named executive officers and directors as a group; and (iii) each other shareholder known by us to be
the beneficial owner of more than 5% of our outstanding common stock. The following table assumes that the Underwriter has not exercised
the over-allotment option.</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">Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person or
group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of common stock that such person or any member of
such group has the right to acquire within sixty (60) days of the date of this prospectus. For purposes of computing the percentage of
outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons has
the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding for such person, but not deemed
to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed
as beneficially owned does not constitute an admission of beneficial ownership by any person.</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 percentages below are calculated based on&nbsp;[
] shares of our common stock, and [ ] shares of our preferred stock, issued and outstanding as of [ ], 2024. We do not have any outstanding
options, warrants exercisable for, or other securities convertible into shares of our common stock within the next 60 days which are
deemed beneficially owned by the holder thereof. Unless otherwise indicated, the address of each beneficial owner listed in the table
below is c/o our company, Functional Brands Inc., 6400 SW Rosewood Street, Lake Oswego, Oregon 97035.</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">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold; vertical-align: bottom">Name of Beneficial Owner</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">Title of Class</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">Amount and<BR> Nature of<BR> Beneficial<BR>
    Ownership</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">Percent of<BR> Class Before<BR>
    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="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percent<BR> of Class<BR> After<BR>
    This Offering</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="vertical-align: top; width: 52%; text-align: left">Eric Gripentrog</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 15%; text-align: center">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">13,000,000</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">10.59</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;
                                            ]</FONT></TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">Tariq Rahim</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,200,00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.61</TD><TD STYLE="text-align: left">%</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">&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;
                                            ]</FONT></TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; font-weight: bold; text-align: left">All Officers and Directors as a Group (4)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.20</TD><TD STYLE="text-align: left">%</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">&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;
                                            ]</FONT></TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">Hemptown Organics Corp.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">88,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71.68</TD><TD STYLE="text-align: left">%</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">&nbsp;[&nbsp;&nbsp;&nbsp;&nbsp;
                                            ]</FONT></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">&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_014"></A>DESCRIPTION OF SECURITIES</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>General</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">Our authorized capital stock currently consists
of 220,000,000 shares of common stock as of October 10, 2024 (previously 100,000,000), par value $0.00001 per share.</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 description summarizes important
terms of the classes of our capital stock following the filing of our articles of incorporation. This summary does not purport to be
complete and is qualified in its entirety by the provisions of our articles of incorporation and our bylaws which have been filed as
exhibits to the registration statement of which this prospectus is a part.</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 the date of this prospectus, there were
<B>122,767,274 </B>shares of common stock and no shares of preferred stock issued and outstanding.</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>Common Stock</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"><I>Voting Rights. </I>The holders of common stock
are entitled to one vote for each share held of record on all matters submitted to a vote of the shareholders. Under our articles of
incorporation and bylaws, any corporate action to be taken by vote of shareholders other than for election of directors shall be authorized
by the affirmative vote of the majority of votes cast. Directors are elected by a plurality of votes. Shareholders do not have cumulative
voting rights.</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>Dividend Rights</I>. Subject to preferences
that may be applicable to any then-outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends,
if any, as may be declared from time to time by the board of directors out of legally available 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"><I>Liquidation Rights</I>. In the event of our
liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available
for distribution to shareholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation
preference granted to the holders of any then-outstanding shares of preferred 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"><I>Other Rights</I>. Holders of common stock
have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common
stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights
of the holders of shares of any series of preferred 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"><B>Securities Other than Common Stock Offered
in this Offering</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>Warrants</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 Warrants will be issued in the respective
forms filed as an exhibit to the registration statement of which this prospectus is a part and the following summary is subject to and
qualified in its entirety by the filed exhibits. You should review a copy of each form of Series A Warrant and Series B Warrant for a
complete description of the terms and conditions applicable to the 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">The following is a brief summary of the Warrants
and is still subject in all respect to the provisions contained in the form of each applicable Warrant.</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">Duration and Exercise Price</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">Each Series A Warrant offered hereby has an initial
exercise price per share equal to $[ ] . Each Series B Warrant offered hereby has an initial exercise price per share equal to $[ ] .
The exercise price and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in the event of certain
stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our common stock and
also upon any distributions of assets, including cash, stock or other property to our 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">The Warrants will be issued separately from the
common stock included in this offering. Each share of our common stock purchased in this offering will include a Series A Warrant and
Series B Warrant, each to purchase one share of our common stock. The Series A Warrants and Series B Warrants will be issued in certificated
form 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">Exercisability</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 Series A Warrants and the Series B Warrants
are exercisable at any time after their original issuance. The Series A Warrants will expire on the third-year anniversary of their original
issuance date and the Series B Warrants will expire on the fifth-year anniversary of their original issuance date.</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">Each Warrant will be exercisable, at the option
of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in full of the exercise
price in immediately available funds for the number of shares of our common stock purchased upon such exercise (except in the case of
a cashless exercise as discussed below). A holder will not have the right to exercise any portion of the Series A Warrants or Series
B Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of our common
stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the
terms of the Series A Warrants and Series B Warrants. However, any holder may increase or decrease such percentage to any other percentage
not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days following notice from the
holder to us.</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">Cashless Exercise and Alternative Cashless Exercise</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, at the time a holder exercises its Warrant,
there is no effective registration statement registering, or the prospectus contained therein is not available for an issuance of the
shares underlying the Warrant to the holder, then in lieu of making the cash payment otherwise contemplated to be made to us upon such
exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in
part) the net number of shares of common stock determined according to a formula set forth in the Warrant.</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">Fractional Shares</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">No fractional shares of Common Stock will be
issued upon exercise of the Warrants. If, upon exercise of the Warrant, a holder would be entitled to receive a fractional interest in
a share, we will, upon exercise, pay a cash adjustment in respect of such fraction in an amount equal to such fraction multiplied by
the exercise price or round up to the next whole share. If multiple warrants are exercised by the holder at the same time, we shall pay
a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the exercise price.</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">Transferability</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">Subject to applicable laws, a Warrant may be
transferred at the option of the holder upon surrender of the Warrant to us together with the appropriate instruments of transfer.</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">Fundamental Transactions</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 the event of a &ldquo;fundamental transaction,&rdquo;
as described in the Warrants and generally including any reorganization, recapitalization or reclassification of our Common Stock, the
sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into
another person, the acquisition of more than 50% of our outstanding Common Stock, or any person or group becoming the beneficial owner
of 50% of the voting power represented by our outstanding Common Stock, the holders of the Warrants will be entitled to receive upon
exercise of the Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised
the Warrants immediately prior to such fundamental 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">Exchange Listing</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">There is no established trading market for the
Warrants. In addition, we do not intend to apply for the listing of the Warrants on any national securities exchange. Without an active
trading market, the liquidity of the Warrants will be limited.</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">Right as a Stockholder</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">Except as otherwise provided in the Warrants
or by virtue of such holder&rsquo;s ownership of shares of our common stock, the holders of the Warrants do not have the rights or privileges
of holders of our common stock, including any voting rights, until they exercise their 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"><B>Representative&rsquo;s Warrants</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">Upon the closing of this offering, there will
be up to [ ] shares of common stock issuable upon exercise of the Representative&rsquo;s warrants. See &ldquo;<I>Underwriting</I>&rdquo;
below for a description of the Representative&rsquo;s 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"><B>Restricted stock options</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">Upon the closing of this offering, there will
be up to 4,500,000 restricted stock units issuable at the discretion of the board of directors of the Company.</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>Anti-Takeover Provisions</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>Certain Anti-takeover Provisions of Delaware
Law, our Certificate of Incorporation and Bylaws</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 a Delaware corporation, we are governed by
the provisions of Section 203 of the Delaware General Corporation Law, which generally has an anti-takeover effect for transactions not
approved in advance by our Board. This may discourage takeover attempts that might result in payment of a premium over the market price
for the shares of common stock held by stockholders. In general, Section 203 prohibits a publicly held Delaware corporation from engaging
in a &ldquo;business combination&rdquo; with an &ldquo;interested stockholder&rdquo; for a three-year period following the time that
such stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A &ldquo;business
combination&rdquo; includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit
to the interested stockholder. An &ldquo;interested stockholder&rdquo; is a person who, together with affiliates and associates, owns,
or did own within three years prior to the determination of interested stockholder status, 15% or more of Functional Brands&rsquo; voting
stock.&nbsp;</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">Under Section 203, a business combination between
a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:</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: 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">before
                                            the stockholder became interested, the board of directors approved either the business combination
                                            or the transaction which resulted in the stockholder becoming an interested stockholder;
                                            or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">upon
                                            consummation of the transaction which resulted in the stockholder becoming an interested
                                            outstanding, shares owned by:</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">persons
                                            who are directors and also officers, and</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">employee
                                            stock plans, in some instances; or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">at
                                            or after the time the stockholder became interested, the business combination was approved
                                            by the board of directors are authorized at an annual or special meeting of the stockholders
                                            by the affirmative vote of at least two-thirds of the outstanding voting stock which is not
                                            owned by the interested stockholder.</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"><B><I>Special meeting of stockholders</I></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">Our bylaws provide that special meetings of our
stockholders may be called by the Chairman of the Board, the Board, President of the Company, or by the Board upon written request by
the holders of a majority of the voting stock of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Removal of directors</I></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">Subject to any limitations imposed by applicable
law (and assuming the corporation is not subject to Section 2115 of the CGCL), the Board of Directors or any director may be removed
from office at any time (i) with cause by the affirmative vote of the holders of a majority of the voting power of all then-outstanding
shares of capital stock of the corporation entitled to vote generally at an election of directors or (ii) without cause by the affirmative
vote of the holders of a majority of the voting power of all then-outstanding shares of capital stock of the corporation, entitled to
elect such director.</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 such time or times that the corporation
is subject to Section 2115(b) of the CGCL, the Board of Directors or any individual director may be removed from office at any time without
cause by the affirmative vote of the holders of at least a majority of the outstanding shares entitled to vote on such removal; provided,
however, that unless the entire Board is removed, no individual director may be removed when the votes cast against such director&rsquo;s
removal, or not consenting in writing to such removal, would be sufficient to elect that director if voted cumulatively at an election
which the same total number of votes were cast (or, if such action is taken by written consent, all shares entitled to vote were voted)
and the entire number of directors authorized at the time of such director&rsquo;s most recent election were then being elected.</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"></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: justify"><B>Limitation of Liability and Indemnification
of Directors and Officers</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">Our bylaws provide that our directors and officers
will be indemnified by us to the fullest extent authorized by Delaware law.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These provisions may discourage stockholders
from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions also may have the effect of reducing
the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit
us and our stockholders. Furthermore, a stockholder&rsquo;s investment may be adversely affected to the extent we pay the costs of settlement
and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, insurance
and the indemnity agreements are necessary to attract and retain talented and experienced directors and officers.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are not aware of any threatened litigation
or proceeding that might result in a claim for such indemnification, except as disclosed below. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions,
or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable.</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><I>Cumulative Voting</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">The holders of our common stock do not have cumulative
voting rights in the election of our directors. The combination of the present ownership by a few shareholders of a significant portion
of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other shareholders to replace our
board of directors or for a third party to obtain control of our company by replacing its board of directors.</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>Transfer Agent and Registrar</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 appointed Endeavor Trust Corporation
as the transfer agent for our common stock. Endeavor Trust Corporation is located at 702 - 777 Hornby Street, Vancouver, BC, V6Z 1S4.</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_015"></A>SHARES ELIGIBLE FOR FUTURE
SALE</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">Before this offering, there has not been a public
market for shares of our common stock. Future sales of substantial amounts of shares of our common stock, including shares issued upon
the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this offering, or the
possibility of these sales occurring, could cause the prevailing market price for our common stock to fall or impair our ability to raise
equity capital in the future.</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">Immediately following the closing of this offering,
we will have [ ] shares of common stock issued and outstanding. In the event the Underwriter exercises its over-allotment option to purchase
additional shares of common stock, we will have [ ] shares of common stock issued and outstanding. The common stock sold in this offering
will be freely tradable without restriction or further registration or qualification 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">Previously issued shares of common stock that
were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee stock options,
are or will be upon issuance, &ldquo;restricted securities,&rdquo; as that term is defined in Rule 144 under the Securities Act. These
restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale
qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.</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>Rule 144</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 general, a person who has beneficially owned
restricted shares of our common stock for at least twelve months, or at least six months in the event we have been a reporting company
under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person
is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90)
days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:</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: 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">1%
                                            of the number of shares of our common stock then outstanding; or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">1%
                                            of the average weekly trading volume of our common stock during the four calendar weeks preceding
                                            the filing by such person 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: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">provided that, in each case, we are subject to
the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the
manner of sale, notice and other provisions of Rule 144, to the extent applicable.</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>Rule 701</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 general, Rule 701 allows a shareholder who
purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate
of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply
with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however,
are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.</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>Lock-Up Agreements</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, all of our directors and officers and holders
of [5]% or more of our common stock have agreed with the Underwriter, subject to certain exceptions, not to sell, transfer or dispose
of, directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our common stock
for a period of six months after the closing of this offering. See the &ldquo;<I>Underwriting</I>&rdquo; section below for more information.</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_016"></A>MATERIAL U.S. FEDERAL TAX
CONSIDERATIONS FOR NON-U.S. HOLDERS OF OUR SECURITIES</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 is a summary of the material U.S.
federal income and estate tax consequences of the ownership and disposition of our common stock that is being issued pursuant to this
offering. This summary is limited to Non-U.S. Holders (as defined below) that hold our common stock as a capital asset (generally, property
held for investment) for U.S. federal income tax purposes. This summary does not discuss all of the aspects of U.S. federal income and
estate taxation that may be relevant to a Non-U.S. Holder in light of the Non-U.S. Holder&rsquo;s particular investment or other circumstances.
Accordingly, all prospective Non-U.S. Holders should consult their own tax advisors with respect to the U.S. federal, state, local and
non-U.S. tax consequences of the ownership and disposition of our 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">This summary is based on provisions of the Code,
applicable U.S. Treasury regulations and administrative and judicial interpretations, all as in effect or in existence on the date of
this prospectus. Subsequent developments in U.S. federal income or estate tax law, including changes in law or differing interpretations,
which may be applied retroactively, could alter the U.S. federal income and estate tax consequences of owning and disposing of our common
stock as described in this summary. There can be no assurance that the Internal Revenue Service, or IRS, will not take a contrary position
with respect to one or more of the tax consequences described herein and we have not obtained, nor do we intend to obtain, a ruling from
the IRS with respect to the U.S. federal income or estate tax consequences of the ownership or disposition of our 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">As used in this summary, the term &ldquo;Non-U.S.
Holder&rdquo; means a beneficial owner of our common stock that is not, for U.S. federal income tax purposes:</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: 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">an
                                            individual who is a citizen or resident of the United States;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            corporation (or other entity treated as a corporation) created or organized in or under the
                                            laws of the United States, any state thereof, or the District of Columbia;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">an
                                            entity or arrangement treated as a partnership;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">an
                                            estate whose income is includible in gross income for U.S. federal income tax purposes regardless
                                            of its source; or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            trust, if (1) a U.S. court is able to exercise primary supervision over the trust&rsquo;s
                                            administration and one or more &ldquo;United States persons&rdquo; (within the meaning of
                                            the Code) has the authority to control all of the trust&rsquo;s substantial decisions, or
                                            (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to
                                            be treated as a United States person.</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">If an entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in such a partnership generally will depend
upon the status of the partner, the activities of the partnership and certain determinations made at the partner level. Partnerships,
and partners in partnerships, that hold our common stock should consult their own tax advisors as to the particular U.S. federal income
and estate tax consequences of owning and disposing of our common stock that are applicable to them.</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 summary does not consider any specific facts
or circumstances that may apply to a Non-U.S. Holder and does not address any special tax rules that may apply to particular Non-U.S.
Holders, such as:</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: 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
                                            Non-U.S. Holder that is a financial institution, insurance company, tax-exempt organization,
                                            pension plan, broker, dealer or trader in securities, dealer in currencies, U.S. expatriate,
                                            controlled foreign corporation or passive foreign investment company;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            Non-U.S. Holder holding our common stock as part of a conversion, constructive sale, wash
                                            sale or other integrated transaction or a hedge, straddle or synthetic security;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            Non-U.S. Holder that holds or receives our common stock pursuant to the exercise of any employee
                                            stock option or otherwise as compensation; or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            Non-U.S. Holder that at any time owns, directly, indirectly or constructively, 5% or more
                                            of our outstanding common stock.</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">In addition, this summary does not address any
U.S. state or local, or non-U.S. or other tax consequences, or any U.S. federal income or estate tax consequences for beneficial owners
of a Non-U.S. Holder, including shareholders of a controlled foreign corporation or passive foreign investment company that holds our
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"><B>Each Non-U.S. Holder should consult its own
tax advisor regarding the U.S. federal, state, local and non-U.S. income and other tax consequences of owning and disposing of our common
stock.</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"></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: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Distributions on Our Common Stock</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">We do not currently expect to pay any cash dividends
on our common stock. If we make distributions of cash or property (other than certain pro rata distributions of our common stock) with
respect to our common stock, any such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax rules. If a distribution exceeds
our current and accumulated earnings and profits, the excess will be treated as a nontaxable return of capital to the extent of the Non-U.S.
Holder&rsquo;s adjusted tax basis in our common stock and will reduce (but not below zero) such Non-U.S. Holder&rsquo;s adjusted tax
basis in our common stock. Any remaining excess will be treated as gain from a disposition of our common stock subject to the tax treatment
described below in &ldquo;<I>&mdash; Dispositions of Our Common Stock</I>.&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">Distributions on our common stock that are treated
as dividends and that are effectively connected with a Non-U.S. Holder&rsquo;s conduct of a trade or business in the United States will
be taxed on a net income basis at the regular graduated rates and in the manner applicable to United States persons. An exception may
apply if the Non-U.S. Holder is eligible for, and properly claims, the benefit of an applicable income tax treaty and the dividends are
not attributable to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United States. In such case, the
Non-U.S. Holder may be eligible for a lower rate under an applicable income tax treaty between the United States and its jurisdiction
of tax residence. Dividends that are effectively connected with a Non-U.S. Holder&rsquo;s conduct of a trade or business in the United
States will not be subject to the U.S. withholding tax if the Non-U.S. Holder provides to the applicable withholding agent a properly
executed IRS Form W-8ECI (or other applicable form) in accordance with the applicable certification and disclosure requirements. A Non-U.S.
Holder treated as a corporation for U.S. federal income tax purposes may also be subject to a &ldquo;branch profits tax&rdquo; at a 30%
rate (unless the Non-U.S. Holder is eligible for a lower rate under an applicable income tax treaty) on the Non-U.S. Holder&rsquo;s earnings
and profits (attributable to dividends on our common stock or otherwise) that are effectively connected with the Non-U.S. Holder&rsquo;s
conduct of a trade or business within the United States. The amount of taxable earnings and profits is generally reduced by amounts reinvested
in the operations of the U.S. trade or business and increased by any decline in its equity.</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 certifications described above must be provided
to the applicable withholding agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder may obtain
a refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. Non-U.S. Holders should
consult their own tax advisors regarding their eligibility for benefits under any relevant income tax treaty and the manner of claiming
such benefits.</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 discussion is subject to the discussions
below under &ldquo;<I>Backup Withholding and Information Reporting</I>&rdquo; and &ldquo;<I>FATCA Withholding</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Dispositions of Our Common Stock</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 Non-U.S. Holder generally will not be subject
to U.S. federal income tax (including U.S. withholding tax) on gain recognized on any sale or other disposition of our common stock unless:</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: 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
                                            gain is effectively connected with the Non-U.S. Holder&rsquo;s conduct of a trade or business
                                            in the United States (and, if required by an applicable income tax treaty, is attributable
                                            to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United
                                            States); in such case, the gain would be subject to U.S. federal income tax on a net income
                                            basis at the regular graduated rates and in the manner applicable to United States persons
                                            (unless an applicable income tax treaty provides otherwise) and, if the Non-U.S. Holder is
                                            treated as a corporation for U.S. federal income tax purposes, the &ldquo;branch profits
                                            tax&rdquo; described above may also apply;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            Non-U.S. Holder is an individual who is present in the United States for 183 days or more
                                            in the taxable year of the disposition and meets certain other requirements; in such case,
                                            except as otherwise provided by an applicable income tax treaty, the gain, which may be offset
                                            by certain U.S. source capital losses, generally will be subject to a flat 30% U.S. federal
                                            income tax, even if the Non-U.S. Holder is not treated as a resident of the United States
                                            under the Code; or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">we
                                            are or have been a &ldquo;United States real property holding corporation&rdquo; for U.S.
                                            federal income tax purposes at any time during the shorter of (i) the five-year period ending
                                            on the date of disposition and (ii) the period that the Non-U.S. Holder held our common stock.</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"></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; text-align: justify; margin: 0pt 0">Generally, a corporation is a &ldquo;United States
real property holding corporation&rdquo; if the fair market value of its &ldquo;United States real property interests&rdquo; equals or
exceeds 50% of the sum of the fair market value of its worldwide real property interests plus its other assets used or held for use in
a trade or business. We believe that we are not currently, and we do not anticipate becoming in the future, a United States real property
holding corporation. However, because the determination of whether we are a United States real property holding corporation is made from
time to time and depends on the relative fair market values of our assets, there can be no assurance in this regard. If we were a United
States real property holding corporation, the tax relating to disposition of stock in a United States real property holding corporation
generally will not apply to a Non-U.S. Holder whose holdings, direct, indirect and constructive, constituted 5% or less of our common
stock at all times during the applicable period, provided that our common stock are &ldquo;regularly traded on an established securities
market&rdquo; (as provided in applicable U.S. Treasury regulations) at any time during the calendar year in which the disposition occurs.
However, no assurance can be provided that our common stock will be regularly traded on an established securities market for purposes
of the rules described above. Non-U.S. Holders should consult their own tax advisors regarding any possible adverse U.S. federal income
tax consequences to them if we are, or were to become, a United States real property holding corporation.</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 discussion is subject to the discussions
below under &ldquo;<I>Backup Withholding and Information Reporting</I>&rdquo; and &ldquo;<I>FATCA Withholding</I>.&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"><B>Federal Estate Tax</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 shares of our common stock that are owned
(or treated as owned) by an individual who is not a U.S. citizen or resident of the United States (as specially defined for U.S. federal
estate tax purposes) at the time of death will be included in that individual&rsquo;s gross estate for U.S. federal estate tax purposes,
unless an applicable estate tax or other treaty provides otherwise and, therefore, may be subject to U.S. federal estate tax.</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>Backup Withholding and Information Reporting</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">Backup withholding (currently at a rate of 24%)
may apply to dividends paid by U.S. corporations in some circumstances, but will not apply to payments of dividends on our common stock
to a Non-U.S. Holder if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person or is otherwise
entitled to an exemption. However, the applicable withholding agent generally will be required to report to the IRS (and to such Non-U.S.
Holder) payments of dividends on our common stock and the amount of U.S. federal income tax, if any, withheld from those payments. In
accordance with applicable treaties or agreements, the IRS may provide copies of such information returns to the tax authorities in the
country in which the Non-U.S. Holder resides.</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 gross proceeds from sales or other dispositions
of our common stock may be subject, in certain circumstances discussed below, to U.S. backup withholding and information reporting. If
a Non-U.S. Holder sells or otherwise disposes of any of our common stock outside the United States through a non-U.S. office of a non-U.S.
broker and the disposition proceeds are paid to the Non-U.S. Holder outside the United States, the U.S. backup withholding and information
reporting requirements generally will not apply to that payment. However, U.S. information reporting, but not U.S. backup withholding,
will apply to a payment of disposition proceeds, even if that payment is made outside the United States, if a Non-U.S. Holder sells our
common stock through a non-U.S. office of a broker that is a United States person or has certain enumerated connections with the United
States, unless the broker has documentary evidence in its files that the Non-U.S. Holder is not a United States person and certain other
conditions are met or the Non-U.S. Holder otherwise qualifies for an exemption.</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 a Non-U.S. Holder receives payments of the
proceeds of a disposition of our common stock to or through a U.S. office of a broker, the payment will be subject to both U.S. backup
withholding and information reporting unless the Non-U.S. Holder provides to the broker a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person, or the Non-U.S.
Holder otherwise qualifies for an exemption.</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">Backup withholding is not an additional tax.
Any amounts withheld under the backup withholding rules may be credited against the Non-U.S. Holder&rsquo;s U.S. federal income tax liability
(which may result in the Non-U.S. Holder being entitled to a refund), provided that the required information is timely furnished to the
IRS.</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>FATCA Withholding</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 Foreign Account Tax Compliance Act and related
Treasury guidance (commonly referred to as FATCA) impose U.S. federal withholding tax at a rate of 30% on payments to certain foreign
entities of (i) U.S.-source dividends (including dividends paid on our common stock) and (ii) the gross proceeds from the sale or other
disposition of property that produces U.S.-source dividends (including sales or other dispositions of our common stock). This withholding
tax applies to a foreign entity, whether acting as a beneficial owner or an intermediary, unless such foreign entity complies with (i)
certain information reporting requirements regarding its U.S. account holders and its U.S. owners and (ii) certain withholding obligations
regarding certain payments to its account holders and certain other persons. Accordingly, the entity through which a Non-U.S. Holder
holds its common stock will affect the determination of whether such withholding is required. While withholding under FATCA would have
also applied to payments of gross proceeds from the sale or other disposition of our common stock on or after January 1, 2019, U.S. Treasury
regulations proposed in December 2018 eliminate such withholding on payments of gross proceeds entirely. Taxpayers generally may rely
on these proposed U.S. Treasury regulations until final U.S. Treasury regulations are issued. Non-U.S. Holders are encouraged to consult
their tax advisors regarding FATCA.</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_017"></A>UNDERWRITING</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 this offering, we are entering
into an underwriting agreement with Joseph Gunnar &amp; Co., LLC (who we refer to as the Representative), as representative of the Underwriter
named in this prospectus, with respect to the common stock in this offering. Under the terms and subject to the conditions contained
in the underwriting agreement, the Representative will agree to purchase from us on a firm commitment basis the respective number of
shares of common stock at the public price less the underwriting discounts and commissions set forth on the cover page of this prospectus,
and each of the Underwriter has severally agreed to purchase, and we have agreed to sell to the Underwriter, at the public offering price
per shares less the underwriting discounts and commissions set forth on the cover page of this prospectus, the number of shares of common
stock listed next to its name in the following table.</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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">Underwriter</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number&nbsp;of<BR> Units</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&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>&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>Total</TD><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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Units stock sold by the Underwriter to the
public will initially be offered at the initial public offering price set forth on the cover page of this prospectus. Any shares of common
stock sold by the Underwriter to securities dealers may be sold at a discount from the initial public offering price not to exceed $[
] per Unit. If all of the shares are not sold at the initial offering price, the Representative may change the offering price and the
other selling terms. The Representative has advised us that the Underwriter does not intend to make sales to discretionary accounts.
The underwriting agreement will provide that the obligations of the Underwriter to pay for and accept delivery of the shares of common
stock are subject to the passing upon certain legal matters by counsel and certain conditions such as confirmation of the accuracy of
representations and warranties by us about our financial condition and operations and other matters. The obligation of the Underwriter
to purchase the shares of common stock is conditioned upon our receiving approval to list the shares of common stock on NASDAQ.</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 granted to the Representative an option,
exercisable one or more times in whole or in part, not later than 45 days after the date of this prospectus, to purchase up to&nbsp;[
]&nbsp;additional shares of common stock at the public offering price less the underwriting discounts and commissions set forth on the
cover page of this prospectus, constituting 15% of the total number of shares of common stock to be offered in this offering (excluding
shares subject to this option). The Representative may exercise this option solely for the purpose of covering over-allotments in connection
with this offering. This offering is being conducted on a firm commitment basis. Any shares of common stock issued or sold under the
option will be issued and sold on the same terms and conditions as the other shares of common stock that are the subject of this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Discounts and Commissions; Expenses</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 underwriting discounts and commissions are
a cash fee equal to: (i) eight percent (8%) of gross proceeds from the sale of securities in this offering. We have been advised by the
representative that the Underwriter proposes to offer the common stock to the public at the public offering price set forth on the cover
of this prospectus and to dealers at a price that represents a concession not in excess of $[ ] per Unit under the public offering price.
After the offering, the representative may change the public offering price and other selling terms.</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 summarizes the public offering
price and the underwriting discounts and commissions payable to the Underwriter by us in connection with this offering (assuming both
the exercise and non-exercise of the over-allotment option that we have granted to the Representative):</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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center; font-weight: bold">Per Unit</TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center; font-weight: bold">Total Without<BR>
    Over-Allotment<BR>
    Option</TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center; font-weight: bold">Total With Full<BR>
    Over-Allotment<BR>
    Option</TD><TD STYLE="white-space: nowrap; 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="width: 64%">Public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">[&#9679;]</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Underwriting discounts and commissions (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">[&#9679;]</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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">Non-accountable expense allowance (1%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds, before expenses, to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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">&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-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Does
                                            not include (i) the warrant to purchase a number of shares of common stock equal to 6% of
                                            the number of shares sold in the offering, or (ii) amounts representing reimbursement of
                                            certain out-of-pocket expenses, each as described below.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Representative&rsquo;s Warrants</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 agreed to issue to the Representative
(or its permitted assignees) warrants to purchase up to a total of&nbsp;[ ] shares of common stock equal to 6% of the total number of
shares of common stock sold in this offering at an exercise price equal to 100% of the public offering price of the common stock sold
in this offering. The Representative&rsquo;s warrants will be exercisable at any time, and from time to time, in whole or in part, commencing
from the closing of the offering and expiring five (5) years from the effectiveness of the offering, will have a cashless exercise provision
and will terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus is a part. The
Representative&rsquo;s warrants are not exercisable or convertible for more than five years from the commencement of sales of the public
offering. The Representative&rsquo;s warrants also provide for customary anti-dilution provisions and immediate &ldquo;piggyback&rdquo;
registration rights with respect to the registration of the shares underlying the warrants for a period of seven years from commencement
of sales of this offering. We have registered the Representative&rsquo;s warrants and the shares underlying the Representative&rsquo;s
warrants in this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Representative&rsquo;s warrants and the underlying
shares are deemed to be compensation by FINRA, and therefore will be subject to a 180-day lock-up period pursuant to FINRA Rule 5110(e)(1).
In accordance with FINRA Rule 5110(e)(1), neither the Representative&rsquo;s warrants nor any of our common stock issued upon exercise
of the Representative&rsquo;s warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging,
short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person,
for a period of 180 days immediately following commencement of sale of this offering subject to certain exceptions permitted by FINRA
Rule 5110(e)(2).</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 agreed to pay the Representative a non-accountable
expense reimbursement equal to one percent (1%) of the gross proceeds from the sale of securities in this offering. We have also agreed
to reimburse the Representative for reasonable out-of-pocket expenses incurred by the Representative in connection with this offering,
regardless of whether the offering is consummated, up to $150,000. The Representative out-of-pocket expenses include but are not limited
to: (i) road show and travel expenses, (ii) reasonable fees of Representative&rsquo;s legal counsel, (iii) the cost of background check
on our officers, directors and major shareholders and due diligence expenses. As of the date of this prospectus, we have paid the Representative
refundable advances of $10,000 which shall be applied against its actual out-of-pocket accountable expenses. Such advance payments will
be returned to us to the extent any portion of the advance is not actually incurred, in accordance with FINRA Rule 5110(g)(4)(A).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the offering, the Underwriter
may purchase and sell shares in the open market. Purchases and sales in the open market may include short sales, purchases to cover short
positions, which may include purchases pursuant to the over-allotment option, and stabilizing purchases.</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: 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">Short
                                            sales involve secondary market sales by an underwriter of a greater number of shares than
                                            they are required to purchase in the offering.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">&ldquo;Covered&rdquo;
                                            short sales are sales of shares in an amount up to the number of shares represented by the
                                            over-allotment option.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">&ldquo;Naked&rdquo;
                                            short sales are sales of shares in an amount in excess of the number of shares represented
                                            by the over-allotment option.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">Covering
                                            transactions involve purchases of shares either pursuant to the over-allotment option or
                                            in the open market after the distribution has been completed in order to cover short positions.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">To
                                            close a naked short position, an underwriter must purchase shares in the open market after
                                            the distribution has been completed. A naked short position is more likely to be created
                                            if an underwriter is concerned that there may be downward pressure on the price of the shares
                                            in the open market after pricing that could adversely affect investors who purchase in the
                                            offering.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">To
                                            close a covered short position, an underwriter must purchase shares in the open market after
                                            the distribution has been completed or must exercise the over-allotment option. In determining
                                            the source of shares to close the covered short position, the Underwriter will consider,
                                            among other things, the price of shares available for purchase in the open market as compared
                                            to the price at which they may purchase shares through the over-allotment option.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">Stabilizing
                                            transactions involve bids to purchase shares so long as the stabilizing bids do not exceed
                                            a specified maximum.</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">Purchases to cover short positions and stabilizing
purchases, as well as other purchases by an underwriter for its own account, may have the effect of preventing or retarding a decline
in the market price of the common stock. They may also cause the price of the common stock to be higher than the price that would otherwise
exist in the open market in the absence of these transactions. The Underwriter may conduct these transactions in the over-the-counter
market or otherwise. If the Underwriter commences any of these transactions, they may discontinue them at any time.</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>Determination of Offering Price</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 determining the initial public offering price,
we and the Representative have considered a number of factors, including:</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: 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
                                            information set forth in this prospectus and otherwise available to the Representative;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">our
                                            prospects and the history and prospects for the industry in which we compete;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">an
                                            assessment of our management;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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">our
                                            prospects for future revenue and earnings;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            general condition of the securities markets at the time of this offering;</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            recent market prices of, and demand for, publicly traded securities of generally comparable
                                            companies; and</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 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
                                            factors deemed relevant by the Representative and us.</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">The estimated initial public offering price set
forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither
we nor the Representative can assure investors that an active trading market will develop for our common stock, or that the shares will
trade in the public market at or above the initial public offering price.</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>Indemnification</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 agreed to indemnify the Representative
and the other Underwriter against certain liabilities, including liabilities under the Securities Act. If we are unable to provide this
indemnification, we will contribute to payments that the Representative and the other Underwriter may be required to make for these liabilities.</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>Right of First Refusal</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 Representative has the right of first refusal
for fifteen months following the consummation of this offering or the termination or expiration of the engagement with the Representative
to act as sole financial advisor on any public or private financing (debt or equity), merger, business combination, recapitalization
or sale of some or all of our equity or our assets (collectively, &ldquo;Future Services&rdquo;). In the event that we engage the Representative
to provide such Future Services, the Representative will be compensated consistent with the engagement agreement with the Representative,
unless we mutually agree otherwise. To the extent we are approached by a third party to lead any public or private financing (debt or
equity), merger, business combination, recapitalization or sale of some or all of our equity or assets, the Representative will be notified
of the transaction and be granted the right to exercise its right of first refusal with respect thereto.</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>No Sales of Similar Securities</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 agreed not to offer, issue, sell, contract
to sell, encumber, grant any option for the sale of or otherwise dispose of any shares of our common stock or other securities convertible
into or exercisable or exchangeable for shares of common stock at a price per share that is less than the price per shares of common
stock in this offering, or modify the terms of any existing securities, whether in conjunction with another broker-dealer or on our own
volition for a period of twelve months following date on which our common stock are trading on the NASDAQ, without the prior written
consent of the Representative.</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 Agreements</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">Our executive officers, directors and holder(s)
of 5% or more of our outstanding common stock have agreed not to offer, sell, agree to sell, directly or indirectly, or otherwise dispose
of any shares of our common stock for a period of six months following the closing of this offering, subject to certain exceptions (the
&ldquo;Lock-Up Period&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the above, the Underwriter of
this offering may engage in stabilization activities as described above. The Representative may in its sole discretion and at any time
without notice release some or all of the shares subject to lock-up agreements prior to the expiration of the Lock-Up Period. When determining
whether or not to release shares from the lock-up agreements, the Representative will consider, among other factors, the security holder&rsquo;s
reasons for requesting the release, the number of shares for which the release is being requested and market conditions at the time.</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>Electronic Offer, Sale and Distribution of
Common Stock</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">A prospectus in electronic format may be made
available on the website maintained by the Representative. In addition, shares of common stock may be sold by the Representative to securities
dealers who resell our common stock to online brokerage account holders. Other than the prospectus in electronic format, the information
on the Representative&rsquo;s website and any information contained in any other website maintained by the Representative is not part
of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or
the Representative in its capacity as Representative and should not be relied upon by investors.</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"><B>Selling Restrictions</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">No action has been taken in any jurisdiction
(except in the United States) that would permit a public offering of our common stock, or the possession, circulation or distribution
of this prospectus or any other material relating to us or our common stock, where action for that purpose is required. Accordingly,
our common stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material or advertisements
in connection with our common stock may be distributed or published, in or from any country or jurisdiction except in compliance with
any applicable rules and regulations of any such country or jurisdiction.</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>Offer Restrictions Outside the United States</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">Other than in the United States, no action has
been taken by us or the Underwriter that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules
and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and
to observe any restrictions relating to this offering and the distribution of this prospectus. This prospectus does not constitute an
offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer
or a solicitation is unlawful. In particular, our common stock has not been qualified for distribution by prospectus in Canada and may
not be offered or sold in Canada during the course of their distribution hereunder except pursuant to a Canadian prospectus or prospectus
exemption.</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"></P>

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<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><A NAME="A_018"></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">Lucosky Brookman LLP has acted as our counsel
in connection with the preparation of this prospectus. The validity of the securities offered, shares of common stock, and warrants covered
by this prospectus will be passed upon for us by Lucosky Brookman LLP, Woodbridge, New Jersey. The Underwriter has been represented in
connection with this offering by Pryor Cashman LLP, New York, New York.</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_019"></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">The financial statements of our company included
in this registration statement and have been audited by TAAD LLP an independent registered public accounting firm, as indicated in its
report with respect thereto, and have been so included in reliance upon the report of such firm given on the authority of said 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: center"><B><A NAME="A_020"></A>WHERE YOU CAN FIND MORE
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 a registration statement, of which
this prospectus is a part, on Form S-1 with the SEC relating to this offering. This prospectus does not contain all of the information
in the registration statement and the exhibits included with the registration statement. For further information pertaining to us and
the securities to be sold in this offering, you should refer to the registration statement and its exhibits, portions of which have been
omitted as permitted by SEC rules and regulations. References in this prospectus to any of our contracts, agreements or other documents
are not necessarily complete, and you should refer to the exhibits attached to the registration statement for copies of the actual contracts,
agreements or documents. The SEC maintains an internet site that contains reports, proxy and information statements and other information
regarding issuers that file with the SEC at http://www.sec.gov.</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">Upon the effectiveness of the registration statement,
we will be subject to the informational requirements of the Exchange Act, and, in accordance with the Exchange Act, will file reports,
proxy and information statements and other information with the SEC. Annual, quarterly and special reports, proxy and information statements
and other information can be inspected and copied at the locations set forth above. We will also make these documents publicly available,
free of charge, on our website at https://functionalbrandsinc.com/ as soon as reasonably practicable after filing such documents with
the SEC. Information on, or accessible through, our website is not part 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: 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: 0pt 0; text-align: center"><IMG SRC="image_012.jpg" ALT="">&nbsp;</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>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc</B>&nbsp;<B>.)</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>&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>
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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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)</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>&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>CONSOLIDATED
BALANCE SHEETS (UNAUDITED)</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><I>(In
U.S. Dollars, except share data or otherwise noted)</I></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><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; text-indent: -0.125in; padding-left: 0.25in; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">September 30,
    <BR>
    2024</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,
    <BR>
    2023</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; white-space: nowrap; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: center"><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; font-size: 10pt"><B>(Unaudited)</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; font-size: 10pt"><B>Amount
                                            in $</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: center"><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; font-size: 10pt"><B>(Audited)</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; font-size: 10pt"><B>Amount
                                            in $</B></FONT></P></TD><TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: center">Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; font-style: italic">Current</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; width: 76%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">246,903</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">374,435</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: 0.25in; text-align: left">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,799</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">170,938</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; text-align: left">Inventories, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,753,986</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,694,020</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: 0.25in; 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">74,280</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">72,441</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; padding-bottom: 1.5pt; text-align: left">Deferred offering 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">327,535</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">231,910</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"><P STYLE="text-indent: -0.125in; padding-left: 0.25in; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
                                 current assets</B></FONT></P></TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,678,503</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,543,744</TD><TD STYLE="font-weight: bold; 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">&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; font-weight: bold; font-style: italic">Non-current</TD><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-indent: -0.125in; padding-left: 0.25in; text-align: left">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,359</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,054</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: 0.25in; text-align: left">Right-of-use assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,079,115</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,307,027</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; text-align: left">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,455,074</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,489,671</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: 0.25in; padding-bottom: 1.5pt">Goodwill</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">818,139</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">818,139</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-indent: -0.125in; padding-left: 0.25in; padding-bottom: 1.5pt; font-weight: bold; text-align: left">Total noncurrent
    assets</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,409,687</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,710,891</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Total Assets</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,088,190</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,254,635</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: center">Liabilities and Shareholders&rsquo;
    Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; font-weight: bold; font-style: italic">Current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accounts payable &amp; accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,959,288</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,630,399</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">Line of credit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,649</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,315</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: 0.25in; text-align: left">Government loans, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,264</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,280</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; text-align: left">Lease liabilities, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,272</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">261,015</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: 0.25in; padding-bottom: 1.5pt; text-align: left">Other current 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">7,452</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">40,825</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-indent: -0.125in; padding-left: 0.25in; font-weight: bold; text-align: left">Total current liabilities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,039,925</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,003,834</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">&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; font-weight: bold; font-style: italic">Non-current</TD><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: 0.25in; text-align: left">Lease liabilities, net of current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,136,032</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,136,032</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; text-align: left">Government loans, net of current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">141,482</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">143,888</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: 0.25in; text-align: left">Payable for acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,397,368</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,597,368</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; text-align: left">Loan payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</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: 0.25in; text-align: left">Loan payable &ndash; related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">373,142</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247,634</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; padding-bottom: 1.5pt; text-align: left">Convertible debenture</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">100,000</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">100,000</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: 0.25in; padding-bottom: 1.5pt; font-weight: bold; text-align: left">Total non-current
    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">5,298,024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,224,922</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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">Total liabilities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">7,337,949</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">7,228756</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: right">&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; font-weight: bold; text-align: center">Shareholders&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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">&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-indent: -0.125in; padding-left: 0.25in; font-style: italic; text-align: left">Common stock, par value $0.00001, authorized
    220,000,000 shares; 122,767,778 and 122,472,933 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,228</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,228</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: 0.25in; text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,126,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,126,225</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; 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">(7,377,212</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">(7,101,574</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; padding-bottom: 1.5pt; text-align: left">Total Shareholders&rsquo; Equity
    (Deficit)</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(249,759</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">25,879</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Total Liabilities and Shareholders&rsquo; Equity</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,088,190</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,254,635</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<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"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are
an integral part of these unaudited consolidated financial statements.</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"><B>&nbsp;</B></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"><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>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)</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>&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>CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)</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><I>(In
U.S. Dollars, except share data or otherwise noted)</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&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="white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the<BR>
    Nine Months end <BR>
    September 30,<BR>
    2024</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the<BR>
    Nine Months end <BR>
    September 30,<BR>
    2023</TD><TD STYLE="white-space: nowrap; 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">Revenues, net of returns</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">4,886,331</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">5,268,405</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; 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: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cost of goods sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,272,561</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,852,939</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Sales &amp; marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">454,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">434,740</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-align: left">General and administrative 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">2,248,954</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">2,369,918</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Operating loss</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(89,898</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(389,192</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(187,031</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(247,705</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; padding-bottom: 1.5pt; text-align: left">Interest 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">1,291</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; font-weight: bold; text-align: left">Net loss</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(275,638</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(636,897</TD><TD STYLE="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net loss per share of common stock attributable to common stockholders</TD><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; padding-bottom: 4pt; text-align: left">Basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.01</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Weighted average shares used in computing net loss per share of common stock</TD><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; padding-bottom: 4pt">Basic</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">122,677,071</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">122,677,071</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; padding-bottom: 4pt">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">122,677,071</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">122,677,071</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">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are
an integral part of these unaudited consolidated financial statements.</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">&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"><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>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)</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>&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>CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo; EQUITY/(DEFICIT) (UNAUDITED)</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><I>(In
U.S. Dollars, except share data or otherwise noted)</I></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><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-left: 0.125in; text-indent: -0.125in">&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">No. of<BR>
    Shares</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">Common<BR>
    Stock</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">APIC</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">Accumulated<BR>
    Deficit</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">Total<BR>
    Shareholders&rsquo;<BR>
    Equity/(Deficit)</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="padding-left: 0.125in; text-indent: -0.125in; width: 40%; font-weight: bold; padding-bottom: 1.5pt">December 31, 2022</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">122,472,933</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="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">1,225</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="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">4,600,182</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="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">(5,860,480</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">(1,259,073</TD><TD STYLE="width: 1%; 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; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Shares issued
    as part of Reg CF campaign, net of refunds</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">6,483</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">9,076</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">9,076</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; font-weight: bold; padding-bottom: 1.5pt">Shares issued as part of Reg D</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">286,486</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">3</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">105,997</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">106,000</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-left: 0.125in; text-indent: -0.125in; font-weight: bold; padding-bottom: 1.5pt">Net loss for the nine-month period
    ended 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">-</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">&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">(636,897</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">(636,897</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; font-weight: bold; padding-bottom: 1.5pt">September 30, 2023</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">122,765,903</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,228</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,715,255</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(6,497,377</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,780,894</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>


<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="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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">No. of <BR>
    Shares</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">Common<BR>
    Stock</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">APIC</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">Accumulated<BR>
    Deficit</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">Total<BR>
    Shareholders&rsquo;<BR>
    Equity/(Deficit)</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="padding-left: 0.125in; text-indent: -0.125in; width: 40%; font-weight: bold; padding-bottom: 1.5pt">December 31, 2023</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">122,767,778</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="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">1,228</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="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">7,126,225</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="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">(7,101,574</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">25,879</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; 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; font-weight: bold; padding-bottom: 1.5pt">Net loss for the nine-month period
    ended 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">&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">&nbsp;</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(275,638</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(275,638</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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; font-weight: bold; padding-bottom: 1.5pt">September 30, 2024</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">122,767,778</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,228</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,126,225</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(7,377,212</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(249,759</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>


<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are
an integral part of these unaudited consolidated financial statements.</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</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"><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>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)</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>&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>CONSOLIDATED
STATEMENTS OF CASH FLOW (UNAUDITED)</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><I>(In
U.S. Dollars, except share data or otherwise noted)</I></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><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>&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">For the <BR> Nine&nbsp;Months <BR>
    Ended<BR> September&nbsp;30, <BR> 2024</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">For the <BR> Nine&nbsp;Months <BR>
    ended<BR> September&nbsp;30, <BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Amount in $</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Amount in&nbsp;$</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Cash flows 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; padding-left: 10pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(275,638</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(636,897</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Reconcile net loss to 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; padding-left: 20pt">Allowance for doubtful accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,287</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-left: 20pt">Depreciation of property &amp; equipment assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">79,214</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: 20pt">Amortization of right-of-use assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">227,912</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">204,232</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Amortization of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,597</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">34,597</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: 10pt">Changes in operating 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: 20pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(141,148</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(321,693</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 20pt">Inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(59,966</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,101</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,839</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,490</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: 20pt">Accounts payable &amp; Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">328,889</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">901,340</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(33,373</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,118</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: 20pt">Payments on lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(213,743</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(124,271</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 20pt">Due to/from related parties</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">(326,026</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="font-weight: bold; text-align: left; padding-left: 10pt">Net cash used in operating activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(57,446</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(99,795</TD><TD STYLE="font-weight: bold; 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="font-weight: bold; text-align: left">Cash flows 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: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 20pt">Purchases of property and equipment</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">(1,881</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">(3,500</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="font-weight: bold; text-align: left; padding-left: 10pt">Net cash used in investing activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(1,881</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(3,500</TD><TD STYLE="font-weight: bold; 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="font-weight: bold; text-align: left">Cash flows 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: 20pt">Capitalization of cost incurred in initial public offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(95,625</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Addition of long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">275,508</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-left: 20pt">Payments for payable acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(200,000</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(75,134</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: 20pt">Issuance of equity in respect of Reg CF campaign</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">9,076</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Issuance of equity in respect of Reg D</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">106,000</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-left: 20pt">Proceeds from debt facilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">123,466</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Equipment loan repayment</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">(4,125</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: 20pt">Line of credit repayment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(169,132</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(253,569</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 20pt">Government debt repayment</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">(2,422</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">(2,021</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="font-weight: bold; text-align: left; padding-left: 10pt">Net cash provided by (used in) financing activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(68,205</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">180,227</TD><TD STYLE="font-weight: bold; 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-left: 10pt">Net increase (decrease) in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(127,532</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,932</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="padding-bottom: 1.5pt; text-align: left; padding-left: 10pt">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">374,435</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">202,827</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>&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; padding-left: 10pt">Cash and cash equivalents, end 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">246,903</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">279,759</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>&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="font-weight: bold; text-align: left">Supplemental disclosures of cash flow information</TD><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-bottom: 4pt; text-align: left; padding-left: 20pt">Cash paid for interest</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">187,031</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">158,591</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="font-weight: bold; text-align: left">Non-cash investing and 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: 20pt">Beneficial conversion feature on convertible notes payable</TD><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">-</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: 20pt">Right-of-use and lease liability upon lease commencement</TD><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">2,500,612</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Forgiveness of balances due to/from related parties</TD><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">1,648,145</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">&nbsp;</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are
an integral part of these unaudited consolidated financial statements.</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>


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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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)</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>&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>NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</B></FONT></P>

<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"><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>ORGANIZATION
                                            AND NATURE OF OPERATIONS</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Functional
Brands Inc. (formerly HT Naturals Inc. - the &ldquo;Company&rdquo;) was organized under the General Corporation Law in the State of Delaware
on November 19, 2020.&nbsp; The Company&rsquo;s principal business is in the production, marketing, sales, and distribution of smokable
hemp related products in certain states within the United States of America that permit such sales.</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of September 30, 2024, and December 31, 2023, the Consolidated Financial Statements consist of the Company and its wholly owned subsidiary
HTO Nevada Inc. (d/b/a Kirkman), which is a nutraceutical manufacturer and distributor based in the Pacific Northwest. All intercompany
transactions and balances have been eliminated in consolidation.</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>

<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>GOING
                                            CONCERN</B></FONT></TD>
</TR></TABLE>

<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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company had a loss of
$275,638 for the nine-months ended September 30, 2024, and net loss in the amount of $636,897 &nbsp;for the nine-months ended September
30, 2023. As of September 30, 2024, our accumulated deficit was $7,377,212. These conditions raise substantial doubt about the Company&rsquo;s
ability to continue as a going concern.</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly
dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances
that the Company will be successful in obtaining additional capital.</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts
of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These financial statements
do not include any adjustments that might arise from this uncertainty.</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>

<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>BASIS
                                            OF PRESENTATION</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
of preparation and principles of consolidation </B></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"><B>&nbsp;</B></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">The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America (&ldquo;U.S. GAAP&rdquo;).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
consolidated financial statements comprise the financial statements of the Company and its wholly owned subsidiary, HTO Nevada Inc. dba
Kirkman. The subsidiary consists of an entity over which the Company is exposed to, or has rights to, variable returns as well as the
ability to affect these returns through the power to direct the relevant activities of the entity. To the extent that subsidiaries provide
services that relate to the Company&rsquo;s activities, they are fully consolidated from the date control is transferred and are deconsolidated
from the date control ceases. All intercompany balances and transactions have been eliminated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 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 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistent accounting
policies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Functional
Brands Inc. (formerly HT Naturals Inc.)</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Functional
Brands Inc. (formerly HT Naturals Inc.) is the parent company which in turn is 72% owned by Hemptown Organics Corp.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><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 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>HTO
Nevada Inc. dba Kirkman</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
principal subsidiary is HTO Nevada Inc. dba Kirkman which is solely and wholly owned by Functional Brands Inc. (formerly HT Naturals
Inc.)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of the restructuring efforts, ownership of HTO Nevada Inc. dba Kirkman was transferred from HTO Holdings Inc. to Functional Brands
Inc. (formerly HT Naturals Inc.) on May 19, 2023, in exchange for 80,000,000 common shares of the Company. As a result, HTO Nevada Inc.
dba Kirkman became a wholly owned subsidiary of Functional Brands Inc. (formerly HT Naturals Inc.).</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 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
initial accounting for acquisition of HTO Nevada Inc. dba Kirkman was accounted at fair value (See note13) on July 3, 2019. Since after
the acquisition date and part of the restructuring efforts under ASC 850-50, the consolidated financial statements for the years ended
December 31, 2021, December 31, 2022, and December 31, 2023 have been presented as historical carrying value to give effect to the merger
transaction as occurred on July 3, 2019, which is the earliest date the entities were under common control.</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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>4.</B></FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SUMMARY
                                            OF SIGNIFICANT ACCOUNTING POLICIES</B></FONT></TD></TR></TABLE>

<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; font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
significant accounting policies used in the preparation of these consolidated financial statements are described below.</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 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Cash
consists of cash in readily available checking accounts and deposits in transit. As of September 30, 2024, and December 31, 2023, cash
balances were deposited at a major financial institution. Cash balances are subject to minimal credit risk as the balances are with high
credit quality financial institutions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Trade
and other receivables</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Accounts
receivables are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides
for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for
doubtful accounts is the Company&rsquo;s best estimate of the amount of probable credit losses in the Company&rsquo;s existing accounts
receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in
the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful
accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account
balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered
remote. For the nine-month ended September 30, 2024, the Company did not record an allowance for doubtful accounts.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Inventories
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Inventory
consists of raw materials, work in process and finished goods. Inventory is measured at the lower of cost or net realizable value. Inventory
costs include direct labor and certain overhead expenses such as in-bound shipping and handling costs incurred to bring the inventory
to its present location and conditions. Cost is determined using the weighted average method. Net realizable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and selling expenses. If the Company determines that
the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to impairment
expenses.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><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 0pt 0.25in; text-align: justify">&nbsp;</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">Property
and equipment are stated at cost. Depreciation of property and equipment is recorded using the straight-line method over the assets&rsquo;
estimated useful lives. Computer equipment and capitalized software are depreciated over two to five years and furniture, and fixtures
are depreciated over five years. Amortization of fixed assets under capital leases is included in depreciation expense.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
categories of capital assets are amortized on a straight-line basis as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Machinery
                                            &amp; equipment </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7
                                            years, straight-line</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furniture
                                            &amp; fixtures </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7
                                            years, straight-line</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Computer
                                            equipment </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5
                                            years, straight-line</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
Company allocates the amount initially recognized in respect of a capital asset to its significant parts and amortizes separately each
such part. Residual values, methods of amortization and useful lives of the capital assets are reviewed annually and adjusted if appropriate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Gains
and losses on disposals of capital assets are determined by comparing the proceeds with the carrying amount of the capital asset and
is included in the consolidated statement of operations and comprehensive loss.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
assets&rsquo; residual values, useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively
if appropriate. An item of equipment is retied upon disposal or when no future economic benefits are expected from its use. Any gain
or loss arising on sale or retirement of the asset (calculated as the difference between the net disposal proceeds and the carrying value
of the asset) is included in the consolidated statement of operations in the year the asset is retired. Such assets are tested annually
for impairment, or more frequently, if events or changes in circumstances indicate that they might be impaired.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"><B>Intangible
Assets</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Intangible
assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination
are measured at fair value at the acquisition date. Amortization is provided on a straight-line basis over their estimated useful lives,
which do not exceed the contractual period, if any. Intangible assets that have indefinite useful lives are not subject to amortization
and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
The estimated useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are
accounted for prospectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
categories of the intangible assets are amortized on a straight-line basis as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customer
                                            relationships </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10
                                            years</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">cGMP
                                            certification </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indefinite
                                            life</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: left; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Goodwill
                                            (including Assembled Workforce) </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indefinite
                                            life</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify; width: 2.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kirkman
                                            brand </FONT></TD>
                                                                                                                                                                       <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indefinite
                                            life</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Expenditures
in the research phase and post-development maintenance costs are expensed as incurred.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Goodwill</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Goodwill
arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus
the fair value of any non-controlling interests in the acquire, over the fair value of the net assets acquired and liabilities assumed
as of the acquisition date. Goodwill acquired in a business combination is not amortized but tested for impairment at least annually
or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Goodwill&nbsp;is
tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred
to as a component). We allocate&nbsp;goodwill&nbsp;to reporting units based on the reporting unit expected to benefit from the business
combination. Assets and liabilities are assigned to each reporting unit if they are employed by a reporting unit and are considered in
the determination of the reporting unit fair value. We have one reporting unit with goodwill, which is the Kirkman business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
Company&rsquo;s indefinite-lived intangible assets is tested for impairment at the consolidated level. In evaluating the recoverability
of the Kirkman Brand name and CGMP License, we compare the fair value of the asset to its carrying amount to determine potential impairment.
The Company&rsquo;s estimate of the fair value of the Kirkman Brand name is derived using the income approach, specifically the relief-from-royalty
method and the fair value of the CGMP License is derived using the income approach.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
fair value determination of the reporting units and the indefinite-lived intangible asset is judgmental in nature and requires the use
of significant estimates and assumptions that are sensitive to changes. Assumptions include estimation of the royalty rate, estimation
of future revenue and projected margins, which are dependent on internal cash flow forecasts, estimation of the terminal growth rates
and capital spending, and determination of discount rates. As a result, there can be no assurance that the estimates and assumptions
made for purposes of the quantitative&nbsp;goodwill&nbsp;and indefinite-lived intangible impairment tests will prove to be an accurate
prediction of future results. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying
key assumptions and ultimately impact the estimated fair value of the reporting units may include such items as: (i) volatility in the
equity and debt markets or other macroeconomic factors, (ii) an increase in the weighted-average cost of capital due to further increases
in interest rates, (iii) decrease in future cash flows due to lower than expected sales, or (iv) fluctuations in foreign currency exchange
rates that may negatively impact the Company&rsquo;s reported results of operations. Accordingly, if the current cash flow assumptions
are not realized, we experience further increases in costs of capital, it is possible that an additional impairment charge may be recorded
in the future, which could be material.</FONT></P>

<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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Right-of-use
Assets and Lease Liabilities </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).
Right-of-use assets are measured at cost, less any accumulated amortization and impairment losses, and adjusted for any re-measurement
of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain
to obtain ownership of the leased asset at the end of the lease term, right-of-use assets are amortized on a straight-line basis over
the shorter of its estimated useful life and the lease term.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">At
the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made
over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees, if applicable.
The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments
of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments
that do not depend on an index or a rate are recognized as occupancy expense in the period on which the event or condition that triggers
the payment occurs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">In
calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date if the
interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
re-measured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in
the assessment to purchase the underlying asset.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Leases
as lessee</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">The
Company determines if an arrangement is a lease at inception of an arrangement. Operating and finance lease assets and liabilities are
recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent
the Company&rsquo;s right to use an underlying asset for the lease term, while lease liabilities represent the Company&rsquo;s obligation
to make lease payments arising from the lease. The Company uses the internal incremental borrowing rate based on the information available
at the lease commencement date, in determining the present value of lease payments. The length of a lease term includes options to extend
or terminate the lease when it is reasonably certain the Company will exercise those options. The Company made an accounting policy election
to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the
Company combines payments for leased assets, related services and other components of a lease. The Company applies a portfolio approach
to determine the discount rate for leases with similar characteristics.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For leases classified as operating,
the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial
direct costs, plus/(minus) any unamortized prepaid/(accrued) lease payments, less the unamortized balance of lease incentives received.
Lease expense for lease payments is recognized on a straight-line basis over the lease term.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For leases classified as finance leases,
the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of
its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company, or the Company
is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful
life of the underlying asset. The Company expects to exercise the options to purchase the assets which are leased under finance leases.
Accordingly, these assets are included in property and equipment, and depreciation thereon is recognized as depreciation expense. When
the Company makes contractually required payments under finance leases, a portion is allocated to reduce the finance lease obligation,
and a portion is recognized as interest expense.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Stock-based compensation plans</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has a stock-based compensation
plan that is used to compensate the Board, officers, employees and consultants for services rendered.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The restricted share units (&ldquo;RSU&rsquo;s)
are measured by reference to the fair value of the Company&rsquo;s Common Share at the date on which they are granted. In situations
where equity instruments are issued to non-employees and the fair value of goods or services received by the entity as consideration
cannot be estimated reliably, they are measured at fair value of the equity instruments granted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The costs of equity settled transactions
are recognized as expenses, together with a corresponding increase in equity, over the period in which the performance and/or service
conditions are fulfilled, ending on the date on which the relevant party becomes fully entitled to the award.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">No expense is recognized for performance-based
awards that do not vest. Expense for service-based award is recognized upon vesting. Where the terms of an equity settled award are modified,
the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification
which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at
the date of modification.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Compensation expense is recognized
for all share-based payments to employees and non-employees, including restricted stock units, in the statements of operation based on
the fair value of the awards that are granted. As necessary, the Company&rsquo;s stock price at the date of grant was estimated using
an acceptable valuation technique such as a recent round of fundraising or the probability-weighted expected return model. The fair value
of RSUs is determined at the date of grant using the price per share offered at the most recent round of fundraising, the Reg CF campaign.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Compensation expense for restricted
stock awards with performance-based vesting conditions is calculated based on the number of awards that are expected to vest during the
performance period if it is probable that the performance metrics will be achieved. Generally, measured compensation cost, net of actual
forfeitures, is recognized on a straight-line basis over the vesting period of the related share-based compensation award. The Company
accounts for forfeitures of stock-based awards as they occur.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Revenue recognition</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">We account for revenue in accordance
with the Financial Accounting Standards Board (&ldquo;FASB&rdquo;)&nbsp;Accounting Standard Codification Topic&nbsp;606, &ldquo;Revenue
from Contracts with Customers&rdquo;. Revenue is measured based on the amount of consideration that we expect to receive, reduced by
discounts and estimates for credits and returns (calculated based upon previous experience and management&rsquo;s evaluation). Outbound
shipping charged to customers is recognized at the time the related merchandise revenues are recognized and are included in net revenues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Per Company policy, any product that
doesn&rsquo;t meet the customer&rsquo;s expectations can be returned within the first 30 days of delivery in exchange for another product
or for a full refund. Any product sold through a distributor or retailer must be returned to the original purchase location for any return
or exchange.&nbsp; For the nine-month period ended September 30, 2024, and 2023, the Company has not recorded any reserves on revenue.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Loss per Share</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Basic net loss per common share is
calculated by dividing the net loss distributed to the common class, by the weighted-average number of common shares outstanding during
the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss
attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for
the period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For purposes of the diluted net loss
per share calculation, restricted stock units (RSUs) are considered to be potentially dilutive securities. As of September 30, 2024,
and September 30, 2023, there were&nbsp;513,712&nbsp;and&nbsp;329,143 RSUs, respectively, of potential common stock equivalents excluded
from the diluted loss per share calculations as their effect is anti-dilutive. Because the Company has reported a net loss for the nine-month
period ended September 30, 2024, diluted net loss per common share is the same as basic net loss per common share for this period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Business Combinations</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Business combinations are accounted
for using the acquisition method. The fair value of total purchase consideration is allocated to the fair values of identifiable tangible
and intangible assets acquired and liabilities assumed, with the remaining amount being classified as goodwill. All assets, liabilities
and contingent liabilities acquired or assumed in a business combination are recorded at their fair values at the date of acquisition.
Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including
the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies.
Estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a
result, actual results may differ from those estimates. During the measurement period, not to exceed one year from the date of acquisition,
the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill. At the conclusion
of the measurement period, any subsequent adjustments are reflected in the statements of operations. Transaction costs associated with
business combinations are expensed as incurred and are included in general and administrative expenses in the Company&rsquo;s statements
of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Significant accounting estimates
and judgments</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The most significant judgements made
in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements
include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Obsolescence
                                            of inventories</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; 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: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Recoverability
                                            of the carrying value of long-lived assets including property &amp; equipment and intangible
                                            assets</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; 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: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Recoverability
                                            of carrying value of goodwill</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; 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: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Discount
                                            rate used to calculate present value of future minimum lease payments for right-of-use asset
                                            and liabilities</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; 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: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Recognition
                                            and measurement of provisions and contingencies</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; 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: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Valuation
                                            of deferred income tax assets</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Inventories, net</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company periodically reviews the
value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions, including
forecasted demand compared to quantities on hand, as well as other factors such as potential excess or aged inventories based on product
shelf life, and other factors that affect inventory obsolescence.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Long-Lived Assets</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Long-lived assets consist primarily
of property and equipment. Long-lived assets are tested for impairment when events and circumstances indicate the assets might be impaired
by first comparing the estimated future undiscounted cash flows of the asset or asset group to the carrying value. If the carrying value
exceeds the estimated future undiscounted cash flows, an impairment loss is recognized based on the amount that the carrying value exceeds
the fair value of the asset or asset group. The Company did not recognize impairment losses during the nine-month period ended September
30, 2024, and 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Fair value of financial instruments</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The individual fair values attributed
to the different components of a financing transaction, notably investment in equity securities, derivative financial instruments, convertible
debt and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions
and in performing the fair value calculations in order to determine (a) the values attributed to each component of a transaction at the
time of their issuance; (b) the fair value measurements for certain instruments that require subsequent measurement at fair value on
a recurring basis; and (c) for disclosing the fair value of financial instruments subsequently carried at amortized cost. These valuation
estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of
these instruments that are not quoted in an active market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As required by the Fair Value Measurements
and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other
than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which
there is little or no market data, which require the reporting entity to develop its own assumptions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Segment Reporting</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company has&nbsp;two&nbsp;reportable
segments: 1)&nbsp;Kirkman, which sells a range of nutraceuticals, supplements and related products direct to consumers; 2)&nbsp;HT Naturals,
which sells a range of hemp products; and 3) Corporate, which generates no revenue, but reflects corporate expenses related primarily
to management of the company, including costs associated with legal, audit, accounting, tax, SEC reporting, and investor/public relations,
among other corporate expenses. As the hemp segment makes up less than 10% of net revenue, the Company has not disclosed summarized financial
segment information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Income taxes</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company must exercise judgment
in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of
business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for expected tax
audit issues based on the Company&rsquo;s current understanding of the tax law. For matters where it is probable that an adjustment will
be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Company recognizes
deferred tax assets relating to tax losses carried forward to the extent there are sufficient taxable temporary differences (deferred
tax liabilities) relating to the same taxation authority and the same taxable entity against which the unused tax losses can be utilized.
However, utilization of the tax losses also depends on the ability of the taxable entity to satisfy certain tests at the time the losses
are recouped.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Risks and uncertainties</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company&rsquo;s business and operations
are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and federal governmental
policy decisions. A host of factors beyond the Company&rsquo;s control could cause fluctuations in these conditions. Adverse conditions
may include but are not limited to changes in US laws surrounding the sale of smokable CBG/CBD products, consumer demand, and COVID-19
issues more fully described below. These adverse conditions could affect the Company&rsquo;s consolidated financial condition and the
results of its operations.</P>


<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>5.</B></TD><TD STYLE="text-align: justify"><B>CASH</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Cash consists of liquid funds and
deposits in transit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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="white-space: nowrap; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September
                                            30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December
                                            31,<BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-bottom: 1.5pt">Cash</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">240,507</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">364,350</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-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="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="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</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">Deposits in transit</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">6,396</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">10,085</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">Cash</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">246,903</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">374,435</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</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"><B>6.</B></TD><TD STYLE="text-align: justify"><B>ACCOUNTS
                                            RECEIVABLE</B></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Accounts receivable consist of trade
receivables, net of allowance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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="padding-bottom: 1.5pt; white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September
                                            30, <BR> 2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December
                                            31, <BR> 2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></TD><TD STYLE="white-space: nowrap; 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; padding-bottom: 1.5pt">Trade receivables</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">312,086</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">207,225</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-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="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="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</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">Allowance for doubtful accounts</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">(36,287</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">(36,287</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Accounts receivable</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">275,799</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">170,938</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>7.</B></TD><TD><B>INVENTORIES </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Inventories consisted of raw materials
(minerals &ndash; magnesium, Calcium, vitamins, botanical extracts, hemp, trim and flower &ndash; CBG and CBD), finished goods (capsules,
tablets, powders, creams, cigs, gummies, tinctures, pre-rolls, and vapes) and packaging &amp; supplies (bottles, labels, covers, filters,
tipping paper and packaging materials).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,<BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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">Raw materials, packaging / labels and others</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">824,940</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">813,236</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Work in process</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: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Finished goods</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">929,046</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">880,784</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total inventories</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,753,986</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,694,020</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the nine-month period ended
September 30, 2024, the Company did not record an allowance for inventory obsolescence.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>8.</B></TD><TD><B>PREPAIDS &amp; OTHER CURRENT ASSETS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of prepayments made
to vendors and legal retainers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&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 (Audited)</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">Prepaids &amp; deposits</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">74,173</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">45,538</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">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">107</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">26,903</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 prepaids and other current assets</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">74,280</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">72,441</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>9.</B></TD><TD><B>DEFERRED OFFERING COSTS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">Schedule below represent capitalization of deferred cost
incurred for the preparation of Initial Public Offering (&ldquo;IPO&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&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="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,<BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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">Administrative fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">52,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Legal services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,063</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,063</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">Professional services</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">103,972</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">53,347</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total IPO Cost</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">327,535</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">231,910</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>10.</B></TD><TD><B>PROPERTY &amp; EQUIPMENT</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Property and equipment consist of
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,<BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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">Furniture &amp; fixtures</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3,302</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">3,302</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Computer equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,988</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30,988</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">Machinery &amp; equipment</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">730,508</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">728,627</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 property and equipment, gross</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">764,798</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">762,917</TD><TD STYLE="font-weight: bold; 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">Less: accumulated 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">(707,439</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">(666,863</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Property and equipment, net</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">57,359</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">96,054</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">Depreciation
expenses totaled $40,576</FONT>&nbsp; <FONT STYLE="font-family: Times New Roman, Times, Serif">and $79,215 for the nine-month period
ended September 30, 2024, and December 31, 2023, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>11.</B></TD><TD><B>RIGHT-OF-USE ASSETS &amp; LEASE LIABILITY</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Lease expense for minimum lease payments
is recognized on a straight-line basis over the lease term. The following are the expected lease payments as of December 31, 2023. The
lease is considered an &ldquo;operating lease&rdquo; and consequently lease payments are calculated on a straight-line basis, including
the total amount of interest related.</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 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Lease
expense, on the straight-line basis was $227,912 and $283,197 </FONT>&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">during
the nine-month period ended September 30, 2024, and December 31, 2023, respectively.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The movement in the right-of-use assets
is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,
                                            <BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,
                                            <BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Right of use 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Right of use assets recognized as of January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,307,027</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">89,611</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additions</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">2,500,613</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; padding-bottom: 1.5pt">Amortization Expense</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(227,912</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(283,197</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Right of use assets</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,079,115</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,307,027</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The movement in lease liability is
as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,
                                            <BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,<BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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%; font-weight: bold; text-align: left">Lease liabilities recognized as at January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,397,047</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">92,905</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additions</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">2,500,612</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">Lease payments</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">(213,743</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">(196,470</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">Lease liabilities as at period end</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,183,304</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,397,047</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; padding-bottom: 1.5pt">Less: current portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(47,272</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(261,015</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Long-term portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,136,032</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,136,032</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Right-of-use assets and lease liabilities
comprise of three leases.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">LEASE 1 &ndash; OPERATING FACILITY</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On January 1, 2023, the Company entered
a 7-year and 2-month lease to lease approximately 24,400 square feet industrial building containing 9,095 square feet of office space
and 9,663 square feet of production area. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The base monthly rent is $26,500 per
month per month, with subsequent annual increases of 3%. Operating expense came to $10,774 per month for 2024 borne by the lessee.</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 0.25in">LEASES 2 &amp; 3 &ndash; OFFICE EQUIPMENT</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company entered into a 5-year
lease to lease office equipment that consists of four copiers for daily office use commencing on September 30, 2021. At inception of
the lease, the Company recorded a right of use asset and liability. The Company used an effective borrowing rate of 9.0% within the calculation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The base monthly payment amount is
$1,979 per month per month, with subsequent annual increases of 6%. Operating expenses came to $2,119 per month for 2024 borne by the
lessee.</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 0.25in; text-align: justify">In addition, The Company also entered
into a 4-year and 7-month lease agreement to lease a Paper Source Accessory for daily office use commencing on March 14, 2022, to complement
the previous office equipment discussed. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation. The base monthly payment amount is $89 per month, with no subsequent
annual increases.</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>12.</B></TD><TD><B>BUSINESS COMBINATION </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On July 3, 2019, the Company entered
into an asset purchase agreement (the &ldquo;APA&rdquo;) with the Kirkman Group Inc. (&ldquo;Kirkman&rdquo;) to acquire certain tangible
and intangible assets for a purchase price of $5,000,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As per ASC 805 &ndash; Business Combinations,
an entity shall determine whether a transaction or other event is a business combination by applying the definition in this Subtopic,
which requires that the assets acquired and liabilities assumed constitute a business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Excerpt from&nbsp;ASC 805-10-55-3A
provides that a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose
of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members,
or participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">According to ASC 805-10-55-4, a business
consists of inputs and processes applied to those inputs that have the ability to contribute to the creation of outputs. The three elements
of a business are defined as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">a.</TD><TD STYLE="text-align: justify">Input. Any economic resource that
                                            creates, or has the ability to contribute to the creation of, outputs when one or more processes
                                            are applied to it. Examples include long-lived assets (including intangible assets or rights
                                            to use long-lived assets), intellectual property, the ability to obtain access to necessary
                                            materials or rights, and employees.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">b.</TD><TD STYLE="text-align: justify">Process. Any system, standard,
                                            protocol, convention, or rule that when applied to an input or inputs, creates or has the
                                            ability to contribute to the creation of outputs. Examples include strategic management processes,
                                            operational processes, and resource management processes. These processes typically are documented,
                                            but the intellectual capacity of an organized workforce having the necessary skills and experience
                                            following rules and conventions may provide the necessary processes that are capable of being
                                            applied to inputs to create outputs. Accounting, billing, payroll, and other administrative
                                            systems typically are not processes used to create outputs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">c.</TD><TD STYLE="text-align: justify">Output. The result of inputs and
                                            processes applied to those inputs that provide goods or services to customers, investment
                                            income (such as dividends or interest), or other revenues.</TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The property plant and equipment purchased,
along with the assembled workforce, are inputs which have the ability to create outputs so condition a. above is met. In addition, The
Company also obtained the cGMP (Current Good Manufacturing Practice)-certified process in this asset acquisition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">That process, when applied to the
inputs also acquired, are able to produce outputs, namely the manufacturing of over-the-counter remedies, generic drugs, and nutritional
supplements. As such, conditions b. and c. above are met. Therefore, acquisition transaction meets the elements of (a) (b) and (c) of
the definition of a business. Accordingly, the transaction is considered a business acquisition and accounted for under the guidance
of ASC 805.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The present value of the acquisition
fair value of the deferred cash payment transferred for Kirkman was $4,329,317, which consisted of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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="padding-left: 0in; font-weight: bold; text-align: left">Kirkman Group Inc.</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0in; font-weight: bold; text-align: left">&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="border-bottom: Black 1.5pt solid; padding-left: 0.125in; font-weight: bold">Purchase consideration</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair Value</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="padding-left: 0.125in; width: 88%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,250,000</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">Deferred cash payment - $750,000 raise or 1st anniversary of closing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">722,388</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">Deferred cash payment - $1,500,000 on 1st anniversary of closing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,270,649</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">Deferred cash payment - $1,500,000 on 2nd anniversary
    of closing</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">1,086,280</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: 1.5pt">Total consideration - $5,000,000</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,329,317</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The following table summarizes the
finalized fair value of assets acquired, and liabilities assumed as of the date of the acquisition in 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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="padding-left: 0in; font-weight: bold">Kirkman Group Inc.</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0in; font-weight: bold">&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="border-bottom: Black 1.5pt solid; padding-left: 0.125in; font-weight: bold">Purchase consideration</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair Value</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="padding-left: 0.125in; width: 88%; text-align: left">Net assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,513,878</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">Kirkman brand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,226,000</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">cGMP certification</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Customer relationships</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">461,300</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">Net assets acquired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,511,178</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">Goodwill</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">818,139</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: 1.5pt">Total Consideration</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,329,317</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The excess of purchase consideration
over the fair value of net assets acquired was recorded as goodwill which is not deductible for tax purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Payable for acquisition</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As of September 30, 2024 and December
31, 2023, the Company owed $2,417,366 and $2,597,368, respectively, in connection with the aforementioned APA, which is due in its entirety
on January 1, 2025, subject to the Forbearance Agreement and Confession of Judgement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On September 24, 2024, the Company
executed a Forbearance Agreement which allows the seller to postpone the payment of principal balance without pursuing rights under the
APA.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On September 24, 2024, the Company
executed a Confession of Judgement in respect of the principal owed in the amount of $2,417,366 which allowed the seller to enter a judgement
against the Company in The Circuit Court of The State of Oregon for the County of Clackamas.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The execution of these documents will
impact the Company if it fails to settle the balance owed by the due date, January 1, 2025. As a result, the seller has the right to
foreclose on the business.</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 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-top: 0; margin-bottom: 0">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>13.</B></TD><TD><B>INTANGIBLE ASSETS &amp; GOODWILL</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of intangible assets
acquired from the acquisition of Kirkman in July 2019. The Kirkman brand and the c-GMP certification were assigned an indefinite useful
life, whereas the customer relationships were assigned a life span of 10 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,
                                            <BR> 2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,
                                            <BR> 2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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">Kirkman brand, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">925,700</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">925,700</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">cGMP certification</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">310,000</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">Customer relationships</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">461,300</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">461,300</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 intangible assets, gross</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,697,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,697,000</TD><TD STYLE="font-weight: bold; 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">Less: Accumulated amortization: Customer relationships</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">(241,926</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">(207,329</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">Intangible assets</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,455,074</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,489,671</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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">There were further impairments to
the intangible assets during the nine-month period ended September 30, 2024, and the year ended December 31, 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 0pt 0.25in; text-align: justify">Balance consists of goodwill (including
assembled workforce) acquired from acquisition of Kirkman in July 2019 which was assigned an indefinite useful life.</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">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,
                                            <BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,
                                            <BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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%; padding-bottom: 1.5pt; padding-left: 5.4pt">Goodwill</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">818,139</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">818,139</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</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" 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"></TD><TD STYLE="width: 0.25in"><B>14.</B></TD><TD><B>ACCOUNTS PAYABLE &amp; ACCRUED LIABILITIES</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of trade payables
and accruals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,
                                            <BR> 2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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">Trade payables</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,087,800</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">562,519</TD><TD STYLE="width: 1%; 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">Accrued 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">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,307</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">462,499</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">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal &amp; audit fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">316,352</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">316,352</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">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Audit fees</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">17,329</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">17,329</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>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">440,988</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">796,180</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">Accrued compensation - shares earned but not issued</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">430,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">271,700</TD><TD STYLE="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">&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></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"><B>Total
    accounts payable and accrued liabilities</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,959,288</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,630,399</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>15.</B></TD><TD><B>EQUIPMENT LOANS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of equipment loans
for production &amp; packaging machinery.</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="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></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"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December
                                            31, <BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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%; font-weight: bold">Equipment loans recognized as of January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</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">4,125</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Proceeds from debt facilities</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: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Payments on debt facilities</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">(4,125</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Equipment loans at period end</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: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; 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">-</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Long-term portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>16.</B></TD><TD><B>LINES OF CREDIT</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On March 12, 2024, the Company entered
into a line of credit agreement with a third-party whereby the third party would pay the Company&rsquo;s vendor $35,162. The terms of
the loan were for 17 weeks, with finance charges of $2,092. On July 8, 2024, the loan was settled in full, at which point the security
interest was released by the lender.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Additionally, on March 20, 2024, the
Company entered into a line of credit agreement with a third-party whereby the third party would pay the Company&rsquo;s vendor $51,500.
The terms of the loan were for 26 weeks, with finance charges of $5,021. On September 25, 2024, the loan was settled in full, at which
point the security interest was released by the lender.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Furthermore, on July 16, 2024, the
Company entered into a line of credit agreement with a third-party whereby the third party would pay the Company&rsquo;s vendor $36,804.
The terms of the loan were for 26 weeks, with finance charges of $4,048.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On January 20, 2023, the Company entered
into a line of credit agreement with a third-party whereby the Company received $300,000. The terms of the loan were for one year, with
a 27% contract interest rate. On January 22, 2024, the loan was settled in full, at which point the security interest was released by
the lender.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On July 14, 2023, the Company entered
into an additional line of credit agreement with a third-party whereby the Company received $100,000. The terms of the loan were for
42 weeks, with a 5% contract interest rate. On May 7, 2024, the loan was settled in full, at which point the security interest was released
by the lender.</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">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,<BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December&nbsp;31,<BR>
                                            2023</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Audited)</B></P></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%; font-weight: bold">Line of credit recognized as of January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">68,315</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,973</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Proceeds from lines of credit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">123,466</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</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; padding-bottom: 1.5pt">Payments on lines 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">(169,132</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">(359,522</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Line of credit at period end</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,649</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,315</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; padding-bottom: 1.5pt">Less: current portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(22,649</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(68,315</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Long-term portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>17.</B></TD><TD><B>GOVERNMENT LOANS PAYABLE</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On July 7, 2020, Kirkman applied and
was a granted thirty (30) year loan from the U.S. Small Business Administration for $150,000 with an interest of 3.75% per annum accrued
daily, to alleviate financial burden caused due to COVID-19.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">September 30, <BR> 2024</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">December 31, <BR> 2023</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <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">(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">(Audited)</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-left: 5.4pt">Government loans recognized as of January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">147,168</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">150,000</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-left: 5.4pt">Proceeds from debt facilities</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: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Payments on debt facilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,422</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,832</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: 5.4pt">Debt forgiveness</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-left: 5.4pt">Government loans at December 31</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">144,746</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,168</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Less: current portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(3,264</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(3,280</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 5.4pt">Long-term portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">141,482</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">143,888</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has the following government
loan commitments as of September 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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: left">&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">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&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: 88%; text-align: left; padding-left: 0.125in">2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">843</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">2025</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,437</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">2026</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,595</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">2027 and beyond</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">136,871</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Total</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">144,746</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>18.</B></TD><TD><B>OTHER CURRENT LIABILITIES </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of credit cards,
employee benefits and sales tax payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">September&nbsp;30,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">December&nbsp;31,<BR>
    2023</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>(Audited)</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 5.4pt">Credit cards</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">29,263</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,787</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-left: 5.4pt">Employee benefits payable</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: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 5.4pt">Sales tax</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,385</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,242</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 5.4pt">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">(23,196</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">13,796</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: 1.5pt; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,452</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">40,825</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Credit cards are utilized for software
and technology costs for which no other form of payment is available.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>19.</B></TD><TD><B>LOAN PAYABLE</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Convertible Promissory Note</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On June 18, 2024, the Company executed
a loan agreement with a lender in the amount of $150,000. The payment terms are 12.5% OID, initial principal amount consisting of a $150,000
loan plus $21,500 OID totaling $171,500. To mature the earlier of six months from execution, completion of a senior exchange listing
of the Company or as mutually agreed, with an interest rate of the higher of 12% or WSJ Prime plus 4% guaranteed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">With a conversion feature for the
Lender to be paid in full in cash at the IPO or convert the note into shares of the Company&rsquo;s common stock at the time of the Senior
Exchange Listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>20.</B></TD><TD><B>RELATED PARTY TRANSACTIONS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Long-term debt</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In December 2023, the Company entered
into a short-term debt facility with a related party, an officer and director of the parent company &ndash; Hemptown Organics Corp.,
whereby the Company received $247,634. The loan is non-interest bearing with a 2-year term.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On March 11, 2024, the Company executed
a loan agreement with a related party in the amount of $130,000, with an annual interest rate of 20% to be paid off in 7 years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>21.</B></TD><TD><B>CONVERTIBLE DEBENTURE</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On October 7, 2022, the Company entered
into Convertible Debenture Purchase Agreements pursuant to which the Company issued unsecured convertible promissory note (&ldquo;Convertible
Debenture&rdquo;). The Company issued Convertible Debenture in the aggregate principal amount of $100,000 that was used to pay the expenses
of the organization and reorganization and for other general corporate purposes. Interest accrued on the principal balance of the Convertible
Debenture at 10.0% per annum totaled $2,338. The Convertible Debenture ranks on a parity with the Company&rsquo;s other existing debt
and matured on December 31, 2022. The Convertible Debenture was to convert the outstanding principal and accrued interest into shares
of the Company&rsquo;s common stock on maturity date at a price per share equal to $0.05 per share. As of September 30, 2024, the holder
had still not converted the debenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>&nbsp;&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>22.</B></TD><TD><B>SHARE CAPITAL</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Authorized share capital</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 0pt 0.25in; text-align: justify"><I>Common Shares</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Upon incorporation, the Company authorized
1,000,000 common shares with a par value of $0.001 per share were initially authorized for issuance. The Initial Share of the Company
was allotted and issued to Zayn Kalyan as fully paid on November 19, 2020, the date of the organization. The issuance of the Initial
Share was recorded in the central securities register of the Company and represents the only share initially issued. The Company purchased
the Initial Share from Zayn Kalyan for the price of $0.01 and the Initial Shared formed part of the authorized but unissued share capital
of the Company. The repurchase of the Incorporator&rsquo;s Share was recorded in the central securities register of the Company and the
director confirms that no share certificate was issued or shall be issued in respect of the Initial Share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On December 10, 2020, the Company
altered its authorized share capital to 100,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On August 31, 2023, this was changed
to 220,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">All Common Shares are entitled to
one vote in respect to each Common Share held at all meetings of shareholders of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Issued share capital</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Common share issuances</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On December 10, 2020, the Company
entered into a licensing agreement with Hemptown Organics Corp. (the &ldquo;licensor&rdquo;) to use the Hemptown Naturals brand (the
&ldquo;asset&rdquo;) on a non-exclusive, non-transferable basis for a period of 4 years. In return, 40,000,000 common shares were issued
to the licensor at $0.00001 per share with deemed proceeds of $40,000 as consideration.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On May 19, 2023, the Company entered
into a Share Exchange Agreement (SEA) to acquire HTO Nevada Inc. dba Kirkman from a related party, Hemptown Organics Corp. and its wholly
owned subsidiary, HTO Holdings Inc. As part this SEA, HTO Holdings Inc. exchanged 1,000 restricted shares of common stock, par value
$0.0001 per share of HTO Nevada Inc. dba Kirkman, being all of the issued and outstanding capital stock of HTO Nevada Inc. dba Kirkman,
for issuance of 80,000,000 restricted shares of common stock of Functional Brands Inc., $0.00001 par value per share to Hemptown Organics
Crop., with deemed proceeds of $80,000 as consideration, such that, HTO Nevada Inc. dba Kirkman shall be wholly-owned subsidiary of Functional
Brands Inc. This was retroactively recorded in 2019 as the acquisition was completed on July 3, 2019.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">This SEA was in respect of the asset
purchase agreement (the &ldquo;APA&rdquo;) the Company entered into on July 3, 2019, with the Kirkman Group (&ldquo;Kirkman&rdquo;) to
acquire certain tangible and intangible assets.</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 0.25in; text-align: justify"><I>Regulation Crowdfunding (Reg CF)
Campaign</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Under the Securities act of 1933,
the offer and sale of securities must be registered unless an exemption from registration is available. Title III of the Jumpstart Our
Business Startups (JOBS) Act of 2012 added Securities Act Section 4(a)(6) that provides and exemption from registration for certain crowdfunding
transactions. The Company is currently completing a Regulation Crowdfunding offering (&ldquo;Offering&rdquo;) subject to the above regulations
and had filed its Offering statement on Form C through the EDGAR system and with the Title3Funds.com as intermediary.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Offering is for up to a maximum
of $5,000,000 at a price of $1.40 per share with an offering deadline of December 31, 2022, which was extended to May 31, 2023. The securities
purchased in this Offering will be subject to a number of restrictions including restrictions on resale for a period of one year. The
use of the proceeds will be towards the fees associated with this Offering, further development of the Company&rsquo;s business &ndash;
sales &amp; marketing, and for general working capital purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the nine-month period ended
September 30, 2024, the Company did not issue any common shares stemming from the Reg CF campaign.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Regulation D (Reg D) Campaign</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the nine-month period ended
September 30, 2024, the Company did not issue any common shares stemming from the Reg D campaign.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Accrued stock-based compensation</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For the nine-month period ended September
30, 2024, and December 31, 2023, accrued stock-based compensation was $158,800 and $760,200, respectively.</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 0pt 0.25in; text-align: justify">Restricted stock units (RSUs) for
services</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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="padding-left: 0.125in">&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 of shares RSUs</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">Amount</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="padding-left: 0.125in; width: 76%">January 2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">23,714</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">33,200</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">February 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,200</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">March 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">April 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,200</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">May 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Jun 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,200</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">July 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">August 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,200</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">September 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">3,714</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">5,200</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: 0in; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total accrued</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">113,426</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">158,800</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the nine-month period ended
September 30, 2024, the Company incurred $158,800 in contracting services resulting from 113,426 of restricted stock units for consultants
providing sales &amp; marketing services at fair value of $1.40 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>23.</B></TD><TD><B>REVENUES, NET</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">This table shows revenue by product
type &ndash; Functional Brands (formerly HT Naturals) reflects hemp derived products whereas Kirkman reflects nutraceutical products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>September&nbsp;30,
                                            <BR>
                                            2024</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Unaudited)</B></P></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">September&nbsp;30, <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%; font-weight: bold">Kirkman</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,797,856</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,863,369</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Functional Brands (formerly HT Naturals)</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">88,475</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">685,036</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: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,886,331</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,548,405</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>24.</B></TD><TD><B>CONCENTRATION </B></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</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">During
the nine-month period ended September 30, 2024, sales from two customers represented 29% and 24% for a total of 54% of sales totaling
$2,629,706. During the nine-month period ended September 30, 2023, sales from two customers represented 26%, 18</FONT>&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">%
for a total of 44%</FONT>&nbsp; <FONT STYLE="font-family: Times New Roman, Times, Serif">of sales totaling $2,435,902. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">As
at September 30, 2024, accounts receivable balance from one customer represented 66% of accounts receivable totaling $177,332. As at
December 31, 2023, accounts receivable balance from three customers represented 14%, 12%, and 8% </FONT>&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">for
a total of 34% of accounts receivable totaling $53,055.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>25.</B></TD><TD><B>COMMITMENTS AND CONTINGENCIES</B></TD></TR></TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has an exclusive license
agreement with the&nbsp;Trailer&nbsp;Park Boys to market &amp; sell hemp derived products. This license came into effect on July 21,
2021, and will expire on December 31, 2025. Under the amended license agreement, the Company will pay the&nbsp;Trailer&nbsp;Park Boys,
an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to be paid during
the second year of the agreement, additionally, the&nbsp;Trailer&nbsp;Park Boys are entitled to 1,000,000 shares of common stock of the
Company. The royalty rates under this agreement are between 15% - 30% of the net sales of the company derived from sales related to the
license. During the nine-month period ended September 30, 2024, and December 31, 2023, the Company made payments in the amounts of $25,000
and $200,000, respectively, with total payments amounting to $225,000. The license agreement may be terminated with reasonable cause
upon six months&rsquo; written notice or for certain triggering events without recourse or an opportunity to cure.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On January 1, 2024, the Company executed
an Advisory Agreement with a service provider to support the IPO process. The scope of work includes strategic review, consulting services,
IPO readiness &amp; execution as well as capital market advisory. Payment structure is as follows:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 52px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD STYLE="text-align: justify">Monthly payment of $5,000 per month to be settled in the following manner</TD></TR>
  </TABLE>
<P STYLE="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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9675;</TD>
    <TD STYLE="text-align: justify">50% to be paid in cash</TD></TR>
  </TABLE>
<P STYLE="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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9675;</TD>
    <TD STYLE="text-align: justify">50% to be converted into shares of the Company&rsquo;s common stock</TD></TR>
  </TABLE>
<P STYLE="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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 52px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD STYLE="text-align: justify">Payment of $100,000 upon completion of the liquidity event</TD></TR>
  </TABLE>
<P STYLE="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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 52px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD STYLE="text-align: justify">Ability to purchase common stock at $0.01 per share equal to 1.25% of the issue and outstanding shares
    of the Company</TD></TR>
  </TABLE>
<P STYLE="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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 52px">&nbsp;</TD>
    <TD STYLE="width: 24px">&#9679;</TD>
    <TD STYLE="text-align: justify">Issuance of 200,000 warrants for a period of 5 years with an exercise price to be equal to the price
    of the offering to be undertaken with the listing</TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>26.</B></TD><TD><B>LEGAL PROCEEDINGS </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">From time to time, we may become involved
in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. On May 25, 2021, True Health
Medical Center, S.C. (&ldquo;True Health&rdquo;) amended an existing complaint against Kirkman Group, Inc. (&ldquo;Kirkman&rdquo;), James
Hall and David Humphries to assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings,
Inc. are referred to as the &ldquo;HTO Parties&rdquo;). Kirkman is the seller of certain assets to the HTO Parties and is a separate
legal entity. Affiliates of the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit
Court for the Eighteenth Judicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets
to the HTO Parties but the royalty agreement has a provision that allows True Health to continue to receive royalties after the termination
of the agreement. True Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties.
There is no dispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO
Parties have never paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties
should be bound by the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the
damages claim against the HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties
have engaged in some discoveries including a limited number of depositions. True Health has filed a motion for summary judgment that
addresses its claims against Kirkman but does not address any claim against the HTO Parties. The briefing is not yet complete on the
summary judgment motion and a ruling is likely more than 60 days away. Regardless of how the court rules on summary judgment, there will
be remaining claims in the case, and it is likely that additional discovery will be conducted. No trial date has been scheduled at this
time. The parties have largely completed both fact and expert discovery. Kirkman Group has recently filed a motion for leave to amend
its counterclaims against True Health. None of these proposed counterclaims are alleged against HTO Nevada. However, if the Court permits
the amended counterclaims to be filed, it is possible that additional discovery will be needed on the amended counterclaims. It is also
likely that True Health will move to dismiss some or all the amended counterclaims. Either additional discovery or motion practice would
typically mean that the prospective trial date will not occur until a later date than would have been the case absent these additional
steps in the litigation. As of today, the court has not set a trial date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>27.</B></TD><TD><B>SUBSEQUENT EVENTS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company follows the guidance in
FASB ASC Topic 855, Subsequent Events (&ldquo;ASC 855&rdquo;), which provides guidance to establish general standards of accounting for
and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are
available to be issued. ASC 855 sets forth the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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: 0.5in">(i)</TD><TD STYLE="text-align: justify">The period after the balance sheet
                                            date during which management of a reporting entity evaluates events or transactions that
                                            may occur for potential recognition or disclosure in the consolidated financial statements</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in">(ii)</TD><TD STYLE="text-align: justify">The circumstances under which
                                            an entity should recognize events or transactions occurring after the balance sheet date
                                            in its consolidated financial statements, and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in">(iii)</TD><TD STYLE="text-align: justify">The disclosures that an entity
                                            should make about events or transactions that occurred after the balance sheet date. Accordingly,
                                            the Company did not have any subsequent events that require disclosure other than the following.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Invoice Financing</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company executed multiple lending
agreements to satisfy vendor debts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: left"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Date</B></P></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount Financed</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Finance Charges</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 STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Repayment Terms</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify">October 2, 2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,199</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">176</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center; padding-left: 5.4pt">17 weeks</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">October 2, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,870</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">433</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">17 weeks</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">October 17, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">46,127</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,151</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">26 weeks</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"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_012.jpg" ALT="">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>(Expressed in United States dollars)</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>FUNCTIONAL BRANDS INC. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>(Formerly HT Naturals Inc.) </I></B></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">And Independent Auditors&rsquo; Report thereon</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">For the years ended December 31, 2023 and December 31, 2022</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"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>FUNCTIONAL BRANDS INC. (formerly HT Naturals Inc.) </B></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>TABLE OF CONTENTS</B></P>

<P STYLE="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; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#b_001">REPORT OF INDEPENDENT
    REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID NO. 5854)</A></B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 9%"><FONT STYLE="font-size: 10pt">F-29</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#b_002">CONSOLIDATED BALANCE SHEETS</A></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-30</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#b_003">CONSOLIDATED STATEMENTS OF OPERATIONS</A></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-31</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#b_004">CONSOLIDATED STATEMENTS OF CHANGES
    IN EQUITY/DEFICIT</A></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-32</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#b_005">CONSOLIDATED STATEMENTS OF CASH
    FLOWS</A></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-33</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A HREF="#b_006">NOTES TO THE CONSOLIDATED FINANCIAL
    STATEMENTS</A></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-34</FONT></TD></TR>
  </TABLE>

<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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>FUNCTIONAL <FONT STYLE="font-size: 10pt">BRANDS INC. (formerly
HT Naturals Inc.) </FONT></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"><IMG SRC="image_013.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><A NAME="b_001"></A>REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM&nbsp;</FONT></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: left; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">To
the Board of Directors and<BR>
Stockholders of Functional Brands, Inc. (formerly HT Naturals Inc.)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Opinion on the
Financial Statements</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying consolidated
balance sheets of Functional Brands, Inc.(formerly HT Naturals Inc.) (the &ldquo;Company&rdquo;) as of December 31, 2023, and 2022, and
the related consolidated statements of operations, stockholders&rsquo; equity, and cash flows for each of the two years in the period
ended December 31, 2023, and the related notes (collectively referred to as the financial statements). In our opinion, the consolidated
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 two years in the period ended December 31, 2023, in conformity with
accounting principles generally accepted in the United States of America.</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>Restatement of 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">As discussed in Note 4 to the financial statements,
the 2022 financial statements have been restated to correct misstatements identified by management of the Company.</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 financial statements of the Company as of
and for the year ended December 31, 2022, were audited by other auditors whose report dated May 30, 2023, expressed an unqualified opinion
on those statements. We also audited the adjustments described in Note 4 that were applied to restate the 2022 financial statements.
In our opinion, such adjustments are appropriate and have been properly applied.&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: 0pt 0; text-align: justify"><B>Going Concern</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"><FONT STYLE="background-color: white">The accompanying
consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
2 to the financial statements, the Company has an accumulated deficit and negative cash flows from operations. These factors, among others,
raise substantial doubt about the Company&rsquo;s ability to continue as a going concern. Management&rsquo;s plans in regard to these
matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.</FONT></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>Basis for Opinion</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">These consolidated 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 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.</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 conducted our audits in accordance with the
standards of the PCAOB. 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. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s
internal control over financial reporting. Accordingly, we express no such opinion.</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">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; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><IMG SRC="image_014.jpg" ALT="">&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: 0pt 0; text-align: justify">We have served as the Company&rsquo;s auditor
since 2024</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">Diamond Bar, CA</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">October 24, 2024, except for Notes 3, 4, 13,
and 21, as to which the date is December 4, 2024</P>
<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>


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<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>FUNCTIONAL <FONT STYLE="font-size: 10pt">BRANDS INC. (formerly
HT Naturals Inc.) </FONT></B></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><A NAME="b_002"></A>CONSOLIDATED
BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>(In U.S. Dollars, except share
data or otherwise noted)</I></B></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="text-decoration: none"><B>2023</B></FONT></P></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="text-decoration: none"><B>RESTATED</B></FONT></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="text-decoration: none"><B>2022</B></FONT></P></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Assets</B></FONT></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&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-indent: -0.125in; padding-left: 0.125in; font-weight: bold; font-style: italic">Current</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&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="text-indent: -0.125in; padding-left: 0.25in; width: 76%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">374,435</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">202,827</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: 0.25in; text-align: left">Accounts receivable, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">170,938</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">238,927</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; text-align: left">Inventories, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,694,020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,119,233</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: 0.25in; 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">72,441</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,936</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: 0.25in; text-align: left">Deferred offering 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">231,910</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">20,250</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; text-indent: -0.125in; padding-left: 0.375in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Total
    current assets</I></B></FONT></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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,543,744</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,728,173</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; font-style: italic">Noncurrent</TD><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-indent: -0.125in; padding-left: 0.25in; text-align: left">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">96,054</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">197,729</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: 0.25in; text-align: left">Right-of-use assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,307,027</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">89,611</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; text-align: left">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,489,671</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,535,801</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: 0.25in">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">818,139</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">818,139</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: 0.25in; text-align: left">Due from related parties</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">1,074,925</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; text-indent: -0.125in; padding-left: 0.375in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Total
    noncurrent assets</I></B></FONT></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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,710,891</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,716,205</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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; font-weight: bold; text-align: left">Total assets</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,254,635</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,444,378</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liabilities</B></FONT></TD><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; font-weight: bold; font-style: italic">Current</TD><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-indent: -0.125in; padding-left: 0.25in; text-align: left">Accounts payable &amp; accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,630,399</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,292,423</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: 0.25in; text-align: left">Equipment loans, current</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">4,125</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">Line of credit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,315</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,837</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: 0.25in; text-align: left">Government loans, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,280</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,832</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; text-align: left">Lease liabilities, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">261,015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,096</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: 0.25in; text-align: left">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,825</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,344</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: 0.25in; text-align: left">Loan payable &ndash; related party</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">247,634</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: 1.5pt; text-indent: -0.125in; padding-left: 0.375in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Total
    current liabilities</I></B></FONT></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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,251,468</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,488,657</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; font-style: italic">Noncurrent</TD><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-indent: -0.125in; padding-left: 0.25in; text-align: left">Lease liabilities, net of current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,136,032</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,808</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: 0.25in; text-align: left">Government loans, net of current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">143,888</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,168</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; text-align: left">Due to related parties</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">3,038,818</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: 0.25in; text-align: left">Payable for acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,597,368</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,855,000</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: 0.25in; text-align: left">Convertible debenture</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">100,000</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">100,000</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; text-indent: -0.125in; padding-left: 0.375in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Total
    noncurrent liabilities</I></B></FONT></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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,977,288</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,214,794</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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; font-weight: bold; text-align: left">Total Liabilities</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,228,756</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,703,451</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shareholders&rsquo;
    equity (deficit)</B></FONT></TD><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">&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-indent: -0.125in; padding-left: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Common
    stock, par value $0.00001, authorized 220,000,000 shares; 122,767,778 and 122,472,933 shares issued and outstanding at December 31,
    2023, and December 31, 2022, respectively</I></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,228</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,225</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: 0.25in; text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,126,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,600,182</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: 0.25in; 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">(7,101,574</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">(5,860,480</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: 0.25in; text-align: left">Total Shareholders&rsquo; Equity
    / (Deficit)</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">25,879</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,259,073</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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; font-weight: bold; text-align: left">Total liabilities
    and shareholders&rsquo; equity / (deficit)</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,254,635</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,444,378</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

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


<!-- Field: Page; Sequence: 135; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>FUNCTIONAL BRANDS INC. (formerly
HT Naturals Inc.) </B></FONT></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><A NAME="b_003"></A>CONSOLIDATED
STATEMENTS OF OPERATIONS</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>(In U.S. Dollars, except share
data or otherwise noted)</I></B></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="text-decoration: none"><B>2023</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>RESTATED<BR> <FONT STYLE="text-decoration: none">2022</FONT></B></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%; font-weight: bold; text-align: left">Revenues, net of returns</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">6,820,499</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">7,051,224</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; 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: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cost of goods sold</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,641,648</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,049,780</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Sales &amp; marketing</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">588,772</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">796,860</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-align: left">General and administrative 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">3,672,582</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">3,542,436</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Operating loss</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(1,082,503</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">(1,337,852</TD>
    <TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest expense</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(158,591</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(133,069</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; padding-bottom: 1.5pt; text-align: left">Gain on forgiveness of Paycheck Protection Program loan</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">528,586</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss for the year</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,241,094</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(942,335</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Net loss per share of common stock attributable to common stockholders</TD>
    <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: 2.5pt; text-align: left">Basic and diluted</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.01</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.01</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><B>Weighted average shares used in computing net loss per share of common stock</B></TD>
    <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; padding-bottom: 2.5pt">Basic</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">122,677,071</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">122,157,489</TD>
    <TD STYLE="padding-bottom: 2.5pt; 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: 2.5pt">Diluted</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">122,677,071</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">122,157,489</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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


<!-- Field: Page; Sequence: 136; 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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>FUNCTIO<FONT STYLE="font-size: 10pt">NAL BRANDS INC. (formerly
HT Naturals Inc.) </FONT></B></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><A NAME="b_004"></A>CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><I>(In U.S. Dollars, except share
data or otherwise noted)</I></B></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>No. of Shares</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Common<BR>
    Stock</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>APIC</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Accumulated<BR>
    Deficit</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Total<BR>
    Shareholders&rsquo;<BR>
    Equity/ (Deficit)</B></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 50%; font-weight: bold">December 31, 2021 (Restated)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 7%; text-align: right">121,582,314</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: 7%; text-align: right">1,216</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: 7%; text-align: right">2,841,024</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: 7%; text-align: right">(4,918,145</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: 7%; text-align: right">(2,075,905</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&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">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</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">496,299</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">496,300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shares issued as part of Reg CF campaign</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">830,619</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,162,859</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">1,162,867</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">Beneficial conversion feature on convertible debenture</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">100,000</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">100,000</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">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">-</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">(942,335</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">(942,335</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>December 31, 2022 (Restated)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,472,933</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,225</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,600,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,860,480</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,259,073</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&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">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,875</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">762,825</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">762,825</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shares issued as part of Reg CF campaign, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,484</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">9,076</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">9,076</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">Shares issued as part of Reg D, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">286,486</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,997</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">106,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Forgiveness of balances from related parties</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">1,648,145</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">1,648,145</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-align: left">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">-</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">(1,241,094</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">(1,241,094</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; font-weight: bold">December 31, 2023</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">122,767,778</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,228</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,126,225</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(7,101,574</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">25,879</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.) </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>&nbsp;</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="b_005"></A>CONSOLIDATED
STATEMENTS OF CASH FLOW</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(In
U.S. Dollars, except share data or otherwise noted)</I></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><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">2023</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>RESTATED<BR>
                                            2022</B></P></TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount in&nbsp;$</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; text-align: center; font-weight: bold">Amount in $</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Cash flows from operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,241,094</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">(942,335</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Reconcile net loss to cash provided by 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="padding-left: 0.25in; text-align: left">Gain on forgiveness of Paycheck Protection Program loan</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">(528,586</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Allowance for doubtful accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,287</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: 0.25in; text-align: left">Allowance for inventory obsolescence</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">79,033</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,774</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Loss on disposal of property</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">3,241</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Depreciation of property &amp; equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,175</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,485</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Amortization of right-of-use assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">283,197</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">402,855</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Amortization of convertible debenture</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</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">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">762,825</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">496,300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Amortization of intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,130</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,130</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">Changes in operating 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: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,702</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,455</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">346,180</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(492,047</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-align: left">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74,495</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,344</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Accounts payable &amp; Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">337,976</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,209</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(101,519</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,404</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(196,470</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(416,069</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Due to/from related parties</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">(315,748</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">279,648</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; font-weight: bold; text-align: left">Net cash provided by (used in) operating activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">248,169</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(689,880</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right">&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="font-weight: bold; text-align: left">Cash flows 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: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Purchases of property and equipment</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">(3,500</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">(967</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; font-weight: bold; text-align: left">Net cash used in investing activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(3,500</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(967</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right">&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="font-weight: bold; text-align: left">Cash flows 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: 0.25in; text-align: left">Payment for deferred offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(211,660</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,250</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Proceeds from long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247,634</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-left: 0.25in; text-align: left">Proceeds from issuance of convertible debenture</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</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">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Payments for payable for acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(257,632</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(445,001</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-align: left">Share issuance for cash from Reg CF</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,076</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,162,867</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Share issuance for cash from Reg D</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106,000</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-left: 0.25in; text-align: left">Proceeds from debt facilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Equipment loan repayment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,125</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,252</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-align: left">Line of credit repayment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(359,522</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(362,231</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Government debt repayment</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">(2,832</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">-</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: 1.5pt; padding-left: 0.125in; font-weight: bold; text-align: left">Net cash (used in) provided by financing
    activities</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(73,061</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">552,933</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&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-align: left">Net increase (decrease) in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171,608</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(137,914</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-align: left">Cash beginning of year</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">202,827</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">340,741</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="padding-bottom: 1.5pt; padding-left: 0.125in; font-weight: bold; text-align: left">Cash, end of year</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">374,435</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">202,827</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&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="font-weight: bold; text-align: left">Supplemental disclosures of cash flow information</TD><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: 2.5pt; padding-left: 0.25in; text-align: left">Cash paid for interest</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">158,591</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">133,069</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right">&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="font-weight: bold; text-align: left">Non-cash investing and 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-bottom: 2.5pt; padding-left: 0.25in; text-align: left">Beneficial conversion feature on convertible debenture</TD><TD STYLE="padding-bottom: 2.5pt">&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: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">100,000</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in; text-align: left">Right-of-use and lease liability upon lease commencement</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,500,613</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,088</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt; padding-left: 0.25in; text-align: left">Forgiveness of balances due to/from related parties</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,648,145</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&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: 2.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B>FUNCTIONAL BRANDS INC. (formerly
HT Naturals Inc.) </B></FONT></P>

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

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 10pt"><B><A NAME="b_006"></A>NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>1.</B></TD><TD><B>ORGANIZATION AND NATURE OF OPERATIONS</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 0pt 0.25in; text-align: justify">Functional Brands Inc. (formerly HT
Naturals Inc. - the &ldquo;Company&rdquo;) was organized under the General Corporation Law in the State of Delaware on November 19, 2020.&nbsp;
The Company&rsquo;s principal business is in the production, marketing, sales, and distribution of smokable hemp related products in
certain states within the United States of America that permit such sales.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On March 22, 2023, the Company changed
its name from HT Naturals Inc. to Functional Brands Inc. to better reflect its corporate identity.</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 0.25in; text-align: justify">As of December 31, 2023, and 2022,
the Consolidated Financial Statements consist of the Company and its wholly owned subsidiary HTO Nevada Inc. (d/b/a Kirkman), which is
a nutraceutical manufacturer and distributor based in the Pacific Northwest. All intercompany transactions and balances have been eliminated
in consolidation.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>2.</B></TD><TD><B>GOING CONCERN</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The accompanying financial statements
have been prepared assuming the Company will continue as a going concern. The Company had a loss of $1,241,094 for the year ended December
31, 2023, and losses in the amount of $942,335 for the year ended December 31, 2022. As of December 31, 2023, our accumulated deficit
was $7,101,574. These conditions raise substantial doubt about the Company&rsquo;s ability to continue as a going concern.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In order to continue as a going concern,
the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and
will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful
in obtaining additional capital.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The financial statements do not include
any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities
that might be necessary in the event the Company cannot continue in existence. These financial statements do not include any adjustments
that might arise from this uncertainty.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>3.</B></TD><TD><B>BASIS OF PRESENTATION</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 0pt 0.25in; text-align: justify"><B>Basis of preparation and principles
of consolidation </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The accompanying consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&ldquo;U.S.
GAAP&rdquo;).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The consolidated financial statements
comprise the financial statements of the Company and its wholly owned subsidiary, HTO Nevada Inc. dba Kirkman. The subsidiary consists
of an entity over which the Company is exposed to, or has rights to, variable returns as well as the ability to affect these returns
through the power to direct the relevant activities of the entity. To the extent that subsidiaries provide services that relate to the
Company&rsquo;s activities, they are fully consolidated from the date control is transferred and are deconsolidated from the date control
ceases. All intercompany balances and transactions have been eliminated.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">The financial statements of the subsidiary are prepared
for the same reporting period as the parent company, using consistent accounting policies.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Functional Brands Inc. (formerly
HT Naturals Inc.)</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Functional Brands Inc. (formerly HT
Naturals Inc.) is the parent company which in turn is 72% owned by Hemptown Organics Corp.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>HTO Nevada Inc. dba Kirkman</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The principal subsidiary is HTO Nevada
Inc. dba Kirkman which is solely and wholly owned by Functional Brands Inc. (formerly HT Naturals Inc.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As
                                            part of the restructuring efforts, ownership of HTO Nevada Inc. dba Kirkman was transferred
                                            from HTO Holdings Inc. to Functional Brands Inc. (formerly HT Naturals Inc.) on May 19, 2023,
                                            in exchange 80,000,000 common shares of the Company. As a result, HTO Nevada Inc. dba Kirkman
                                            became a wholly-owned subsidiary of Functional Brands Inc. (formerly HT Naturals Inc.).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The initial accounting for acquisition
of HTO Nevada Inc. dba Kirkman was accounted at fair value (See note13) on July 3, 2019. Since after the acquisition date and part of
the restructuring efforts under <FONT STYLE="background-color: white">ASC 850-50, the consolidated financial statements for the years
ended December 31, 2021, December 31, 2022 and December 31, 2023 have been presented as historical carrying value to give effect to the
merger transaction as occurred on July 3, 2019, which is the earliest date the entities were under common control.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>4.</B></TD><TD><B>RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company identified errors in our
financial statements for the year ended December&nbsp;31, 2022. The Company has restated herein our audited consolidated financial statements
as at December&nbsp;31, 2022, and for the&nbsp;year ended December&nbsp;31, 2022. When the previous audit engagement with Ben Borgers
was terminated , we engaged a new auditor (TAAD), and through the audit process, TAAD identified several errors that required changes.
As an example, common stock was adjusted to reclass the appropriate portion to APIC and notes payable was restated to reclass equipment
loans, lines of credit and government loans and present them individually on the balance sheet. On the statement of income, general &amp;
administrative expenses were restated to recognize stock-based compensation for RSUs issued to contractors. Through this new audit process,
the financial statements required adjustments to properly reflect the business results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The accounting errors impacting our
2022 Financial Statements includes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><B>&nbsp;</B></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"><B>a)</B></TD><TD STYLE="text-align: justify"><B>Cash</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Adjustment reflects deposits in-transit
for the year-end resulting from ecommerce sales of $18,530, previously not recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify"><B>&nbsp;</B></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"><B>b)</B></TD><TD STYLE="text-align: justify"><B>Accounts receivable</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Decreased accounts receivable $256,915
as a result of recording additional allowances for balances deemed uncollectible after further review by management.</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"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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"><B>c)</B></TD><TD STYLE="text-align: justify"><B>Inventories</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Inventory was increased by $169,542
due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $78,555 due to account reclassifications from property
                                            &amp; equipment;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $167,761 as a result of revision of costing for
                                            certain finished goods, previously not recorded; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $76,774 by recording
                                            additional write-downs, previously not recorded.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt">&nbsp;</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"><B>d)</B></TD><TD STYLE="text-align: justify"><B>Prepaid expenses and
                                            other current assets</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Increased prepaids by $49,429 for
payments made to vendors prior to year-end, previously not recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt"><B>&nbsp;</B></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"><B>e)</B></TD><TD STYLE="text-align: justify"><B>Deferred offering costs</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Increased deferred offering costs
to capitalize expenditures related to professional services for the Initial Public Offering of $20,250, previously not recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 41.4pt; text-align: justify"><B>&nbsp;</B></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"><B>f)</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 0pt 22.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Property and equipment was decreased
by $339,506 due to the following not recorded previously.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Decrease of $78,555 due to account reclassifications to inventory;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $219,904 as a result
                                            of correction for depreciation expense; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $41,047 due to disposal
                                            of property and equipment.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>&nbsp;</B></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"><B>g)</B></TD><TD STYLE="text-align: justify"><B>Right-of-use (ROU) assets</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Right-of-use was decreased by $620,742
due to the following not recorded previously.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Decrease of $710,353 due to amortization for right-of-use of
                                            operating building;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $111,253 due to recognition
                                            of equipment leases that fall under the ASC 842, Lease; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $21,642 as of result
                                            of the amortization expense for equipment leases.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"><B>h)</B></TD><TD STYLE="text-align: justify"><B>Intangible assets and
                                            goodwill</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">To record correct amounts for intangible
assets and goodwill based on the final purchase price allocation report from third-party appraiser, previously not recorded.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify"><B>&nbsp;</B></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"><B>i)</B></TD><TD STYLE="text-align: justify"><B>Due to / from related
                                            parties</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Due from related parties </I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Due from related parties increased
by $375,781 due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decreased by $827,338 as a result
                                            of adjustments made to reclass due from balances as an asset, previously recorded in one
                                            line as part of due from related parties; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increased by $1,203,119 due to
                                            payments made on behalf of related parties, previously netted out with due to related party
                                            balance and reclassed to due from related parties because the related party has a debit balance
                                            to be offset.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Due to related parties</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Due to related parties increased by
$3,038,818, due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $2,145,000 as part
                                            of the push-down accounting for Kirkman acquisition, the Company recorded a balance due to
                                            related parties for payments made by related parties to the Kirkman&rsquo;s seller, previously
                                            not recorded;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increased by $827,338 as a result
                                            of adjustments made to reclass due to balances as a liability, previously recorded in one
                                            line as part of due from related parties; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                       </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increased by $66,480 as a result
                                            of payments made by related parties to vendors on behalf of the Company, previously not recorded.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"><B>j)</B></TD><TD STYLE="text-align: justify"><B>Accounts payable &amp;
                                            accrued liabilities</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Accounts payable &amp; accrued liabilities
were increased by $1,049,037 due to the following not recorded previously.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $556,603 due to accruals not previously recorded</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD>$365,251 in professional services</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 75pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD>$191,352 in legal services &amp; audit services</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $471,500 as a result
                                            of stock-based compensation, not previously recorded, and;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $20,934 to adjust year-end
                                            balance to accounts payable.</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" 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"><B>k)</B></TD><TD STYLE="text-align: justify"><B>Equipment loans</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Equipment loans, current increased
by $4,125, due to the following.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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: 21pt"></TD><TD STYLE="width: 18pt">-</TD><TD>Reclassed equipment loans, current in the amount of $8,878, previously
                                            combined with notes payable; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</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: 21pt"></TD><TD STYLE="width: 18pt">-</TD><TD>Decreased equipment loan balances in the amount of $4,753 due to
                                            error in calculation of interest expense, previously not recorded.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</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"><B>l)</B></TD><TD STYLE="text-align: justify"><B>Lines of credit</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Lines of credit, current increased
by $27,837, previously combined with notes payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"><B>m)</B></TD><TD STYLE="text-align: justify"><B>Government loans, current</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Government loans, current increased
by $2,832, previously combined with notes payable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"><B>n)</B></TD><TD STYLE="text-align: justify"><B>Lease liabilities, current
                                            and noncurrent</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Lease liabilities, current and noncurrent
decreased by $694,941, due to the following not recorded previously.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Lease amortization for building lease in the amount of $787,845;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Recognized lease liabilities for equipment lease in the amount
                                            of $111,253; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Lease amortization for equipment leases in the amount of $18,349.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</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"><B>o)</B></TD><TD STYLE="text-align: justify"><B>Other current liabilities</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Reduced other current liabilities
in the amount of $17,513 for royalty fee payable, incorrectly recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"><B>p)</B></TD><TD STYLE="text-align: justify"><B>Notes payable</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Notes payable decreased by $201,981,
due to reclassed liabilities as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $27,837 due to reclass
                                            to credit lines</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $8,878 due to reclass
                                            to equipment loans</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $165,266 due to reclass
                                            of government loans, noncurrent</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" 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"><B>q)</B></TD><TD STYLE="text-align: justify"><B>Government loans, noncurrent</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Government loans, current increased
by $147,168, due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increased by $165,266, previously
                                            combined with notes payable;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decreased by $10,000 for loan forgiveness,
                                            previously not recorded;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decreased by $10,000 for loan recorded
                                            in error, and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increased by $1,902 as a result
                                            of adjustments recorded to correct principal balance and interest paid.</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" 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"><B>r)</B></TD><TD STYLE="text-align: justify"><B>Payable for acquisition</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Recorded balance payable for acquisition
in the amount of $2,855,000, stemming from the June 2019 Asset Purchase Agreement to acquire Kirkman, previously not recorded. Balance
represents the difference between agreed upon consideration of $5,000,000 and $2,145,000 in payments made by December 31, 2022. See Business
Combination note details on total consideration and balance owing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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"><B>s)</B></TD><TD STYLE="text-align: justify"><B>Convertible debenture</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Increased the&nbsp;debenture balance
of $100,000 as a liability as the required shares hadn&rsquo;t been issued as per request of the debenture holder.</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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    <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: justify">&nbsp;</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"><B>t)</B></TD><TD STYLE="text-align: justify"><B>Stockholders&rsquo;
                                            equity</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Increased shareholders&rsquo; equity
by $124,662 due to following changes in common stock and additional paid-in capital.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Common stock</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: 88%; padding-left: 0.125in">Allocation of par value of Reg CF</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(3,122,585</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Allocation of par value of stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</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">Refunds of Reg CF investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,584</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">Elimination of equity from Kirkman acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,593,877</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">Shares issued for Hemptown licensing agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400</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">Shares issued for purchase of Kirkman</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">800</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-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(4,724,844</TD><TD STYLE="font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Additional paid-in capital</TD><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">Allocation of value above par value of Reg CF</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,122,585</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">Allocation of value above par value stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,258,797</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">Shares issued for Hemptown licensing agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,600</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">Shares issued for purchase of Kirkman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">79,200</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">Beneficial conversion feature on convertible debenture</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">100,000</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: 1.5pt; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,600,182</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net impact on stockholders&rsquo; equity</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(124,662</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Common stock</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Common stock decreased by $4,724,844
due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $3,122,585 for adjustments
                                            to common stock for Reg CF to allocate difference between amount paid and par value to additional
                                            paid-in capital;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $2 for stock-based
                                            compensation at par value;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decreased of $9,584 for refund
                                            adjustments to Reg CF;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $1,593,877 for eliminating
                                            Kirkman equity upon consolidation resulting from for the asset purchase agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $400 for share issuance
                                            to HOC for a licensing agreement; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $800 for share issuance
                                            to HOC for purchase of Kirkman.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Additional paid-in capital (APIC)</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">APIC increased by $4,600,182 due to
the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $4,381,382 to reflect the amount paid above par
                                            value for Reg CF;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $118,800 shares issuances
                                            to parent company and Kirkman acquisition; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $100,000 as of a result
                                            of beneficial conversion feature on convertible debenture.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Accumulated deficit</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The adjustments to the statement of
comprehensive income (loss) amounted to a reduction of $1,284,954 as explained in subsections u, v, w, x and y below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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"><B>u)</B></TD><TD STYLE="text-align: justify"><B>Revenue</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Adjustment to sales discount made
for the year in the amount of $4,672, not previously recorded.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></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"><B>v)</B></TD><TD STYLE="text-align: justify"><B>Cost of goods sold</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Cost of goods sold increased by $1,800,665
due to the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $76,774 as a result of inventory write down, previously
                                            not recorded;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Decrease of $167,761 due to correction of costing for finished
                                            goods inventory;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $109,485 to record
                                            depreciation expense, previously not recognized;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $1,379,312 as of a
                                            result of reclassification of payroll costs (salary &amp; wages, benefits and other expenses)
                                            from general and administrative expenses; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$788,965 incurred in direct labor</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$590,347 incurred in indirect labor</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $402,855 to record
                                            amortization expenses for right-of-use assets for the year.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></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"><B>w)</B></TD><TD STYLE="text-align: justify"><B>Sales and marketing</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Reclassed sales and marketing in the
amount of $428,596 to reallocate payroll costs (salaries, benefits and other expenses) recorded originally in general and administrative.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>&nbsp;</B></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"><B>x)</B></TD><TD STYLE="text-align: justify"><B>General and administrative</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Decreased by $983,051 due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $496,300 to record stock-based compensation for
                                            the year, previously not recorded;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $776,574 for accrual
                                            of expenses, previously not recognized;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$556,603 for professional services</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$66,353 for legal services</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$153,618 for consulting services</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $1,807,908 as of a
                                            result of the reclassification of payroll costs (salaries, benefits and other expenses);</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$1,379,312 in payroll costs associated
                                            with the cost of goods sold; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">$428,596 in payroll costs associated
                                            with sales and marketing.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $402,855 due to allocation
                                            of right-of-use amortization for the year; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Decrease of $45,162 due to reversal
                                            of royalties payable.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></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"><B>y)</B></TD><TD STYLE="text-align: justify"><B>Interest Expense</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Interest expense increased by $34,072
due to the following.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD>Increase of $2,329 due to accrued interest not recorded for
                                            convertible debenture;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $9,487 due to correction
                                            of interest incurred during the year for loans; and,</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">-</TD><TD STYLE="text-align: justify">Increase of $22,256 as a result
                                            of interest incurred in lease liabilities during the year.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As filed</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Restatement<BR> adjustments</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As restated</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">Assets</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><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></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic">Current</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><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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-indent: -0.125in; padding-left: 0.25in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">a</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">221,357</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(18,530</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">202,827</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: center">b</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">495,842</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(256,915</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">238,927</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">Inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">c</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,949,691</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">169,542</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,119,233</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">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">d</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97,507</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,429</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,936</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: 0.25in">Deferred operating costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">e</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">20,250</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">20,250</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; text-indent: -0.125in; padding-left: 0.25in">Total current assets</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,764,397</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(36,224</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,728,173</TD><TD STYLE="font-weight: bold; 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: 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><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="font-weight: bold; font-style: italic; text-indent: -0.125in; padding-left: 0.125in">Noncurrent</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><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: 0.25in">Property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">f</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">537,235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(339,506</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">197,729</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">Right-of-use assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">g</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">710,353</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(620,742</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">89,611</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">Intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">h</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">1,535,801</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,535,801</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: 0.25in">Goodwill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">h</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">818,139</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">818,139</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: 0.25in">Due from related parties</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">i</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">699,144</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">375,781</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">1,074,925</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Total
    noncurrent assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,946,732</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,769,473</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,716,205</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,711,129</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,733,249</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,444,378</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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: 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><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="font-weight: bold; text-align: center; text-indent: -0.125in; padding-left: 0.125in">Liabilities</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><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="font-weight: bold; font-style: italic; text-indent: -0.125in; padding-left: 0.125in">Current</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><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: 0.25in">Accounts payable &amp; Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">j</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">243,386</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,049,037</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,292,423</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">Equipment loans, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">k</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">4,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,125</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">Line of credit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">l</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">27,837</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,837</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">Government loans, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">m</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">2,832</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,832</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 liabilities, current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">n</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">441,224</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(422,128</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,096</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">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">o</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">159,857</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(17,513</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,344</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: 0.25in">Notes payable</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">p</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">201,981</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">(201,981</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">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; text-indent: -0.125in; padding-left: 0.25in">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,046,448</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">442,209</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,488,657</TD><TD STYLE="font-weight: bold; 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: 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><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="font-weight: bold; font-style: italic; text-indent: -0.125in; padding-left: 0.125in">Noncurrent</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><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: 0.25in">Lease liabilities, net of current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">n</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">346,621</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(272,813</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,808</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">Government loans, net of current</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">q</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">147,168</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,168</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">Due to related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">i</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">3,038,818</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,038,818</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">Payable for acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">r</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">2,855,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,855,000</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; text-indent: -0.125in; padding-left: 0.25in">Convertible debenture</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">s</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">100,000</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">100,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Total
    noncurrent liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">346,621</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,868,173</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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">6,214,794</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="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,393,069</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,310,382</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,703,451</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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: 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><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="font-weight: bold; text-align: center; text-indent: -0.125in; padding-left: 0.125in">Shareholders&rsquo; equity (deficit)</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><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: 0.25in">Stockholders&rsquo; Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">t</TD><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="font-style: italic; text-align: left; text-indent: -0.125in; padding-left: 0.25in">Common stock, par value $0.00001, authorized
    220,000,000 shares; 122,767,778 and 122,472,933 shares issued and outstanding at December 31, 2023, and December 31, 2022, respectively</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">4,726,069</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,724,844</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,225</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">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">t</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">4,600,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,600,182</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: 0.25in">Accumulated deficit</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">(1,408,009</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">(4,452,471</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">(5,860,480</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; text-indent: -0.125in; padding-left: 0.25in">Total Stockholders&rsquo; Equity
    / (Deficit)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,318,060</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,577,133</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,259,073</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total liabilities
    and shareholders&rsquo; Deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,711,129</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,733,249</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,444,378</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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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: justify"><B>Statement of comprehensive income/(loss)</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <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; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As filed</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Restatement<BR>
    adjustments</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As restated</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</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="width: 52%; font-weight: bold; text-align: left">Revenues, net of returns</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">u</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">7,055,896</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">(4,672</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">7,051,224</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Costs and expenses:</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><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">Cost of goods sold</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">v</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,249,115</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,800,665</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,049,780</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Sales &amp; marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;w</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,264</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">428,596</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">796,860</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-align: left">General and administrative expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">x</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">4,525,487</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">(983,051</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">3,542,436</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Operating loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(86,970</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(1,250,882</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(1,337,852</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Other income /(expenses)</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><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">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">y</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(98,997</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34,072</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(133,069</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Gain on forgiveness of Paycheck Protection Program loan</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">&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">528,586</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">528,586</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; font-weight: bold; text-align: left">Total income (loss) for the year, net of tax</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">342,619</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,284,954</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(942,335</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>

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


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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- 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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Statement of cash flows</B></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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As filed</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Restatement<BR>
    adjustments</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As restated</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount in $</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount in $</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount in $</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0in; font-weight: bold">Cash flows from operating activities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 64%; text-align: left">Net income / (loss)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">342,619</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,284,954</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(942,335</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Reconcile net loss to 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><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: 0.25in; text-align: left">Gain on forgiveness of Paycheck Protection Program loan</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">(528,586</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(528,586</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Allowance for inventory obsolescence</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">76,774</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,774</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Loss on disposal of property</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">3,241</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,241</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Depreciation of property &amp; equipment</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">109,485</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,485</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Amortization of right-of-use 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">402,855</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">402,855</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Amortization of convertible debenture</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">100,000</TD><TD STYLE="text-align: left">&nbsp;</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: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Stock-based compensation</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">496,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">496,300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Amortization of intangible 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">46,130</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,130</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">Changes in operating 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><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-align: left">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19,837</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74,292</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,455</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in">Inventories</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(307,556</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(184,491</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(492,047</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; 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">(915</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(49,429</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,344</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-align: left">Accounts payable &amp; accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(227,700</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">369,909</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">142,209</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,990</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,586</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,404</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Payments on lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,497</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(410,572</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(416,069</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Due to / from related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(447,473</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">727,121</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">279,648</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(766,128</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">766,128</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="padding-left: 0.125in; font-weight: bold; text-align: left">Net cash used in operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,346,497</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">656,617</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(689,880</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: right">&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="padding-left: 0in; font-weight: bold; text-align: left">Cash flows 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><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: 0.25in; text-align: left">Purchases of property and equipment</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">81,977</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">(82,944</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">(967</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; font-weight: bold; text-align: left">Net cash used in investing activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">81,977</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(82,944</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(967</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: right">&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="padding-left: -0.125in; font-weight: bold; text-align: left">Cash flows 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><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: 0.25in">Issuance of equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,122,865</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,122,865</TD><TD STYLE="text-align: left">)</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="padding-left: 0.25in; text-align: left">Payment for deferred offering costs</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">(20,250</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,250</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-align: left">Proceeds from issuance of convertible debenture</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">100,000</TD><TD STYLE="text-align: left">&nbsp;</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="padding-left: 0.25in; text-align: left">Payments for payable for acquisition</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">(445,001</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(445,001</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-align: left">Share issuance for cash from Reg CF</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">1,162,867</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,162,867</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: left">Proceeds from debt facilities</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">156,800</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156,800</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-align: left">Equipment loan repayment</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">(39,252</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,252</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Line of credit repayment</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">(362,231</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">(362,231</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; font-weight: bold; text-align: left">Net cash provided by financing activities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,122,865</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(569,932</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">552,933</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-align: right">&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-align: left">Net increase (decrease) in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(141,655</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,741</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(137,914</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">Cash, beginning of year</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">363,012</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,271</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">340,741</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; font-weight: bold; text-align: left">Cash, end of year</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">221,357</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(18,530</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">202,827</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">&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; font-weight: bold; text-align: left">Supplemental disclosures of cash flow information</TD><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="padding-left: 0.125in; text-align: left">Cash paid for interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(98,997</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34,072</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(133,069</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">&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="padding-left: 0.125in; font-weight: bold; text-align: left">Non-cash investing and 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><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">Beneficial conversion feature on convertible debenture</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</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">100,000</TD><TD STYLE="text-align: left">&nbsp;</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="padding-left: 0.125in; text-align: left">Right-of-use and lease liability upon lease commencement</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</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">4,088</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,088</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"><B>&nbsp;</B></P>


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<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>Statement of changes in equity</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As filed</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Restatement<BR>
    adjustments</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As restated</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2022</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2022</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2022</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total
    <BR>
    Shareholders&rsquo;<BR>
    Equity/(Deficit)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total<BR>
    Shareholders&rsquo;<BR>
    Equity/(Deficit)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total<BR>
    Shareholders&rsquo;<BR>
    Equity/(Deficit)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December 31, 2021 (Restated)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,852,574</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3,928,479</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><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">(2,075,905</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares issued for the year</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,122,867</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,122,867</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares based compensation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">496,300</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">496,300</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares issued as part of Reg CF campaign</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,162,867</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,162,867</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beneficial conversion feature on convertible debenture</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100,000</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net income (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">342,619</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,284,954</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(942,335</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December 31, 2022 (Restated)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></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"><B>3,318,060</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(4,577,133</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>$</B></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"><B>(1,259,073</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>)</B></FONT></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; text-align: justify"><B>Cumulative effect of the change in common
stock, additional paid-in capital, and accumulated deficit</B></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="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">Common<BR>
    Stock</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">Additional<BR>
    Paid-in<BR>
    Capital</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">Accumulated<BR>
    Deficit</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: 64%; text-align: left">Net effect of prior years</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,601,986</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,841,024</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,167,521</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Change for the year ended December 31, 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,122,858</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,759,158</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,284,950</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net change</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,724,844</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,600,182</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,452,471</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>

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

<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"></TD><TD STYLE="width: 0.25in"><B>5.</B></TD><TD><B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">The significant accounting policies used in the preparation
of these consolidated financial statements are described below.</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 0pt 0.25in"><B>Cash </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Cash consists of cash in readily available
checking accounts and deposits in transit. As of December 31, 2023, and 2022, cash balances were deposited at a major financial institution.
Cash balances are subject to minimal credit risk as the balances are with high credit quality financial institutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Trade and other receivables</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Accounts receivables are stated at
the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible
amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company&rsquo;s
best estimate of the amount of probable credit losses in the Company&rsquo;s existing accounts receivable; however, changes in circumstances
relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management
evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the
current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance
after all collection efforts have been exhausted and the potential for recovery is considered remote. For the year ended December 31,
2023, the Company recorded an allowance for doubtful accounts of $36,287.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Inventories </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Inventory consists of raw materials,
work in process and finished goods. Inventory is measured at the lower of cost or net realizable value. Inventory costs include direct
labor and certain overhead expenses such as in-bound shipping and handling costs incurred to bring the inventory to its present location
and conditions. Cost is determined using the weighted average method. Net realizable value is the estimated selling price in the ordinary
course of business, less the estimated costs of completion and selling expenses. If the Company determines that the estimated net realizable
value of its inventory is less than the carrying value of such inventory, it records a charge to impairment expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Property and equipment</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Property and equipment are stated
at cost. Depreciation of property and equipment is recorded using the straight-line method over the assets&rsquo; estimated useful lives.
Computer equipment and capitalized software are depreciated over two to five years and furniture, and fixtures are depreciated over five
years. Amortization of fixed assets under capital leases is included in depreciation expense.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The categories of capital assets are
amortized on a straight-line basis as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">Machinery &amp;
                                            equipment</TD>
                                                                    <TD STYLE="text-align: right">7 years, straight-line</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">Furniture &amp;
                                            fixtures</TD>
                                                                    <TD STYLE="text-align: right">7 years, straight-line</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">Computer equipment</TD>
                                                                    <TD STYLE="text-align: right">5 years, straight-line</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company allocates the amount initially
recognized in respect of a capital asset to its significant parts and amortizes separately each such part. Residual values, methods of
amortization and useful lives of the capital assets are reviewed annually and adjusted if appropriate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Gains and losses on disposals of capital
assets are determined by comparing the proceeds with the carrying amount of the capital asset and is included in the consolidated statement
of operations and comprehensive loss.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The assets&rsquo; residual values,
useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively if appropriate. An item of equipment
is retied upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on sale or retirement
of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in the
consolidated statement of operations in the year the asset is retired. Such assets are tested annually for impairment, or more frequently,
if events or changes in circumstances indicate that they might be impaired.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Intangible Assets</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Intangible assets are recorded at
cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at
fair value at the acquisition date. Amortization is provided on a straight-line basis over their estimated useful lives, which do not
exceed the contractual period, if any. Intangible assets that have indefinite useful lives are not subject to amortization and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. The estimated
useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are accounted for
prospectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The categories of the intangible assets
are amortized on a straight-line basis as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">Customer relationships</TD>
                                                                    <TD STYLE="text-align: right">10 years</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">cGMP certification</TD>
                                                                    <TD STYLE="text-align: right">Indefinite life</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">Goodwill (including
                                            Assembled Workforce)</TD>
                                                                    <TD STYLE="text-align: right">Indefinite life</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify; width: 2.5in">Kirkman brand</TD>
                                                                    <TD STYLE="text-align: right">Indefinite life</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Expenditures in the research phase
and post-development maintenance costs are expensed as incurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Goodwill</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Goodwill arises from business combinations
and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any non-controlling
interests in the acquire, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill
acquired in a business combination is not amortized but tested for impairment at least annually or more frequently if events and circumstances
exist that indicate that a goodwill impairment test should be performed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Goodwill&nbsp;is tested for impairment
at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component).
We allocate&nbsp;goodwill&nbsp;to reporting units based on the reporting unit expected to benefit from the business combination. Assets
and liabilities are assigned to each reporting units if they are employed by a reporting unit and are considered in the determination
of the reporting unit fair value. We have one reporting unit with goodwill, which is the Kirkman business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Impairment of long-lived assets</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company&rsquo;s indefinite-lived
intangible assets is tested for impairment at the consolidated level. In evaluating the recoverability of the Kirkman Brand name and
CGMP License, we compare the fair value of the asset to its carrying amount to determine potential impairment. The Company&rsquo;s estimate
of the fair value of the Kirkman Brand name is derived using the income approach, specifically the relief-from-royalty method and the
fair value of the CGMP License is derived using the income approach.</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 0.25in; text-align: justify">The fair value determination of the
reporting units and the indefinite-lived intangible asset is judgmental in nature and requires the use of significant estimates and assumptions
that are sensitive to changes. Assumptions include estimation of the royalty rate, estimation of future revenue and projected margins,
which are dependent on internal cash flow forecasts, estimation of the terminal growth rates and capital spending, and determination
of discount rates. As a result, there can be no assurance that the estimates and assumptions made for purposes of the quantitative&nbsp;goodwill&nbsp;and
indefinite-lived intangible impairment tests will prove to be an accurate prediction of future results. Examples of events or circumstances
that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value
of the reporting units may include such items as: (i) volatility in the equity and debt markets or other macroeconomic factors, (ii)
an increase in the weighted-average cost of capital due to further increases in interest rates, (iii) decrease in future cash flows due
to lower than expected sales, or (iv) fluctuations in foreign currency exchange rates that may negatively impact the Company&rsquo;s
reported results of operations. Accordingly, if the current cash flow assumptions are not realized, we experience further increases in
costs of capital, it is possible that an additional impairment charge may be recorded in the future, which could be material. The Company
recorded an impairment loss of $300,300, at December 31, 2021.</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 0.25in"><B>Right-of-use Assets and Lease Liabilities </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company recognizes right-of-use
assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured
at cost, less any accumulated amortization and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at
or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the
leased asset at the end of the lease term, right-of-use assets are amortized on a straight-line basis over the shorter of its estimated
useful life and the lease term.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">At the commencement date of the lease,
the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend
on an index or a rate, and amounts expected to be paid under residual value guarantees, if applicable. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a
lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index
or a rate are recognized as occupancy expense in the period on which the event or condition that triggers the payment occurs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In calculating the present value of
lease payments, the Company uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification,
a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying
asset.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Leases as lessee</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company determines if an arrangement
is a lease at inception of an arrangement. Operating and finance lease assets and liabilities are recognized at the commencement date
of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company&rsquo;s right to use
an underlying asset for the lease term, while lease liabilities represent the Company&rsquo;s obligation to make lease payments arising
from the lease. The Company uses the internal incremental borrowing rate based on the information available at the lease commencement
date, in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease
when it is reasonably certain the Company will exercise those options. The Company made an accounting policy election to not recognize
lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines
payments for leased assets, related services and other components of a lease. The Company applies a portfolio approach to determine the
discount rate for leases with similar characteristics.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For leases classified as operating,
the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial
direct costs, plus/(minus) any unamortized prepaid/(accrued) lease payments, less the unamortized balance of lease incentives received.
Lease expense for lease payments is recognized on a straight-line basis over the lease term.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For leases classified as finance leases,
the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of
its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company, or the Company
is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful
life of the underlying asset. The Company expects to exercise the options to purchase the assets which are leased under finance leases.
Accordingly, these assets are included in property and equipment, and depreciation thereon is recognized as depreciation expense. When
the Company makes contractually required payments under finance leases, a portion is allocated to reduce the finance lease obligation,
and a portion is recognized as interest expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Stock-based compensation plans</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has a stock-based compensation
plan that is used to compensate the Board, officers, employees and consultants for services rendered.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The restricted share units (&ldquo;RSU&rsquo;s)
are measured by reference to the fair value of the Company&rsquo;s Common Share at the date on which they are granted. In situations
where equity instruments are issued to non-employees and the fair value of goods or services received by the entity as consideration
cannot be estimated reliably, they are measured at fair value of the equity instruments granted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The costs of equity settled transactions
are recognized as expenses, together with a corresponding increase in equity, over the period in which the performance and/or service
conditions are fulfilled, ending on the date on which the relevant party becomes fully entitled to the award.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">No expense is recognized for performance-based
awards that do not vest. Expense for service-based award is recognized upon vesting. Where the terms of an equity settled award are modified,
the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification
which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at
the date of modification.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Compensation expense is recognized
for all share-based payments to employees and non-employees, including restricted stock units, in the statements of operation based on
the fair value of the awards that are granted. As necessary, the Company&rsquo;s stock price at the date of grant was estimated using
an acceptable valuation technique such as a recent round of fundraising or the probability-weighted expected return model. The fair value
of RSUs is determined at the date of grant using the price per share offered at the most recent round of fundraising, the Reg CF campaign.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Compensation expense for restricted
stock awards with performance-based vesting conditions is calculated based on the number of awards that are expected to vest during the
performance period if it is probable that the performance metrics will be achieved. Generally, measured compensation cost, net of actual
forfeitures, is recognized on a straight-line basis over the vesting period of the related share-based compensation award. The Company
accounts for forfeitures of stock-based awards as they occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Revenue recognition</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">We account for revenue in accordance
with the Financial Accounting Standards Board (&ldquo;FASB&rdquo;)&nbsp;Accounting Standard Codification Topic&nbsp;606, &ldquo;Revenue
from Contracts with Customers&rdquo;. Revenue is measured based on the amount of consideration that we expect to receive, reduced by
discounts and estimates for credits and returns (calculated based upon previous experience and management&rsquo;s evaluation). Outbound
shipping charged to customers is recognized at the time the related merchandise revenues are recognized and are included in net revenues.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Per Company policy, any product that
doesn&rsquo;t meet the customer&rsquo;s expectations can be returned within the first 30 days of delivery in exchange for another product
or for a full refund. Any product sold through a distributor or retailer must be returned to the original purchase location for any return
or exchange.&nbsp; For the years ended December 31, 2023, and 2022, the Company has not recorded any reserves on revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Loss per Share</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Basic net loss per common share is
calculated by dividing the net loss distributed to the common class, by the weighted-average number of common shares outstanding during
the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss
attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for
the period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For purposes of the diluted net loss
per share calculation, vested restricted stock units (RSUs) are considered to be potentially dilutive securities. As of December 31,
2023, and 2022, there were no potential common stock equivalents excluded from the diluted loss per share calculations as their effect
is anti-dilutive. Because the Company has reported a net loss for the years ended December 31, 2023, and 2022, diluted net loss per common
share is the same as basic net loss per common share for such years.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Business Combinations</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Business combinations are accounted
for using the acquisition method. The fair value of total purchase consideration is allocated to the fair values of identifiable tangible
and intangible assets acquired and liabilities assumed, with the remaining amount being classified as goodwill. All assets, liabilities
and contingent liabilities acquired or assumed in a business combination are recorded at their fair values at the date of acquisition.
Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including
the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies.
Estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a
result, actual results may differ from those estimates. During the measurement period, not to exceed one year from the date of acquisition,
the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill. At the conclusion
of the measurement period, any subsequent adjustments are reflected in the statements of operations. Transaction costs associated with
business combinations are expensed as incurred and are included in general and administrative expenses in the Company&rsquo;s statements
of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Significant accounting estimates
and judgments</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The most significant judgements made
in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements
include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Obsolescence of inventories</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Recoverability of the carrying
                                            value of long-lived assets including property &amp; equipment and intangible assets</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Recoverability of carrying
                                            value of goodwill</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Discount rate used to calculate
                                            present value of future minimum lease payments for right-of-use asset and liabilities</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Recognition and measurement
                                            of provisions and contingencies</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Valuation of deferred income
                                            tax assets</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 0pt 0.5in; text-align: justify"><I>Inventories, net</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company periodically reviews the
value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions, including
forecasted demand compared to quantities on hand, as well as other factors such as potential excess or aged inventories based on product
shelf life, and other factors that affect inventory obsolescence.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Long-Lived Assets</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Long-lived assets consist primarily
of property and equipment. Long-lived assets are tested for impairment when events and circumstances indicate the assets might be impaired
by first comparing the estimated future undiscounted cash flows of the asset or asset group to the carrying value. If the carrying value
exceeds the estimated future undiscounted cash flows, an impairment loss is recognized based on the amount that the carrying value exceeds
the fair value of the asset or asset group. The Company did not recognize impairment losses during the years ended December 31, 2023,
and 2022.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Fair value of financial instruments</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The individual fair values attributed
to the different components of a financing transaction, notably investment in equity securities, derivative financial instruments, convertible
debt and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions
and in performing the fair value calculations in order to determine (a) the values attributed to each component of a transaction at the
time of their issuance; (b) the fair value measurements for certain instruments that require subsequent measurement at fair value on
a recurring basis; and (c) for disclosing the fair value of financial instruments subsequently carried at amortized cost. These valuation
estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of
these instruments that are not quoted in an active market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As required by the Fair Value Measurements
and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other
than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which
there is little or no market data, which require the reporting entity to develop its own assumptions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Segment Reporting</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company has&nbsp;two&nbsp;reportable
segments: 1)&nbsp;Kirkman, which sells a range of nutraceuticals, supplements and related products direct to consumers; 2)&nbsp;HT Naturals,
which sells a range of hemp products; and 3) Corporate, which generates no revenue, but reflects corporate expenses related primarily
to management of the company, including costs associated with legal, audit, accounting, tax, SEC reporting, and investor/public relations,
among other corporate expenses. As the hemp segment makes up less than 10% of net revenue, the Company has not disclosed summarized financial
segment information.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><I>Income taxes</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">The Company must exercise judgment
in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of
business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for expected tax
audit issues based on the Company&rsquo;s current understanding of the tax law. For matters where it is probable that an adjustment will
be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">In addition, the Company recognizes
deferred tax assets relating to tax losses carried forward to the extent there are sufficient taxable temporary differences (deferred
tax liabilities) relating to the same taxation authority and the same taxable entity against which the unused tax losses can be utilized.
However, utilization of the tax losses also depends on the ability of the taxable entity to satisfy certain tests at the time the losses
are recouped.</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 0.25in; text-align: justify"><B>Risks and uncertainties</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company&rsquo;s business and operations
are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and federal governmental
policy decisions. A host of factors beyond the Company&rsquo;s control could cause fluctuations in these conditions. Adverse conditions
may include but are not limited to changes in US laws surrounding the sale of smokable CBG/CBD products, consumer demand, and COVID-19
issues more fully described below. These adverse conditions could affect the Company&rsquo;s consolidated financial condition and the
results of its operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>6.</B></TD><TD><B>CASH</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Cash consists of liquid funds and
deposits in transit.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt">&nbsp;</TD><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">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; 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%">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">364,350</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">201,103</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; text-align: left">Deposits in transit</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">10,085</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">1,724</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: 1.5pt; font-weight: bold">Cash</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">374,435</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">202,827</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</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" 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"></TD><TD STYLE="width: 0.25in"><B>7.</B></TD><TD><B>ACCOUNTS RECEIVABLE</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Accounts receivable consist of trade
receivables, net of allowance.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</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">Trade receivables</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">207,225</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">238,927</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Allowance for doubtful accounts</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">(36,287</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">-</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="font-weight: bold; text-align: left">Accounts receivable</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">170,938</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">238,927</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"></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 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>8.</B></TD><TD><B>INVENTORIES </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Inventories consisted of raw materials
(minerals &ndash; magnesium, Calcium, vitamins, botanical extracts, hemp, trim and flower &ndash; CBG and CBD), finished goods (capsules,
tablets, powders, creams, cigs, gummies, tinctures, pre-rolls, and vapes) and packaging &amp; supplies (bottles, labels, covers, filters,
tipping paper and packaging materials).</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Raw materials, packaging / labels and others</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">813,236</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">847,462</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Work in process</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">89,415</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="padding-bottom: 1.5pt; text-align: left">Finished goods</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">880,784</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">1,182,356</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: 1.5pt; font-weight: bold; text-align: left">Total inventories</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,694,020</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,119,233</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the year ended December 31,
2023, the Company recorded an allowance for inventory obsolescence in the amount of $79,033. This obsolescence allowance is continually
re-evaluated and adjusted as necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>9.</B></TD><TD><B>PREPAIDS &amp; OTHER CURRENT ASSETS</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of prepayments made
to vendors and legal retainers.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; 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">Prepaids &amp; deposits</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">45,538</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">108,576</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; text-align: left">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">26,903</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">38,360</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: 1.5pt; font-weight: bold; text-align: left">Total prepaids and other current assets</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">72,441</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">146,936</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"></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 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>10.</B></TD><TD><B>DEFERRED OFFERING COSTS</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">Schedule below represent capitalization of deferred cost
incurred for the preparation of Initial Public Offering (&ldquo;IPO&rdquo;):</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; 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">Administrative fees</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">7,500</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">-</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="text-align: left">Legal services</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">171,063</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; 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">Professional services</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">53,347</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">20,250</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Total IPO Cost</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">231,910</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">20,250</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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" 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"></TD><TD STYLE="width: 0.25in"><B>11.</B></TD><TD><B>PROPERTY &amp; EQUIPMENT</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Property and equipment consist of
the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</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; padding-bottom: 1.5pt">Furniture &amp; fixtures</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">3,302</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="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">3,302</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="text-align: left; padding-bottom: 1.5pt">Computer equipment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">30,988</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">30,988</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">Machinery &amp; equipment</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">728,627</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">725,128</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">Total property and equipment, gross</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: right">762,917</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: right">759,418</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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">Less: accumulated 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">(666,863</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">(561,689</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Property and equipment, net</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">96,054</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">197,729</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Depreciation expenses totaled $105,175
and $109,485 for the years ended December 31, 2023, and 2022, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>12.</B></TD><TD><B>RIGHT-OF-USE ASSETS &amp; LEASE LIABILITY</B></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 0pt 0.25in; text-align: justify">Lease expense for minimum lease payments
is recognized on a straight-line basis over the lease term. The following are the expected lease payments as of December 31, 2023. The
lease is considered an &ldquo;operating lease&rdquo; and consequently lease payments are calculated on a straight-line basis, including
the total amount of interest related.</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 0.25in; text-align: justify">Lease expense, on the straight-line
basis was $507,508 and $372,066 during the years ended December 31, 2023, and 2022.</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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    <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="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The movement in the right-of-use assets
is as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><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">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Right of use assets:</TD><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="width: 76%">Right of use assets recognized as of January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">89,611</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">488,378</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Additions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500,613</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,088</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Amortization Expense</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(283,197</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(402,855</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Right of use assets</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,307,027</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">89,611</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The movement in lease liability is
as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-weight: bold; text-align: left">Lease liabilities recognized as at January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">92,904</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">504,885</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Additions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,500,612</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,088</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">Lease payments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(196,469</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(416,069</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Lease liabilities as at December 31</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">2,397,047</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">92,904</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: 1.5pt; font-weight: bold; text-align: left">Less: current portion</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(261,015</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(19,096</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Long-term portion</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,136,032</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">73,808</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Right-of-use assets and lease liabilities
comprise of three leases.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">LEASE 1 &ndash; OPERATING FACILITY</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On January 1, 2023, the Company entered
a 7-year and 2-month lease to lease approximately 24,400 square feet industrial building containing 9,095 square feet of office space
and 9,663 square feet of production area. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The base monthly rent is $26,500 per
month per month, with subsequent annual increases of 3%. Operating expense came to $10,774 per month for 2023 borne by the lessee.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in">LEASES 2 &amp; 3 &ndash; OFFICE EQUIPMENT</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company entered into a 5-year
lease to lease office equipment that consists of four copiers for daily office use commencing on September 30, 2021. At inception of
the lease, the Company recorded a right of use asset and liability. The Company used an effective borrowing rate of 9.0% within the calculation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The base monthly payment amount is
$1,979 per month per month, with subsequent annual increases of 6%. Operating expense came to $2,119 per month for 2023 borne by the
lessee.</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 0.25in; text-align: justify">In addition, The Company also entered
into a 4-year and 7-month lease agreement to lease a Paper Source Accessory for daily office use commencing on March 14, 2022, to complement
the previous office equipment discussed. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation. The base monthly payment amount is $89 per month, with no subsequent
annual increases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>13.</B></TD><TD><B>BUSINESS COMBINATION </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 0pt 0.25in; text-align: justify">On July 3, 2019, the Company entered
into an asset purchase agreement (the &ldquo;APA&rdquo;) with the Kirkman Group Inc. (&ldquo;Kirkman&rdquo;) to acquire certain tangible
and intangible assets for a purchase price of $5,000,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As per ASC 805 &ndash; Business Combinations,
an entity shall determine whether a transaction or other event is a business combination by applying the definition in this Subtopic,
which requires that the assets acquired and liabilities assumed constitute a business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Excerpt from&nbsp;ASC 805-10-55-3A
provides that a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose
of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members,
or participants.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">According to ASC 805-10-55-4, a business
consists of inputs and processes applied to those inputs that have the ability to contribute to the creation of outputs. The three elements
of a business are defined as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">a.</TD><TD STYLE="text-align: justify">Input. Any economic resource that
                                            creates, or has the ability to contribute to the creation of, outputs when one or more processes
                                            are applied to it. Examples include long-lived assets (including intangible assets or rights
                                            to use long-lived assets), intellectual property, the ability to obtain access to necessary
                                            materials or rights, and employees.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">b.</TD><TD STYLE="text-align: justify">Process. Any system, standard,
                                            protocol, convention, or rule that when applied to an input or inputs, creates or has the
                                            ability to contribute to the creation of outputs. Examples include strategic management processes,
                                            operational processes, and resource management processes. These processes typically are documented,
                                            but the intellectual capacity of an organized workforce having the necessary skills and experience
                                            following rules and conventions may provide the necessary processes that are capable of being
                                            applied to inputs to create outputs. Accounting, billing, payroll, and other administrative
                                            systems typically are not processes used to create outputs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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">c.</TD><TD STYLE="text-align: justify">Output. The result of inputs and
                                            processes applied to those inputs that provide goods or services to customers, investment
                                            income (such as dividends or interest), or other revenues.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The property plant and equipment purchased,
along with the assembled workforce, are inputs which have the ability to create outputs so condition a. above is met. In addition, The
Company also obtained the cGMP (Current Good Manufacturing Practice)-certified process in this asset acquisition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">That process, when applied to the
inputs also acquired, are able to produce outputs, namely the manufacturing of over-the-counter remedies, generic drugs, and nutritional
supplements. As such, conditions b. and c. above are met. Therefore, acquisition transaction meets the elements of (a) (b) and (c) of
the definition of a business. Accordingly, the transaction is considered a business acquisition and accounted for under the guidance
of ASC 805.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The
                                            present value of the acquisition fair value of the deferred cash payment transferred for
                                            Kirkman was $4,329,317, which consisted of the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-bottom: 1.5pt"><B>Kirkman Group Inc. </B></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">Purchase consideration</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair Value</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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: 88%">Cash</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">1,250,000</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred cash payment - $750,000 raise or 1st anniversary of closing</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">722,388</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">Deferred cash payment - $1,500,000 on 1st anniversary of closing</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,270,649</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">Deferred cash payment - $1,500,000 on 2nd anniversary of closing</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">1,086,280</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: 1.5pt; text-align: left">Total consideration - $5,000,000</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,329,317</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<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 0pt 0.25in; text-align: justify">The following table summarizes the
finalized fair value of assets acquired, and liabilities assumed as of the date of the acquisition in 2019:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">Kirkman Group Inc.</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&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="border-bottom: Black 1.5pt solid; font-weight: bold">Purchase consideration</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">Fair Value</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">Net assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,513,878</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Kirkman brand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,226,000</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">cGMP certification</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Customer relationships</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">461,300</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">Net assets acquired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,511,178</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Goodwill</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">818,139</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: 1.5pt; text-align: left">Total Consideration</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,329,317</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The excess of purchase consideration
over the fair value of net assets acquired was recorded as goodwill which is not deductible for tax purposes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Payable for acquisition</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As of December 31, 2023, and 2022,
the Company owed $2,597,368 and $2,855,000, respectively, in connection with the aforementioned APA, which is due in its entirety on
January 1, 2025, subject to the Forbearance Agreement and Confession of Judgement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On September 24, 2024, the Company
executed a Forbearance Agreement which allows the seller to postpone the payment of principal balance without pursuing rights under the
APA.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On September 24, 2024, the Company
executed a Confession of Judgement in respect of the principal owed in the amount of $2,417,366 which allowed the seller to enter a judgement
against the Company in The Circuit Court of The State of Oregon for the County of Clackamas.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The execution of these documents will
impact the Company if it fails to settle the balance owed by the due date, January 1, 2025. As a result, the seller has the right to
foreclose on the business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>14.</B></TD><TD><B>INTANGIBLE ASSETS &amp; GOODWILL</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of intangible assets
acquired from acquisition of Kirkman in July 2019. The Kirkman brand and the c-GMP certification were assigned an indefinite useful life,
whereas the customer relationships were assigned a life span of 10 years.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Kirkman brand, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">925,700</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">925,700</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">cGMP certification</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">310,000</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">Customer relationships</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">461,300</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">461,300</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 intangible assets, gross</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,697,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,697,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Less: Accumulated amortization: Customer relationships</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">(207,329</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">(161,199</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">Intangible assets</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,489,671</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>1,535,801</B></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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year ended December 31, 2021, the
Company recorded an impairment charge in the amount of $300,300 against the Kirkman brand. There were no further impairments to the intangible
assets during the years ended December 31, 2023 and 2022.</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">Balance consists of goodwill (including assembled
workforce) acquired from acquisition of Kirkman in July 2019 which was assigned an indefinite useful life.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 76%; text-align: right">&nbsp;</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%">&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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Goodwill</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">818,139</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">818,139</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</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" 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"></TD><TD STYLE="width: 0.25in"><B>15.</B></TD><TD><B>ACCOUNTS PAYABLE &amp; ACCRUED LIABILITIES</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of trade payables
and accruals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; 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>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&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">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <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 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 31,<BR> 2022</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" STYLE="text-align: right">&nbsp;</TD><TD>&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: 76%; text-align: left">Trade payables</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">562,519</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">264,320</TD><TD STYLE="width: 1%; 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">Accrued 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: 9pt">-&#9;Professional services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">462,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">365,251</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: 9pt">-&#9;Legal &amp; audit fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">316,352</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">191,352</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: 9pt">-&#9;Audit fees</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">17,329</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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">796,180</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">556,603</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; padding-bottom: 1.5pt">Accrued compensation - shares earned but not issued</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">271,700</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">471,500</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total accounts payable and accrued liabilities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,630,399</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,292,423</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"></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 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>16.</B></TD><TD><B>EQUIPMENT LOANS</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 0pt 0.25in; text-align: justify">Balance consists of equipment loans
for production &amp; packaging machinery.</P>

<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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: right">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; text-align: right">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; width: 76%">Equipment loans recognized as of January 1</TD><TD STYLE="white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 1%; text-align: left">$</TD><TD STYLE="white-space: nowrap; width: 9%; text-align: right">4,125</TD><TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; width: 1%; text-align: left">$</TD><TD STYLE="white-space: nowrap; width: 9%; text-align: right">43,377</TD><TD STYLE="white-space: nowrap; width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; text-align: left">Proceeds from debt facilities</TD><TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: right">-</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; text-align: left">Payments on debt facilities</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: right">(4,125</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: right">(39,252</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; text-align: left">Equipment loans at December 31</TD><TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: right">-</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; text-align: right">4,125</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left">Less: current portion</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; text-align: right">-</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: right">(4,125</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="white-space: nowrap; font-weight: bold; text-align: left">Long-term portion</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: right">-</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: right">-</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>17.</B></TD><TD><B>LINES OF CREDIT</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 0pt 0.25in; text-align: justify">On January 20, 2023, the Company entered
a line of credit agreement with a third-party whereby the Company received $300,000. The terms of the loan were for one year, with a
27% contract interest rate. On January 22, 2024, the loan was settled in full, at which point the security interest was released by the
lender.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On July 14, 2023, the Company entered
into an additional line of credit agreement with a third-party whereby the Company received $100,000. The terms of the loan were for
42 weeks, with a 5% contract interest rate. On July 7, 2024, the loan was settled in full, at which point the security interest was released
by the lender.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In addition, during the year ended
December 31, 2022, the Company executed a line of credit agreement with a third-party on April 12, 2022, whereby the Company received
$140,000. The terms of the loan were for an undefined period, with a 12% contract interest rate. Repayment rate was 20% of daily credit
card sales paid on a daily until the balance was settled in full on February 23, 2023.</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; border-collapse: collapse; width: 100%">
  <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: right">&nbsp;</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Line of credit recognized as of
    January <B>1</B></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,837</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">233,268</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from lines of credit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">156,800</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">Payments on lines 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">(359,522</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">(362,231</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Line of credit at December 31</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,315</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,837</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">Less: current portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(68,315</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(27,837</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Long-term portion</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>18.</B></TD><TD><B>GOVERNMENT LOANS PAYABLE</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On July 7, 2020, Kirkman applied and
was a granted thirty (30) year loan from the U.S. Small Business Administration for $150,000 with an interest of 3.75% per annum accrued
daily, to alleviate financial burden caused due to COVID-19.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In addition, on January 21, 2021,
Kirkman also applied for a Payment Protection Program loan from U.S. Small Business Administration receiving $528,586 in cash at 1% per
annum accruing interest daily. This loan was later forgiven in its totality on August 10, 2022.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; 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">RESTATED</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</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%">Government loans recognized as of January 1</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">150,000</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">678,586</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="text-align: left">Proceeds from debt facilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="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">Payments on debt facilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,832</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="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: 1.5pt; text-align: left">Debt forgiveness</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">(528,586</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">Government loans at December 31</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147,168</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Less: current portion</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(3,280</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</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: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,832</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Long-term portion</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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">143,888</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">147,168</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has the following government
loan commitments as at December 31, 2023.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">&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="padding-left: 0.125in; width: 88%; text-align: left">2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,280</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">2025</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,437</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">2026</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,595</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt; text-align: left">2027 and beyond</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">136,856</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-weight: bold">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">147,168</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- 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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>19.</B></TD><TD><B>OTHER CURRENT LIABILITIES </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Balance consists of credit cards,
employee benefits and sales tax payable.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Credit cards</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,787</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">13,789</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Employee benefits payable</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">13,932</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">Sales tax</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,242</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,272</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">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">13,796</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">103,351</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: 1.5pt">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">40,825</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">142,344</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Credit cards are utilized for software
and technology costs for which no other form of payment is available.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>20.</B></TD><TD><B>CONVERTIBLE DEBENTURE</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On October 7, 2022, the Company entered
into Convertible Debenture Purchase Agreements pursuant to which the Company issued unsecured convertible promissory note (&ldquo;Convertible
Debenture&rdquo;). The Company issued Convertible Debenture in the aggregate principal amount of $100,000 that was used to pay the expenses
of the organization and reorganization and for other general corporate purposes. Interest accrued on the principal balance of the Convertible
Debenture at 10.0% per annum totaled $2,338. The Convertible Debenture ranks on a parity with the Company&rsquo;s other existing debt
and matured on December 31, 2022. The Convertible Debenture was to convert the outstanding principal and accrued interest into shares
of the Company&rsquo;s common stock on maturity date at a price per share equal to $0.05 per share. As of December 31, 2023, the holder
had still not converted the debenture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>21.</B></TD><TD><B>RELATED PARTY TRANSACTIONS</B></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 0pt 0.25in"><B>Long-term debt</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">In December 2023, the Company entered
into a short-term debt facility with a related party, an officer and director of the parent company &ndash; Hemptown Organics Corp.,
whereby the Company received $247,634. The loan is non-interest bearing with a 2-year term.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Inter-company transactions </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the years ended December 31,
2023, and 2022, the Company engaged in inter-company transactions with its parent company, Hemptown Organics Corp. and sister companies,
L2F, LLC and HTO Holdings Inc., to borrow funds for operational activities and debt repayment. At December 31, 2022, the Company had
balances due from related party of $1,074,925 and $3,038,818 respectively. During the Year ended December 31, 2023 the Company made payments
of ($615,257) and received $299,509 for a net reduction of $315,748 and reached an agreement with the parent and sister companies to
forgive the net balance of $1,648,145 and the forgiveness amount was recorded in additional-paid-in-capital.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Executive contracts </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On April 1, 2023, the Company executed
contracts with the Chief Executive Officer for a term of 1 year, totaling $280,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On April 1, 2023, the Company executed
contracts with the Chief Financial Officer for a term of 1 year, totaling $200,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>22.</B></TD><TD><B>DEFERRED TAXES</B></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 0pt 0.25in; text-align: justify">The provision for income taxes for
the year ended December 31, 2023, and 2022 consists of the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: justify">Current:</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</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%; font-weight: bold; text-align: justify">Federal</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(259,139</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(286,515</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify">State</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(64,341</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(71,138</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="font-weight: bold; text-align: justify">Change in Valuation Allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">323,480</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">357,653</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: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="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="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</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="font-weight: bold; text-align: justify">Income Tax Expense</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in">The Company has the following net deferred tax
asset (liability):</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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&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">As of<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">As of<BR>
    December 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%; font-weight: bold; text-align: justify">Net Operating Losses</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">1,204,862</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">1,156,009</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="font-weight: bold; text-align: justify">Inventory Reserve</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">20,718</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">28,234</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="font-weight: bold; text-align: justify">Accounts Receivable Provision for uncollectable</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">9,512</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; 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="font-weight: bold; text-align: justify">ROU Assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">23,598</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">864</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="font-weight: bold; text-align: justify">Accrued Liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">188,330</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">72,507</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify">Stock Compensation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">254,983</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">108,080</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="font-weight: bold; text-align: left">Book to Tax Depreciation &ndash; Property, Plant &amp; Equipment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">(25,033</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">(51,832</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Book to tax amortization &ndash; Intangible Assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">(120,646</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">(80,939</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="font-weight: bold; text-align: justify">Valuation Allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">(1,556,324</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">(1,232,923</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</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="font-weight: bold; text-align: left">Net Deferred Tax Assets (liabilities)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">-</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; 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 0.25in; text-align: justify">In assessing the realizability of
deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment. The Company has net loss carryforwards of approximately $5,539,000 available
to offset future taxable income. Tax returns for the years 2019 through 2023 remain open to review by both Federal and State Tax Authorities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>23.</B></TD><TD><B>SHARE CAPITAL</B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Authorized share capital</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 0pt 0.25in; text-align: justify"><I>Common Shares</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Upon incorporation, the Company authorized
1,000,000 common shares with a par value of $0.001 per share were initially authorized for issuance. The Initial Share of the Company
was allotted and issued to Zayn Kalyan as fully paid on November 19, 2020, the date of the organization. The issuance of the Initial
Share was recorded in the central securities register of the Company and represents the only share initially issued. The Company purchased
the Initial Share from Zayn Kalyan for the price of $0.01 and the Initial Shared formed part of the authorized but unissued share capital
of the Company. The repurchase of the Incorporator&rsquo;s Share was recorded in the central securities register of the Company and the
director confirms that no share certificate was issued or shall be issued in respect of the Initial Share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On December 10, 2020, the Company
altered its authorized share capital to 100,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On August 31, 2023, this was changed
to 220,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">All Common Shares are entitled to
one vote in respect to each Common Share held at all meetings of shareholders of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in"><B>Issued share capital</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Common share issuances</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On December 10, 2020, the Company
entered into a licensing agreement with Hemptown Organics Corp. (the &ldquo;licensor&rdquo;) to use the Hemptown Naturals brand (the
&ldquo;asset&rdquo;) on a non-exclusive, non-transferable basis for a period of 4 years. In return, 40,000,000 common shares were issued
to the licensor at $0.001 per share with deemed proceeds of $40,000 as consideration.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On May 19, 2023, the Company entered
into a Share Exchange Agreement (SEA) to acquire HTO Nevada Inc. from a related party, Hemptown Organics Corp. and its wholly owned subsidiary,
HTO Holdings Inc. This SEA was in respect of the asset purchase agreement (the &ldquo;APA&rdquo;) the Company entered into on July 3,
2019, with the Kirkman Group (&ldquo;Kirkman&rdquo;) to acquire certain tangible and intangible assets. As part of the SEA, the Company
issued 80,000,000 common shares as part of the compensation from the agreement at $0.001 per share with deemed proceeds of $80,000 as
consideration. This was retroactively recorded in 2019 as the acquisition was completed on July 3, 2019.</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 0.25in; text-align: justify"><I>Regulation Crowdfunding (Reg CF)
Campaign</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Under the Securities act of 1933,
the offer and sale of securities must be registered unless an exemption from registration is available. Title III of the Jumpstart Our
Business Startups (JOBS) Act of 2012 added Securities Act Section 4(a)(6) that provides and exemption from registration for certain crowdfunding
transactions. The Company is currently completing a Regulation Crowdfunding offering (&ldquo;Offering&rdquo;) subject to the above regulations
and had filed its Offering statement on Form C through the EDGAR system and with the Title3Funds.com as intermediary.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Offering is for up to a maximum
of $5,000,000 at a price of $1.40 per share with an offering deadline of December 31, 2022, which was extended to May 31, 2023. The securities
purchased in this Offering will be subject to a number of restrictions including restrictions on resale for a period of one year. The
use of the proceeds will be towards the fees associated with this Offering, further development of the Company&rsquo;s business &ndash;
sales &amp; marketing, and for general working capital purposes.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&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">Number of <BR> shares issued</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">Price per<BR>
    Share</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">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; width: 64%">May 2023</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">6,484</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">1.40</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">9,076</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-bottom: 1.5pt; font-weight: bold; text-align: left">Total issuance for the year</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">6,484</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; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">9,076</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the year ended December 31,
2023, the Company issued 6,484 common shares with net proceeds of $9,076 as part of Reg CF campaign in pre-IPO funding at a price of
$1.40 per share.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<BR>
    shares issued</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Price
                                            per <BR>
                                            Share</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%">January 2022</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">72,027</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="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">1.40</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD><TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">100,840</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>February 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">61,549</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">86,168</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>March 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">105,330</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">147,462</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>April 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">93,021</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">130,230</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>May 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">139,616</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">195,462</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Jun 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">88,593</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">124,030</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>July 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">36,143</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">50,600</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>August 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">45,428</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">63,599</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>September 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">65,717</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">92,004</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>October 2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">120,909</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">1.40</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">169,272</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: 1.5pt">December 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">2,286</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">1.40</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">3,200</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; text-align: left">Total issuance for the year</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">830,619</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,162,867</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the year ended December 31,
2022, the Company issued 830,619 common shares with net proceeds of $1,162,867 as part of Reg CF campaign in pre-IPO funding at a price
of $1.40 per share.</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 0.25in; text-align: justify"><I>Regulation D (Reg D) Campaign</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the year ended December 31,
2023, the Company issued 286,486 shares with net proceeds of $106,000 as part of Reg D campaign in pre-IPO funding at a price of $0.37
per share.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of <BR> shares issued</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Price per <BR> share</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</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" 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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 64%">April 2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">270,270</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.37</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">100,000</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">May 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">16,216</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">0.37</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">6,000</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="font-weight: bold; text-align: left">Total issuance for the year</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">286,486</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; 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">&nbsp;</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">106,000</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As of December 31, 2023, the Company
has received net proceeds of $106,000 and incurring transaction costs of $10,480 at a price of $0.37 per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Stock based compensation</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">For the years ended December 31, 2023
and 2022, stock-based compensation was $762,825 and $496,299, respectively.</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 0pt 0.25in; text-align: justify"><I>Restricted stock units (RSUs) for
services </I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the year ended December 31,
2023, the Company incurred $560,400 in contracting services resulting from 400,286 of restricted stock units for consultants providing
sales &amp; marketing services at fair value of $1.40 per share.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<BR> shares RSUs</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</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" STYLE="text-align: right">&nbsp;</TD><TD>&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: 76%; padding-left: 0.125in">January 2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">33,000</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">46,200</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">February 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,200</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">March 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">April 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,200</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">May 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Jun 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,200</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">July 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">August 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,200</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">September 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">October 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,200</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">November 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,714</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,200</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in">December 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">23,714</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">33,200</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="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Total issuance for the year</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">400,286</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">560,400</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">During the year ended December 31,
2022, the Company incurred $457,100 in contracting services resulting from 326,500 of restricted stock units for consultants providing
sales &amp; marketing services at fair value of $1.40 per share.</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 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number of<BR> shares RSUs</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</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" STYLE="text-align: right">&nbsp;</TD><TD>&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: 76%; padding-left: 0.125in">January 2022</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">28,500</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">39,900</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">February 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,900</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">March 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,900</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">April 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</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">May 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Jun 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</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">July 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">August 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</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">September 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">October 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</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">November 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,400</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in">December 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">33,000</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">46,200</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="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Total issuance for the year</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">326,500</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">457,100</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>24.</B></TD><TD><B>REVENUES, NET</B></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">This table shows revenue by product type &ndash;
Functional Brands (formerly HT Naturals) reflects hemp derived products whereas Kirkman reflects nutraceutical products.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">RESTATED</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2023</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">December 31,<BR>
    2022</TD><TD STYLE="white-space: nowrap; 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">Kirkman</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,435,735</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,870,433</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; font-weight: bold; text-align: left">Functional Brands (formerly HT Naturals)</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">384,764</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">180,791</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: 1.5pt">&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: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">6,820,499</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">7,051,224</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><B>&nbsp;</B></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"></TD><TD STYLE="width: 0.25in"><B>25.</B></TD><TD><B>OTHER INCOME</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">Gain on loan forgiveness pertains
to the Paycheck Protection Program (PPP) loan forgiven by the Small Business Administration (SBA) on August 10, 2022, in the amount of
$528,586 during year ended December 31, 2022.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></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 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>26.</B></TD><TD><B>CONCENTRATION </B></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 0pt 0.25in; text-align: justify">During the year ended December 31,
2023, sales from two customers represented 22% and 19% for a total of 41% of sales totaling $2,918,058. During the year ended December
31, 2022, sales from three customers represented 17%, 13%, and 16% for a total of 46% of sales totaling $3,205,613.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">As at December 31, 2023, accounts
receivable balance from three customers represented 17%, 13%, and 11% for a total of 41% of accounts receivable totaling $68,928. As
at December 31, 2022, accounts receivable balance from one customer represented 46% of total accounts receivable, totaling $110,082.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>27.</B></TD><TD><B>COMMITMENTS AND CONTINGENCIES</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has an exclusive license
agreement with the&nbsp;Trailer&nbsp;Park Boys to market &amp; sell hemp derived products. This license came into effect on July 21,
2021, and will expire on December 31, 2025. Under the amended license agreement, the Company will pay the&nbsp;Trailer&nbsp;Park Boys,
an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to be paid during
the second year of the agreement, additionally, the&nbsp;Trailer&nbsp;Park Boys are entitled to 1,000,000 shares of common stock of the
Company. The royalty rates under this agreement are between 15% - 30% of the net sales of the company derived from sales related to the
license. During the years ended December 31, 2023, and 2022, the Company made payments in the amount of $200,000 and $175,000, respectively,
with total payments amounting to $425,000. The license agreement may be terminated with reasonable cause upon six months&rsquo; written
notice or for certain triggering events without recourse or an opportunity to cure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>28.</B></TD><TD><B>LEGAL PROCEEDINGS </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">From time to time, we may become involved
in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. On May 25, 2021, True Health
Medical Center, S.C. (&ldquo;True Health&rdquo;) amended an existing complaint against Kirkman Group, Inc. (&ldquo;Kirkman&rdquo;), James
Hall and David Humphries to assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings,
Inc. are referred to as the &ldquo;HTO Parties&rdquo;). Kirkman is the seller of certain assets to the HTO Parties and is a separate
legal entity. Affiliates of the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit
Court for the Eighteenth Judicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets
to the HTO Parties but the royalty agreement has a provision that allows True Health to continue to receive royalties after the termination
of the agreement. True Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties.
There is no dispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO
Parties have never paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties
should be bound by the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the
damages claim against the HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties
have engaged in some discovery including a limited number of depositions. True Health has filed a motion for summary judgment that addresses
its claims against Kirkman but does not address any claim against the HTO Parties. The briefing is not yet complete on the summary judgment
motion and a ruling is likely more than 60 days away. Regardless of how the court rules on summary judgment, there will be remaining
claims in the case, and it is likely that additional discovery will be conducted. No trial date has been scheduled at this time. The
parties have largely completed both fact and expert discovery. Kirkman Group has recently filed a motion for leave to amend its counterclaims
against True Health. None of these proposed counterclaims are alleged against HTO Nevada. However, if the Court permits the amended counterclaims
to be filed, it is possible that additional discovery will be needed on the amended counterclaims. It is also likely that True Health
will move to dismiss some or all the amended counterclaims. Either additional discovery or motion practice would typically mean that
the prospective trial date will not occur until a later date than would have been the case absent these additional steps in the litigation.
As of today, the court has not set a trial date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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"></TD><TD STYLE="width: 0.25in"><B>29.</B></TD><TD><B>SUBSEQUENT EVENTS</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 0pt 0.25in; text-align: justify">The Company follows the guidance in
FASB ASC Topic 855, Subsequent Events (&ldquo;ASC 855&rdquo;), which provides guidance to establish general standards of accounting for
and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are
available to be issued. ASC 855 sets forth the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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: 0.5in">(i)</TD><TD STYLE="text-align: justify">The period after the balance sheet
                                            date during which management of a reporting entity evaluates events or transactions that
                                            may occur for potential recognition or disclosure in the consolidated financial statements</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in">(ii)</TD><TD STYLE="text-align: justify">The circumstances under which
                                            an entity should recognize events or transactions occurring after the balance sheet date
                                            in its consolidated financial statements, and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 0.5in">(iii)</TD><TD STYLE="text-align: justify">The disclosures that an entity
                                            should make about events or transactions that occurred after the balance sheet date. Accordingly,
                                            the Company did not have any subsequent events that require disclosure other than the following.</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 0pt 0.25in; text-align: justify"><B>Payable for acquisition</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On September 24, 2024, the Company
executed a Forbearance Agreement with former owner of Kirkman. This allows the postponement of principal payment. On the same date, the
Company executed a Confession of Judgement in respect of the principal owed. This allowed the seller to enter a judgement against the
Company in The Circuit Court of The State of Oregon for the County of Clackamas.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Related party transactions </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On March 11, 2024, the Company executed
a loan agreement with a related party in the amount of $130,000, with an annual interest rate of 20%, with a maturity date of March 10,
2031.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Long-term debt</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Convertible Promissory Note</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On April 29, 2024, the Company executed
a loan agreement with a lender in the amount of $150,000. The payment terms are 15% OID, initial principal amount consisting in $150,000
loan plus $26,500 OID totaling $176,500. To mature the earlier of six months from execution, completion of a Senior Exchange Listing
of the Company or as mutually agreed, with an interest rate of the higher of 12% or WSJ Prime plus 4% guaranteed.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">With a conversion feature for the
Lender to be paid in full in cash at the IPO or convert the note into shares of the Company&rsquo;s common stock at the time of the Senior
Exchange Listing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><I>Invoice Financing</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company executed multiple lending
agreements to satisfy vendor debts.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: justify"><B>Date &nbsp;</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount<BR>
    Financed</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Finance<BR>
    Charges</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Repayment Terms</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: justify">March 12, 2024</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">35,162</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 9%; text-align: right">2,092</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">17 weeks</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">March 20, 2024</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">51,500</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">5,021</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">26 weeks</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">July 16, 2024</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">36,804</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">$</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">4,048</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">26 weeks</TD></TR>
  </TABLE>



<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 0pt 0.25in; text-align: justify">The financing agreement executed on
March 12, 2024 was settled in full on July 8, 2024 and the financing agreement executed on March 20, 2024 was settled in full on September
25, 2024.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><B>Material contract </B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">On January 1, 2024, the Company executed
an Advisory Agreement with a service provider to support the IPO process. The scope of work includes strategic review, consulting services,
IPO readiness &amp; execution as well as capital market advisory. Payment structure is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</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: 39pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Monthly
                                            payment of $5,000 per month to be settled in the following manner </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 1in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">50% to be paid in cash</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 1in"></TD><TD STYLE="width: 0.25in">o</TD><TD STYLE="text-align: justify">50% to be converted into shares of
                                            the Company&rsquo;s common stock</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 39pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Payment
                                            of $100,000 upon completion of the liquidity event </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 39pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ability
                                            to purchase common stock at $0.01 per share equal to 1.25% of the issue and outstanding shares
                                            of the Company </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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: 39pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Issuance
                                            of 200,000 warrants for a period of 5 years with an exercise price to be equal to the price
                                            of the offering to be undertaken with the listing </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 57pt; text-align: justify; text-indent: -0.25in"><B>&nbsp;</B></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">&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"><B>Functional Brands Inc.</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">&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"><B>PRELIMINARY 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">&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"><I>Underwriter</I></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">JOSEPH GUNNAR &amp; CO., LLC</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2025</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">Until [&nbsp;&nbsp;&nbsp;], 2024, 25 days after the
date of this prospectus, all dealers that buy, sell or trade our securities, whether or not participating in this offering, may be required
to deliver a prospectus. This is in addition to the dealers&rsquo; obligation to deliver a prospectus when acting as Underwriter and
with respect to their unsold allotments or subscriptions.</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"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P></DIV>
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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"><B>[Alternate Page for&nbsp;Resale Prospectus]</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"><FONT STYLE="color: Red"><B>The information in
this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it
is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Red"><B>SUBJECT TO COMPLETION,
DATED January 8, 2025</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="color: Red"><B>PRELIMINARY PROSPECTUS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FUNCTIONAL BRANDS INC.</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: center"><B>Shares of 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: justify">This prospectus relates to [&#9679;] shares of
common stock of Functional Brands Inc., par value $0.00001 per share, that may be sold from time to time by the selling shareholders
named in 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">We will not receive any proceeds from the sales
of outstanding common shares by the selling shareholders.</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">Currently, there is no public market for our
common stock. We intend to apply to list our common stock on the NASDAQ Capital Market (&ldquo;NASDAQ&rdquo;), under the symbol &ldquo;FBIC&rdquo;.
There can be no assurance that our common stock will be approved for listing on the NASDAQ.</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 an &ldquo;emerging growth company,&rdquo;
as that term is used in the Jumpstart Our Business Startups Act&nbsp;of&nbsp;2012, and as such, have elected to comply with certain reduced
public company reporting requirements for this prospectus and future filings. See &ldquo;<I>Prospectus Summary&nbsp;&mdash;&nbsp;Implications
of Being an Emerging Growth Company</I>.&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 selling shareholders may offer and sell the
shares of common stock being offered by this prospectus from time to time in public or private transactions, or both. These sales will
occur at a fixed price of $ per share until our shares are listed on a national securities exchange. Thereafter, these sales will occur
at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices.
The selling shareholders may sell shares to or through underwriters, broker-dealers or agents, who may receive compensation in the form
of discounts, concessions or commissions from the selling shareholders, the purchasers of the shares, or both. Any participating broker-dealers
and any selling shareholders who are affiliates of broker-dealers may be deemed to be &ldquo;underwriters&rdquo; within the meaning of
the Securities Act&nbsp;of&nbsp;1933, as amended, and any commissions or discounts given to any such broker-dealer or affiliates of a
broker-dealer may be regarded as underwriting commissions or discounts under the Securities Act&nbsp;of&nbsp;1933, as amended. The selling
shareholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any person to distribute
their shares of common stock. See &ldquo;<I>Plan of Distribution</I>&rdquo; for a more complete description of the ways in which the
shares may be 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"><B>Investing in our common stock involves a high
degree of risk. Before buying any shares, you should carefully read the discussion of the material risks of investing in our common stock
under the heading &ldquo;Risk Factors&rdquo; beginning on page&nbsp;13 of this prospectus.</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>Neither the Securities and Exchange Commission
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></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">The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2025</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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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


<DIV STYLE="border: Black 1.5pt solid; padding: 10pt; width: 96%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[Alternate
                                            Page for&nbsp;Resale Prospectus]</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: center"><B>THE OFFERING</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: top">
    <TD STYLE="width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares offered by the selling shareholders:</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 68%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This prospectus relates to [&#9679;]
    shares of common stock that may be sold from time to time by the selling shareholders named 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">Shares outstanding<SUP>(1)</SUP>:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">[&#9679;] shares of common stock (or&nbsp;&nbsp;[&#9679;]
    shares if the underwriters exercise the over-allotment option in full).</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">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
    sales of outstanding &nbsp;common stock by the selling shareholders.</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">Risk factors:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investing in our common stock involves a
    high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider
    the information set forth in the &ldquo;<I>Risk Factors</I>&rdquo; section beginning on page&nbsp;13.</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">Trading market and symbol:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We have applied to list our common stock
    on the NASDAQ under the symbol &ldquo;FBIC&rdquo;. There can be no assurance that we will be approved for listing.</FONT></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>

<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">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            number of shares of common stock outstanding assumes the issuance by us of shares of common
                                            stock pursuant to the Public Offering Prospectus filed contemporaneously herewith.</FONT></TD>
</TR></TABLE>

</DIV>

<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"><B>[Alternate Page for&nbsp;Resale Prospectus]</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: center"><B>USE OF PROCEEDS</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">We will not receive any proceeds from the sale
of common stock by the selling shareholders.</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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    <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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>[Alternate Page for&nbsp;Resale Prospectus]</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: center"><B>SELLING SHAREHOLDERS</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">The shares of common stock being offered by the
selling shareholders are those restricted shares previously issued to the selling shareholders. We are registering the shares in order
to permit the selling shareholders to offer the shares for resale from time to time. Except for the ownership of these shares, the selling
shareholders have not had any material relationship with us within the past three&nbsp;years and based on the information provided to
us by the selling shareholders, no selling shareholder is a broker-dealer or an affiliate of a broker-dealer.</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 below lists the selling shareholders
and other information regarding the ownership of the common stock by each of the selling shareholders. The second column lists the number
of shares of common stock owned by each selling shareholder. The third column lists the common stock being offered by this prospectus
by the selling shareholders. The fourth column assumes the sale of all of the shares of common stock offered by the selling shareholders
pursuant to 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"><U>The selling shareholders may sell all, some
or none of their shares in this offering. See &ldquo;<I>Plan of Distribution</I>.&rdquo;</U></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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Number
    of<BR>
    Shares of<BR>
    Common<BR>
    Stock<BR>
    Beneficially<BR>
    Owned<BR>
    Prior&nbsp;to&nbsp;this</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-bottom: 1.5pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Number<BR>
    of<BR>
    Shares<BR>
    Being</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Common
    Stock<BR>
    Beneficially&nbsp;Owned<BR>
    After&nbsp;this&nbsp;Offering</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Name
    of Selling Shareholder</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Offering</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Offered</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Shares</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Percent<SUP>(1)</SUP></B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: top">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD>&nbsp;</TD>
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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>Explanatory Note</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">Shares issued to certain investors in connection
with the restructuring of the Company and received pursuant to that certain exchange agreement executed by HOC and the investors (the
&ldquo;Exchange Shares) will be subject to the following: [&#9679;] shares of the Company representing sixty percent (60%) of the Exchange
Shares shall immediately become eligible to enter the public float of the Company&rsquo;s shares upon issuance. On [&#9679;], which is
the date that is six months following the effective date of this registration statement, [&#9679;] of the Company&rsquo;s shares representing
twenty percent (20%) of the Exchange Shares shall become eligible to enter the public float of the Company. On [&#9679;], which is the
date that is nine months following the effective date of this registration statement, [&#9679;] of the Company&rsquo;s shares representing
twenty percent (20%) of the Exchange Shares shall become eligible to enter the public float of the Company, after which all of the Exchange
Shares shall have entered the public float.</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>[Alternate Page for&nbsp;Resale Prospectus]</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: center"><B>PLAN OF DISTRIBUTION</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">Each selling shareholder and any of their pledgees,
assignees and successors-in-interest may, from time to time, sell any or all of their shares covered hereby on any stock exchange, market
or trading facility on which the shares of common stock are traded or in private transactions. These sales will occur at a fixed price
of $ per share until our ordinary shares are listed on a national securities exchange. Thereafter, these sales will occur at fixed prices,
at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. A selling shareholder
may use any one or more of the following methods when selling the shares:</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: top">
    <TD STYLE="width: 0.25in">&nbsp;</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">ordinary brokerage transactions and transactions
    in which the broker-dealer solicits purchasers;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">block trades in which the broker-dealer
    will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">purchases by a broker-dealer as principal
    and resale by the broker-dealer for its account;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an exchange distribution in accordance with
    the rules of the applicable exchange;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">privately negotiated transactions;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">settlement of short sales;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">in transactions through broker-dealers that
    agree with the selling shareholders to sell a specified number of such securities at a stipulated price per security;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">through the writing or settlement of options
    or other hedging transactions, whether through an options exchange or otherwise;</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a combination of any such methods of sale;
    or</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>&nbsp;</TD>
    <TD>&#9679;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">any other method permitted pursuant to applicable
    law.</FONT></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; text-align: justify">The selling shareholders may also sell shares
under Rule&nbsp;144 of the Securities Act, if available, rather than under this prospectus. The selling shareholders shall have the sole
and absolute discretion not to accept any purchase offer or make any sale of shares if it deems the purchase price to be unsatisfactory
at any particular time.</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 shareholders or their respective
pledgees, donees, transferees or other successors in interest, may also sell the shares directly to market makers acting as principals
and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may receive compensation in the form of
discounts, concessions or commissions from the selling shareholders and/or the purchasers of shares for whom such broker-dealers may
act as agents or to whom they sell as principal or both, which compensation as to a particular broker-dealer might be in excess of customary
commissions. Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk. It is possible
that a selling shareholder will attempt to sell shares in block transactions to market makers or other purchasers at a price per share
which may be below the then existing market price. We cannot assure that all or any of the shares offered in this prospectus will be
issued to, or sold by, the selling shareholders. The selling shareholders and any brokers, dealers or agents, upon effecting the sale
of any of the shares offered in this prospectus, may be deemed to be &ldquo;underwriters&rdquo; as that term is defined under the Securities
Act, the Exchange&nbsp;Act and the rules and regulations of such acts. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts 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">We are required to pay all fees and expenses
incident to the registration of the shares, including fees and disbursements of counsel to the selling shareholders, but excluding brokerage
commissions or underwriter discounts.</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 shareholders, alternatively, may
sell all or any part of the shares offered in this prospectus through an underwriter. The selling shareholders have not entered into
any agreement with a prospective underwriter and there is no assurance that any such agreement will be entered into.</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>[Alternate Page for&nbsp;Resale Prospectus]</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">The selling shareholders may pledge their shares
to their brokers under the margin provisions of customer agreements. If a selling shareholder defaults on a margin loan, the broker may,
from time to time, offer and sell the pledged shares. The selling shareholders and any other persons participating in the sale or distribution
of the shares will be subject to applicable provisions of the Exchange&nbsp;Act, and the rules and regulations under such act, including,
without limitation, Regulation&nbsp;M.&nbsp;These provisions may restrict certain activities of, and limit the timing of purchases and
sales of any of the shares by, the selling shareholders or any other such person. In the event that any of the selling shareholders are
deemed an affiliated purchaser or distribution participant within the meaning of Regulation&nbsp;M, then the selling shareholders will
not be permitted to engage in short sales of common shares. Furthermore, under Regulation&nbsp;M, persons engaged in a distribution of
securities are prohibited from simultaneously engaging in market making and certain other activities with respect to such securities
for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition,
if a short sale is deemed to be a stabilizing activity, then the selling shareholders will not be permitted to engage in a short sale
of our shares. All of these limitations may affect the marketability of the shares.</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 a selling shareholder notifies us that it
has a material arrangement with a broker-dealer for the resale of the shares, then we would be required to amend the registration statement
of which this prospectus is a part, and file a prospectus supplement to describe the agreements between the selling shareholder and the
broker-dealer.</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>[Alternate Page for&nbsp;Resale Prospectus]</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: center"><B>LEGAL MATTERS</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">The validity of the securities offered, shares
of common stock, covered by this prospectus will be passed upon by Lucosky Brookman LLP.</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: center"></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"><B>PART II</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>INFORMATION NOT REQUIRED IN THE PROSPECTUS</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>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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth the costs and
expenses, other than underwriting discounts and commissions, payable by us in connection with the sale of common stock being registered.
All amounts, other than the SEC registration fee, NASDAQ listing fee and FINRA filing fee, are estimates. We will pay all these expenses.</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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Amount</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 89%"><FONT STYLE="font-family: Times New Roman, Times, Serif">SEC registration fee</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 8%; text-align: right">2,893.59</TD>
    <TD STYLE="width: 1%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">NASDAQ listing fee</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">FINRA filing fee</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounting fees and expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Legal fees and expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Transfer agent fees and expenses</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Printing and related fees</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Miscellaneous</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">*</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2,893.59</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></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-family: Times New Roman, Times, Serif">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            be filed by amendment.</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"><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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 102 of the General Corporation Law of
the State of Delaware (the &ldquo;DGCL&rdquo;) permits a corporation to eliminate the personal liability of directors of a corporation
to the corporation or its shareholders for monetary damages for a breach of fiduciary duty as a director, except where the director breached
his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment
of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our certificate
of incorporation provides that none of our directors shall be personally liable to us or our shareholders for monetary damages for any
breach of fiduciary duty as a director, notwithstanding any provision of law imposing such liability, except to the extent that the DGCL
prohibits the elimination or limitation of liability of directors for breaches of fiduciary duty.</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">Section 145 of the DGCL provides that a corporation
has the power to indemnify a director, officer, employee, agent of the corporation or a person serving at the request of the corporation
for another corporation, partnership, joint venture, trust or other enterprise in related capacities against expenses (including attorneys&rsquo;
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with an action, suit
or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed action, suit or
proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his conduct was
unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be made with respect
to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the
extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability.</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">Our Certificate of Incorporation and our Bylaws
provide for indemnification of our directors and officers. Our Bylaws provide that we will indemnify any person who was or is a party
or threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative
(other than an action by or in the right of the corporation) by reason of the fact that such person is or was a legal representative,
director, officer or employee or agent of our company, against expenses (including attorney&rsquo;s 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 our company, and
with respect to any criminal action or proceeding, had no reasonable cause to believe such person&rsquo;s conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent will
not, without more, create a presumption that the person did not act in good faith and in a manner which such person reasonably believed
to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his 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"><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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the past three years, we issued the following
securities, which were not registered 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">The Company completed a Regulation Crowdfunding
offering (&ldquo;Offering&rdquo;) under Section 4(a)(6) which provided an exemption from registration for certain crowdfunding transactions.
The company filed its Offering statement on Form C through the EDGAR system and with Title3Funds.com as intermediary.</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 Offering is for up to a maximum of $5,000,000
at a price of $1.40 per share with an offering deadline of Dec 31, 2023. The securities purchased in this Offering are subject to a number
of restrictions including a restriction on resale for a period of one year.</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 December 10, 2020, the Company entered into
a licensing agreement with Hemptown Organics Corp. (the &ldquo;licensor&rdquo;) to use the Hemptown Naturals brand (the &ldquo;asset&rdquo;)
on a non-exclusive, non-transferable basis for a period of 4 years. In return, 40,000,000 common shares were issued to the licensor at
$0.001 per share with deemed proceeds of $40,000 as consideration.&nbsp; &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: 0pt 0; text-align: justify"><B>Item 16. Exhibits</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">(a) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;&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="border-bottom: Black 1.5pt solid; width: 9%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Exhibit
    No.</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 89%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Description</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.1**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form of Underwriting Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.1**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Articles of Incorporation</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.2*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex3-2_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amended and Restated Articles of Incorporation</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3.3**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bylaws of Functional Brands Inc. </FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">4.1**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Form of Representative&rsquo;s Warrant (included
    in Exhibit 1.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">5.1**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Opinion of Lucosky Brookman LLP as to the
    legality of the shares</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.1*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-1_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">License Agreement, dated July 7, 2021, between
    Trailer Park Boys Incorporated and Hemptown Organics Corp.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.2*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-2_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amendment to the License Agreement, dated
    August 16, 2023, between Trailer Park Boys Incorporated and Hemptown Organics Corp.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.3*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-3_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Agreement, dated January 20, 2023, between
    HS Wholesale and Hemptown Naturals, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.4*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-4_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Asset Purchase Agreement dated June 28,
    2019</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.5*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-5_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amendment No. 1 to the Asset Purchase Agreement
    dated November 30, 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.6*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-6_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amendment No. 2 to the Asset Purchase Agreement
    dated May 16, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.7*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-7_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trademark Assignment Agreement dated July
    11, 2019</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.8*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-8_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Domain Names Transfer Agreement dated July
    11, 2019</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.9*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-9_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Assignment of Intangible Assets dated July
    11, 2019</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.10*</FONT></TD>
    <TD STYLE="text-align: justify"></TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-10_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Forbearance Agreement dated July 23, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.11*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-11_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">First Amended Forbearance Agreement dated
    December [&nbsp;&nbsp;&nbsp;], 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.12*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-12_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Employment Agreement, dated April 1, 2023,
    between HTO Holdings Inc., Functional Brands Inc. and Hemptown Organics Corp., and Eric Gripentrog</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.13*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex10-13_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Employment Agreement, dated April 1, 2023,
    between HTO Holdings Inc., Functional Brands Inc. and Hemptown Organics Corp., and Tariq Rahim</FONT></A></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.14*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-14_function.htm"><FONT STYLE="font-size: 10pt">ISO Certification - Purity Labs</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.15*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-15_function.htm"><FONT STYLE="font-size: 10pt">Kirkman Certification validation from Purity</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.16*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-16_function.htm"><FONT STYLE="font-size: 10pt">Testing Standards - The Forum</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.17*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-17_function.htm"><FONT STYLE="font-size: 10pt">Schedule A to the Asset Purchase Agreement (Warranty Bill of Sale)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.18*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-18_function.htm"><FONT STYLE="font-size: 10pt">iHerb Inc agreement - Kirkman</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.19*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-19_function.htm"><FONT STYLE="font-size: 10pt">Amendment to License Agreement with the Trailer Park Boys 9/24/2024</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.20*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><A HREF="ea022699701ex10-20_function.htm"><FONT STYLE="font-size: 10pt">Fourth Amended Forbearance</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.21*</FONT></TD>
    <TD></TD>
    <TD><A HREF="ea022699701ex10-21_function.htm"><FONT STYLE="font-size: 10pt">Conf of Judgement</FONT></A></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif">23.1*</FONT></TD>
    <TD STYLE="text-align: justify; width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 89%"><A HREF="ea022699701ex23-1_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consent of TAAD CPA PC</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">23.2**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consent of&nbsp;Lucosky Brookman LLP (included
    in Exhibit 5.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">24.1*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="#toc">Power of Attorney (included
    on the signature page of this registration statement)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">97.1**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Executive Compensation Clawback Policy</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">99.1**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Audit Committee Charter</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">99.2**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Compensation Committee Charter</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">99.3**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nominating and Corporate Governance Committee
    Charter</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">99.4**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consent of [&#9679;] as Director Nominee</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">99.5**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consent of [&#9679;] as Director Nominee</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">99.6**</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Consent of [&#9679;] as Director Nominee</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">107*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022699701ex-fee_function.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif">Filing Fee Table</FONT></A></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="text-align: left; width: 0.35in">*</TD><TD STYLE="text-align: justify">Filed herewith.</TD>
</TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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: 0.35in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">**</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
                                            be filed by amendment.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b) Financial Statement Schedules.</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 financial statement schedules are omitted
because the information called for is not required or is shown either in the financial statements or in the notes thereto.</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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned registrant hereby undertakes
to provide to the Underwriter at the closing specified in the underwriting agreement, certificates in such denominations and registered
in such names as required by the Underwriter to permit prompt delivery to each purchaser.</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">Insofar as indemnification for liabilities arising
under the Securities Act 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 SEC such indemnification is against public policy
as expressed in the Securities Act 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 and will be governed by the final adjudication of such issue.</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 undersigned registrant hereby undertakes
that:</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: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
                                            purposes of determining any liability under the Securities Act, the information omitted from
                                            the form of prospectus filed as part of this registration statement in reliance upon Rule
                                            430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1)
                                            or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration
                                            statement as of the time it was declared effective.</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 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: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
                                            purposes of determining any liability under the Securities Act, each post-effective amendment
                                            that contains a form of prospectus 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; 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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    <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">&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, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized on January 8, 2025.</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>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Functional Brands Inc.</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 37%">&nbsp;</TD>
    <TD STYLE="width: 60%">&nbsp;</TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/ Eric Gripentrog</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Eric Gripentrog</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Executive Officer</P></TD>
    <TD>&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: center"><B><A NAME="toc"></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">Each person whose signature appears below constitutes
and appoints Eric Gripentrog as his or her true and lawful attorneys-in-fact and agents with full power of substitution and resubstituting,
for him and his name, place stead, in any and all capacities, to sign any or all amendments (including post-effective amendments) to
this registration statement and to file a new registration statement under Rule 461, and to file the same, with all exhibits thereto,
and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents
full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the foregoing,
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 their substitutes, may lawfully do or cause to be done 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 and on the dates indicated.</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>
    <TD STYLE="vertical-align: bottom; width: 34%; border-bottom: black 1.5pt solid"><B>SIGNATURE</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 47%; border-bottom: black 1.5pt solid; text-align: center"><B>TITLE</B></TD>
    <TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 17%; border-bottom: black 1.5pt solid; text-align: center"><B>DATE</B></TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: black 1.5pt solid">/s/ Eric Gripentrog</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">January 8, 2025</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">Eric Gripentrog</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: black 1.5pt solid">/s/ Tariq Rahim</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">January 8, 2025</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">Tariq Rahim</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  </TABLE>

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






























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{"company-data": {"conformed-name": "Functional Brands Inc.", "cik": "0001837254", "assigned-sic": "2833", "organization-name": "03 Life Sciences", "irs-number": "854094332", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-284180", "film-number": "25519197"}, "business-address": {"street1": "8605 SANTA MONICA BLVD", "city": "WEST HOLLYWOOD", "state": "CA", "zip": "90069", "phone": "7789383367"}, "mail-address": {"street1": "8605 SANTA MONICA BLVD", "city": "WEST HOLLYWOOD", "state": "CA", "zip": "90069"}, "former-company": {"former-conformed-name": "HT Naturals Corp.", "date-changed": "20201218"}}
As filed with the Securities and Exchange Commission
on January 8, 2025.
Registration No. 333-
[●]
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
FUNCTIONAL
                                            BRANDS INC.
(formerly HT Naturals Inc.)
(Exact
    name of registrant as specified in its charter)
Delaware
325411
85-4094332
(State
                                            or other jurisdiction of
incorporation or organization)
(Primary
                                            Standard Industrial
Classification Code Number)
(I.R.S.
                                            Employer
Identification Number)
6400 SW Rosewood Street
Lake Oswego, Oregon 97035
(269) 579-2915
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
Eric Gripentrog
Chief Executive Officer
6400 SW Rosewood Street
Lake Oswego, Oregon 97035
(269) 579-2915
(Names, address, including zip code, and telephone
number, including area code, of agent for service)
Copies to:
Joseph
                                            M. Lucosky, Esq.
Scott E. Linsky, Esq.
Lucosky Brookman LLP
101 Wood Avenue South, 5
th
Floor
Woodbridge, NJ 08830
(732) 395-4400
M.
                                            Ali Panjwani, Esq.
Pryor Cashman LLP
7 Times Square
New York, NY 10036-6569
(212) 326-0820
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, 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, please 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, smaller reporting company, or an emerging growth company.
See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company,"
and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large
    accelerated filer
☐
Accelerated
    filer
☐
Non-accelerated filer
☒
Smaller
    reporting company
☒
Emerging
    growth company
☒
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for comply with any new or revised financial accounting
standards provided pursuant to Section 7(a)(2)(B) of 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 of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
EXPLANATORY NOTE
This registration statement contains two prospectuses,
as set forth below.
●
Public Offering Prospectus.
A prospectus to be used for the public offering of common stock through the underwriter named on the cover page of this prospectus,
    which we refer to as Public Offering Prospectus.
●
The Resale Prospectus.
A prospectus
    to be used for the resale by selling shareholders of [●] shares of common stock, which we refer to as the Resale Prospectus.
The Resale Prospectus is substantively identical
to the Public Offering Prospectus, except for the following principal points:
●
they contain different front and back
    covers;
●
they contain different Offering sections
    in the Prospectus Summary;
●
they contain different Use of Proceeds
    sections;
●
the Capitalization and Dilution sections
    are deleted from the Resale Prospectus;
●
a Selling Shareholders section is included
    in the Resale Prospectus;
●
the Underwriting section from the Public
    Offering Prospectus is deleted from the Resale Prospectus and a Plan of Distribution section is inserted in its place; and
●
the Legal Matters section in the Resale
    Prospectus deletes the reference to counsel for the underwriter.
The registrant has included in this registration
statement a set of alternate pages after the back cover page of the Public Offering Prospectus, which we refer to as the Alternate Pages,
to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus. The Public Offering Prospectus
will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale Prospectus will be substantively
identical to the Public Offering Prospectus except for the addition or substitution of the Alternate Pages and will be used for the resale
offering by the selling shareholders.
The information in this prospectus
is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange
Commission is effective. This prospectus is not an offer to sell these securities, and it is not soliciting offers to buy these securities
in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION,
DATED JANUARY 8, 2025
PRELIMINARY PROSPECTUS
FUNCTIONAL BRANDS INC.
[●] Shares of Common Stock
[●] Series A Warrants to Purchase
Shares of Common Stock
[●] Series B Warrants to Purchase
Shares of Common Stock
[●] Shares of Common Stock Underlying
the Series A Warrants and Series B Warrants
This is an initial public offering of our common
stock. We are offering [●] units (the "Units"), with each Unit consisting of one (1) share of common stock, par value
$0.00001 per share ("Common Stock"), a Series A warrant to purchase one (1) share of common stock (the "Series A Warrant"),
and a Series B warrant to purchase one (1) share of common stock (the "Series B Warrant" and, together with the Series A
Warrants, the "Warrants") based on an assumed offering price of $[●] per Unit. Each share of our common stock is being
sold together with a Series A Warrant to purchase one share of our common stock and a Series B Warrant to purchase one share of our common
stock. The shares of common stock and Warrants are immediately separable and will be issued separately in this offering but must be purchased
together in this offering.
Each Series A warrant will have an exercise price
equal to $[●] per share (100% of the assumed public offering price of $[●] per Unit), will be exercisable immediately and
will expire on the third anniversary of the original issuance date. Each Series B warrant will have an exercise price equal to $[●]
per share ([●]% of the assumed public offering price of $[●] per Unit), will be exercisable immediately and will expire on
the fifth anniversary of the original issuance date. The Units will not be certificated.
We currently estimate that the initial public
offering price will be between $4.00 and $5.00 per share of common stock.
Currently, there is no public market for our
common stock. We intend to apply to list our common stock on the Nasdaq Capital Market ("NASDAQ"), under the symbol "FBIC".
We cannot guarantee that our common stock will be approved for listing on NASDAQ and if our common stock is not approved for listing
on NASDAQ, we will not consummate this offering.
We do not intend to apply for the listing of
the Warrants on any national securities exchange or other trading market, and we do not believe any such market will develop. Therefore,
the liquidity of the Warrants will be limited and should be considered illiquid. The Units have no stand-alone rights and will not be
issued as stand-alone securities. The assumed offering price and related share numbers used throughout this prospectus has been included
for illustration purposes only. The actual offering price may differ materially from the assumed price used in the prospectus and will
be determined by negotiations between us and the representative of the underwriters and may not be indicative of prices that will prevail
in the trading market.
This offering also relates to the shares of Common
Stock issuable upon exercise of the Warrants sold in this offering. The shares of Common Stock can each be purchased in this offering
only with the accompanying Warrants (other than pursuant to the underwriters' warrant to purchase additional shares of Common Stock
as part of the Units).
After completion of this offering, public investors
in the offering will own approximately [●]% of our outstanding shares of common stock, and approximately [●]% of our outstanding
shares of common stock will be owned by Hemptown Organics Corp, a British Columbia, Canada corporation ("HOC"). Accordingly,
we are a "controlled company" under NASDAQ corporate governance rules and are eligible for certain exemptions from these
rules, though we do not intend to rely on any such exemptions.  See "
Risk Factors – We will be a 'controlled
company' within the meaning of the listing rules of NASDAQ and, as a result, can rely on exemptions from certain corporate governance
requirements that provide protection to shareholders of other companies
" on page 32 for more information.
We are an "emerging growth company"
as that term is defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and, as such, have elected to take advantage
of certain reduced public company reporting requirements for this prospectus and future filings.
Investing in our common stock involves a high
degree of risk. See the section of this prospectus entitled "Risk Factors" beginning on page 13 for a discussion of information
that should be considered in connection with an investment in our common stock.
Neither the United States 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.
PER UNIT
TOTAL
(4)
Initial public offering price
(1)
$
$
Underwriting discounts and commissions
(2)
$
$
Proceeds, before expenses, to us
(3)
$
$
(1)
The assumed initial public offering price
    is $4.50 per unit, which is the midpoint of the range set forth on the cover page of this prospectus.
(2)
We have agreed to pay the underwriter a
    discount equal to 8% of the gross proceeds of the offering. We have agreed to issue to the Representative, on the applicable closing
    date of this offering, warrants in an amount equal to 6% of the aggregate number of shares of common stock sold by us in this offering
    (the "Representative's Warrants") (not including over-allotment shares). For a description of other terms of the
    Representative's Warrants and a description of the other compensation to be received by the Underwriter, see "Underwriting"
    section herein beginning on page 96.
(3)
Excludes fees and expenses payable to the
    Underwriter. The total amount of Underwriter's expenses related to this offering is set forth in the section entitled "Underwriting."
(4)
Assumes that the Underwriter does not exercise
    any portion of its over-allotment option.
We expect our total cash expenses for this offering
(including cash expenses payable to our Underwriter for its out-of-pocket expenses) to be approximately $[●], exclusive of the
above discounts. In addition, we will pay additional items of value in connection with this offering that are viewed by the Financial
Industry Regulatory Authority, or FINRA, as underwriting compensation. These payments will further reduce the proceeds available to us
before expenses. See "Underwriting" beginning on page 96.
This offering is being conducted on a firm commitment
basis. Joseph Gunnar & Co., LLC (the "Underwriter") is obligated to take and pay for all of the shares of common stock
if any such shares of common stock are taken. We have granted the Underwriter an option for a period of 45 days after the closing of
this offering to purchase up to 15% of the total number of our shares of common stock offered by us pursuant to this offering (excluding
shares of common stock subject to this option), solely for the purpose of covering over-allotments, at the initial public offering price
less the underwriting discounts and commissions. If the Underwriter exercises its option in full, the total underwriting discounts and
commissions payable will be $[●] based on an assumed offering price of $[●] per unit, and the total gross proceeds to us,
before underwriting discounts and commissions expenses, will be $[●]. If we complete this offering, net proceeds will be delivered
to us on the applicable closing date.
The Underwriter expects to deliver the shares
of common stock against payment as set forth under the "Underwriting" section herein on or about [●], 2025.
JOSEPH GUNNAR & CO., LLC
Prospectus dated [●], 2025.
Page
Prospectus Summary
1
Risk Factors
13
Cautionary Statement Regarding
    Forward-Looking Statements
35
Use of Proceeds
36
Dividend Policy
37
Capitalization
37
Dilution
38
Management's Discussion
    and Analysis of Financial Condition and Results of Operations
39
Business
49
Management
80
Executive Compensation
84
Certain Relationships and
    Related Party Transactions
86
Principal Shareholders
87
Description of Securities
88
Shares Eligible for Future
    Sale
92
Material U.S. Federal Tax
    Considerations for Non-U.S. Holders of Our Common Stock
93
Underwriting
96
Legal Matters
100
Experts
100
Where You Can Find More
    Information
100
Please read this prospectus carefully. It
describes our business, financial condition, results of operations and prospects, among other things. We are responsible for the information
contained in this prospectus and in any free-writing prospectus we have authorized. Neither we nor the Underwriter has authorized anyone
to provide you with different information, and neither we nor the underwriter takes responsibility for any other information others may
give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction where the offer or sale is
not permitted. The information contained in this prospectus is accurate only as of the date on the front of this prospectus, regardless
of the time of delivery of this prospectus or any sale of securities. You should not assume that the information contained in this prospectus
is accurate as of any date other than its date.
TRADEMARKS, TRADE NAMES AND SERVICE MARKS
We use various trademarks, trade names and service
marks in our business, including "
Biofilm Defense," "Flura," "Isogest;" "HempTown,"
"Nu-Thera," "HT Naturals," "HempTown Naturals," "Ultra Tested," "Functional Brands,"
and "Kirkman
," among others. For convenience, we may not include the SM,
®
or
™
symbols,
but such omission is not meant to indicate that we would not protect our intellectual property rights to the fullest extent allowed by
law. Any other trademarks, trade names or service marks referred to in this prospectus are the property of their respective owners.
INDUSTRY AND MARKET DATA
This prospectus includes industry data and forecasts
that we obtained from industry publications and surveys, as well as public filings and internal company sources. Industry publications,
surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable,
but there can be no assurance as to the accuracy or completeness of the included information. Statements as to our ranking, market position
and market estimates are based on management's estimates and assumptions about our markets and our internal research. We have not
independently verified such third-party information, nor have we ascertained the underlying economic assumptions relied upon in those
sources, and we cannot assure you of the accuracy or completeness of such information contained in this prospectus. Such data involves
risks and uncertainties and is subject to change based on various factors, including those discussed under "Risk Factors"
and "Cautionary Statement Regarding Forward-Looking Statements."
i
PROSPECTUS SUMMARY
This summary highlights selected information
contained elsewhere in this prospectus. This summary is not complete and does not contain all of the information that you should consider
before deciding whether to invest in our securities. You should carefully read the entire prospectus, including the risks associated
with an investment in our company discussed in the "Risk Factors" section of this prospectus, before making an investment
decision. Some of the statements in this prospectus are forward-looking statements. See the section titled "Cautionary Statement
Regarding Forward-Looking Statements."
Our company consists of two primary legal
entities: Functional Brands Inc. (formerly HT Naturals Inc.), a Delaware corporation ("Functional Brands") and HTO Nevada
Inc., a Delaware corporation dba Kirkman ("HTO Nevada") HTO Nevada was acquired by Functional Brands through a corporate
restructuring consummated on May 19, 2023. Functional Brands is a 72% subsidiary owned by Hemptown Organics Corp., a British Columbia
corporation ("HOC"). The percentage of ownership held by HOC in Functional Brands is calculated by dividing the total amount
of shares of Functional Brands owned by HOC by the total amount of outstanding shares of Functional brands as a result of certain transactions
conducted between the entities and described further in this prospectus. HTO Nevada operates in the nutraceutical and supplement industry
through the Kirkman entities as a manufacturer and distributor of health supplements in different categories further described in this
prospectus. Functional Brands Inc. operates certain hemp derived products in different categories further described in this prospectus.
HOC is a holding company with various interests in nutraceutical manufacturing and federally legal industrial hemp products, HOC owns
intellectual property, including brands and pending trademarks, as well as other intangible assets, such as "Hemptown", "Hemptown
USA" Brand and logo pending trademark. Functional Brands has a perpetual license to use and operate the HOC brand and logo. In
this prospectus, "Functional Brands," "HempTown," "HTO Nevada Inc," "Kirkman," "we,"
"us," "our," "our company" and similar references refer to Functional Brands Inc.
OUR COMPANY
Overview
Our company operates in the nutraceutical supplement
industry. We are a manufacturer and distributor of supplements in categories such as pain, energy, prenatal, general health, bone and
joint, gastro, immunity, cardiac, detox, brain and memory, sleep, prenatal and urinary. Our end markets focus on end-consumers through
different channels that include pharmacies, US wholesalers, international distributors and direct-to-consumers sales. Our products are
sold over the counter and consumers do not need a prescription to purchase our products. Our products are not approved by the FDA. Our
company also operates in the hemp industry as a retailer of hemp derived products in categories such as capsules, cigarettes, gummies,
and tinctures with a commercial end market, and end-consumers.
Functional Brands is a super majority owned subsidiary
of HOC, a privately held British Columbia corporation. Incorporated as HT Naturals Inc. in November 2020, the Company changed its name
to Functional Brands Inc. on March 22, 2023. The Company aims to deliver the highest quality and innovative products under multiple brands.
Kirkman, P2i by Kirkman Prenatal, HempTown Naturals and Golf Mellow are current brands in the market or prepared to be launched in the
market.
Our Products
Kirkman Brand
Our products under our "Kirkman"
brand are manufactured in our cGMP certified, FDA registered manufacturing facility located in Lake Oswego, Oregon. Kirkman is a manufacturer
of nutritional supplements. Founded in 1949, Kirkman is also one of the oldest nutritional supplement companies serving the special needs
community.
Our Kirkman brand offers more than 150 products,
including probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, preconception,
prenatal supplements, personal care products and other specialty products. Kirkman treats patients with autism spectrum disorders and
special dietary needs through an established network of over 2,000 doctors in over 40 countries. Our Kirkman brand operates in 95% of
the major subsegments in the supplement industry. Kirkman has a long-standing loyal customer and consumer base due to the rigorous testing
of products in compliance with FDA requirements. Kirkman has been endorsed by various businesses and celebrities, including the famous
and original Shark Tank member, Kevin Harrington.
Digestive enzymes
: Over the counter oral
digestive enzyme supplements are a combination of proteases, which aid protein digestion; lipases, which aid in fat digestion; and amylases,
which aid in carbohydrate digestion. These may be prescribed by a doctor in some cases, when the pancreas does not make enough digestive
enzymes on its own. People are increasingly taking over the counter ("OTC") digestive enzymes in lower doses to support general
gut health.
Essential fatty acids
: Also called omega-3
fatty acids, essential fatty acids are important digestive chemicals that the body cannot make on its own.
1
Our products under the Kirkman Brand include,
but are not limited to, the following:
●
Supplements for Autism;
●
Essential Fatty Acids;
●
Oxytocin;
●
Vitamin B12;
●
Vitamin B6 and Magnesium;
●
Glutathione;
●
Melatonin;
●
Functional Mushrooms;
●
Probiotics;
●
Multivitamins and Minerals;
●
Digestive Enzymes;
●
Antioxidants; and
●
Amino Acids.
P2i (prenatal) Brand
We have recently launched a certified prenatal
vitamin in April 2024 for expectant mothers under the P2i by Kirkman brand. These vitamins have been specially formulated by our company
to provide essential nutrients for both the mother and the developing fetus. The International Federation of Gynecology and Obstetrics
("FIGO") published a position statement about toxic chemicals and environmental contaminants in prenatal vitamins. FIGO's
recommendation from the October 2023 position statement highlights that patients should only consume, and clinicians should only prescribe,
vitamins and supplements that have been independently assessed to make certain they do not contain contaminants. Manufacturers should
be held to a standard of production that assures safety and minimizes contaminants and certification of all prenatal vitamins becomes
the standard of care. The FIGO Committee report on Climate Change and Toxic Environmental Exposures brought together global scientists
to review reputable reference sources for chemicals that have the potential to impact maternal and newborn health, including the USA
Environmental Protection Agency, the European Union, and the California EPA.
The group of experts recommended several approaches,
including:
1.
creating a list of toxic chemicals
                                            and contaminants that should be screened for in Prenatal Vitamins and reduced to de minimis
                                            standards; and
2.
conducting assays of existing
                                            vitamins to assess ongoing risk to maternal and newborn health. This work can extend to personal
                                            exposure risk by offering women testing for the presence of potentially toxic environmental
                                            chemicals. Mass Spectrometry currently offers the most comprehensive measurement.
This first publication of a list of toxic chemicals
and contaminants represents the most comprehensive testing available at present but does not purport to identify or eliminate all potential
sources of toxicity.
We are currently the only certified prenatal
vitamin in the market that aligns to the FIGO position statement. We have formulated and produced a prenatal vitamin called P2i by Kirkman.
There are 3.6M pregnancies alone in the United States (https://www.cdc.gov/nchs/fastats/births.htm) and the initial market focus for
this product will be the United States with the expectation to expand globally since FIGO's position statement reaches all countries.
The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.
●
The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM's low-toxicity standards, which align with FIGO's objectives for maternal
                                            and fetal health. These standards include:
o
Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds
o
Testing for the presence of 120
                                            toxic chemicals, such as pesticides and endocrine disruptors, with strict limits to prevent
                                            potential harm
o
Utilization of ISO 17025-accredited
                                            laboratories for all testing to ensure reliability and reproducibility of results
●
Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product's compliance with The FORUM's criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman's prenatal vitamin meets
                                            its standards for low toxicity and safety.
2
HempTown Naturals Brand
All HempTown Naturals products are produced and
sold in compliance with the US 2018 Farm Bill and the US Agricultural Act of 2014. CBD and CBG are cannabinoids present in the cannabis
plant. Both CBD and CBG are used in hemp derived products. These products are believed to help in treating certain neurodegenerative
and inflammatory conditions.
1
CBD
CBD, or cannabidiol, is the second most prevalent
ingredient in cannabis. While CBD is an integral component of medical marijuana, it is derived directly from the hemp plant, both of
which are the same species: Cannabis sativa L. One of the hundreds of components of Cannabis sativa L., CBD does not cause a "high"
by itself. According to a report from the World Health Organization, "In humans, CBD exhibits no effects indicative of any abuse
or dependence potential…. To date, there is no evidence of public health related products associated with the use of pure CBD."
2
As reported by Forbes Health, CBD is applied
topically or consumed through smoke inhalation or edible consumption. CBD interacts with neuroreceptors in your endocannabinoid system,
which sends signals between your cells to help regulate your movement, mood, homeostasis, and immune system. Different studies have shown
that CBD can offset everyday anxiety and depression.
3
CBG
CBG, or cannabigerol, is another compound found
in hemp which doesn't have intoxicatingly psychoactive effects. CBG, often referred to by experts as "the mother of all cannabinoids,"
is the cannabinoid from which other types of cannabinoids (including CBD) are derived, says Michelle Sexton, a naturopathic doctor who
works at the Pain Trauma Institute in San Diego. "CBG is the first compound in the biosynthesis (the production of chemical compounds
by a living organism) of the other cannabinoids," she adds.
CBG is available in many forms, including tinctures,
gummies, capsules and topical creams and lotions. CBG is often coupled with CBD in these products because the two cannabinoids can provide
complimentary benefits, such as decreasing inflammation and pain, says Fraser Smith, a naturopathic doctor, as well as assistant dean
and associate professor at the National University of Health Services in Lombard, Illinois. CBD and CBG occur naturally in hemp extract
which is the source of our cannabinoids.
4
Golf Mellow Brand
The Company has utilized existing product formulations
with plans to introduce 12 different products under the Golf Mellow brand. A brand logo and packaging has been created to support the
existing formulations. These supplements will be targeting the golf industry and golf professionals. These products include capsules,
a powder, a cream and tinctures to help golfers of all levels improve their game and overall well-being. The capsules are packed with
a blend of essential vitamins and minerals that support joint health, flexibility, and energy levels. The tinctures are made from all-natural
ingredients and provide a quick and easy way to support focus and mental clarity, helping athletes stay in the zone and make the perfect
shot. The creams are specially designed to provide targeted relief for sore muscles and joints, helping them stay comfortable and focused
on the course. Some of these products include Sleep Caps to ensure that players are well rested the night before, Super B12 Powder which
provides the energy needed for the perfect round, Calm Caps which help manage anxiety when players need it most, and Epsom Salt Cream
& Recovery Caps, which aids with recovery. Once we receive a purchase order, we will package the products to fulfill the respective
order.
According to data from the National Golf Foundation
25.1 million people (aged six and over) played on a golf course in the United States in 2021 – furthermore there were another 12.4
million people who took part in off-course activities like driving ranges, indoor golf simulators or venues like Topgolf and Drive Shack.
5
1
https://www.medicalnewstoday.com/articles/cgb-vs-cbd
2
www.health.harvard.edu
3
www.forbes.com/health/body/cbd-oil-benefits/
4
www.forbes.com/health/body/cannabigerol-cbg/
5
https://www.golfmonthly.com/news/how-many-golfers-are-there-in-the-united-states
3
Competitive Strengths
The Kirkman brand has been in business for over
70 years with a loyal consumer base and we believe that we maintain high purity and quality standards in the industry. We source all
materials from high quality suppliers. We test finished goods in certified laboratories with state-of-the-art equipment and manufacture
our supplements in US-based cGMP certified and FDA registered facility located in Lake Oswego, Oregon. The FDA requires that we conduct
at least one appropriate test or examination to verify and identify any component that is a dietary ingredient. We conduct ingredient
testing by verifying the identity through ISO certified 3rd party laboratories. We also test for residual solvents and pesticides (where
applicable), presence of up to 24 heavy metals and microbial contamination that could lead to illness or death. Microbial tests can include,
but are not limited to, aerobic plate count, yeast & mold, coliforms, E. coli, pseudomonas, staphylococcus aureus, Bile Tolerant
gram negative, Salmonella, Aflatoxins and listeria. Heavy metals testing includes beryllium, aluminum, vanadium, chromium, manganese,
cobalt, nickel, copper, zinc, arsenic, selenium, molybdenum, palladium, silver, cadmium, tin, antimony, barium, tungsten, platinum, thallium,
lead, uranium and mercury. For incoming raw ingredients, we ID using the following methods: Botanicals – HPLC (High Pressure Liquid
Chromatography) or TLC (Thin Layer Chromatography), or an approved Chemical test; Vitamins – IR (Infrared) absorption, Chemical
test, UV (Ultraviolet) absorption, UV fluorescence, GC (Gas Chromatography), HPLC; Minerals – ICP-MS (Inductively Coupled Plasmas
– Mass Spectroscopy), IR (Infrared), Chemical tests, TLC (Thin Layer Chromatography); Enzymes – HPLC (High Pressure Liquid
Chromatography), PCR (Polymerase Chain Reaction); Amino Acids – IR absorption, Optical Rotation, HPLC, TLC, GC (Gas Chromatography),
Assay; Probiotics – PCR and HPLC; Metals – HPLC or ICP-MS; Micros – Cell culture and cell identification. The FDA requires
that a finished batch of the dietary supplement meets product specifications for identity, purity, strength, composition, and for limits
on those types of contamination that may adulterate or that may lead to adulteration of the finished batch of the dietary supplement.
This can be conducted for a subset of finished dietary supplement batches through a sound statistical sampling plan (or for every finished
batch). For our business, we test every batch of products to ensure heavy metals are below Pop 65 limits. In addition, every batch is
tested for microbial contamination. Our 75+ year history in the industry, along with our rigorous material testing, allows Kirkman to
use statistical sampling to ensure the identity, purity and strength of each product is met. Our formulations use proprietary blends.
Although we are authorized to produce hemp derived products because we hold a hemp handler's license, we currently do not grow
any hemp, but we source our hemp derived products from registered growers in operation. The FDA does not require any testing on dietary
supplements whereas we test for approximately 90 metals and toxins in raw materials.
As stated elsewhere in this prospectus, we've
recently launched P2i by Kirkman prenatal vitamin, which is the only certified prenatal vitamin that aligns to FIGO's position
statement.
The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.
·
The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM's low-toxicity standards, which align with FIGO's objectives for maternal
                                            and fetal health. These standards include:
o
Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds
o
Testing for the presence of 120 toxic chemicals, such as pesticides
                                            and endocrine disruptors, with strict limits to prevent potential harm
o
Utilization of ISO 17025-accredited laboratories for all testing
                                            to ensure reliability and reproducibility of results
4
·
Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product's compliance with The FORUM's criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman's prenatal vitamin meets
                                            its standards for low toxicity and safety.
We have an exclusive license agreement with the
Trailer Park Boys to market & sell hemp derived products. There are two product categories that include Hemp Derived Delta 9 products.
This includes Delta 9 gummies and Delta 9 Drink Enhancers. These two specific products are intended for health and wellness, as well
as for recreational use. Both product categories comply with the 2018 Farm Bill where THC concentration does not exceed 0.3% on a dry
weight basis. The revenue of these two product categories represents .6% of total company revenue. We executed a license agreement with
the Trailer Park Boys which is in effect since July 21, 2021 and until December 31, 2024, under the license agreement as amended, the
Company will pay the Trailer Park Boys, an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of
the agreement and $150,000 to be paid during the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000
shares of the Company. The royalty rate under this agreement is between 15 - 30% of the gross sales of the company derived from sales
related to the license. To date, $425,000 has been paid to the Trailer towards the license agreement. The license agreement may be terminated
with reasonable cause upon six months' written notice or for certain triggering events without recourse or an opportunity to cure.
Growth Strategy
We aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products including mushroom-based supplements targeted for everyday use, prenatal, athletes and beyond.
We plan to do this by:
●
Strengthening our
    existing 70-year-old Kirkman brand with its established base of consumers in the autism community by curating our product mix to
    cater to their specific needs;
●
Launching multiple
    brands, broad as well as niche, including P2i by Kirkman which is the only certified prenatal vitamin supporting FIGO's October
    2023 position statement, to allow us to increase our market share;
●
Modernizing our
    manufacturing capabilities by reorganizing the space and introducing new and efficient machinery and equipment to significantly enhance
    our output;
●
Investing heavily
    into our sales and marketing activities as well as business development in order to increase sales and distribution; and
●
Identify key companies
    with synergistic strengths for partnerships or acquisitions.
Challenges, Risks and Limitations
Our ability to utilize our competitive advantages
in order to strengthen and expand our business and achieve our growth plan is subject to a number of risks and uncertainties more fully
discussed under "Risk Factors" in this Prospectus. As discussed in our financial statements, we have suffered recurring losses
from operations and have a significant accumulated deficit. In addition, we continue to experience negative cash flows from operations.
This limited working capital capability may delay or make the accomplishment of our growth plans difficult. In assessing the likelihood
of our future success, investors in this offering should note our history of losses and the likelihood of our operating profitably in
the future. Further, some of our products may be subject to uncertain and evolving federal, state, and local regulations concerning hemp,
CBD, CBG, and other non-tobacco consumable products. Because the type, timing, and impact of such regulations remain uncertain, we cannot
give any assurance that such actions will not have a material adverse effect on this emerging business and our strategy.
5
Our Corporate History and Structure
Functional Brands was organized under the General
Corporation Law in the state of Delaware on November 19, 2020, under the name HT Naturals Inc. HT Naturals Inc. changed its name to Functional
Brands Inc. on March 23, 2023. Our principal business is the production, marketing, sales, and distribution of nutraceutical products
through our Kirkman division, alongside our hemp derived products under the Hemptown brand in certain states within the United States
that permit such sales. We ship our Kirkman products to all US states. As for hemp derived products, we only sell to states which permit
this activity with certain restrictions, such as the content of THC, which differs depending on the state.
The states in which we have sold hemp derived
products in the past are Alabama, Arizona, Arkansas, California (D9 ingestible and CBD/CBG ingestible only), Colorado (CBD/CBG inhalable
only), Connecticut, Delaware (D9 ingestible), Florida, Georgia (D9 ingestible and CBD/CBG ingestible only), Hawaii (CBD/CBG ingestible
only), Illinois(D9 ingestible and CBD/CBG inhalable), Indiana (D9 ingestible only), Iowa (D9 ingestible only), Kansas, Kentucky (D9 ingestible
only), Louisiana, Maine (D9 ingestible and CBD/CBG inhalable), Maryland (CBD/CBG inhalable only), Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nevada, New Hampshire, New Jersey, New York (D9 and CBD/CBG ingestible only), North Carolina, North Dakota (CBD/CBG
ingestible only), Ohio, Oklahoma, Oregon (CBD/CBG ingestible only), Pennsylvania, Rhode Island, South Carolina, South Dakota (D9 ingestible
only), Tennessee (CBD/CBG inhalable only), Texas, Virgina (CBD/CBG ingestible and inhalable only), Washington (CBD/CBG Inhalable only),
West Virginia, Wisconsin, Wyoming. We have engaged specialized hemp counsel to provide regular updates on the 50 states and the legality
of our hemp products in each state. In addition, we have established and followed a standard of operating procedure (SOP) to ensure sales
do not occur in the states where hemp products may not be sold consistent with the regular updates provided by our hemp counsel. We have
an internal policy that prohibits us as a company and any of our executives, directors, employees, sales representatives, and distributors
from distributing any of the Company's hemp derived products in places in which the sale of hemp derived products is prohibited.
We are a 72% subsidiary of Hemptown Organics
Corp. ("HOC"), a British Columbia, Canada private operating holding company with various interests in nutraceutical manufacturing
and federally legal industrial hemp products. We were granted a licensing agreement by Hemptown Organics Corp. The licensing agreement,
dated December 10, 2020, provides Functional Brands Inc. as licensee, a license to use the Hemptown USA and Hemptown Naturals brand and
trademarks on a perpetual, non-exclusive, non-transferable basis, with no expiration date. The 72% ownership was calculated by dividing
the total number of shares of Functional Brands owned by HOC by the total number of outstanding shares of Functional brands, the figure
is the result of certain transactions conducted between the entities. HOC was issued 40,000,000 shares in connection with the license
agreement with Functional Brands Inc. (formerly HT Naturals) and 80,000,000 shares for the transfer of the Kirkman brand to Functional
Brands Inc. in May 2023, resulting in an amount equal to 120,000,000 shares. After these issuances, Hemptown Organics Corp. undertook
transactions to sell 32,000,000 of its shares of Functional Brands Inc., resulting in the total amount of 88,000,000 shares held in Functional
Brands. Therefore 88,000,000 divided by 122,000,000 (which is the total amount of outstanding shares of Functional Brands) is approximately
72%. This licensing agreement will transfer full ownership to Functional Brands upon the public offering and listing on the exchange,
at which time HOC will dividend out the majority of the Company's shares currently held by HOC.
On July 3, 2019, HTO Holdings Inc. ("HTO
Holdings") a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as "Purchaser"),
entered into an asset purchase agreement ("APA") for the net assets of Kirkman Group Inc. a Nevada corporation, Kirkman Laboratories
Inc., an Oregon corporation and Kirkman Group International, Inc. a Nevada corporation (collectively "Kirkman" or the "Seller,"
and together with Purchaser, the "Parties") for a consideration equal to $5 million with payout in a business combination
of cash and deferred consideration. The ''Seller'' is David Humphrey. Under the APA, Purchaser and HTO Holdings
were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021 by the Parties with the
purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment schedule of the deferred
consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and other agreements attached
to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement, the domain names transfer
agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively, the "IP Collateral
Agreements") to, among other things, provide additional collateral as security to Seller. Upon payment in full in cash of the deferred
consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that the security agreement and amended
intellectual property security agreement would be automatically terminated and be of no further force and effect; and (ii) Seller would,
at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective security agreement and intellectual
property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16, 2022, the APA was amended again by
the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral Agreements. On May 31, 2022,
Purchaser paid Seller certain amounts ("Immediate Payments"), and on July 23, 2022, Purchaser and Seller executed a forbearance
agreement ("Forbearance Agreement") to extend the payments due under the APA to August 31, 2022. After Purchaser's
default, and partial payment to Seller in September 2022, the Parties executed an amendment to the Forbearance Agreement on December
27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was $3,032,000 (the "Existing Default").
Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated September 24, 2024, where additional principal and
interest payments will continue. As of October 11, 2024, the balance owed to Seller is $2,412,366 and is due on January 1, 2025. We intend
to use a portion of the proceeds of the public offering to cover the payment of some of the Existing Default.
On September 24, 2024, the Company executed a
Forbearance Agreement which allows the postponement of principal payment. On the same date, the Company executed a Confession of Judgement
in respect of the principal owed.
6
As a part of our restructuring efforts, HTO Nevada,
formerly owned by HTO Holdings, was acquired by Functional Brands on May 19, 2023, through a share exchange agreement executed by HOC,
HTO Holdings and Functional Brands, in which HTO Holdings exchanged 1,000 restricted shares of common stock, par value $0.0001 per share
of HTO Nevada, being all of the issued and outstanding capital stock of HTO Nevada, in exchange for 80,000,000 restricted shares of common
stock of Functional Brands, $0.00001 par value per share (the "Functional Brands Shares") to HOC, such that, HTO Nevada shall
be a wholly-owned subsidiary of Functional Brands. The resulting entity, Functional Brands Inc., with its wholly owned subsidiary HTO
Nevada, will be the publicly listed entity. Our fiscal year-end is December 31.
Implications of Being an Emerging Growth Company
and a Smaller Reporting Company
Upon the completion of this offering, we will
qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act").
As a result, we will be 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 2002 (the "Sarbanes-Oxley
    Act");
●
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);
●
Submit certain executive
    compensation matters to shareholder advisory votes, such as "say-on-pay" and "say-on-frequency;" 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 of 1933, as amended (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 earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed
$1.235 billion, (ii) the date that we become 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 common stock that is held by non-affiliates
exceeds $700 million as of the last business day of our most recently completed second fiscal quarter, or (iii) the date on which we
have issued more than $1 billion in non-convertible debt during the preceding three year period.
To the extent that we continue to qualify as
a "smaller reporting company," as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended,
(the "Exchange Act"), after we cease to qualify as an emerging growth company, certain of the exemptions available to us
as an emerging growth company may continue to be available to us as a smaller reporting company, including: (i) not being required to
comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (ii) scaled executive compensation disclosures;
and (iii) the requirement to provide only two years of audited financial statements, instead of three years.
Corporate Information
We are currently incorporated and in good standing
in the State of Delaware. Our registered address is 6400 SW Rosewood Street, Lake Oswego, Oregon 97035 and our telephone number is (800)
245-8282. We maintain the following websites: https://functionalbrandsinc.com, https://kirkmangroup.com and https://hemptownnaturals.com.
Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus, and you should
not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether
to purchase our common stock.
NASDAQ Listing
We intend to list our common stock on NASDAQ.
There is no assurance that our listing application will be approved by NASDAQ. The approval of our listing on NASDAQ is a condition to
closing. If our application to NASDAQ is not approved or we otherwise determine that we will not be able to secure the listing of our
common stock on NASDAQ, we will not complete the offering.
7
THE OFFERING
Shares being offered:
[
                                              ] Units, with each Unit consisting of one share of Common Stock, one Series A
                                            Warrant to purchase one share of Common Stock and one Series B Warrant to purchase one share
                                            of Common Stock, at an estimated public offering price of $[●] per Unit (or [ ] Units
                                            if the representative of the underwriters exercises its over-allotment option in full).
The shares of Common Stock and the Warrants underlying
the Units are immediately separable and will be issued separately in this offering but must be purchased together as a Unit in this offering.
Each Series A Warrant issued in this offering
will have an exercise price of $[●] per whole share and will be exercisable from the initial issuance date until they expire on
the three-year anniversary of the original issuance date.
Each Series B Warrant issued in this offering will have an exercise price of $[●] per whole share and
will be exercisable from the initial issuance date until they expire on the five-year anniversary of the original issuance date.
Offering price:
We currently
                                            estimate that the initial public offering price will be $4.50 per Unit.
Shares outstanding
    immediately before the offering:
[●] shares of common
    stock.
Shares
    outstanding after the offering:
[●] shares
                                            of common stock (or [●] shares if the Underwriter exercises the over-allotment
                                            option in full) assuming no exercise of the Warrants.
Over-allotment option:
We have granted the
    Underwriter a 45-day option to purchase from us up to an additional 15% of the shares sold in the offering ([●] additional
    shares) at the initial public offering price, less the underwriting discounts and commissions.
Description of Warrants:
Each Series
                                    A Warrant will have an exercise price per share of [●] equal to 100% of the public offering
                                    price per Unit, will be exercisable immediately and will expire on the third anniversary of the original
                                    issuance date. Each Series A Warrant is exercisable for one share of Common Stock, subject to adjustment
                                    in the event of stock dividends, stock splits, stock combinations, reclassifications, reorganizations
                                    or similar events affecting our Common Stock as described herein.
Each Series B Warrant will have an exercise price
per share of [●] equal to [●]% of the public offering price per Unit, will be exercisable immediately and will expire on
the fifth anniversary of the original issuance date. Each Series A Warrant is exercisable for one share of Common Stock, subject to adjustment
in the event of stock dividends, stock splits, stock combinations, reclassifications, reorganizations or similar events affecting our
Common Stock as described herein.
Each holder of Warrants will be prohibited from
exercising its Warrant for shares of our Common Stock if, as a result of such exercise, the holder, together with its affiliates, would
own more than 4.99% of the total number of shares of our Common Stock then issued and outstanding. However, any holder may increase such
percentage to any other percentage not in excess of 9.99%. The terms of the Warrants will be governed by a Warrant Agent Agreement, dated
as of the effective date of this offering, between us and Endeavor Trust Corporation, as the warrant agent (the "Warrant Agent").
This offering also relates to the offering of
the shares of Common Stock issuable upon the exercise of the Warrants. For more information regarding the Warrants, you should carefully
read the section titled "Description of Securities Being Offered in This Offering" in this prospectus.
8
Representative's warrants:
We have
    agreed to issue to the representative of the Underwriter (the "Representative") warrants to purchase a number of shares
    of common stock equal to 6% of the total number of shares issued in this offering. The Representative's warrants will be exercisable
    at a per share exercise price equal to 100% of the public offering price per share of common stock sold in this offering. The Representative's
    warrants will be exercised at any time, and from time to time, in whole or in part, commencing from the closing of the offering and
    expiring five years from the effectiveness of the offering. The registration statement of which this prospectus forms a part also
    registers the issuance of the shares of common stock issuable upon exercise of the Representative's warrants. See the "
Underwriting
"
    section for more information.
Use of proceeds:
We expect to receive net proceeds of approximately $[ ] from this offering (or
    approximately $[ ] if the Underwriter exercises their over-allotment option in full), assuming an initial public offering price of $4.50 per
    Unit (which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this prospectus)
    and no exercise of the Underwriter' over-allotment option, and after deducting estimated underwriting discounts and commissions
    and estimated offering expenses payable by us. We plan to use 53% of the net proceeds of this offering to cover a deferred payment
    in connection with the Kirkman acquisition, which has a maturity date of January 1, 2025; 7% for marketing awareness; 14% to cover
    expenses associated with becoming a public company; and 26% for general corporate purposes and working capital. See "
Use
    of Proceeds
" section for more information on the use of proceeds.
Risk factors:
Investing in our common
    stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully
    consider the information set forth in the "
Risk Factors
" section beginning on page 13 before deciding to invest
    in our common stock.
Lock-up:
We, all of our directors
    and officers and all of our shareholders have agreed with the Underwriter, subject to certain exceptions, not to sell, transfer or
    dispose of, directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our
    common stock for a period of 180 days after the closing of this offering. See "
Underwriting
" for more information.
Proposed
    trading market and symbol:
We intend to apply
    to list our common stock on NASDAQ under the symbol "FBIC" We believe that upon the completion of this offering, we will
    meet the standards for listing on NASDAQ. The closing of this offering is contingent upon the successful listing of our common stock
    on NASDAQ.
The number of shares of common
                    stock outstanding immediately following this offering is based on [   ] shares outstanding as of [ 
                    ], 2025.
9
SUMMARY FINANCIAL INFORMATION
The following tables summarize certain financial
data regarding our business and should be read in conjunction with our financial statements and related notes contained elsewhere in
this prospectus and the information under "
Management's Discussion and Analysis of Financial Condition and Results of
Operations
."
Our summary financial data as of December 31,
2023, and 2022, are derived from our audited financial statements included elsewhere in this prospectus. All financial statements included
in this prospectus are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP").
The summary financial information is only a summary and should be read in conjunction with the historical financial statements and related
notes contained elsewhere herein. The financial statements contained elsewhere fully represent our financial condition and operations;
however, they are not indicative of our future performance.
Nine-month Period Ended
Years
    Ended
September
                                            30,
2024
(Unaudited)
September
                                            30,
2023
(Audited)
December
    31,
2023
December
                                            31,
2022
(Restated)
Statements of Operations Data
Net Revenue
$
4,886,331
$
5,268,405
$
6,820,499
$
7,051,224
Cost of Goods Sold
(2,272,561
)
(2,852,939
)
(3,641,648
)
(4,049,780
)
Operating Expenses
(2,703,668
)
(2,804,658
)
(4,261,354
)
(4,339,296
)
Operating Loss
(89,898
)
(389,192
)
(1,082,503
)
(1,337,852
)
Other Income / (Expenses), Net
(185,740
)
(247,705
)
(158,591
)
395,517
Net Loss
$
(275,638
)
$
(636,897
)
$
(1,241,094
)
$
(942,335
)
Period Ended
Years Ended
September
                                            30,
2024
(Unaudited)
December 31,
2023
December 31,
2022
Balance Sheet Data
Cash
$
246,903
$
374,435
$
202,827
Total Current Assets
2,678,503
2,543,744
2,728,173
Total Assets
7,088,190
7,254,635
6,444,378
Total Current Liabilities
2,039,925
2,251,468
1,488,657
Total Liabilities
7,337,949
7,228,756
7,703,451
Accumulated Deficit
(7,377,212
)
(7,101,574
)
(5,860,480
)
Total Stockholder's Equity / (Deficit)
(249,759
)
25,879
(1,259,073
)
Total Liabilities and Stockholders' Equity / (Deficit)
$
7,088,190
$
7,254,635
$
6,444,378
Dismissal of Previous Independent Registered Public Accounting Firm.
On February 14, 2024, BF Borgers CPA PC ("BF
Borgers") notified Functional Brands Inc. (the "Company") that it was resigning as the independent registered public
accounting firm for the Company. BF Borgers is not required to obtain and did not seek, the Company's consent to its decision to
resign as the Company's independent registered public accounting firm. As a result, the board of directors of the Company (the
"Board") did not take part in BF Borgers's decision to provide its notice of resignation.
During the Company's two most recent fiscal
years ended December 31, 2023 and 2022, and the subsequent interim period through June 30, 2024, there were (i) no disagreements with
BF Borgers on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which
disagreements if not resolved to the satisfaction of BF Borgers would have caused them to make reference thereto in connection with their
reports on the financial statements for such years and (ii) no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).
BF Borgers's audit reports on the Company's
consolidated financial statements for the fiscal years ended December 31, 2022 and 2021 did not contain any adverse opinion or disclaimer
of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles.
Appointment of New Independent Registered Public
Accounting Firm.
On March 12, 2024, the Company engaged and executed
an agreement with TAAD, as the Company's new independent accountant for the fiscal years ended December 31, 2023 and 2022. The
board of directors approved the decision to engage TAAD.
During the Company's fiscal years ended
December 31, 2023 and 2022, and the subsequent interim period through June 30, 2024, neither the Company nor anyone on its behalf consulted
with TAAD on either (a) the application of accounting principles to a specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the consolidated financial statements of the Company and its subsidiaries, and no written
report or oral advice was provided by TAAD to the Company that TAAD concluded was an important factor considered by the Company in reaching
a decision as to the accounting, auditing or financial reporting issue, or (b) any matter that was the subject of either a disagreement
(as defined in Item 304(a)(1)(iv) of Regulation S-K) or a reportable event (as described in Item 304(a)(1)(v) of Regulation S-K).
10
SUMMARY OF RISK FACTORS
An investment in our common stock involves a
high degree of risk. You should carefully consider the risks summarized below. These risks are discussed more fully in the "
Risk
Factors
" section immediately following this Prospectus Summary. These risks include, but are not limited to, the following:
●
Our independent
    registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern.
●
We may be unable
    to effectively manage future growth. We will need additional financing in the future, which may not be available when needed or may
    be costly and dilutive.
●
If we are unable
    to continue as a going concern, our securities will have little or no value.
●
We have a limited
    operating history, and we may not be able to successfully operate our business or execute our business plan.
●
We may incur significant
    debt to finance our operations.
●
We compete in an
    industry that is brand-conscious, so brand name recognition and acceptance of our products are critical to our success.
●
Our brand and image
    are keys to our business and any inability to maintain a positive brand image could have a material adverse effect on our results
    of operations.
●
Competition from
    traditional and large, well-financed product manufacturers or distributors may adversely affect our distribution relationships and
    may hinder development of our existing markets, as well as prevent us from expanding our markets.
●
We compete in an
    industry characterized by rapid changes in consumer preferences and public perception, so our ability to continue developing new
    products to satisfy our consumers' changing preferences will determine our long-term success.
●
We may be unable
    to respond effectively to technological changes in our industry, which could reduce the demand for our products.
●
We may experience
    a reduced demand for some of our products due to health concerns and legislative initiatives against smokables products.
●
Legislative or regulatory
    changes that affect our products, including new taxes, could reduce demand for products or increase our costs.
●
Some products we
    sell are subject to developing and unpredictable regulations. The Company may become subject to increasing regulation as a result
    of its hemp development activities, which could require it to incur additional costs associated with compliance requirements. Our
    ability to develop, commercialize and distribute hemp products and comply with laws and regulations governing cannabis, hemp or related
    products may affect our operational results.
●
International expansion
    efforts would likely significantly increase our operational expenses.
●
Our reliance on
    distributors, retailers and brokers could affect our ability to efficiently and profitably distribute and market our products, maintain
    our existing markets and expand our business into other geographic markets.
●
We incur significant
    time and expense in attracting and maintaining key distributors, and loss of distributors or retails accounts would harm our business.
●
We rely on suppliers,
    manufacturers and contractors, and events adversely affecting them would adversely affect us.
●
We have a single
    customer that accounts for a substantial portion of our revenues, and our business would be harmed were we to lose this customer.
●
Wholesale price
    volatility may adversely affect operations.
11
●
We may sustain losses
    that cannot be recovered through insurance or other preventative measures.
●
We may be subject
    to product liability claims and other claims of our customers and partners.
●
If we encounter
    product recalls or other product quality issues, our business may suffer.
●
It is difficult
    to predict the timing and amount of our sales, and as a result our sales forecasts are uncertain.
●
If we do not adequately
    manage our inventory levels, our operating results could be adversely affected.
●
Increases in costs
    or shortages of raw materials could harm our business and financial results.
●
Increases in costs
    of energy and increased regulations may have an adverse impact on our gross margin.
●
Disruption within
    our supply chain, contract manufacturing or distribution channels could have an adverse effect on our business, financial condition
    and results of operations.
●
If we are unable
    to attract and retain key personnel, our efficiency and operations would be adversely affected; in addition, staff turnover causes
    uncertainties and could harm our business.
●
If we lose the services
    of our Chief Executive Officer and/or Chief Financial Officer, our future operations could be impaired until such time as a qualified
    replacement can be found.
●
If we fail to protect
    our trademarks and trade secrets, we may be unable to successfully market our products and compete effectively.
●
Disruptions to our
    information technology systems due to cyber-attacks or our failure to upgrade and adjust our information technology systems, may
    materially impair our operations, hinder our growth and materially and adversely affect our business and results of operations.
●
Our business is
    subject to many regulations and noncompliance is costly.
●
Significant additional
    labeling or warning requirements may inhibit sales of affected products.
●
Our industry may
    become subject to expanded regulation and increased enforcement by the Food and Drug Administration (FDA) and the Federal Trade Commission
    (FTC).
●
Our business and
    operations would be adversely impacted in the event of a failure or interruption of our information technology infrastructure or
    as a result of a cybersecurity attack.
●
Our results of operations
    may fluctuate from quarter to quarter for many reasons, including seasonality.
●
Global economic,
    political, social and other conditions, including the COVID-19 pandemic, may continue to adversely impact our business and results
    of operations.
●
We may not be able
    to satisfy listing requirements of NASDAQ or obtain or maintain a listing of our common stock on NASDAQ.
●
Prior to this offering,
    we were majority-owned by Hemptown Organics Corporation, and a small group of shareholders.
12
RISK FACTORS
Investing in our securities involves a high
degree of risk. You should carefully consider the following risk factors, together with the other information contained in this prospectus,
before purchasing our securities. We have listed below (not necessarily in order of importance or probability of occurrence) what we
believe to be the most significant risk factors applicable to us, but they do not constitute all of the risks that may be applicable
to us. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result
in a partial or complete loss of your investment. Some statements in this prospectus, including statements in the following risk factors,
constitute forward-looking statements. Please refer to the section titled "Cautionary Statement Regarding Forward-Looking Statements".
We may not be successful in preventing the
material adverse effects that any of the following risks and uncertainties may cause. These potential risks and uncertainties may not
be a complete list of the risks and uncertainties facing us. There may be additional risks and uncertainties that we are presently unaware
of, or presently consider immaterial, that may become material in the future and have a material adverse effect on us. You could lose
all or a significant portion of your investment due to any of these risks and uncertainties.
Risks Related to our Financial Condition and
Capital Requirements
Our independent registered public accounting
firm has expressed doubt about our ability to continue as a going concern.
Our auditor's report on our 2023 audited
financial statements expresses an opinion that doubt exists as to whether we can continue as an ongoing business. Our recurring losses,
negative cash flows and accumulated deficit raise doubt about our ability to continue as a going concern. Our financial statements do
not include any adjustments that might result from the outcome of this uncertainty.
It is critical that we meet our sales goals and
increase sales going forward as our operating plan already reflects prior significant cost containment measures and may make it difficult
to achieve top-line growth if further significant reductions become necessary. If we do not meet our sales goals, our available cash
and working capital will decrease and our financial condition and results of operation will be negatively impacted.  These factors
raise substantial doubt about our ability to continue as a going concern.
We may be unable to effectively manage
future growth.
We may be subject to growth-related risks, including
capacity constraints and pressure on our internal systems and controls. Our ability to manage growth effectively will require us to continue
to implement and improve our operational and financial systems and to expand, train and manage our employee base. Rapid growth of our
business may significantly strain our management, operations and technical resources. If we are successful in obtaining large orders
for its products, we will be required to deliver large volumes of products to our customers on a timely basis and at a reasonable cost.
We may not obtain large-scale orders for our products and if we do, we may not be able to satisfy large-scale production requirements
on a timely and cost-effective basis. Our inability to deal with this growth may have a material adverse effect on our business, financial
condition, results of operations and prospects.
We will need additional financing in the
future, which may not be available when needed or may be costly and dilutive.
We will require additional financing to support
our working capital needs in the future. The amount of additional capital we may require, the timing of our capital needs and the availability
of financing to fund those needs will depend on a number of factors, including our strategic initiatives and operating plans, the performance
of our business and the market conditions for debt or equity financing. Additionally, the amount of capital required will depend on our
ability to meet our sales goals and otherwise successfully execute our operating plan. We believe it is imperative that we meet these
sales objectives in order to lessen our reliance on external financing in the future. We intend to continually monitor and adjust our
operating plan as necessary to respond to developments in our business, our markets and the broader economy. Although we believe various
debt and equity financing alternatives will be available to us to support our working capital needs, financing arrangements on acceptable
terms may not be available to us when needed. Additionally, these alternatives may require significant cash payments for interest and
other costs or could be highly dilutive to our existing shareholders. Any such financing alternatives may not provide us with sufficient
funds to meet our long-term capital requirements. If necessary, we may explore strategic transactions that we consider to be in our best
interest of our company and the best interest of our shareholders, which may include, without limitation, public or private offerings
of debt or equity securities, a rights offering, and other strategic alternatives; however, these options may not ultimately be available
or feasible when needed.
Functional Brands Inc. has a limited operating
history, and we may not be able to successfully operate our business or execute our business plan.
We are a development stage company and are therefore
subject to many of the risks common to early-stage enterprises, including under-capitalization, cash shortages, limitations with respect
to personnel, financial, and other resources and lack of revenue. Given our limited operating history, it is hard to evaluate our proposed
business and prospects. Our proposed business operations will be subject to numerous risks, uncertainties, expenses and difficulties
associated with early- stage enterprises. There is no assurance that we will be successful in achieving a return on shareholders'
investment, and the likelihood of success must be considered in light of the early stage of our hemp operations.
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We may incur significant debt to finance
our operations.
There is no assurance that we will not incur
debt in the future, that we will have sufficient funds to repay our indebtedness, or that we will not default on our debt, jeopardizing
our business viability. Furthermore, we may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise
provide the capital necessary to conduct our business.
Existing events of default under the Asset
Purchase Agreement could have a material adverse effect on our financial condition, results of operations and prospects.
On June 28, 2019, HTO Holdings Inc. ("HTO
Holdings") a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as "Purchaser"),
entered into an asset purchase agreement ("APA") for the net assets of Kirkman Group Inc. a Nevada corporation, Kirkman Laboratories
Inc., an Oregon corporation and Kirkman Group International, Inc. a Nevada corporation (collectively "Kirkman" or the "Seller,"
and together with Purchaser, the "Parties") for a consideration equal to $5 million with payout in a business combination
of cash and deferred consideration. The ''Seller'' is David Humphrey. Under the APA, Purchaser and HTO Holdings
were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021 by the Parties, with the
purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment schedule of the deferred
consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and other agreements attached
to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement, the domain names transfer
agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively, the "IP Collateral
Agreements")) to, among other things, provide additional collateral as security to Seller. Upon payment in full in cash of the
deferred consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that the security agreement
and amended intellectual property security agreement would be automatically terminated and be of no further force and effect, and (ii)
Seller would, at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective security agreement and
intellectual property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16, 2022, the APA was amended
again by the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral Agreements. On May
31, 2022, Purchaser paid Seller certain amounts ("Immediate Payments"), and on July 23, 2022, Purchaser and Seller executed
a forbearance agreement ("Forbearance Agreement") to extend the payments due under the APA to August 31, 2022. After Purchaser's
default, and partial payment to Seller in September 2022, the Parties executed an amendment to the Forbearance Agreement on December
27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was $3,032,000 (the "Existing Default").
Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated September 24, 2024 where additional principal and
interest payments began to accrue. As of October 11, 2024, the balance due to Seller is $2,412,366. We intend to use a portion of the
proceeds of the public offering to cover the payment of some of the Existing Default.
Risk Factors Relating to Our Business and
Industry
We compete in an industry that is brand-conscious,
so brand name recognition and acceptance of our products are critical to our success.
Our business is substantially dependent upon
awareness and market acceptance of our products and brands by our target market: trendy, young consumers looking for a distinctive product
tonality and/or the perceived benefits of hemp, CBD and CBG in their smokables as compared to nicotine or tobacco-based smokables. In
addition, our business depends on acceptance by our independent distributors and retailers of our brands that have the potential to provide
incremental sales growth. If we are not successful in the growth of our brand and product offerings, we may not achieve and maintain
satisfactory levels of acceptance by independent distributors and retail consumers. In addition, we may not be able to effectively execute
our marketing strategies in light of the various closures and cancellations caused by the COVID-19 pandemic. Any failure of our brands
to maintain or increase acceptance or market penetration would likely have a material adverse effect on our revenues and financial results.
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Our brand and image are keys to our business
and any inability to maintain a positive brand image could have a material adverse effect on our results of operations.
Our success depends on our ability to maintain
the brand image for our existing products and effectively build up a brand image for new products and brand extensions. We cannot predict
whether our advertising, marketing and promotional programs will have the desired impact on our products' branding and on consumer
preferences. In addition, negative public relations and product quality issues, including negative perceptions regarding the hemp industry,
whether real or imagined, could tarnish our reputation and image of the affected brands and could cause consumers to choose other products.
Our brand image can also be adversely affected by unfavorable reports, studies and articles, litigation, or regulatory or other governmental
action, whether involving our products or those of our competitors.
Competition from traditional and large,
well-financed product manufacturers or distributors may adversely affect our distribution relationships and may hinder the development
of our existing markets, as well as prevent us from expanding our markets.
The hemp industry is highly competitive. We compete
with other hemp companies, manufacturers and distributors, not only for consumer acceptance but also for shelf space in retail outlets
and for marketing focus by our distributors, many of whom also distribute other brands. Our products compete with hemp derived products,
many of which are marketed by companies with substantially greater financial resources than ours. Some of these competitors are placing
severe pressure on independent distributors not to carry competitive hemp brands such as ours. We also compete with regional hemp derived
producers and "private label" suppliers.
Our direct competitors in the hemp industry include
large domestic and international traditional hemp companies and distributors as well as regional or niche companies. These national and
international competitors have advantages such as lower production costs, larger marketing budgets, greater financial and other resources
and more developed and extensive distribution networks than ours. We may not be able to increase our volumes or maintain our selling
prices, whether in existing markets or as we enter new markets.
Increased competitor consolidations, market-place
competition, particularly among branded hemp smokables products, and competitive product and pricing pressures could impact our earnings,
market share and volume growth. If, due to such pressure or other competitive threats, we are unable to sufficiently maintain or develop
our distribution channels, we may be unable to achieve our current revenue and financial targets. As a means of maintaining and expanding
our distribution network, we intend to introduce additional brands. We may not be successful in doing this, or it may take us longer
than anticipated to achieve market acceptance of these new products and brands, if at all. Other companies may be more successful in
this regard over the long term. Competition, particularly from companies with greater financial and marketing resources than ours, could
have a material adverse effect on our existing markets, as well as on our ability to expand the market for our products.
The supplements industry is highly competitive.
We compete with other supplement companies, manufacturers, and distributors, not only for consumer acceptance, but also for shelf space
in retail outlets and for marketing focus by our wholesalers and professional accounts. Our products are sold over the counter and do
not require a doctor's prescription since they are not FDA approved. Our products compete with other nutraceutical products, many
of which are marketed by companies with substantially greater financial resources than ours. Our direct competition in the supplement
industry includes domestic and international traditional nutraceutical companies and distributors as well as regional or niche companies.
These national and international competitors have advantages such as lower production costs, larger marketing budgets, greater financial
and other resources and more developed and extensive distribution networks than ours. We may not be able to increase our volumes or maintain
our selling prices, whether in existing markets or as we enter new markets.
We compete in an industry characterized
by rapid changes in consumer preferences and public perception, so our ability to continue developing new products to satisfy our consumers'
changing preferences will determine our long-term success.
Failure to introduce new brands, products or
product extensions into the marketplace as current ones mature and to meet our consumers' changing preferences could prevent us
from gaining market share and achieving long-term profitability. Product lifecycles can vary, and consumers' preferences and loyalties
change over time. We may not succeed at innovating new products to introduce to our consumers. Customer preferences also are affected
by factors other than taste, such as health and nutrition considerations, shifting consumer needs, changes in consumer lifestyles, increased
consumer information and competitive product and pricing pressures. Sales of our products may be adversely affected by the negative publicity
associated with these issues. In addition, there may be a decreased demand for our products as a result of the COVID-19 pandemic. If
we do not adequately anticipate or adjust to respond to these and other changes in customer preferences, we may not be able to maintain
and grow our brand image and our sales may be adversely affected.
We may be unable to respond effectively
to technological changes in our industry, which could reduce the demand for our products.
Our future business success will depend upon
our ability to maintain and enhance our product portfolio with respect to advances in technological improvements for certain products
and market products that meet customer needs and market conditions in a cost-effective and timely manner. Maintaining and enhancing our
product portfolio may require significant investments in licensing fees and royalties. We may not be successful in gaining access to
new products that successfully compete or are able to anticipate customer needs and preferences, and our customers may not accept one
or more of our products. If we fail to keep pace with evolving technological innovations or fail to modify our products and services
in response to customers' needs or preferences, then our business, financial condition and results of operations could be adversely
affected.
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We may experience a reduced demand for
some of our products due to health concerns and legislative initiatives against smokables products.
Consumers are concerned about health and wellness;
public health officials and government officials are increasingly vocal about smoking, vaping, and their adverse consequences. There
has been a trend among many public health advocates to pursue generalized reduction in consumption of smokables products, as well as
increased public scrutiny, new taxes on smokables products, and additional governmental regulations concerning the marketing and labeling/packing
of smokable products. Additional or revised regulatory requirements, whether labeling, tax or otherwise, could have a material adverse
effect on our financial condition and results of operations. Further, increasing public concern with respect to smokables could reduce
demand for our hemp smokables products.
Legislative or regulatory changes that
affect our products, including new taxes, could reduce demand for products or increase our costs.
Taxes imposed on the sale of certain of our products
by federal, state, and local governments in the United States, or other countries in which we operate could cause consumers to shift
away from purchasing our hemp smokables products. These taxes could materially affect our business and financial results.
Some products we sell are subject to developing
and unpredictable regulations.
Some of our products may be subject to uncertain
and evolving federal, state and local regulations concerning hemp, CBD, CBG, Hemp Derived Delta 9 and other non-tobacco consumable products. Regulatory
and related enforcement initiatives by authorities related to such products are unpredictable and impossible to anticipate. We anticipate
that all levels of government that have not already done so, are likely to seek in some way to regulate these products, but the type,
timing, and impact of such regulations remains uncertain. These regulations include, or could include, restrictions prohibiting certain
form factors, such as smokable hemp products, or age restrictions. Accordingly, we cannot give any assurance that such actions will not
have a material adverse effect on this emerging business and our strategy.
Possible yet unanticipated changes in federal
and state law could cause any of our current products containing hemp-derived CBD to be illegal, or could otherwise prohibit, limit or
restrict any of our products containing CBD.
We have certain products containing hemp-derived
CBD, and we may develop and launch additional products containing hemp-derived CBD in the future. Until 2014, when 7 U.S. Code §5940
became federal law as part of the Agricultural Act of 2014 (the "
2014 Farm Ac
t"), products containing oils derived
from hemp, notwithstanding a minimal or non-existing THC content, were classified as Schedule I illegal drugs. The 2014 Farm Act expired
on September 30, 2018, and was thereafter replaced by the Agricultural Improvement Act of 2018 on December 20, 2018 (the "
2018
Farm Act
"), which amended various sections of the U.S. Code, thereby removing hemp, defined as cannabis with less than 0.3%
THC, from Schedule 1 status under the Controlled Substances Act, and legalizing the cultivation and sale of industrial-hemp at the federal
level, subject to compliance with certain federal requirements and state law, amongst other things. More specifically, industrial hemp
is defined as "the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol
concentration of not more than 0.3 percent on a dry weight basis." THC is the psychoactive component of plants in the cannabis
family generally identified as marihuana or marijuana. There is no assurance that the 2018 Farm Act will not be repealed or amended such
that our products containing hemp-derived CBD would once again be deemed illegal under federal law.
The psychedelic therapy industry and market
are relatively new and this industry and market may not continue to exist or grow as anticipated
We operate our business in a relatively new industry
and market. In addition to being subject to general business risks, we must continue to build brand awareness in this industry and market
through significant investments in our strategy, our operational capacity, quality assurance and compliance with regulations. In addition,
there is no assurance that the industry and market will continue to exist and grow as currently estimated or anticipated or function
and evolve in the manner consistent with management's expectations and assumptions. Any event or circumstance that adversely affects
the psychedelic therapy industry and market could have a material adverse effect on our business, financial conditions and results of
operations. The psychedelic medicine market will face specific marketing challenges given the products' status as a controlled
substance which resulted in past and current public perception that the products have negative health and lifestyle effects and have
the potential to cause physical and social harm due to psychoactive and potentially addictive effects. Any marketing efforts by us would
need to overcome this perception to build consumer confidence, brand recognition and goodwill.
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The expansion of the use of psychedelics
in the medical industry may require new clinical research into effective medical therapies
Research in United States and internationally
regarding the medical benefits, viability, safety, efficacy, addictiveness, dosing and social acceptance of psychedelic and psychoactive products
remains in early stages. There have been relatively few clinical trials on the benefits of such products. Although we believe that the
articles, reports and studies support our beliefs regarding the medical benefits, viability, safety, efficacy, dosing and social acceptance
of psychedelic and psychoactive products, future research and clinical trials may prove such statements to be incorrect, or could raise
concerns regarding, and perceptions relating to, psychedelic and psychoactive products. Given these risks, uncertainties and assumptions,
readers should not place undue reliance on such articles and reports. Future research studies and clinical trials may draw opposing conclusions
to those stated in this prospectus or reach negative conclusions regarding the medical benefits, viability, safety, efficacy, dosing,
social acceptance or other facts and perceptions related to psychoactive products, which could have a material adverse effect on the
demand for some of our products with the potential to lead to a material adverse effect on the Company's business, financial condition
and results of operations.
The Company may become subject to increasing regulation as a
result of its hemp development activities, which could require it to incur additional costs associated with compliance requirements.
The Company develops hemp products. Hemp is legally
distinct from marijuana and recognized as an agricultural crop by the United States government. There are federal and state laws and
regulations on hemp that address hemp production, monitoring, manufacturing, distribution, and laboratory testing to ensure that that
the hemp has a THC concentration of not more than 0.3% on a dry weight basis. Federal laws and regulations may also address the transportation
or shipment of hemp or hemp products. It is difficult to predict whether regulators, such as the USDA or the MDA, will alter the manner
in which they interpret existing federal and state laws and regulations on hemp or institute new regulations, or otherwise modify regulations
in a way that will render compliance more burdensome. As the Company continues to pursue hemp, it may become subject to increasing regulation
particular to hemp, which could require the Company to incur additional costs associated with compliance requirements.
Our ability to develop, commercialize and
distribute hemp derived products and comply with laws and regulations governing cannabis, hemp or related products may affect our operational
results.
As of September 1, 2024, 42 states have USDA
approved state hemp farming plans
while in eight states the USDA issues producer licenses directly
to farmers under USDA's hemp farming plan. These eight states include Hawaii, Mississippi, Missouri, New Hampshire, North Carolina,
Utah, Vermont, Wisconsin.
The 2018 Farm Bill was signed into law on December 20, 2018. The 2018 Farm Bill removed hemp from the
U.S. Controlled Substances Act (the "CSA") and established a federal regulatory framework for hemp production in the United
States. Among other provisions, the 2018 Farm Bill: (a) explicitly amends the CSA to exclude all parts of the cannabis plant (including
its cannabinoids, derivatives, and extracts) containing a THC concentration of not more than 0.3% on a dry weight basis from the CSA's
definition of "marihuana"; (b) permits the commercial production and sale of hemp; (c) precludes states, territories, and
Indian tribes from prohibiting the interstate transport of lawfully-produced hemp through their borders; and (d) establishes the USDA
as the primary federal agency regulating the cultivation of hemp in the United States, while allowing states, territories, and Indian
tribes to obtain (or retain) primary regulatory authority over hemp activities within their borders after receiving approval of their
proposed hemp production plan from the USDA. Any such plan submitted by a state, territory, or Indian tribe to the USDA must meet or
exceed minimum federal standards and receive USDA approval. Any state, territory, or Indian tribe that does not submit a plan to the
USDA, or whose plan is not approved by the USDA, will be regulated by the USDA; provided that, states retain the ability to prohibit
hemp production within their borders.
17
Marijuana continues to be classified as a Schedule
I substance under the CSA. As a result, any cannabinoids (including CBD) derived from marijuana, as opposed to hemp, or any products
derived from hemp containing in excess of 0.3% THC on a dry-weight basis, remain Schedule I substances under U.S. federal law. Cannabinoids
derived from hemp are indistinguishable from those derived from marijuana, and confusion surrounding the nature of our smokable products
containing hemp or CBD, inconsistent interpretations of the definition of "hemp", inaccurate or incomplete testing, farming
practices and law enforcement vigilance or lack of education could result in our products being intercepted by federal and state law
enforcement as marijuana and could interrupt and/or have a material adverse impact on our business. We could be required to undertake
processes that could delay shipments, impede sales or result in seizures, proper or improper, that would be costly to rectify or remove
and which could have a material adverse effect on our business, prospects, results of operations or financial condition. If we make mistakes
in processing or labeling, and THC in excess of 0.3% on a dry-weight basis is found in our products, we could be subject to enforcement
and prosecution under local, state, and federal laws which would have a negative impact on our business and operations.
Under the 2018 Farm Bill, states have authority
to adopt their own regulatory regimes, and as such, regulations will likely continue to vary on a state-by-state basis. States take varying
approaches to regulating the production and sale of hemp and hemp-derived products under state food and drug laws. The variance in state
law and that state laws governing hemp production are rapidly changing may increase the chance of unfavorable law enforcement interpretation
of the legality of the Company's operations as they relate to the cultivation of hemp. Further, such variance in state laws that
may frequently change increases our compliance costs and risk of error.
While some states explicitly authorize and regulate
the production and sale of hemp products or otherwise provide legal protection for authorized individuals to engage in commercial hemp
activities, other states maintain outdated drug laws that do not distinguish between marijuana, hemp and/or hemp-derived CBD, hemp-derived
Delta 9 resulting in hemp being classified as a controlled substance under state law. In these states, sale of CBD and hemp-derived Delta
9, notwithstanding origin, is either restricted to state medical or adult-use marijuana program licensees or remains otherwise unlawful
under state criminal laws. Variance in hemp regulation across jurisdictions is likely to persist. This patchwork of state laws may, for
the foreseeable future, materially impact our business and financial condition, limit the accessibility of certain state markets, cause
confusion amongst regulators, and increase legal and compliance costs.
There are no express protections in the United
States under applicable federal or state law for possessing or processing hemp biomass derived from lawful hemp not exceeding 0.3% THC
on a dry weight basis and intended for use in finished product, but that may temporarily exceed 0.3% THC during the interim processing
stages. While it is a common occurrence for hemp biomass to have variance in THC content during interim processing stages after cultivation
but prior to use in finished products, there is risk that state or federal regulators or law enforcement could take the position that
such hemp biomass is a Schedule I controlled substance in violation of the CSA and similar state laws. Further, there is a risk that
state regulators and/or law enforcement may interpret provisions of state law prohibiting unlawful marijuana activity to apply to in-process
hemp at any facility where we manufacture our hemp smokables products so that such activity is considered unlawful under state law.
In the event that our operations are deemed to
violate any laws or if we are deemed to be assisting others to violate a state or federal law, we could be subject to enforcement actions
and penalties, and any resulting liability could cause us to modify or cease its operations.
Continued development of the industrial hemp
and cannabis industries will be dependent upon new legislative authorization of industrial hemp and cannabis at the state level, and
further amendment or supplementation of legislation at the federal level. Any number of events or occurrences could slow or halt progress
all together in this space. While progress within the industrial hemp and cannabis industries is currently encouraging, growth is not
assured. While there appears to be ample public support for favorable legislative action, numerous factors may impact or negatively affect
the legislative process(es) within the various states where we have business interests. Any one of these factors could slow or halt use
of industrial hemp and cannabis, which could negatively impact our business and financial results.
In addition, the general manufacture, labeling
and distribution of our hemp smokables products is regulated by various federal, state, and local agencies. These governmental authorities
may commence regulatory or legal proceedings, which could restrict the permissible scope of our product claims or the ability to sell
products in the future.
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The shifting compliance environment and the need
to build and maintain robust systems to comply with different compliance in multiple jurisdictions increases the possibility that we
may violate one or more of the requirements. If our operations are found to be in violation of any of such laws or any other governmental
regulations that apply to our business, we may be subject to penalties, including, without limitation, civil and criminal penalties,
damages, fines, the curtailment or restructuring of our operations, any of which could adversely affect the ability to operate our business
and its financial results.
International expansion efforts would likely
significantly increase our operational expenses.
We may in the future expand into other geographic
areas, which could increase our operational, regulatory, compliance, reputational and foreign exchange rate risks. The failure of our
operating infrastructure to support such expansion could result in operational failures and regulatory fines or sanctions. Future international
expansion could require us to incur a number of up-front expenses, including those associated with obtaining regulatory approvals, as
well as additional ongoing expenses, including those associated with infrastructure, staff and regulatory compliance. We may not be able
to successfully identify suitable acquisition and expansion opportunities or integrate such operations successfully with our existing
operations.
Our reliance on distributors, retailers
and brokers could affect our ability to efficiently and profitably distribute and market our products, maintain our existing markets
and expand our business into other geographic markets.
Our ability to maintain and expand our existing
markets for our products, and to establish markets in new geographic distribution areas, is dependent on our ability to establish and
maintain successful relationships with reliable distributors, retailers and brokers strategically positioned to serve those areas. Most
of our distributors, retailers and brokers sell and distribute competing products, including smokables products, and our products may
represent a small portion of their business. The success of our distribution network will depend on the performance of the distributors,
retailers, and brokers in our network. There is a risk they may not adequately perform their functions within the network by, without
limitation, failing to distribute to sufficient retailers or positioning our products in localities that may not be receptive to our
product. Our ability to incentivize and motivate distributors to manage and sell our products is affected by competition from other hemp
smokables companies who have greater resources than we do. To the extent that our distributors, retailers and brokers are distracted
from selling our products or do not employ sufficient efforts in managing and selling our products, including re-stocking the retail
shelves with our products, our sales and results of operations could be adversely affected. Furthermore, such third parties' financial
position or market share may deteriorate, which could adversely affect our distribution, marketing and sales activities.
Our ability to maintain and expand our distribution
network and attract additional distributors, retailers and brokers will depend on a number of factors, some of which are outside our
control. Some of these factors include:
●
the level of demand
    for our brands and products in a particular distribution area;
●
our ability to price
    our products at levels competitive with those of competing products; and
●
our ability to deliver
    products in the quantity and at the time ordered by distributors, retailers and brokers.
We may not be able to successfully manage all
or any of these factors in any of our current or prospective geographic areas of distribution. Our inability to achieve success with
regards to any of these factors in a geographic distribution area will have a material adverse effect on our relationships in that particular
geographic area, thus limiting our ability to maintain or expand our market, which will likely adversely affect our revenues and financial
results.
We incur significant time and expense in
attracting and maintaining key distributors, and a loss of distributors or retails accounts would harm our business.
Our marketing and sales strategy depends in large
part on the availability and performance of our independent distributors. We currently do not have, nor do we anticipate in the future
that we will be able to establish, long-term contractual commitments from some of our distributors. We may not be able to maintain our
current distribution relationships or establish and maintain successful relationships with distributors in new geographic distribution
areas. Moreover, there is the additional possibility that we may have to incur additional expenditures to attract and maintain key distributors
in one or more of our geographic distribution areas in order to profitably exploit our geographic markets.
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We currently have approximately ten distributors
who service numerous retail accounts. If we were to lose any of our distributors, or if they were to lose national, regional or larger
retail accounts, our financial condition and results of operations could be adversely affected. While we continually seek to expand and
upgrade our distributor network, we may not be able to maintain our distributor or retailer base. The loss of any of our distributors,
or their significant retail accounts, could have adverse effects on our revenues, liquidity and financial results, could negatively impact
our ability to retain our relationships with our other distributors and our ability to expand our market, and would place increased dependence
on our other independent distributors and national accounts.
Any pandemic such as the COVID-19 pandemic
has and could continue to negatively affect various aspects of our business, make it more difficult for us to meet our obligations to
our customers, and result in reduced demand for our products and services, which could have a material adverse effect on our business,
financial condition, results of operations, or cash flows.
In December 2019, a novel strain of coronavirus
was reported to have surfaced in Wuhan, China, and it has since spread throughout other parts of the world, including the United States.
Any outbreak of contagious diseases or other adverse public health developments could have a material adverse effect on our business
operations. These impacts to our operations have included and could again in the future include disruptions or restrictions on the ability
of our employees and customers to travel or our ability to pursue collaborations and other business transactions, travel to customers
and/or promote our products at conferences or other live events, oversee the activities of our third-party manufacturers and suppliers.
We may also be impacted by the temporary closure of the facilities of suppliers, manufacturers or customers.
In an effort to halt the outbreak of COVID-19,
a number of countries, including the United States, placed significant restrictions on travel and many businesses announced extended
closures. These travel restrictions and business closures have and may in the future adversely impact our operations locally and worldwide,
including our ability to manufacture, market, sell or distribute our products. Such restrictions and closure have caused or may cause
temporary closures of the facilities of our suppliers, manufacturers or customers. A disruption in the operations of our employees, suppliers,
customers, manufacturers or access to customers would likely impact our sales and operating results. We are continuing to monitor and
assess the effects of the COVID-19 pandemic on our commercial operations; however, we cannot at this time accurately predict what effects
these conditions will ultimately have on our operations due to uncertainties relating to the ultimate geographic spread of the virus,
the severity of the disease, the duration of the outbreak and speed of vaccinations, and the length of the travel restrictions and business
closures imposed by the governments of impacted countries. In addition, a significant outbreak of contagious diseases in the human population
could result in a widespread health crisis that could adversely affect the economies and financial markets of many countries, resulting
in an economic downturn that could affect demand for our products and likely impact our operating results.
We rely on suppliers, manufacturers and
contractors, and events adversely affecting them would adversely affect us.
We intend to maintain a full supply chain for
the provision of our hemp-based smokables products. Due to the novel and variable regulatory landscape for hemp and CBD/CBG/Delta 9 production
in the United States, our third-party hemp and hemp smokables suppliers, manufacturers and contractors may elect, at any time, to decline
or withdraw services necessary for our operations. Loss of these suppliers, manufacturers and contractors, including for non-hemp-based
ingredients in our hemp smokables products, may have a material adverse effect on our business, financial condition, results of operations
and prospects.
In addition, any significant interruption, negative
change in the availability or economics of the supply chain or increase in the prices for the ingredients in our products provided by
any such third-party suppliers, manufacturers and contractors could materially impact our business, financial condition, results of operations
and prospects. Any inability to secure required supplies or to do so on appropriate terms could have a materially adverse impact on our
business, financial condition, results of operations and prospects.
We have two customers that account for
a substantial portion of our revenues, and our business would be harmed were we to lose these customers.
We have a purchase agreement in place with our
largest customer, iHerb, since June 28, 2011. This agreement provides us with a license to commercialize and re-sell Kirkman products
with set minimum order requirements. Our customer iHerb accounts for approximately 22% of the Company's total revenue for the year
ended December 31, 2023 (17% - 2002). If we lose this customer, the company will lose a significant portion of our total revenues
.
We have a reseller agreement in place with our
second largest customer, OceanSide Health since April 18, 2022. This agreement provides OceanSide the ability to sell our Kirkman branded
products on the Amazon platform. Oceanside represents approximately 19% of the Company's total revenue for the year ended December
31, 2023 (13% - 2002). We do have the ability to convert this business to a traditional Amazon account through another partner, so the
risk of lost business is minimal.
20
Wholesale price volatility may adversely
affect operations.
The hemp smokables industry is margin-based with
gross profits typically dependent on the excess of sales prices over costs. Consequently, profitability is sensitive to fluctuations
in wholesale and retail prices caused by changes in supply (which itself depends on other factors such as weather, fuel, equipment and
labor costs, shipping costs, economic situation and demand), taxes, government programs and policies for the hemp smokables and hemp
industries (including price controls and wholesale price restrictions that may be imposed by government agencies responsible for the
regulation of hemp and/or smokables products), and other market conditions, all of which are factors beyond our control. Our operating
income will be sensitive to changes in the price of hemp and other product ingredients, and the overall condition of the hemp and smokables
industries, as our profitability is directly related to the price of hemp and our other smokables ingredients. There is currently no
established market price for hemp, and the price of hemp is affected by numerous factors beyond our control. Ingredient price volatility
may have a material adverse effect on our business, financial condition, and results of operations.
We may sustain losses that cannot be recovered
through insurance or other preventative measures.
There is no assurance that we will not incur
uninsured liabilities and losses as a result of the conduct of its business. While we currently have some liability insurance coverage,
it does not have broad coverage at high levels. We plan to continue to review its liability coverage in the light of its expanding operations
in order to insure against potential major insurable liabilities. Should uninsured losses occur, shareholders could lose their invested
capital.
We may be subject to product liability
claims and other claims of our customers and partners.
The sale of hemp smokables products to consumers
involves a certain level of risk of product liability claims and the associated adverse publicity. Because use of our hemp smokables
products could cause injury to consumers if packaging or ingredients are defective, we are subject to a risk of claims for such injuries
and damages. We could also be named as co-parties in product liability suits that are brought against manufacturing partners that produce
our hemp smokables products, packaging for those products, or the ingredients in those products.
In addition, our customers and partners may bring
suits against us alleging damages for the failure of our products to meet stated specifications or other requirements. Any such suit,
even if not successful, could be costly, disrupt the attention of our management and damage our negotiations with distributors and/or
customers. Any attempt by us to limit our product liability in our contracts may not be enforceable or may be subject to exceptions.
While we do have product liability insurance, our amounts of coverage may be inadequate to cover all potential liability claims. Insurance
coverage, particularly as it relates to products relating to the hemp industry, is expensive, and additional coverage may be difficult
to obtain. Also, additional insurance coverage may not be available in the future on acceptable terms and may not be sufficient to cover
potential claims. We cannot be sure that our contract manufacturers or manufacturing partners who produce our hemp smokables products,
packaging and ingredients will have adequate insurance coverage themselves to cover against potential claims. If we experience a large
insured loss, it may exceed any insurance coverage limits we have at that time, or our insurance carrier may decline to cover us or may
raise our insurance rates to unacceptable levels, any of which could impair our financial position and potentially cause us to go out
of business.
If we encounter product recalls or other
product quality issues, our business may suffer.
Product quality issues, real or imagined, or
allegations of product contamination, even when false or unfounded, could tarnish our image and could cause consumers to choose other
products. In addition, because of changing government regulations or implementation thereof, or allegations of product contamination,
we may be required from time to time to recall products entirely or from specific markets. Product recalls could affect our profitability
and could negatively affect brand image.
It is difficult to predict the timing and
amount of our sales, and as a result our sales forecasts are uncertain.
Many of our white label clients (clients who
we manufacture product for, and which product is labeled with the clients' own branding and then sold by the clients) are required
to place minimum orders with us, but we cannot accurately predict what our sales will be.
21
Our independent distributors and national accounts
are not generally required to place minimum monthly orders for our products. In order to reduce their inventory costs, independent distributors
typically order products from us on a "just in time" basis in quantities and at such times based on the demand for the products
in a particular distribution area. Accordingly, we cannot accurately predict the timing or quantity of purchases by any of our independent
distributors or whether any of our distributors will continue to purchase products from us in the same frequencies and volumes as they
may have done in the past. Additionally, our larger distributors and regional partners may make orders that are larger than we have historically
been required to fill. Shortages in inventory levels, supply of raw materials or other key supplies could also negatively affect us.
If we do not adequately manage our inventory
levels, our operating results could be adversely affected.
We need to maintain adequate inventory levels
to be able to deliver products to distributors on a timely basis. Our inventory supply depends on our ability to correctly estimate demand
for our products. Our ability to estimate demand for our products is imprecise, particularly for new products, seasonal promotions and
new markets. If we materially underestimate demand for our products or are unable to maintain sufficient inventory of raw materials,
we might not be able to satisfy demand on a short-term basis. If we overestimate distributor or retailer demand for our products, we
may end up with too much inventory, resulting in higher storage costs, increased trade spend and the risk of inventory spoilage. If we
fail to manage our inventory to meet demand, we could damage our relationships with our distributors and retailers and could delay or
lose sales opportunities, which would unfavorably impact our future sales and adversely affect our operating results. In addition, if
the inventory of our products held by our distributors and retailers is too high, they will not place orders for additional products,
which would also unfavorably impact our sales and adversely affect our operating results.
Increases in costs or shortages of raw
materials could harm our business and financial results.
In addition to the primary ingredient, the hemp
blend, we use other principal ingredients, which manufacturing costs are subject to fluctuation. Substantial increases in the prices
of ingredients, raw materials and packaging materials, used to produce our products, to the extent that they cannot be recouped through
increases in the prices of finished hemp smokables products, would increase our operating costs and could reduce our profitability. If
the supply of these raw materials is impaired or if prices increase significantly, it could affect the affordability of our products
and reduce sales.
If we or any contract manufacturers we may use
are unable to secure sufficient ingredients or raw materials including hemp, the various paper products and filters, and other key supplies,
we might not be able to satisfy demand for our hemp smokables products on a short-term basis. Moreover, in the past there have been industry-wide
shortages of hemp, papers and other ingredients in our products, and these shortages could occur again from time to time in the future,
which could interfere with and delay production of our products and could have a material adverse effect on our business and financial
results.
In addition, suppliers could fail to provide
ingredients or raw materials on a timely basis, or fail to meet our performance expectations, for a number of reasons, including, for
example, disruption to the global supply chain as a result of the COVID-19 pandemic, which could cause serious disruption to our business,
increase our costs, decrease our operating efficiencies and have a material adverse effect on our business, results of operations and
financial condition.
Increases in costs of energy and increased
regulations may have an adverse impact on our gross margin.
Over the past few years, volatility in the global
oil markets has resulted in high fuel prices, which many shipping companies have passed on to their customers by way of higher base pricing
and increased fuel surcharges. If fuel prices increase, we expect to experience higher shipping rates and fuel surcharges, as well as
energy surcharges on our raw materials. It is hard to predict what will happen in the fuel markets in 2024 and beyond. Due to the price
sensitivity of our products, we may not be able to pass such increases on to our customers.
Disruption within our supply chain, contract
manufacturing or distribution channels could have an adverse effect on our business, financial condition and results of operations.
Our ability, through our suppliers, business
partners, contract manufacturers, independent distributors and retailers, to make, move and sell products is critical to our success.
Damage or disruption to our suppliers or to manufacturing or distribution capabilities due to weather, natural disaster, fire or explosion,
terrorism, pandemics such as COVID-19, influenza, and other viruses, labor strikes or other reasons, could impair the manufacture, distribution
and sale of our products. Many of these events are outside of our control. Failure to take adequate steps to protect against or mitigate
the likelihood or potential impact of such events, or to effectively manage such events if they occur, could adversely affect our business,
financial condition and results of operations.
22
If we are unable to attract and retain
key personnel, our efficiency and operations would be adversely affected; in addition, staff turnover causes uncertainties and could
harm our business.
Our success depends on our ability to attract
and retain highly qualified employees in such areas as finance, sales, marketing and product development and distribution. We compete
to hire new employees, and, in some cases, must train them and develop their skills and competencies. We may not be able to provide our
employees with competitive salaries, and our operating results could be adversely affected by increased costs due to increased competition
for employees, higher employee turnover or increased employee benefit costs.
If we lose the services of our executive
officers, our future operations could be impaired until such time as a qualified replacement can be found.
Our business plan relies significantly on the
continued services of Eric Gripentrog, our Chief Executive Officer and Tariq Rahim, our Chief Financial Officer. If we were to lose the
services of Mr. Gripentrog and/or Mr. Rahim, our ability to obtain new business and new strategic partners, as well as our ability to
manage our operations and finances, could be materially impaired.
We are required to indemnify our directors
and officers.
Our Articles of Incorporation and Bylaws provide
that we will indemnify our officers and directors to the maximum extent permitted by Delaware law, provided that the officer or director
did not act in bad faith or breach his or her duty to us or our stockholders, or that it is more likely than not that it will ultimately
be determined that the officer or director has met the standards of conduct which make it permissible for under Delaware law for us to
indemnify the officer or director. If we were called upon to indemnify an officer or director, then the portion of its assets expended
for such purpose would reduce the amount otherwise available for our business.
If we fail to protect our trademarks and
trade secrets, we may be unable to successfully market our products and compete effectively.
We rely on a combination of trademark and trade
secrecy laws, confidentiality procedures and contractual provisions to protect our intellectual property rights. Failure to protect our
intellectual property could harm our brand and our reputation, and adversely affect our ability to compete effectively. Further, enforcing
or defending our intellectual property rights, including our trademarks and trade secrets, could result in the expenditure of significant
financial and managerial resources. We regard our intellectual property, particularly our trademarks and trade secrets, as crucial to
our business and our success. However, the steps taken by us to protect these proprietary rights may not be adequate and may not prevent
third parties from infringing or misappropriating our trademarks, trade secrets or similar proprietary rights. In addition, other parties
may seek to assert infringement claims against us, and we may have to pursue litigation against other parties to assert our rights. Any
such claim or litigation could be costly. In addition, any event that would jeopardize our proprietary rights or any claims of infringement
by third parties could have a material adverse effect on our ability to market or sell our brands, profitably exploit our products or
recoup our associated research and development costs.
Disruptions to our information technology
systems due to cyber-attacks or our failure to upgrade and adjust our information technology systems, may materially impair our operations,
hinder our growth and materially and adversely affect our business and results of operations.
We believe that an appropriate information technology,
or IT, infrastructure is important in order to support our daily operations and the growth of our business. If we experience difficulties
in implementing new or upgraded information systems or experience significant system failures, or if we are unable to successfully modify
our management information systems or respond to changes in our business needs, we may not be able to effectively manage our business,
and we may fail to meet our reporting obligations. Additionally, if our current arrangements and plans are not operated as planned, we
may not be able to effectively recover our information system in the event of a crisis, which may materially and adversely affect our
business and results of operations.
23
In the current environment, there are numerous
and evolving risks to cybersecurity and privacy, including criminal hackers, hacktivists, state-sponsored intrusions, industrial espionage,
employee malfeasance and human or technological error. High-profile security breaches at other companies and in government agencies have
increased in recent years, and security industry experts and government officials have warned about the risks of hackers and cyber-attacks
targeting businesses such as ours. Computer hackers and others routinely attempt to breach the security of technology products, services
and systems, and to fraudulently induce employees, customers, or others to disclose information or unwittingly provide access to systems
or data. We can provide no assurance that our current IT system or any updates or upgrades thereto and the current or future IT systems
of our potential distributors use or may use in the future, are fully protected against third-party intrusions, viruses, hacker attacks,
information or data theft or other similar threats. Legislative or regulatory action in these areas is also evolving, and we may be unable
to adapt our IT systems or to manage the IT systems of third parties to accommodate these changes. We have experienced and expect to
continue to experience actual or attempted cyber-attacks of our IT networks. Although none of these actual or attempted cyber-attacks
has had a material adverse impact on our operations or financial condition, we cannot guarantee that any such incidents will not have
such an impact in the future.
Our business is subject to many regulations
and noncompliance is costly.
The production, marketing and sale of our hemp
and nutraceutical products, including contents, labels, and containers, are subject to the rules and regulations of various federal,
provincial, state and local health agencies. If a regulatory authority finds that a current or future product or production batch or
"run" is not in compliance with any of these regulations, we may be fined, or production may be stopped, which would adversely
affect our financial condition and results of operations. Similarly, any adverse publicity associated with any noncompliance may damage
our reputation and our ability to successfully market our products. Furthermore, the rules and regulations are subject to change from
time to time and while we closely monitor developments in this area, we cannot anticipate whether changes in these rules and regulations
will impact our business adversely. Additional or revised regulatory requirements, whether labeling, environmental, tax or otherwise,
could have a material adverse effect on our financial condition and results of operations.
Significant additional labeling or warning
requirements may inhibit sales of affected products.
Various jurisdictions may seek to adopt significant
additional product labeling or warning requirements relating to the chemical content or perceived adverse health consequences of our
hemp products. These types of requirements, if they become applicable to one or more of our products under current or future environmental
or health laws or regulations, may inhibit sales of such products.
Our industry may become subject to expanded
regulation and increased enforcement by the Food and Drug Administration ("FDA") and the Federal Trade Commission ("FTC").
The FDA under the Federal Food, Drug, and Cosmetic
Act regulates the formulation, manufacturing, packaging, labeling, and distribution of food, dietary supplements, drugs, cosmetics, medical
devices, biologics, and tobacco products. Our products are subject to law and regulation by the FDA. Moreover, the regulatory status
of our products is currently in a state of flux as the FDA attempts to determine the appropriate manner in which to regulate these products.
Thus, the regulatory approach is still evolving, and we may be required to seek the FDA's approval to market our products. It is
also possible that the FDA may simply issue a regulation setting forth the conditions in which such products may be marketed, or it may
simply prohibit these products.
Given the growing cannabidiol (CBD) products
market, the U.S. Food and Drug Administration has convened a high-level internal working group to explore potential regulatory pathways
for CBD products. After careful review, the FDA has concluded that a new regulatory pathway for CBD is needed that balances individuals'
desire for access to CBD products with the regulatory oversight needed to manage risks. The agency is prepared to work with Congress
on this matter.
6
Once the FDA makes a decision in relation to hemp-based products, we will follow the rules the FDA adopts.
6
www.FDA.gov.
24
Because the FDA's regulatory process is
subject to change, we cannot predict the likely outcome. In addition, the FTC under the Federal Trade Commission Act ("FTC Act")
requires that product advertising be truthful, substantiated and not misleading. We believe that our advertising meets these requirements.
However, the FTC may bring a challenge at any time in evaluating our compliance with the FTC Act. In addition, most states where our
products are legal provide their own regulatory guidelines and regulations in connection with cigarette or other smokable product sales.
Any failure by us to remain current on state regulatory changes could negatively affect our ability to operate our business.
At the moment, our hemp manufactured dietary
supplement products are produced in an FDA registered and cGMP facility strictly following SOPs to ensure consumer safety and consistency
and reliability batch to batch. Our supplement product packaging, labeling, and marketing collateral make no disease claims that would
run afoul of the Dietary Supplement Heath and Education Act (DSHEA). Additionally, we design our product packaging to appeal to adults,
not children. By taking these actions, we are substantially reducing the risk of any FDA enforcement because these are two primary areas
of FDA enforcement.
Quality Control reviews production at specified
check points. Raw materials are tested for ID, potency, and contamination using ISO 17025 certified labs. Finished products are tested
for strength, composition, and contamination using ISO 17025 certified labs. All products are produced in isolated rooms, with cleaning
and ATP testing performed prior to use. Rooms are thoroughly cleaned after use, and retested before new products are introduced. All
hemp products are tested to ensure < 0.3% THC. They are also tested for solvents, pesticides, and mycotoxins (where relevant). QC
oversight occurs from incoming of the raw material and components, through the entire manufacturing, packaging, labeling, and boxing
processes. All hemp derived raw materials and finished products are stored under lock and key. Only authorized persons are allowed access.
FDA regulates both finished dietary supplement
products and dietary ingredients. FDA regulates dietary supplements under a different set of regulations than those covering "conventional"
foods and drug products. Under the Dietary Supplement Health and Education Act of 1994 (DSHEA):
●
Manufacturers and distributors of dietary
    supplements and dietary ingredients are prohibited from marketing products that are adulterated or misbranded.  That means that
    these firms are responsible for evaluating the safety and labeling of their products before marketing to ensure that they meet all
    the requirements of the Federal Food, Drug, and Cosmetic Act as amended by DSHEA and FDA regulations.
●
FDA has the authority to take action against
    any adulterated or misbranded dietary supplement product after it reaches the market.
7
Our manufactured dietary supplement products
are produced following SOPs, to ensure there is consistency and reliability batch to batch.  Quality Control reviews production
at specified check points.  Raw materials are tested for ID, potency, and contamination using ISO 17025 certified labs.  Finished
products are tested for strength, composition, and contamination using ISO 17025 certified labs.  All products are produced in isolated
rooms, with cleaning and ATP testing performed prior to use.  Rooms are thoroughly cleaned after use, and retested before new products
are introduced.  QC oversight occurs from incoming of the raw material and components, through the entire manufacturing, packaging,
labeling, and boxing processes.
7
www.fda.gov/food/dietary-supplements.
25
Litigation or legal proceedings could expose
us to significant liabilities and damage our reputation.
We may become party to litigation claims and
legal proceedings. Litigation involves significant risks, uncertainties and costs, including distraction of management attention away
from our business operations. We evaluate litigation claims and legal proceedings to assess the likelihood of unfavorable outcomes and
to estimate, if possible, the amount of potential losses. Based on these assessments and estimates, we establish reserves and disclose
the relevant litigation claims or legal proceedings, as appropriate. These assessments and estimates are based on the information available
to management at the time and involve a significant amount of management judgment. Actual outcomes or losses may differ materially from
those envisioned by our current assessments and estimates. Our policies and procedures require strict compliance by our employees and
agents with all U.S. and local laws and regulations applicable to our business operations, including those prohibiting improper payments
to government officials. Nonetheless, our policies and procedures may not ensure full compliance by our employees and agents with all
applicable legal requirements. Improper conduct by our employees or agents could damage our reputation or lead to litigation or legal
proceedings that could result in civil or criminal penalties, including substantial monetary fines, as well as disgorgement of profits.
Climate change may negatively affect our
business.
There is growing concern that a gradual increase
in global average temperatures may cause an adverse change in weather patterns around the globe resulting in an increase in the frequency
and severity of natural disasters. Changing weather patterns could have a negative impact on agricultural productivity, which may limit
availability or increase the cost of certain key ingredients such as hemp, natural flavors and other ingredients used in our products.
Also, increased frequency or duration of extreme weather conditions may disrupt the productivity of our facilities, the operation of
our supply chain or impact demand for our products. In addition, the increasing concern over climate change may result in more regional,
federal and global legal and regulatory requirements and could result in increased production, transportation and raw material costs.
As a result, the effects of climate change could have a long-term adverse impact on our business and results of operations.
Our business and operations would be adversely
impacted in the event of a failure or interruption of our information technology infrastructure or as a result of a cybersecurity attack.
The proper functioning of our own information
technology (IT) infrastructure is critical to the efficient operation and management of our business. We may not have the necessary financial
resources to update and maintain our IT infrastructure, and any failure or interruption of our IT system could adversely impact our operations.
In addition, our IT is vulnerable to cyberattacks, computer viruses, worms and other malicious software programs, physical and electronic
break-ins, sabotage and similar disruptions from unauthorized tampering with our computer systems. We believe that we have adopted appropriate
measures to mitigate potential risks to our technology infrastructure and our operations from these IT-related and other potential disruptions.
However, given the unpredictability of the timing, nature and scope of any such IT failures or disruptions, we could potentially be subject
to downtimes, transactional errors, processing inefficiencies, operational delays, other detrimental impacts on our operations or ability
to provide products to our customers, the compromising of confidential or personal information, destruction or corruption of data, security
breaches, other manipulation or improper use of our systems and networks, financial losses from remedial actions, loss of business or
potential liability, and/or damage to our reputation, any of which could have a material adverse effect on our cash flows, competitive
position, financial condition or results of operations.
26
Our results of operations may fluctuate
from quarter to quarter for many reasons, including seasonality.
Our sales may be seasonal, and we experience
fluctuations in quarterly results as a result of many factors. We expect to generate a greater percentage of our revenues during the
warm weather months of April through September. The timing of customer purchases will vary each year, and sales can be expected to shift
from one quarter to another. As a result, management believes that period-to-period comparisons of results of operations are not necessarily
meaningful and should not be relied upon as any indication of future performance period comparisons or results expected for the fiscal
year.
In addition, our operating results may fluctuate
due to a number of other factors including, but not limited to:
●
Our ability to maintain,
    develop and expand distribution channels for current and new products, develop favorable arrangements with third party distributors
    of our products and minimize or reduce issues associated with engaging new distributors and retailers, including, but not limited
    to, transition costs and expenses and down time resulting from the initial deployment of our products in each new distributor's
    network;
●
Unilateral decisions
    by distributors, grocery store chains, specialty chain stores, club stores, mass merchandisers and other customers to discontinue
    carrying all or any of our products that they are carrying at any time;
●
Our ability to manage
    our resources to sufficiently support general operating activities, promotion allowances and slotting fees, promotion and selling
    activities, and capital expansion, and our ability to sustain profitability;
●
Our ability to meet
    the competitive response by much larger, well-funded and established companies currently operating in the hemp smokables industry,
    as we introduce new competitive products, and our hemp smokables products; and
●
Competitive products
    and pricing pressures and our ability to gain or maintain share of sales in the marketplace as a result of actions by competitors.
Due to these and other factors, our results of
operations have fluctuated from period to period and may continue to do so in the future, which could cause our operating results in
a particular quarter to fail to meet market expectations.
Changes in our effective tax rate may impact
our results of operations.
We are subject to taxes in the U.S. and other
jurisdictions. Tax rates in these jurisdictions may be subject to significant change due to economic and/or political conditions. A number
of other factors may also impact our future effective tax rate including:
●
the jurisdictions in
    which profits are determined to be earned and taxed;
●
the resolution of issues
    arising from tax audits with various tax authorities;
●
changes in valuation
    of our deferred tax assets and liabilities;
●
increases in expenses
    not deductible for tax purposes, including write-offs of acquired intangibles and impairment of goodwill in connection with acquisitions;
●
changes in availability
    of tax credits, tax holidays, and tax deductions;
●
changes in share-based
    compensation; and
●
changes in tax laws
    or the interpretation of such tax laws and changes in generally accepted accounting principles.
27
Although we believe our income tax liabilities
are reasonably estimated and accounted for in accordance with applicable laws and principles, an adverse resolution by one or more taxing
authorities could have a material impact on the results of our operations. Further, we may be unable to utilize our net operating losses
in the event a change in control is determined to have occurred.
Global economic, political, social and
other conditions, including the COVID-19 pandemic, may continue to adversely impact our business and results of operations.
The hemp industry can be affected by macro-economic
factors, including changes in national, regional, and local economic conditions, unemployment levels and consumer spending patterns,
which together may impact the willingness of consumers to purchase our products as they adjust their discretionary spending. Adverse
economic conditions may adversely affect the ability of our distributors to obtain the credit necessary to fund their working capital
needs, which could negatively impact their ability or desire to continue to purchase products from us in the same frequencies and volumes
as they have done in the past. If we experience similar adverse economic conditions in the future, sales of our products could be adversely
affected, collectability of accounts receivable may be compromised, and we may face obsolescence issues with our inventory, any of which
could have a material adverse impact on our operating results and financial condition.
Additionally, while the extent of the continued
impact on our business and financial condition is unknown at this time, we may be negatively affected by COVID-19 and actions taken to
address and limit the spread of COVID-19, or any re-emergence of the virus, such as travel restrictions, event cancellations, and limitations
affecting the supply of labor and the movement of raw materials and finished products. If available manufacturing capacity is reduced
as a result of any re-emergence of COVID-19, it could negatively affect the timely supply, pricing and availability of finished products.
Moreover, we may also be negatively impacted by current and future closures of restaurants, independent accounts, convenience chains,
and retail store chains resulting from any re-emergence or new outbreaks of COVID-19. Overall, we do not yet know the full extent of
potential delays or impacts on its business, financing activities, or the global economy as a whole. However, these effects could have
a material impact on our liquidity, capital resources, operations and business and those of third parties on which we rely.
We are currently operating in a period
of economic uncertainty and capital markets disruption, which has been significantly impacted by geopolitical instability due to the
ongoing military conflict between Russia and Ukraine. Our business may be materially adversely affected by any negative impact on the
global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions.
U.S. and global markets are experiencing volatility
and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. On
February 24, 2022, a full-scale military invasion of Ukraine by Russian troops was reported. Although the length and impact of the ongoing
military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility
in commodity prices, credit and capital markets, as well as supply chain interruptions. We are continuing to monitor the situation in
Ukraine and globally and assessing its potential impact on our business.
Additionally, Russia's prior annexation
of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk regions of Ukraine and subsequent military interventions
in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia,
Belarus, the Crimea Region of Ukraine, the so-called Donetsk People's Republic, and the so-called Luhansk People's Republic,
including agreement to remove certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication
("SWIFT") payment system, expansive ban on imports and exports of products to and from Russia and ban on exportation of U.S
denominated banknotes to Russia or persons located there. Additional potential sanctions and penalties have also been proposed and/or
threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and
lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds
and sell the shares we are offering. The extent and duration of the military action, sanctions and resulting market disruptions are impossible
to predict, but could be substantial. Any such disruptions may also magnify the impact of other risks described in this prospectus.
28
Changes in accounting standards and subjective
assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial results.
The United States generally accepted accounting
principles and related pronouncements, implementation guidelines and interpretations with regard to a wide variety of matters that are
relevant to our business, such as, but not limited to, stock-based compensation, inventory, revenue recognition, trade spend and promotions,
and income taxes are highly complex and involve many subjective assumptions, estimates and judgments by our management. Changes to these
rules or their interpretation or changes in underlying assumptions, estimates or judgments by our management could adversely affect our
reported financial results.
Risks Related to This Offering and Ownership
of Our Common Stock
There has been no public market for our
common stock prior to this offering, and an active market in which investors can resell their shares of our common stock may not develop.
Prior to this offering, there has been no public
market for our common stock. We intend to apply to list our common stock on NASDAQ under the symbol "FBIC." The closing of
this offering is contingent upon the successful listing of our common stock on NASDAQ. There is no guarantee that NASDAQ, or any other
exchange or quotation system, will permit our common stock to be listed and traded. If we fail to obtain a listing on NASDAQ, we may
seek quotation on the OTCQX Best Market or OTCQB Venture Market of the OTC Link ATS (alternative trading system) operated by OTC Markets
Group, Inc. These markets are inter-dealer, over-the-counter markets that provide significantly less liquidity than NASDAQ.
Even if our common stock is approved for listing
on NASDAQ, a liquid public market for our common stock may not develop. The initial public offering price for our common stock has been
determined by negotiation between us and the Underwriter based upon several factors, including prevailing market conditions, our historical
performance, estimates of our business potential and earnings prospects, and the market valuations of similar companies. The price at
which the common stock is traded after this offering may decline below the initial public offering price, meaning that you may experience
a decrease in the value of your common stock regardless of our operating performance or prospects.
29
We may not be able to satisfy listing requirements
of NASDAQ or obtain or maintain a listing of our common stock on NASDAQ.
If our common stock is listed on NASDAQ, we must
meet certain financial and liquidity criteria to maintain such listing. If we violate NASDAQ's listing requirements, or if we fail
to meet any of NASDAQ's listing standards, our common stock may be delisted. In addition, our board of directors may determine
that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting of our
common stock from NASDAQ may materially impair our shareholders' ability to buy and sell our common stock and could have an adverse
effect on the market price of, and the efficiency of the trading market for, our common stock. The delisting of our common stock could
significantly impair our ability to raise capital and the value of your investment.
Listing our common stock on a securities
exchange will increase our regulatory burden.
We intend to apply for the listing of our common
stock under the symbol "FBIC" on the NASDAQ. There is no guarantee that our application will be approved in connection with
this offering. Although to date we have not been subject to the continuous and timely disclosure requirements of exchange rules, regulations
and policies of NASDAQ, we are working with our legal, accounting and financial advisors to identify those areas in which changes should
be made to our financial management control systems to manage our obligations as a public company listed on NASDAQ. These areas include
corporate governance, corporate controls, disclosure controls and procedures and financial reporting and accounting systems. We have
made, and will continue to make, changes in these and other areas, including our internal controls over financial reporting. However,
we cannot assure holders of our shares that these and other measures that we might take will be sufficient to allow us to satisfy our
obligations as a public company listed on NASDAQ on a timely basis and that we will be able to achieve and maintain compliance with applicable
listing requirements. In addition, compliance with reporting and other requirements applicable to public companies listed on NASDAQ will
create additional costs for us and will require the time and attention of management. We cannot predict the amount of the additional
costs that we might incur, the timing of such costs or the effects that management's attention to these matters will have on our
business.
The market price of our common stock may
fluctuate, and you could lose all or part of your investment.
After this offering, the market price for our
common stock is likely to be volatile, in part because our shares have not been traded publicly. In addition, the market price of our
common stock may fluctuate significantly in response to several factors, most of which we cannot control, including:
●
actual or anticipated
    variations in our periodic operating results;
●
increases in market
    interest rates that lead investors of our common stock to demand a higher investment return;
●
changes in earnings
    estimates;
●
changes in market valuations
    of similar companies;
●
actions or announcements
    by our competitors;
●
adverse market reaction
    to any increased indebtedness we may incur in the future;
●
additions or departures
    of key personnel;
●
actions by shareholders;
●
speculation in the
    media, online forums, or investment community; and
●
our intentions and
    ability to list our common stock on NASDAQ and our subsequent ability to maintain such listing.
30
The public offering price of our common
stock has been determined by negotiations between us and the Underwriter based upon many factors and may not be indicative of prices
that will prevail following the closing of this offering. Volatility in the market price of our common stock may prevent investors from
being able to sell their common stock at or above the initial public offering price. As a result, you may suffer a loss on your investment.
You will experience immediate and substantial
dilution as a result of this offering.
As
                                            of September 30, 2024, our net tangible book value was approximately ($4,929,622) or approximately
                                            ($0.04) per share. Since the effective price per share of our common stock being offered
                                            in this offering is substantially higher than the net tangible book value per share of our
                                            common stock, you will suffer substantial dilution with respect to the net tangible book
                                            value of the common stock you purchase in this offering. Based on the assumed public offering
                                            price of $[ ] per share of common stock being sold in this offering, which is the midpoint
                                            of the estimated offering range set forth on the cover page of this prospectus, and our net
                                            tangible book value per share as of September 30, 2024, if you purchase shares of common
                                            stock in this offering, you will suffer immediate and substantial dilution of $[ ] per
                                            share (or $[ ] per share if the Underwriter exercises the over-allotment option in full)
                                            with respect to the net tangible book value of the common stock. See the section titled "
Dilution
"
                                            for a more detailed discussion of the dilution you will incur if you purchase securities
                                            in this offering.
We have broad discretion in how we use
the proceeds of this offering and may not use these proceeds effectively, which could affect our results of operations.
We will have considerable discretion in the application
of the net proceeds of this Offering. We intend to use the net proceeds from this offering to grow our company, cover expenses associated
with becoming a public company, working capital and general corporate purposes. As a result, investors will be relying upon management's
judgment with only limited information about our specific intentions for the use of the net proceeds of this Offering. We may use the
net proceeds for purposes that do not yield a significant return or any return at all for our shareholders. In addition, pending their
use, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value. Please see the "
Use
of Proceeds
" section in this prospectus for more information.
We do not intend to pay any cash dividends
on our shares of common stock in the near future, so our shareholders will not be able to receive a return on their shares unless they
sell their shares.
We intend to retain any future earnings to finance
the development and expansion of our business. We do not anticipate paying any cash dividends on our common stock in the foreseeable
future. There is no assurance that future dividends will ever be paid, and if dividends are paid, there is no assurance with respect
to the amount of any such dividend. Unless we pay dividends, our shareholders will not be able to receive a return on their shares unless
they sell their shares, and they may be unable to sell their shares on favorable terms or at all.
We are majority-owned by Hemptown Organics
Corp. ("Parent"), and a small group of our officers and directors, together with certain other stockholders, hold a majority
of the control of Functional Brands Inc.
We are a majority-owned subsidiary of Hemptown
Organics Corp., which owns approximately 72% of our outstanding shares of common stock. Our key officers, directors and executives beneficially
own approximately 17% of our company. The 72% ownership was calculated by dividing the total number of shares of Functional Brands owned
by HOC by the total number of outstanding shares of Functional brands, the figure is the result of certain transactions conducted between
the entities. HOC was issued 40,000,000 shares in connection with the license agreement with Functional Brands Inc. (formerly HT Naturals)
and 80,000,000 shares for the transfer of the Kirkman brand to Functional Brands Inc. in May 2023, resulting in an amount equal to 120,000,000
shares. After these issuances, Hemptown Organics Corp. undertook transactions to sell 32,000,000 of its shares of Functional Brands Inc.,
resulting in the total amount of 88,000,000 shares held in Functional Brands. Therefore 88,000,000 divided by 122,000,000 (which is the
total amount of outstanding shares of Functional Brands) is approximately 72%.
Such concentration of ownership and control could
have the effect of delaying, deterring or preventing a change in control of our company that might otherwise be beneficial to stockholders.
There can be no assurance that conflicts of interest will not arise with respect to our key officers and directors, or that such conflicts
will be resolved in a manner favorable to us.
31
We will be a "controlled company"
within the meaning of the listing rules of NASDAQ and, as a result, can rely on exemptions from certain corporate governance requirements
that provide protection to stockholders of other companies.
Because Hemptown Organics Corp. owns a majority
of our common stock and will own a majority of our common stock after this offering, we will be a "controlled company" as
defined under the listing rules of NASDAQ. Under NASDAQ listing rules, controlled companies are companies of which more than 50% of the
voting power for the election of directors is held by an individual, a group, or another company. For as long as we remain a controlled
company, we are permitted to elect to rely on certain exemptions from NASDAQ's corporate governance rules, including the following:
●
an exemption from the
    rule that a majority of our board of directors must be independent directors;
●
an exemption from the
    rule that our compensation committee be composed entirely of independent directors; and
●
an exemption from the
    rule that our director nominees must be selected or recommended solely by independent directors or a nominating committee composed
    solely of independent directors;
Although we do not intend to rely on the "controlled
company" exemptions to NASDAQ's corporate governance rules, we could elect to rely on these exemptions in the future. If
we elected to rely on the "controlled company" exemptions, a majority of the members of our board of directors might not
be independent directors, our nominating and corporate governance and compensation committees might not consist entirely of independent
directors upon closing of the offering, and you would not have the same protection afforded to shareholders of companies that are subject
to NASDAQ's corporate governance rules.
There has been no independent valuation
of our common stock, which means that our common stock may be worth less than the offering price in the offering.
The per share purchase price in the offering
has been determined by us without independent valuation of our shares of common stock. We established the offering price based on management's
estimate of the valuation of shares of our common stock. This valuation is highly speculative and arbitrary. There is no relation to
the market value, book value, or any other established criteria. We did not obtain an independent appraisal opinion on the valuation
of our shares. Our shares of common stock may have a value significantly less than the offering price, and the shares may never obtain
a value equal to or greater than the offering price.
If securities industry analysts do not
publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our common stock
could be negatively affected.
Any trading market for our common stock may be
influenced in part by any research reports that securities industry analysts publish about us. We do not currently have and may never
obtain research coverage by securities industry analysts. If no securities industry analysts commence coverage of us, the market price
and market trading volume of our common stock could be negatively affected. In the event we are covered by analysts, and one or more
of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage of us, the market price and
market trading volume of our common stock could be negatively affected.
Future issuances of our common stock or
securities convertible into, or exercisable or exchangeable for, our common stock, or the expiration of lock-up agreements that restrict
the issuance of new common stock or the trading of outstanding common stock, could cause the market price of our common stock to decline
and would result in the dilution of your holdings.
Future issuances of our common stock or securities
convertible into, or exercisable or exchangeable for, our common stock, or the expiration of lock-up agreements that restrict the issuance
of new common stock or the trading of outstanding common stock, could cause the market price of our common stock to decline. We cannot
predict the effect, if any, of future issuances of our securities, or the future expirations of lock-up agreements, on the price of our
common stock. In all events, future issuances of our common stock would result in the dilution of your holdings. In addition, the perception
that new issuances of our securities could occur, or the perception that locked-up parties will sell their securities when the lockups
expire, could adversely affect the market price of our common stock. In connection with this offering, we will enter into a lock-up agreement
that prevents us, subject to certain exceptions, from offering additional shares of capital stock for up to six months after the closing
of this offering, as further described in the section titled "
Underwriting
." In addition to any adverse effects that
may arise upon the expiration of these lock-up agreements, the lock-up provisions in these agreements may be waived, at any time and
without notice. If the restrictions under the lock-up agreements are waived, our common stock may become available for resale, subject
to applicable law, including without notice, which could reduce the market price for our common stock.
32
Future issuances of debt securities, which
would rank senior to our common stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior
to our common stock for the purposes of dividends and liquidating distributions, may adversely affect the level of return you may be
able to achieve from an investment in our common stock.
In the future, we may attempt to increase our
capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect
to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders
of our common stock. Moreover, if we issue preferred stock, the holders of such preferred stock could be entitled to preferences over
holders of common stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to
issue debt or preferred stock in any future offering, or borrow money from lenders, will depend in part on market conditions and other
factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders
of our common stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return,
if any, they may be able to achieve from an investment in our common stock.
We are authorized to issue "blank
check" preferred stock without stockholder approval, which could adversely impact the rights of holders of our common stock.
Our articles of incorporation authorize us to
issue shares of "blank check" preferred stock, meaning our board of directors can designate the rights and preferences of
classes or series of such preferred stock without shareholder approval. Any preferred stock that we issue in the future may rank ahead
of our common stock in terms of dividend priority or liquidation premiums and may have greater voting rights than our common stock. In
addition, such preferred stock may contain provisions allowing those shares to be converted into shares of common stock, which could
dilute the value of common stock to current stockholders and could adversely affect the market price, if any, of our common stock. In
addition, the preferred stock could be utilized, under certain circumstances, as a method of discouraging, delaying or preventing a change
in control of our company. Although we have no present intention to issue any shares of authorized preferred stock, there can be no assurance
that we will not do so in the future.
If our shares of common stock become subject
to the penny stock rules, it would become more difficult to trade our shares.
The Securities and Exchange Commission, or the
SEC, has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized
for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions
in such securities is provided by the exchange or system. If we do not retain a listing on NASDAQ or another national securities exchange
and if the price of our common stock is less than $5.00, our common stock could be deemed a penny stock. The penny stock rules require
a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure
document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny
stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable
investment for the purchaser and receive (i) the purchaser's written acknowledgment of the receipt of a risk disclosure statement;
(ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement.
These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and
therefore shareholders may have difficulty selling their shares.
33
We will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies and our shareholders
could receive less information than they might expect to receive from more mature public companies.
As a company with less than $1.235 billion in
revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in Section 2(a) of the Securities
Act of 1933, as amended (the "Securities Act"). An emerging growth company may take advantage of reduced disclosure and reporting
requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:
●
being permitted to present only two years
    of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition
    and Results of Operations" disclosure in our periodic reports and registration statements, including this prospectus;
●
not being required to comply with the auditor
    attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act") on the effectiveness
    of our internal controls over financial reporting;
●
reduced disclosure obligations regarding
    executive compensation arrangements in our periodic reports, proxy statements and registration statements, including this prospectus;
    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.
We will remain an emerging growth company until
the earliest to occur of: (i) the last day of the fiscal year in which we have more than $1.235 billion in annual revenue; (ii) the date
we qualify as a "large accelerated filer," with at least $700 million of equity securities held by non-affiliates; (iii)
the date on which we have issued, in any three-year period, more than $1.0 billion in non-convertible debt securities; and (iv) the last
day of the fiscal year ending after the fifth anniversary of the completion of this offering.
We have taken advantage of the reduced disclosure
obligations in the registration statement of which this prospectus is a part and intend to elect to take advantage of other reduced disclosure
and reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different than
you might receive from other public reporting companies in which you hold equity interests.
We are also a "smaller reporting company,"
meaning that the market value of our stock held by non-affiliates plus the proposed aggregate amount of gross proceeds to us as a result
of this offering is less than $700 million and our annual revenue is less than $100 million during the most recently completed fiscal
year. We may continue to be a smaller reporting company after this offering if either (i) the market value of our stock held by non-affiliates
is less than $250 million or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the
market value of our stock held by non-affiliates is less than $700 million. If we are a smaller reporting company when we cease to be
an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller
reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited
financial statements in our Annual Reports on Form 10-K and, like emerging growth companies, smaller reporting companies have reduced
disclosure obligations regarding executive compensation.
34
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements
that are based on our management's beliefs, expectations, and assumptions and on information currently available to us. All statements
other than statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in,
but not limited to, the sections entitled "
Prospectus Summary
," "
Risk Factors
," "
Management's
Discussion and Analysis of Financial Condition and Results of Operations
" and "
Business
." These statements
relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that
may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels
of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include,
but are not limited to, statements about:
●
our goal and strategies;
●
our future business
    development, financial condition and results of operations;
●
expected changes in
    our revenue, costs or expenditures;
●
growth of and competition
    trends in our industry;
●
our expectations regarding
    demand for, and market acceptance of, our products;
●
our expectations regarding
    our relationships with investors, institutional funding partners and other parties with whom we collaborate;
●
our expectation regarding
    the use of proceeds from this offering;
●
fluctuations in general
    economic and business conditions in the markets in which we operate; and
●
relevant government
    policies and regulations relating to our industry.
In some cases, you can identify forward-looking
statements by terms such as "may," "could," "will," "should," "would," "expect,"
"plan," "intend," "anticipate," "believe," "estimate," "predict,"
"potential," "project" or "continue" or the negative of these terms or other comparable terminology.
These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results.
Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under
the heading "
Risk Factors
" and elsewhere in this prospectus. If one or more of these risks or uncertainties occur,
or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected
by the forward-looking statements. No forward-looking statement is a guarantee of future performance.
The forward-looking statements made in this prospectus
relate only to events or information as of the date on which the statements are made in this prospectus. Although we will become a public
company after this offering and have ongoing disclosure obligations under United States federal securities laws, except as required by
applicable law, we do not intend to update or otherwise revise the forward-looking statements in this prospectus, whether as a result
of new information, future events or otherwise.
35
USE OF PROCEEDS
After deducting the estimated Underwriter discounts
and commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $4,500,000 from this offering
(or approximately $[   ] if the Underwriter exercises the over-allotment option in full), based on an assumed initial
public offering price of $[   ] per Unit, which is the midpoint of the estimated offering range set forth on the cover
page of this prospectus.
We plan to use the net proceeds of this offering
as follows:
●
14% of net proceeds (approximately
                                            $650,000) for Go-Public Attorney / Advisory Fees
●
7% of net proceeds (approximately
                                            $300,000) for market awareness marketing
●
53% of the net proceeds (approximately
                                            $2.4 million) for a deferred payment in connection with the Kirkman acquisition which has
                                            a maturity date of January 1, 2025. The payment is comprised solely of principal, since there
                                            is currently a $15,000 monthly interest payment payable; and
●
26% of net proceeds (approximately
                                            $1,150,000) for sales, marketing and working capital
Each $1 increase or decrease in the assumed initial
public offering price of $[     ] per Unit, which is the midpoint of the estimated offering price range set
forth on the cover page of this prospectus, would increase or decrease the net proceeds that we receive from this offering by approximately
$[      ], assuming that the number of shares offered by us, as set forth on the cover page of this prospectus,
remains the same and after deducting the estimated underwriting discounts and commissions payable by us.
The foregoing represents our current intentions
to use and allocate the net proceeds of this offering based upon our present plans and business conditions. Our management, however,
will have broad discretion in the way that we use the net proceeds of this offering. See "
Risk Factors—Risks Related to
This Offering and Ownership of Our Common Stock—We have considerable discretion as to the use of the net proceeds from this offering
and we may use these proceeds in ways with which you may not agree
."
36
DIVIDEND POLICY
We have never declared or paid cash dividends
on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business
and do not anticipate paying any cash dividends on our common stock in the near future. We may also enter into credit agreements or other
borrowing arrangements in the future that will restrict our ability to declare or pay cash dividends on our common stock. Any future
determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition,
operating results, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors
may deem relevant. See also "
Risk Factors—Risks Related to This Offering and Ownership of Our Common Stock—We do
not intend to pay any cash dividends on our shares of common stock in the near future, so our shareholders will not be able to receive
a return on their shares unless they sell their shares
."
CAPITALIZATION
The following table sets forth our capitalization
as of September 30, 2024:
●
on
    an actual basis;
●
on
    a pro forma basis to reflect the sale of [   ] shares by us in this offering at an assumed price to the public of $[  
    ] per Unit, which is the midpoint of the estimated offering range set forth on the cover page of this prospectus, resulting in net
    proceeds to us of $[   ] after deducting (i) underwriter commissions of $[   ] and (ii) our estimated other offering
    expenses of $[   ]; and
●
on
    a pro forma basis to reflect the sale of [   ] shares by us in this offering, assuming the Underwriter elects to exercise
    the over-allotment option in full, at an assumed price to the public of $[   ] per Unit, which is the midpoint of the estimated
    offering range set forth on the cover page of this prospectus, resulting in net proceeds to us of $[   ] after deducting
    (i) underwriter commissions of $[   ] and (ii) our estimated other offering expenses of $[   ].
The pro forma information below is illustrative
only and our capitalization following the completion of this offering is subject to adjustment based on the initial public offering price
of our common stock and other terms of this offering determined at pricing. All figures presented in the table below are rounded to the
nearest thousand dollars. You should read this table together with our financial statements and the related notes included elsewhere
in this prospectus and the information under "
Management's Discussion and Analysis of Financial Condition and Results
of Operations
."
As of September 30, 2024:
Actual
Post-Offering
Pro Forma
without
Over-Allotment
Option
Post- Offering
Pro Forma
with
Over- Allotment
Option
Cash
$
246,903
$
$
Total long-term liabilities
$
5,298,024
Total liabilities
$
7,337,949
$
$
Shareholders' equity (deficit):
Common stock, $ [0.00001] par value, [220,000,000] shares authorized
    and [122,767,274] shares issued and outstanding on an actual and pro forma basis (prior to this offering)
$
1,228
$
$
Additional Paid in Capital
$
7,126,225
$
$
Accumulated Deficit
$
(7,377,212
)
$
$
Total shareholders' deficit
$
(249,759
)
$
$
Each $1.00 increase or decrease in the assumed
offering price per Unit of $[     ], which is the midpoint of the price range set forth on the cover page of
this prospectus, assuming no change in the number of shares to be sold, would increase or decrease the net proceeds that we receive in
this offering and each of total shareholders' equity and total capitalization by approximately $[     ]
(or $[     ] if the Underwriter exercises its over-allotment option in full), after deducting (i) estimated
underwriter commissions and (ii) offering expenses, in each case, payable by us.
37
DILUTION
Dilution in net tangible book value per share
to new investors in our securities, is the amount by which the offering price paid by the purchasers of the shares of our common stock
sold in this offering exceeds the pro forma net tangible book value per share of common stock immediately after this offering. Net tangible
book value per share is determined at any date by subtracting our total liabilities from the total book value of our tangible assets
and dividing the difference by the number of shares of common stock deemed to be outstanding at that date.
The net tangible book value of our common stock
as of September 30, 2024, was approximately $[   ], or approximately $[   ] per share of common stock.
Pro forma as adjusted net tangible book value
dilution per share to new investors represents the difference between the amount per share paid by purchasers of our common stock in
this offering and the pro forma as adjusted net tangible book value per share of our common stock immediately after completion of this
offering. Investors participating in this offering will incur immediate, substantial dilution. After giving effect to our sale of [
  ] shares of our common stock in this offering at an assumed initial public offering price of $[   ] per
share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and after deducting
the estimated underwriting discounts and commissions and estimated offering expenses, our pro forma as adjusted net tangible book value
as of September 30, 2024, would have been approximately $[   ], or approximately $[   ] per share. This amount
represents an immediate increase in pro forma net tangible book value of $[   ] per share to existing shareholders and
an immediate dilution in pro forma net tangible book value of $[   ] per share to purchasers of our common stock in this
offering, as illustrated in the following table.
Assumed initial public offering price per share
$
[
]
Net tangible book value per share at September 30, 2024
$
Pro forma net tangible book value per share after this offering
$
[
]
Increase in net tangible book value per share to the existing shareholders
$
[
]
Dilution in net tangible book value per share to new investors in this offering
$
[
]
If the Underwriter exercises its over-allotment
option in full, the pro forma as adjusted net tangible book value per share of our common stock, as adjusted to give effect to this offering,
would be $[    ] per share, and the dilution in pro forma net tangible book value per share to new investors purchasing
shares of common stock in this offering would be $[    ] per share.
The following table sets forth, assuming the
sale of [    ] shares of our common stock in this offering, as of September 30, 2024, the total number of shares of common
stock previously issued and sold by us to existing investors, the total consideration paid for the foregoing and the average price per
share, before deducting estimated underwriter commissions and offering expenses (assuming no exercise of the over-allotment option to
purchase additional shares of common stock and assuming no exercise of the Representative's warrants), in each case payable by
us. As the table shows, new investors purchasing shares of our common stock in this offering may in certain circumstances pay an average
price per share substantially higher than the average price per share paid by our existing shareholders.
Shares Purchased
Total Consideration
Average Price
Number
Percent
Amount
Percent
Per Share
Existing shareholders
(1)
[
]
[
]
$
[
]
[
]
$
[
]
New investors
[
]
[
]
$
[
]
[
]
$
[
]
Total
[
]
100.00
%
$
[
]
100.00
%
$
[
]
(1)
[●]
A $1.00 increase or decrease in the assumed public
offering price of $[    ] per share assuming the number of shares of our common stock offered by us remains the same and
after deducting estimated underwriter commissions and offering expenses payable by us would increase or decrease our pro forma net tangible
book value (deficit), as adjusted to give effect to this offering, to $[    ] per share ($[    ], if the
Underwriter exercises its over-allotment option in full). A $1.00 increase in the assumed public offering price of $[   
] per share would increase the dilution to new investors by $[   ] per share ($[    ], if the Underwriter exercises
its over-allotment option in full).
To the extent that any outstanding options or
warrants are exercised, new options, restricted stock units or other securities are issued under our stock-based compensation plans,
or new shares of preferred stock are issued, or we issue additional shares of common stock or warrants in the future, there will be further
dilution to investors participating in this offering.
38
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis summarize
the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the
periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related
notes thereto included elsewhere in this prospectus. The discussion contains forward-looking statements that are based on the beliefs
of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially
from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and
elsewhere in this prospectus, particularly in the sections titled "Risk Factors" and "Cautionary Statement Regarding
Forward-Looking Statements".
OUR COMPANY
Overview
Our company operates in the nutraceutical supplement
industry. We are a manufacturer and distributor of supplements in categories such as pain, energy, prenatal, general health, bone and
joint, gastro, immunity, cardiac, detox, brain and memory, sleep, prenatal and urinary. Our end markets focus on end-consumers through
different channels that include pharmacies, US wholesalers, international distributors and direct-to-consumers sales. Our products are
sold over the counter, and consumers do not need a prescription to purchase our products. Our products are not approved by the FDA. Our
company also operates in the hemp industry as a retailer of hemp derived products in categories such as capsules, cigarettes, gummies,
and tinctures with a commercial end market, and end-consumers.
Functional Brands is a super majority owned subsidiary
of HOC, a privately held British Columbia corporation. Incorporated as HT Naturals Inc. in November 2020. The Company aims to deliver
the highest quality and innovative products under multiple brands. Kirkman, P2i by Kirkman Prenatal, HempTown Naturals and Golf Mellow
are current brands in the market or prepared to be launched in market.
Our Products
Kirkman Brand
Our products under our "Kirkman"
brand are manufactured in our cGMP certified, FDA registered manufacturing facility located in Lake Oswego, Oregon. Kirkman is a manufacturer
of nutritional supplements. Founded in 1949, Kirkman is also one of the oldest nutritional supplement companies serving the special needs
community.
Our Kirkman brand offers more than 150 products
including probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, preconception,
prenatal supplements, personal care products and other specialty products. Kirkman treats patients with autism spectrum disorders and
special dietary needs through an established network of over 2,000 doctors in over 40 countries. Our Kirkman brand operates in 95% of
the major subsegments in the supplement industry. Kirkman has a long-standing loyal customer and consumer base due to the rigorous testing
of products in compliance with FDA requirements. Kirkman has been endorsed by various businesses and celebrities, including the famous
and original Shark Tank member, Kevin Harrington.
Digestive enzymes
: Over the counter oral
digestive enzyme supplements are a combination of proteases, which aid protein digestion; lipases, which aid in fat digestion; and amylases,
which aid in carbohydrate digestion. These may be prescribed by a doctor in some cases, when the pancreas does not make enough digestive
enzymes on its own. People are increasingly taking over the counter ("OTC") digestive enzymes in lower doses to support general
gut health.
Essential fatty acids
: Also called omega-3
fatty acids, essential fatty acids are important digestive chemicals that the body cannot make on its own.
39
Our products under the Kirkman Brand include,
but are not limited to, the following:
●
Supplements for Autism;
●
Essential Fatty Acids;
●
Oxytocin;
●
Vitamin B12;
●
Vitamin B6 and Magnesium;
●
Glutathione;
●
Melatonin;
●
Functional Mushrooms;
●
Probiotics;
●
Multivitamins and Minerals;
●
Digestive Enzymes;
●
Antioxidants; and
●
Amino Acids.
P2i (prenatal) Brand
We have recently launched in April 2024 a certified
prenatal vitamin for expectant mothers under the P2i by Kirkman brand. These vitamins have been specially formulated by our company to
provide essential nutrients for both the mother and the developing fetus. The International Federation of Gynecology and Obstetrics ("FIGO")
published a position statement about toxic chemicals and environmental contaminants in prenatal vitamins. FIGO's recommendation
from the October 2023 position statement highlights that patients should only consume, and clinicians should only prescribe, vitamins
and supplements that have been independently assessed to make certain they do not contain contaminants. Manufacturers should be held
to a standard of production that assures safety and minimizes contaminants and certification of all prenatal vitamins becomes the standard
of care. The FIGO Committee report on Climate Change and Toxic Environmental Exposures brought together global scientists to review the
reputable reference sources for chemicals that have the potential to impact maternal and newborn health, including the USA Environmental
Protection Agency, the European Union, and the California EPA.
The group of experts recommended several approaches,
including:
1.
creating a list of toxic chemicals
                                            and contaminants that should be screened for in Prenatal Vitamins and reduced to de minimis
                                            standards; and
2.
conducting assays of existing
                                            vitamins to assess ongoing risk to maternal and newborn health. This work can extend to personal
                                            exposure risk by offering women testing for the presence of potentially toxic environmental
                                            chemicals. Mass Spectrometry currently offers the most comprehensive measurement.
This first publication of a list of toxic chemicals
and contaminants represents the most comprehensive testing available at present but does not purport to identify or eliminate all potential
sources of toxicity.
We are currently the only certified prenatal
vitamin in the market that aligns to the FIGO position statement. We have formulated and produced a prenatal vitamin called P2i by Kirkman.
There are 3.6M pregnancies alone in the United States (https://www.cdc.gov/nchs/fastats/births.htm) and the initial market focus for
this product will be the United States with the expectation to expand globally since FIGO's position statement reaches all countries.
The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.
●
The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM's low-toxicity standards, which align with FIGO's objectives for maternal
                                            and fetal health. These standards include:
o
Analysis
                                            of 24 Heavy Metals, ensuring levels are below stringent safety thresholds
o
Testing
                                            for the presence of 120 toxic chemicals, such as pesticides and endocrine disruptors, with
                                            strict limits to prevent potential harm
o
Utilization
                                            of ISO 17025-accredited laboratories for all testing to ensure reliability and reproducibility
                                            of results
●
Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product's compliance with The FORUM's criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman's prenatal vitamin meets
                                            its standards for low toxicity and safety.
HempTown Naturals Brand
All HempTown Naturals products are produced and
sold in compliance with the US 2018 Farm Bill and the US Agricultural Act of 2014. CBD and CBG are cannabinoids present in the cannabis
plant. Both CBD and CBG are used in hemp derived products. These products are believed to help in treating certain neurodegenerative
and inflammatory conditions
1
.
1
https://www.medicalnewstoday.com/articles/cgb-vs-cbd
40
CBD
CBD, or cannabidiol, is the second most prevalent
ingredient in cannabis. While CBD is an integral component of medical marijuana, it is derived directly from the hemp plant, both of
which are the same species: Cannabis sativa L. One of the hundreds of components of Cannabis sativa L., CBD does not cause a "high"
by itself. According to a report from the World Health Organization, "In humans, CBD exhibits no effects indicative of any abuse
or dependance potential…. To date, there is no evidence of public health related products associated with the use of pure CBD."
2
As reported by Forbes Health, CBD is applied
topically or consumed through smoke inhalation or edible consumption. CBD interacts with neuroreceptors in your endocannabinoid system,
which sends signals between your cells to help regulate your movement, mood, homeostasis, and immune system. Different studies have shown
that CBD can offset everyday anxiety and depression.
3
CBG
CBG, or cannabigerol, is another compound found
in hemp which doesn't have intoxicatingly psychoactive effects. CBG, often referred to by experts as "the mother of all cannabinoids,"
is the cannabinoid from which other types of cannabinoids (including CBD) are derived, says Michelle Sexton, a naturopathic doctor who
works at the Pain Trauma Institute in San Diego. "CBG is the first compound in the biosynthesis (the production of chemical compounds
by a living organism) of the other cannabinoids," she adds.
CBG is available in many forms, including tinctures,
gummies, capsules and topical creams and lotions. CBG is often coupled with CBD in these products because the two cannabinoids can provide
complimentary benefits, such as decreasing inflammation and pain, says Fraser Smith, a naturopathic doctor, as well as assistant dean
and associate professor at the National University of Health Services in Lombard, Illinois. CBD and CBG occur naturally in hemp extract
which is the source of our cannabinoids.
4
Golf Mellow Brand
The
Company has utilized existing product formulations with plans to introduce 12 different products under the Golf Mellow brand. A brand
logo and packaging has been created to support the existing formulations. These supplements will be targeting the golf industry and golf
professionals. These products include capsules, a powder, a cream and tinctures to help golfers of all levels improve their game and
overall well-being. The capsules are packed with a blend of essential vitamins and minerals that support joint health, flexibility, and
energy levels. The tinctures are made from all-natural ingredients and provide a quick and easy way to support focus and mental clarity,
helping athletes stay in the zone and make the perfect shot. The creams are specially designed to provide targeted relief for sore muscles
and joints, helping them stay comfortable and focused on the course. Some of these products include Sleep Caps to ensure that players
are well rested the night before, Super B12 Powder which provides the energy needed for the perfect round, Calm Caps which help manage
anxiety when players need it most, and Epsom Salt Cream & Recovery Caps, which aids with recovery. Once we receive a purchase order,
we will package the products to fulfill the respective order.
According to data from the National Golf Foundation
25.1 million people (aged six and over) played on a golf course in the United States in 2021 – furthermore there were another 12.4
million people who took part in off-course activities like driving ranges, indoor golf simulators or venues like Topgolf and Drive Shack.
5
2
www.health.harvard.edu
3
www.forbes.com/health/body/cbd-oil-benefits/
4
www.forbes.com/health/body/cannabigerol-cbg/
5
https://www.golfmonthly.com/news/how-many-golfers-are-there-in-the-united-states
41
Competitive Strengths
The Kirkman brand has been in business for over
70 years with a loyal consumer base and we believe that we maintain high purity and quality standards in the industry. We source all
materials from high quality suppliers.
We test our finished goods in certified laboratories
with state-of-the-art equipment and manufacture our supplements in our US-based cGMP certified and FDA registered facility located in
Lake Oswego, Oregon. The FDA requires that we conduct at least one appropriate test or examination to verify and identify any component
that is a dietary ingredient. We conduct ingredient testing by verifying the identity through ISO certified 3rd party laboratories. We
also test for residual solvents and pesticides (where applicable), presence of up to 24 heavy metals and microbial contamination that
could lead to illness or death. Microbial tests can include, but are not limited to, aerobic plate count, yeast & mold, coliforms,
E. coli, pseudomonas, staphylococcus aureus, Bile Tolerant gram negative, Salmonella, Aflatoxins and listeria. Heavy metals testing includes
beryllium, aluminum, vanadium, chromium, manganese, cobalt, nickel, copper, zinc, arsenic, selenium, molybdenum, palladium, silver, cadmium,
tin, antimony, barium, tungsten, platinum, thallium, lead, uranium and mercury. For incoming raw ingredients, we ID using the following
methods: Botanicals – HPLC (High Pressure Liquid Chromatography) or TLC (Thin Layer Chromatography), or an approved Chemical test;
Vitamins – IR (Infrared) absorption, Chemical test, UV (Ultraviolet) absorption, UV fluorescence, GC (Gas Chromatography), HPLC;
Minerals – ICP-MS (Inductively Coupled Plasmas – Mass Spectroscopy), IR (Infrared), Chemical tests, TLC (Thin Layer Chromatography);
Enzymes – HPLC (High Pressure Liquid Chromatography), PCR (Polymerase Chain Reaction); Amino Acids – IR absorption, Optical
Rotation, HPLC, TLC, GC (Gas Chromatography), Assay; Probiotics – PCR and HPLC; Metals – HPLC or ICP-MS; Micros – Cell
culture and cell identification.
The FDA requires that a finished batch of the
dietary supplement meets product specifications for identity, purity, strength, composition, and for limits on those types of contamination
that may adulterate or that may lead to adulteration of the finished batch of the dietary supplement. This can be conducted for a subset
of finished dietary supplement batches through a sound statistical sampling plan (or for every finished batch). For our business, we
test every batch of products to ensure heavy metals are below Pop 65 limits. In addition, every batch is tested for microbial contamination.
Our 75+ year history in the industry, along with our rigorous material testing, allows Kirkman to use statistical sampling to ensure
the identity, purity and strength of each product is met. Our formulations use proprietary blends.
Although we are authorized to produce hemp derived
products because we hold a hemp handler's license, we currently do not grow any hemp, but we source our hemp derived products from
registered growers in operation. The FDA does not require any testing on dietary supplements whereas we test for approximately 90 metals
and toxins in raw materials.
As previously mentioned, we've recently
launched P2i by Kirkman prenatal vitamin, which is the only certified prenatal vitamin that aligns to FIGO's position statement.
The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.
●
The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM's low-toxicity standards, which align with FIGO's objectives for maternal
                                            and fetal health. These standards include:
o
Analysis
                                            of 24 Heavy Metals, ensuring levels are below stringent safety thresholds
o
Testing
                                            for the presence of 120 toxic chemicals, such as pesticides and endocrine disruptors, with
                                            strict limits to prevent potential harm
o
Utilization
                                            of ISO 17025-accredited laboratories for all testing to ensure reliability and reproducibility
                                            of results
●
Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product's compliance with The FORUM's criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman's prenatal vitamin meets
                                            its standards for low toxicity and safety.
We have an exclusive license agreement with the
Trailer Park Boys to market & sell hemp derived products. There are two product categories that include Hemp Derived Delta 9 products.
This includes Delta 9 gummies and Delta 9 Drink Enhancers. These two specific products are intended for health & wellness, and recreational
use. Both product categories comply with the 2018 Farm Bill where THC concentration does not exceed 0.3% on a dry weight basis. The revenue
of these two product categories represents .6% of total company revenue. We executed a license agreement with the Trailer Park Boys which
is in effect since July 21, 2021 and until December 31, 2024, under the license agreement as amended, the Company will pay the Trailer
Park Boys, an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to
be paid during the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000 shares of the Company.
The royalty rate under this agreement is between 15 - 30% of the gross sales of the company derived from sales related to the license.
To date, $425,000 has been paid to the Trailer Park Boys towards the license agreement. The license agreement may be terminated with
reasonable cause upon six months' written notice or for certain triggering events without recourse or an opportunity to cure.
42
Growth Strategy
We aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products including mushroom-based supplements targeted for everyday use, prenatal, athletes and beyond.
We plan to do this by:
●
Strengthening
    our existing 70-year-old Kirkman brand with its established base of consumers in the autism community by curating our product mix
    to cater to their specific needs;
●
Launching
    multiple brands, broad as well as niche, including P2i by Kirkman which is the only certified prenatal vitamin supporting FIGO's
    October 2023 position statement, to allow us to increase our market share;
●
Modernizing
    our manufacturing capabilities by reorganizing the space and introducing new and efficient machinery and equipment to significantly
    enhance our output;
●
Investing
    heavily into our sales and marketing activities as well as business development in order to increase sales and distribution; and
●
Identify
    key companies with synergistic strengths for partnerships or acquisitions.
Challenges, Risks and Limitations
Our ability to utilize our competitive advantages
in order to strengthen and expand our business and achieve our growth plan is subject to a number of risks and uncertainties more fully
discussed under "Risk Factors" in this Prospectus. As discussed in our financial statements, we have suffered recurring losses
from operations and have a significant accumulated deficit. In addition, we continue to experience negative cash flows from operations.
This limited working capital capabilities may delay or make the accomplishment of our growth plans difficult. In assessing the likelihood
of our future success, investors in this offering should note our history of losses and the likelihood of our operating profitability
in the future. Further, some of our products may be subject to unpredictable and evolving federal, state and local regulations concerning
hemp, CBD and other non-tobacco consumable products. Because the type, timing, and impact of such regulations remain uncertain, we cannot
give any assurance that such actions will not have a material adverse effect on this emerging business and our strategy.
Our Corporate History and Structure
Functional Brands was organized under the General
Corporation Law in the state of Delaware on November 19, 2020 under the name HT Naturals Inc. HT Naturals Inc. changed its name to Functional
Brands Inc. on March 23, 2023. Our principal business is the production, marketing, sales, and distribution of nutraceutical products
through our Kirkman division, alongside our hemp derived products under the Hemptown brand in certain states within the United States
that permit such sales. We ship our Kirkman products to all US states. As for hemp derived products, we only sell to states which permit
this activity with certain restrictions such as the content of THC which differs depending on the state.
The states in which we have sold hemp derived
products in the past are Alabama, Arizona, Arkansas, California (D9 ingestible and CBD/CBG ingestible only), Colorado (CBD/CBG inhalable
only), Connecticut, Delaware (D9 ingestible), Florida, Georgia (D9 ingestible and CBD/CBG ingestible only), Hawaii (CBD/CBG ingestible
only), Illinois(D9 ingestible and CBD/CBG inhalable), Indiana (D9 ingestible only), Iowa (D9 ingestible only), Kansas, Kentucky (D9 ingestible
only), Louisiana, Maine (D9 ingestible and CBD/CBG inhalable), Maryland (CBD/CBG inhalable only), Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nevada, New Hampshire, New Jersey, New York (D9 and CBD/CBG ingestible only), North Carolina, North Dakota (CBD/CBG
ingestible only), Ohio, Oklahoma, Oregon (CBD/CBG ingestible only), Pennsylvania, Rhode Island, South Carolina, South Dakota (D9 ingestible
only), Tennessee (CBD/CBG inhalable only), Texas, Virgina (CBD/CBG ingestible and inhalable only), Washington (CBD/CBG Inhalable only),
West Virginia, Wisconsin, Wyoming.
We have engaged specialized hemp counsel to provide
regular updates on the 50 states and the legality of our hemp products in each state. In addition, we have established and followed a
standard of operating procedure (SOP) to ensure sales do not occur in the states where hemp products may not be sold consistent with
the regular updates provided by our hemp counsel. We have an internal policy that prohibits us as a company and any of our executives,
directors, employees, sales representatives and distributors to distribute any of the Company's hemp derived products in places
in which the sale of hemp derived products is prohibited. We are a 98% subsidiary of HOC, a British Columbia, Canada private operating
holding company with various interests in nutraceutical manufacturing and federally legal industrial hemp products. We were granted a
licensing agreement by Hemptown Organics Corp. The licensing agreement, dated December 10, 2020, provides Functional Brands Inc. as licensee,
a license to use the Hemptown USA and Hemptown Naturals brand and trademarks on a perpetual, non-exclusive, non-transferable basis, with
no expiry date. This licensing agreement will transfer full ownership to Functional Brands upon the public offering and listing on the
exchange, at which time HOC will dividend out the majority of the Company's shares currently held by HOC.
43
On June 28, 2019, HTO Holdings Inc. ("HTO
Holdings") a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as "Purchaser"),
entered into an asset purchase agreement ("APA") for the net assets of Kirkman Group Inc., a Nevada corporation, Kirkman
Laboratories Inc., an Oregon corporation and Kirkman Group International, Inc., a Nevada corporation (collectively "Kirkman"
or the "Seller," and together with Purchaser, the "Parties") for a consideration equal to $5 million with payout
in a business combination of cash and deferred consideration. The ''Seller'' is David Humphrey. Under the APA,
Purchaser and HTO Holdings were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021
by the Parties with the purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment
schedule of the deferred consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and
other agreements attached to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement,
the domain names transfer agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively,
the "IP Collateral Agreements")) to, among other things, provide additional collateral as security to Seller. Upon payment
in full in cash of the deferred consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that
the security agreement and amended intellectual property security agreement would be automatically terminated and be of no further force
and effect; and (ii) Seller would, at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective
security agreement and intellectual property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16,
2022, the APA was amended again by the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral
Agreements. On May 31, 2022, Purchaser paid Seller certain amounts ("Immediate Payments"), and on July 23, 2022, Purchaser
and Seller executed a forbearance agreement ("Forbearance Agreement") to extend the payments due under the APA to August
31, 2022. After Purchaser's default, and partial payment to Seller in September 2022, the Parties executed an amendment to the
Forbearance Agreement on December 27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was
$3,032,000 (the "Existing Default"). Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated
September 24, 2024, where additional principal and interest payments will continue. As of January 5, 2025, the balance due to Seller
is $2,342,366. We intend to use a portion of the proceeds of the public offering to cover the payment of some of the Existing Default.
As a part of our restructuring efforts, HTO Nevada,
formerly owned by HTO Holdings, was acquired by Functional Brands on May 19, 2023, through a share exchange agreement executed by HOC,
HTO Holdings and Functional Brands, in which HTO Holdings exchanged 1,000 restricted shares of common stock, par value $0.0001 per share
of HTO Nevada, being all of the issued and outstanding capital stock of HTO Nevada, in exchange for 80,000,000 restricted shares of common
stock of Functional Brands, $0.00001 par value per share (the "Functional Brands Shares") to HOC, such that, HTO Nevada shall
be a wholly-owned subsidiary of Functional Brands and HOC shall own 120,000,000 shares of Functional Brands. The resulting entity, Functional
Brands Inc., with its wholly owned subsidiary HTO Nevada, will be the publicly listed entity. Our fiscal year-end is December 31.
Corporate Information
We are currently incorporated and in good standing
in the State of Delaware. Our registered address is 6400 SW Rosewood Street, Lake Oswego, Oregon 97035 and our telephone number is (800)
245-8282. We maintain the following websites: https://functtionalbrandsinc.com, https://kirkmangroup.com and https://hemptownnaturals.com.
Information available on our website is not incorporated by reference in and is not deemed a part of this prospectus, and you should
not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether
to purchase our common stock.
NASDAQ Listing
We intend to list our common stock on NASDAQ.
There is no assurance that our listing application will be approved by NASDAQ. The approval of our listing on NASDAQ is a condition to
closing. If our application to NASDAQ is not approved or we otherwise determine that we will not be able to secure the listing of our
common stock on NASDAQ, we will not complete the offering.
44
Results of Operations
For the Nine Months Ended September 30,
2024, compared to the Nine Months Ended September 30, 2023
September
                                            30, 2024
(Unaudited)
September
                                            30, 2023
(Unaudited)
$
Change
%
Change
Statements of Operations Data
Net Revenue
$
4,886,331
$
5,268,405
$
(382,074
)
-7.25
%
Cost of Goods Sold
(2,272,561
)
(2,852,939
)
580,378
-20.34
%
Operating Expenses
(2,703,668
)
(2,804,658
)
100,990
-3.60
%
Operating Loss
(89,898
)
(389,192
)
299,294
-76.90
%
Other Income / (Expense), Net
(185,740
)
(247,705
)
61,965
-25.02
%
Net Loss
$
(275,638
)
$
(636,897
)
$
361,259
-56.72
%
Revenue
During the nine months ended September 30, 2024,
we generated $4,886,331 in revenue compared to $5,268,405 in revenue in 2023. Sales dropped by 7% year over year due to lower demand
from contract manufacturing customers.
Operating Costs and Expenses
Cost of goods sold (COGS)
We had total cost of goods sold of $2,272,561
for the nine months ended September 30, 2024, representing approximately 20% decrease compared to $2,852,939 in cost of goods sold in
2023. This decline of $580,378 is partially attributable to 7% lower net revenue recorded for the nine months ended September 30, 2024,
as well as tightening control over costs and negotiating better terms with vendors.
Selling and marketing costs (S&M)
Selling and marketing costs consisted of payroll,
ecommerce expenses, as well as advertising & promotion.
Selling and marketing costs for the nine months
ended September 30, 2024, were $454,714 compared to $434,740 for the nine months ended September 30, 2023. The 5% increase is the result
of the efforts to promote the launch of the new P2i product made by The Company.
General and administrative expenses (G&A)
General and administrative costs consisted of
professional, consulting & legal fees, as well as rent & utilities, insurance and payroll.
General and administrative expenses for the nine
months ended September 30, 2024, decreased to $2,248,954, compared to $2,369,918 for the quarter ended September 30, 2023. The 5% decrease
was primarily attributed to less consulting expenses incurred during the period.
Operating Loss
Operating loss decreased by 77% from $389,192
in during the nine months ended September 30, 2023 to $89,898 during the nine months ended September 30, 2024 due to the Company's
continuous work to stabilize the company by tightening costs including COGS and G&A, as described above.
Other income / (expenses)
Total other expenses decreased to $185,740 for
the nine months ended September 30, 2024, compared to total other expenses $247,705 for the nine months ended September 30, 2023. This
decrease was the result of payoff of loans during the nine months ended on September 30, 2024
Net loss
We had a net loss of $275,638 for the nine months
ended September 30, 2024, compared to a net loss of $636,897 for the nine months ended September 30, 2023.
45
For the Year Ended December 31, 2023, compared
to the Year Ended December 31, 2022
December
                                            31, 2023
(Audited)
December
                                            31, 2022
(Restated)
$
Change
%
Change
Statements of Operations Data
Net Revenue
6,820,499
7,051,224
$
(230,725
)
-3.27
%
Cost of Goods Sold
(3,641,648
)
(4,049,780
)
408,132
-10.08
%
Operating Expenses
(4,261,354
)
(4,339,296
)
77,942
-1.80
%
Operating Loss
(1,082,503
)
(1,337,852
)
255,349
-19.09
%
Other Income / (Expense), Net
(158,591
)
395,517
-554,108
-140.10
%
Net Loss
(1,241,094
)
(942,335
)
$
(298,759
)
31.70
%
Revenue
During the year ended December 31, 2023, we generated
$6,820,499 in revenue compared to $7,051,224 in revenue in 2022. Sales dropped by 3% year over year due to lower demand from contract
manufacturing customers.
Operating Costs and Expenses
Cost of goods sold (COGS)
We had total cost of goods sold of $3,641,648
for the year ended December 31, 2023, representing a 10% decrease compared to $4,049,780 in cost of goods sold in 2022. This decline
of $408,132 is partially attributable to 4% lower net revenue recorded for the year ended December 31, 2023, as well as tightening control
over costs and negotiating better terms with vendors.
Selling and marketing costs (S&M)
Selling and marketing costs consisted of payroll,
ecommerce expenses, as well as advertising & promotion.
Selling and marketing costs for the year ended
December 31, 2023, were $588,772 compared to $796,860 for the year ended December 31, 2022. The 26% decrease is the result of the end
of a fundraising campaign for which the company incurred significant financing costs.
General and administrative expenses (G&A)
General and administrative costs consisted of
professional, consulting & legal fees, as well as rent & utilities, insurance and payroll.
General and administrative expenses for the year
ended December 31, 2023, increased to $3,672,582, compared to $3,542,433 for the year ended December 31, 2022. The 4% increase was primarily
attributed to services and fees incurred in relation to the initial public offering, such as audit, consulting and legal fees.
Operating Loss
Operating loss decreased by 19% from $1,337,852
in 2022 to $1,082,503 in 2023 due to the Company's continuous work to stabilize the company by tightening costs including COGS
and G&A, as described above.
Other income / (expenses)
Total other expenses increased to $158,591 for
the year ended December 31, 2023, compared to total other income $395,517 for the year ended December 31, 2022. This increase was heavily
positively impacted by Payment Protection Program (PPP) loan forgiven totaling 528,586 in 2022.
Net loss
We had a net loss of $1,241,094 for the year
ended December 31, 2023, compared to a net loss of $942,335 for the year ended December 31, 2022 which was partially offset by a gain
on forgiveness of Paycheck Protection Program loan in the amount of $528,586.
46
Liquidity and Capital Resources
Sources and Uses of Cash for the Nine Months
Ended September 30, 2024 and 2023
The table below, for the periods indicated, provides
selected cash flow information:
Nine-month
                                            Period Ended
September 30,
2024
(Unaudited)
Nine-month
                                            Period Ended
September 30,
2023
(Unaudited)
Net cash used in operating activities
$
(57,446
)
(99,795
)
Net cash used in investing activities
(1,881
)
(3,500
)
Net cash (used in) provided by financing activities
(68,205
)
180,227
Net increase (decrease) in cash
$
(127,532
)
76,932
Material cash requirements from known contractual
and other obligations:
Excluding debt obligations from ongoing operations,
the Company owes $2,597,368 payable for acquisition as of December 31, 2023. On September 24, 2024, the Company executed a Forbearance
Agreement with the former owner of Kirkman. This allows the postponement of principal payment. On the same date, the Company executed
a Confession of Judgement in connection with the principal owed. This allowed the seller to enter a judgement against the Company in
The Circuit Court of The State of Oregon for the County of Clackamas.
Cash Flows from Operating Activities
We had cash provided by operating activities
of $57,446 in the quarter ended September 30, 2024, as compared to cash used in operating activities of $99,795 during the quarter ended
September 30, 2023. The decrease in net cash used in operating activities is attributable to lower inventory turnover, lower balance
for accounts & accruals and lower balance for accounts receivable.
Cash Flows from Investing Activities
We had cash used in investing $1,881 for the
quarter ended September 30, 2024, as compared to $3,500 cash used in investing activities for the quarter ended September 30, 2023. This
was primarily attributed to the purchase of capital property & equipment for lesser value.
Cash Flows from Financing Activities
We had cash used in financing activities of $68,205
in the quarter ended September 30, 2024, as compared to cash provided by financing activities of $180,227 in 2023.  The change in
net cash used in financing activities was primarily the result of payments to long term debt a repayment of line of credit and no longer
raising funds for Reg CF nor Reg D.
Sources and Uses of Cash for the Years
Ended December 31, 2023 and 2022
The table below, for the periods indicated, provides
selected cash flow information:
Year Ended
December 31,
2023
Year Ended
December 31,
2022
(Restated)
Net cash provided by (used in) operating activities
$
248,169
(689,880
)
Net cash used in investing activities
(3,500
)
(967
)
Net cash (used in) provided by financing activities
(73,061
)
552,933
Net increase (decrease) in cash
$
171,608
(137,914
)
Material cash requirements from known contractual
and other obligations:
Excluding debt obligations from ongoing operations,
the Company owes $2,597,368 payable for acquisition as of December 31, 2023. On September 24, 2024, the Company executed a Forbearance
Agreement with the former owner of Kirkman. This allows the postponement of principal payment. On the same date, the Company executed
a Confession of Judgement in connection with the principal owed. This allowed the seller to enter a judgement against the Company in
The Circuit Court of The State of Oregon for the County of Clackamas.
47
Cash Flows from Operating Activities
We had cash provided by operating activities
of $248,169 in the year ended December 31, 2023, as compared to cash used in operating activities of $689,880 during the year ended December
31, 2022. The increase in net cash provided by operating activities is attributable to higher inventory turnover, higher balance for
accounts & accruals and stock-based compensation in 2023 as well as the gain on loan forgiveness in 2022.
Cash Flows from Investing Activities
We had cash used in investing activities of $3,500
for the year ended December 31, 2023, as compared to $967 cash used in investing activities for the year ended December 31, 2022. This
was primarily attributed to the purchase of capital property & equipment.
Cash Flows from Financing Activities
We had cash used in financing activities of $73,061
in the year ended December 31, 2023, as compared to cash provided by financing activities of $552,933 in 2022.  The change in net
cash used in financing activities was primarily the result of the lower amount of funds raised from the Reg CF campaign, $9,067 in 2023
compared to $1,162,867.
We anticipate that our cash needs for the next
twelve months for working capital and capital expenditures will be approximately [$3,600,000]. As of December 31, 2024, we had approximately
$[200,000] in cash, and we believe that our current cash and cash flow from operations will only be sufficient to meet anticipated cash
needs for the next six months for working capital and capital expenditures. We will likely also require additional cash resources due
to possible changed business conditions or other future developments. We plan to seek to sell additional equity securities to generate
additional cash to continue operations. We may also sell debt securities to generate additional cash. The sale of equity securities,
or of debt securities that are convertible into our equity, could result in additional dilution to our shareholders. The incurrence of
additional indebtedness would result in increased debt service obligations and could result in operating and financing covenants that
would restrict our operations and liquidity.
Our ability to obtain additional capital on acceptable
terms is subject to a variety of uncertainties, including the following: investors' perception of, and demand for, securities of
cigarette and hemp companies; conditions of the U.S. and other capital markets in which we may seek to raise funds; future results of
operations, financial condition and cash flow. Therefore, our management cannot assure that financing will be available in amounts or
on terms acceptable to us, or if at all. Any failure by us to raise additional funds on terms favorable to us could have a material adverse
effect on our liquidity and financial condition.
Going Concern
In the event we are not successful in reaching
our sustained revenue targets, we anticipate that depending on market conditions and our plan of operations, we will likely incur continued
operating losses. We base this expectation, in part, on the fact that we may not be able to generate enough gross profit to cover our
operating expenses. Consequently, we may not continue to operate as a going concern in the long term. As described in the section entitled
"
Risk Factors
," we are subject to many factors which could detrimentally affect us. Many of these risk factors may
be outside management's control, including demand for our products, our ability to hire and retain talented and skilled employees
and service providers, as well as other factors. We do not know of any trends, demands, commitments, events or uncertainties that will
result in, or that are reasonable likely to result in, our liquidity increasing or decreasing in any material way. We do not know of
any significant changes in expected sources and uses of cash. We do not have any commitments or arrangements from any person to provide
us with any equity capital.
Off-Balance Sheet Arrangements
We currently have no off-balance sheet arrangements
that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital expenditures or capital resources
.
Critical Accounting Policies
Our financial statements are based on the application
of accounting principles generally accepted in the United States ("GAAP"). GAAP requires the use of estimates; assumptions,
judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue, and expense
amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information
regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to
GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions
that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions
or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.
Our significant accounting policies are summarized
in Note 5 to our financial statements. While these significant accounting policies impact our financial condition and results of operations,
we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact
on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from
those estimates. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable
judgments or estimate methodologies would cause an effect on our results of operations, financial position or liquidity for the periods
presented in this report.
Recent Accounting Pronouncements
From time to time, new accounting pronouncements
are issued by FASB that are adopted by us as of the specified effective date. If not discussed, management believes that the impact of
recently issued standards, which are not yet effective, will not have a material impact on our financial statements upon adoption.
48
BUSINESS
Overview
Our company operates in the nutraceutical supplement
industry. We are a manufacturer and distributor of supplements in categories such as pain, energy, prenatal, general health, bone and
joint, gastro, immunity, cardiac, detox, brain and memory, sleep, prenatal and urinary. Our end markets focus on end-consumers through
different channels that include pharmacies, US wholesalers, international distributors and direct-to-consumers sales. Our products are
sold over the counter and consumers do not need a prescription to purchase our products. Our products are not approved by the FDA. Our
company also operates in the hemp industry as a retailer of hemp derived products in categories such as capsules, cigarettes, gummies,
and tinctures with a commercial end market, and end-consumers.
Functional Brands is a super majority owned subsidiary
of HOC, a privately held British Columbia corporation. Incorporated as HT Naturals Inc. in November 2020. The Company aims to deliver
the highest quality and innovative products under multiple brands. Kirkman, P2i by Kirkman Prenatal, HempTown Naturals and Golf Mellow
are current brands in market or prepared to be launched in market.
Our Products
Kirkman Brand
Our products under our "Kirkman"
brand are manufactured in our cGMP certified, FDA registered manufacturing facility located in Lake Oswego, Oregon. Kirkman is a manufacturer
of nutritional supplements. Founded in 1949, Kirkman is also one of the oldest nutritional supplement companies serving the special needs
community.
Our Kirkman brand offers more than 150 products
including probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, preconception,
prenatal supplements, personal care products and other specialty products. Kirkman treats patients with autism spectrum disorders and
special dietary needs through an established network of over 2,000 doctors in over 40 countries. Our Kirkman brand operates in 95% of
the major subsegments in the supplement industry. Kirkman has a long-standing loyal customer and consumer base due to the rigorous testing
of products in compliance with FDA requirements. Kirkman has been endorsed by various businesses and celebrities, including the famous
and original Shark Tank member, Kevin Harrington.
Digestive enzymes
: Over the counter oral
digestive enzyme supplements are a combination of proteases, which aid protein digestion; lipases, which aid in fat digestion; and amylases,
which aid in carbohydrate digestion. These may be prescribed by a doctor in some cases, when the pancreas does not make enough digestive
enzymes on its own. People are increasingly taking over the counter ("OTC") digestive enzymes in lower doses to support general
gut health.
Essential fatty acids
: Also called omega-3
fatty acids, essential fatty acids are important digestive chemicals that the body cannot make on its own.
Our products under the Kirkman Brand include,
but are not limited to, the following:
●
Supplements for Autism;
●
Essential Fatty Acids;
●
Oxytocin;
●
Vitamin B12;
●
Vitamin B6 and Magnesium;
●
Glutathione;
●
Melatonin;
●
Functional Mushrooms;
●
Probiotics;
●
Multivitamins and Minerals;
●
Digestive Enzymes;
●
Antioxidants; and
●
Amino Acids.
P2i (prenatal) Brand
We have recently launched in April 2024, a certified
prenatal vitamin for expectant mothers under the P2i by Kirkman brand. These vitamins have been specially formulated by our company to
provide essential nutrients for both the mother and the developing fetus. The International Federation of Gynecology and Obstetrics ("FIGO")
published a position statement about toxic chemicals and environmental contaminants in prenatal vitamins. FIGO's recommendation
from the October 2023 position statement highlights that patients should only consume, and clinicians should only prescribe, vitamins
and supplements that have been independently assessed to make certain they do not contain contaminants. Manufacturers should be held
to a standard of production that assures safety and minimizes contaminants and certification of all prenatal vitamins becomes the standard
of care. The FIGO Committee report on Climate Change and Toxic Environmental Exposures brought together global scientists to review the
reputable reference sources for chemicals that have the potential to impact maternal and newborn health, including the USA Environmental
Protection Agency, the European Union, and the California EPA.
The group of experts recommended several approaches,
including:
1.
creating a list of toxic chemicals
                                            and contaminants that should be screened for in Prenatal Vitamins and reduced to de minimis
                                            standards; and
2.
conducting assays of existing vitamins to assess ongoing risk to maternal
                           and newborn health. This work can extend to personal exposure risk by offering women testing for the presence
                           of potentially toxic environmental chemicals. Mass Spectrometry currently offers the most comprehensive measurement.
49
This first publication of a list of toxic chemicals
and contaminants represents the most comprehensive testing available at present but does not purport to identify or eliminate all potential
sources of toxicity.
We are currently the only certified prenatal
vitamin in the market that aligns to the FIGO position statement. We have formulated and produced a prenatal vitamin called P2i by Kirkman.
There are 3.6M pregnancies alone in the United States (https://www.cdc.gov/nchs/fastats/births.htm) and the initial market focus for
this product will be the United States with the expectation to expand globally since FIGO's position statement reaches all countries.
The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.
●
The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM's low-toxicity standards, which align with FIGO's objectives for maternal
                                            and fetal health. These standards include:
o
Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds
o
Testing for the presence of 120
                                            toxic chemicals, such as pesticides and endocrine disruptors, with strict limits to prevent
                                            potential harm
o
Utilization of ISO 17025-accredited
                                            laboratories for all testing to ensure reliability and reproducibility of results
●
Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product's compliance with The FORUM's criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman's prenatal vitamin meets
                                            its standards for low toxicity and safety.
HempTown Naturals Brand
All HempTown Naturals products are produced and
sold in compliance with the US 2018 Farm Bill and the US Agricultural Act of 2014. CBD and CBG are cannabinoids present in the cannabis
plant. Both CBD and CBG are used in hemp derived products. These products are believed to help in treating certain neurodegenerative
and inflammatory conditions
1
.
CBD
CBD, or cannabidiol, is the second most prevalent
ingredient in cannabis. While CBD is an integral component of medical marijuana, it is derived directly from the hemp plant, both of
which are the same species: Cannabis sativa L. One of the hundreds of components of Cannabis sativa L., CBD does not cause a "high"
by itself. According to a report from the World Health Organization, "In humans, CBD exhibits no effects indicative of any abuse
or dependance potential…. To date, there is no evidence of public health related products associated with the use of pure CBD."
2
As reported by Forbes Health, CBD is applied
topically or consumed through smoke inhalation or edible consumption. CBD interacts with neuroreceptors in your endocannabinoid system,
which sends signals between your cells to help regulate your movement, mood, homeostasis, and immune system. Different studies have shown
that CBD can offset everyday anxiety and depression.
3
CBG
CBG, or cannabigerol, is another compound found
in hemp which doesn't have intoxicatingly psychoactive effects. CBG, often referred to by experts as "the mother of all cannabinoids,"
is the cannabinoid from which other types of cannabinoids (including CBD) are derived, says Michelle Sexton, a naturopathic doctor who
works at the Pain Trauma Institute in San Diego. "CBG is the first compound in the biosynthesis (the production of chemical compounds
by a living organism) of the other cannabinoids," she adds.
CBG is available in many forms, including tinctures,
gummies, capsules and topical creams and lotions. CBG is often coupled with CBD in these products because the two cannabinoids can provide
complimentary benefits, such as decreasing inflammation and pain, says Fraser Smith, a naturopathic doctor, as well as assistant dean
and associate professor at the National University of Health Services in Lombard, Illinois. CBD and CBG occur naturally in hemp extract
which is the source of our cannabinoids.
4
1
https://www.medicalnewstoday.com/articles/cgb-vs-cbd
2
www.health.harvard.edu
3
www.forbes.com/health/body/cbd-oil-benefits/
4
www.forbes.com/health/body/cannabigerol-cbg/
50
Golf Mellow Brand.
The Company has utilized
existing product formulations with plans to introduce 12 different products under the Golf Mellow brand. A brand logo and packaging has
been created to support the existing formulations. These supplements will be targeting the golf industry and golf professionals. These
products include capsules, a powder, a cream and tinctures to help golfers of all levels improve their game and overall well-being. The
capsules are packed with a blend of essential vitamins and minerals that support joint health, flexibility, and energy levels. The tinctures
are made from all-natural ingredients and provide a quick and easy way to support focus and mental clarity, helping athletes stay in
the zone and make the perfect shot. The creams are specially designed to provide targeted relief for sore muscles and joints, helping
them stay comfortable and focused on the course. Some of these products include Sleep Caps to ensure that players are well rested the
night before, Super B12 Powder which provides the energy needed for the perfect round, Calm Caps which help manage anxiety when players
need it most, and Epsom Salt Cream & Recovery Caps, which aids with recovery. Once we receive a purchase order, we will package the
products to fulfill the respective order.
According to data from the National Golf Foundation
25.1 million people (aged six and over) played on a golf course in the United States in 2021 – furthermore there were another 12.4
million people who took part in off-course activities like driving ranges, indoor golf simulators or venues like Topgolf and Drive Shack.
5
Competitive Strengths
The Kirkman brand has been in business for over
70 years with a loyal consumer base and we believe that we maintain high purity and quality standards in the industry. We source all
materials from high quality suppliers. We test our finished goods in certified laboratories with state-of-the-art equipment and manufacture
our supplements in our US-based cGMP certified and FDA registered facility located in Lake Oswego, Oregon. The FDA requires that we conduct
at least one appropriate test or examination to verify and identify any component that is a dietary ingredient. We conduct ingredient
testing by verifying the identity through ISO certified 3rd party laboratories. We also test for residual solvents and pesticides (where
applicable), presence of up to 24 heavy metals and microbial contamination that could lead to illness or death. Microbial tests can include,
but are not limited to, aerobic plate count, yeast & mold, coliforms, E. coli, pseudomonas, staphylococcus aureus, Bile Tolerant
gram negative, Salmonella, Aflatoxins and listeria. Heavy metals testing includes beryllium, aluminum, vanadium, chromium, manganese,
cobalt, nickel, copper, zinc, arsenic, selenium, molybdenum, palladium, silver, cadmium, tin, antimony, barium, tungsten, platinum, thallium,
lead, uranium and mercury. For incoming raw ingredients, we ID using the following methods: Botanicals – HPLC (High Pressure Liquid
Chromatography) or TLC (Thin Layer Chromatography), or an approved Chemical test; Vitamins – IR (Infrared) absorption, Chemical
test, UV (Ultraviolet) absorption, UV fluorescence, GC (Gas Chromatography), HPLC; Minerals – ICP-MS (Inductively Coupled Plasmas
– Mass Spectroscopy), IR (Infrared), Chemical tests, TLC (Thin Layer Chromatography); Enzymes – HPLC (High Pressure Liquid
Chromatography), PCR (Polymerase Chain Reaction); Amino Acids – IR absorption, Optical Rotation, HPLC, TLC, GC (Gas Chromatography),
Assay; Probiotics – PCR and HPLC; Metals – HPLC or ICP-MS; Micros – Cell culture and cell identification. The FDA requires
that a finished batch of the dietary supplement meets product specifications for identity, purity, strength, composition, and for limits
on those types of contamination that may adulterate or that may lead to adulteration of the finished batch of the dietary supplement.
This can be conducted for a subset of finished dietary supplement batches through a sound statistical sampling plan (or for every finished
batch). For our business, we test every batch of products to ensure heavy metals are below Pop 65 limits. In addition, every batch is
tested for microbial contamination. Our 75+ year history in the industry, along with our rigorous material testing, allows Kirkman to
use statistical sampling to ensure the identity, purity and strength of each product is met. Our formulations use proprietary blends.
Although we are authorized to produce hemp derived products because we hold a hemp handler's license, we currently do not grow
any hemp, but we source our hemp derived products from registered growers in operation. The FDA does not require any testing on dietary
supplements whereas we test for approximately 90 metals and toxins in raw materials.
As previously mentioned, we've recently
launched P2i by Kirkman prenatal vitamin, which is the only certified prenatal vitamin that aligns to FIGO's position statement.
5
https://www.golfmonthly.com/news/how-many-golfers-are-there-in-the-united-states
51
The P2i by Kirkman prenatal vitamin has been
certified by The FORUM, a nonprofit 501(c)(3) organization dedicated to promoting low-toxicity standards for prenatal healthy products.
The FORUM operates under a Memorandum of Understanding (MOU) with the International Federation of Gynecology and Obstetrics (FIGO), a
globally recognized organization of obstetricians and gynecologists. This MOU establishes a shared objective to reduce environmental
toxicity in prenatal products.
●
The
                                            certification process involves rigorous testing and evaluation to ensure compliance with
                                            The FORUM's low-toxicity standards, which align with FIGO's objectives for maternal
                                            and fetal health. These standards include:
o
Analysis of 24 Heavy Metals, ensuring levels are below stringent
                                            safety thresholds
o
Testing for the presence of 120
                                            toxic chemicals, such as pesticides and endocrine disruptors, with strict limits to prevent
                                            potential harm
o
Utilization of ISO 17025-accredited
                                            laboratories for all testing to ensure reliability and reproducibility of results
●
Purity
                                            Labs, an ISO 17025-accredited laboratory, as directed by The FORUM, conducted testing, which
                                            confirmed the product's compliance with The FORUM's criteria. Based on this testing,
                                            The FORUM issued its certification, indicating that Kirkman's prenatal vitamin meets
                                            its standards for low toxicity and safety.
We have an exclusive license agreement with the
Trailer Park Boys to market & sell hemp derived products. There are two product categories that include Hemp Derived Delta 9 products.
This includes Delta 9 gummies and Delta 9 Drink Enhancers. These two specific products are intended for health & wellness, and recreational
use. Both product categories comply with the 2018 Farm Bill where THC concentration does not exceed 0.3% on a dry weight basis. The revenue
of these two product categories represents .6% of total company revenue. We executed a license agreement with the Trailer Park Boys which
is in effect since July 21, 2021 and until December 31, 2025, under the license agreement as amended, the Company will pay the Trailer
Park Boys, an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to
be paid during the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000 shares of the Company.
The royalty rates under this agreement are between 15% - 30% of the net sales of the company derived from sales related to the license.
To date, $425,000 has been paid to the Trailer Park Boys towards the license agreement. The license agreement may be terminated with
reasonable cause upon six months' written notice or for certain triggering events without recourse or an opportunity to cure.
Growth Strategy
We aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products, including mushroom-based supplements targeted for everyday use, prenatal, athletes and beyond.
We plan to do this by:
●
Strengthening
    our existing 70-year-old Kirkman brand with its established base of consumers in the autism community by curating our product mix
    to cater to their specific needs;
●
Launching
    multiple brands, broad as well as niche, including P2i by Kirkman which is the only certified prenatal vitamin supporting FIGO's
    October 2023 position statement, to allow us to increase our market share;
●
Modernizing
    our manufacturing capabilities by reorganizing the space and introducing new and efficient machinery and equipment to significantly
    enhance our output;
●
Investing
    heavily into our sales and marketing activities as well as business development in order to increase sales and distribution; and
●
Identify
    key companies with synergistic strengths for partnerships or acquisitions.
52
Challenges, Risks and Limitations
Our ability to utilize our competitive advantages
in order to strengthen and expand our business and achieve our growth plan is subject to a number of risks and uncertainties more fully
discussed under "Risk Factors" in this Prospectus. As discussed in our financial statements, we have suffered recurring losses
from operations and have a significant accumulated deficit. In addition, we continue to experience negative cash flows from operations.
This limited working capital capabilities may delay or make the accomplishment of our growth plans difficult. In assessing the likelihood
of our future success, investors in this offering should note our history of losses and the likelihood of our operating profitably in
the future. Further, some of our products may be subject to uncertain and evolving federal, state and local regulations concerning hemp,
CBD and other non-tobacco consumable products. Because the type, timing, and impact of such regulations remains uncertain, we cannot
give any assurance that such actions will not have a material adverse effect on this emerging business and our strategy.
Our Corporate History and Structure
Functional Brands was organized under the General
Corporation Law in the state of Delaware on November 19, 2020 under the name HT Naturals Inc. HT Naturals Inc. changed its name to Functional
Brands Inc. on March 23, 2023. Our principal business is the production, marketing, sales, and distribution of nutraceutical products
through our Kirkman division, alongside our hemp derived products under the Hemptown brand in certain states within the United States
that permit such sales. We ship our Kirkman products to all US states. As for hemp derived products, we only sell to states which permit
this activity with certain restrictions such as the content of THC which differs depending on the state.
The states in which we have sold hemp derived
products in the past are Alabama, Arizona, Arkansas, California (D9 ingestible and CBD/CBG ingestible only), Colorado (CBD/CBG inhalable
only), Connecticut, Delaware (D9 ingestible), Florida, Georgia (D9 ingestible and CBD/CBG ingestible only), Hawaii (CBD/CBG ingestible
only), Illinois(D9 ingestible and CBD/CBG inhalable), Indiana (D9 ingestible only), Iowa (D9 ingestible only), Kansas, Kentucky (D9 ingestible
only), Louisiana, Maine (D9 ingestible and CBD/CBG inhalable), Maryland (CBD/CBG inhalable only), Massachusetts, Michigan, Minnesota,
Missouri, Montana, Nevada, New Hampshire, New Jersey, New York (D9 and CBD/CBG ingestible only), North Carolina, North Dakota (CBD/CBG
ingestible only), Ohio, Oklahoma, Oregon (CBD/CBG ingestible only), Pennsylvania, Rhode Island, South Carolina, South Dakota (D9 ingestible
only), Tennessee (CBD/CBG inhalable only), Texas, Virgina (CBD/CBG ingestible and inhalable only), Washington (CBD/CBG Inhalable only),
West Virginia, Wisconsin, Wyoming. We have engaged specialized hemp counsel to provide regular updates on the 50 states and the legality
of our hemp products in each state. In addition, we have established and follow a standard of operating procedure (SOP) to ensure sales
do not occur in the states where hemp products may not be sold consistent with the regular updates provided by our hemp counsel. We have
an internal policy that prohibits us as a company and any of our executives, directors, employees, sales representatives and distributors
to distribute any of the Company's hemp derived products in places in which the sale of hemp derived products is prohibited. We
are a 98% subsidiary of HOC, a British Columbia, Canada private operating holding company with various interests in nutraceutical manufacturing
and federally legal industrial hemp products. We were granted a licensing agreement by Hemptown Organics Corp. The licensing agreement,
dated December 10, 2020, provides Functional Brands Inc. as licensee, a license to use the Hemptown USA and Hemptown Naturals brand and
trademarks on a perpetual, non-exclusive, non-transferable basis, with no expiry date. This licensing agreement will transfer to full
ownership to Functional Brands upon the public offering and listing on the exchange, at which time HOC will dividend out the majority
of the Company's shares currently held by HOC.
On June 28, 2019, HTO Holdings Inc. ("HTO
Holdings") a wholly owned subsidiary of HOC and the owner of all issued and outstanding stock of HTO Nevada (as "Purchaser"),
entered into an asset purchase agreement ("APA") for the net assets of Kirkman Group Inc. a Nevada corporation, Kirkman Laboratories
Inc., an Oregon corporation and Kirkman Group International, Inc. a Nevada corporation (collectively "Kirkman" or the "Seller,"
and together with Purchaser, the "Parties") for a consideration equal to $5 million with payout in a business combination
of cash and deferred consideration. The ''Seller'' is David Humphrey. Under the APA, Purchaser and HTO Holdings
were to make certain additional payments toward the purchase price. The APA was amended on November 30, 2021 by the Parties with the
purpose of modifying the payment schedule of the deferred consideration; and in exchange for amending the payment schedule of the deferred
consideration, the Purchaser and HTO Holdings agreed to enter into a security agreement, and amend the APA and other agreements attached
to the APA (including, but not limited to, the non-competition agreement, the trademark assignment agreement, the domain names transfer
agreement, the assignment of intangible assets, and the intellectual property security agreement (collectively, the "IP Collateral
Agreements")) to, among other things, provide additional collateral as security to Seller. Upon payment in full in cash of the
deferred consideration or set-off of the deferred consideration, as amended: (i) each of the Parties agreed that the security agreement
and amended intellectual property security agreement would be automatically terminated and be of no further force and effect; and (ii)
Seller would, at its sole cost and expense, release all liens in the IP Collateral, as defined in the respective security agreement and
intellectual property security agreement, and all rights therein would forthwith revert to Purchaser. On May 16, 2022, the APA was amended
again by the Parties, to reflect further modifications to the schedules and exhibits to the APA and IP Collateral Agreements. On May
31, 2022, Purchaser paid Seller certain amounts ("Immediate Payments"), and on July 23, 2022, Purchaser and Seller executed
a forbearance agreement ("Forbearance Agreement") to extend the payments due under the APA to August 31, 2022. After Purchaser's
default, and partial payment to Seller in September 2022, the Parties executed an amendment to the Forbearance Agreement on December
27, 2022, to extend certain payments due under the APA, at which time the remaining balance due was $3,032,000 (the "Existing Default").
Since then, a Fourth Forbearance amendment has been signed by Seller and Buyer dated September 24, 2024, where additional principal and
interest payments will continue. As of September 1, 2024, the balance due to Seller is $2,417,366. We intend to use a portion of the
proceeds of the public offering to cover the payment of some of the Existing Default.
53
As a part of our restructuring efforts, HTO Nevada,
formerly owned by HTO Holdings, was acquired by Functional Brands on May 19, 2023, through a share exchange agreement executed by HOC,
HTO Holdings and Functional Brands, in which HTO Holdings exchanged 1,000 restricted shares of common stock, par value $0.0001 per share
of HTO Nevada, being all of the issued and outstanding capital stock of HTO Nevada, in exchange for 80,000,000 restricted shares of common
stock of Functional Brands, $0.00001 par value per share (the "Functional Brands Shares") to HOC, such that, HTO Nevada shall
be a wholly-owned subsidiary of Functional Brands and HOC shall own 120,000,000 shares of Functional Brands. The resulting entity, Functional
Brands Inc., with its wholly owned subsidiary HTO Nevada, will be the publicly listed entity. Our fiscal year-end is December 31.
Industry
According to Grand View Research, the Global
Nutritional Supplements Market is valued at approximately $405.15B in 2023, and is expected to expand at a compound annual growth rate
(CAGR) of 6.3% from 2023 to 2030. Growing attention to health has significantly helped the market thrive. Moreover, the rising prevalence
of non-communicable diseases has resulted in the faster adoption of nutritional supplements to enrich overall well-being. According to
the Global Alliance for Chronic Diseases (GACD), approximately 75% of deaths globally occur due to non-communicable diseases (NCDs).
Thus, these alarming statistics have shifted the focus on well-being and health, which is expected to increase the demand for nutritional
supplements.
54
The United States Nutritional Supplements Market
is valuated at approximately $95.2 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 4.8% from 2023
to 2030. The United States accounted for 23.5% of the global nutritional supplements market in 2023. The U.S. is expected to lead the
global market in terms of revenue in 2030. North America nutritional supplements market is projected to lead the regional market in terms
of revenue in 2030.
*
Source: Grand View Research
55
According to Grand View Research, the United
States Dietary Supplement Market is valued at approximately $53.6 billion in 2023 and is expected to expand at a compound annual growth
rate (CAGR) of 5.7% from 2024 to 2030. The United States emerged as a leading market for dietary supplements in the North America region
owing to the higher spending capacity of the consumers. Increasing spending on healthcare products, the rising geriatric population,
rising interest in preventive healthcare, and growing interest in attaining wellness through diet are expected to augment market growth
over the forecast period. We expect that a growing number of fitness centers, health clubs and gymnasiums coupled with growing awareness
about fitness among younger generations will increase the demand for energy and weight management. Increasing acceptance of sports as
a career is expected to increase the demand for sports nutrition, which we expect will benefit the market for dietary supplements.
According
to Grand View Research, the global prenatal vitamin supplement market was valued at USD 542.8 million in 2023 and is projected to grow
at a CAGR of 8.5% from 2024 to 2030. Increasing awareness about healthy eating habits and proper medication among pregnant women is the
major factor driving the market. The overweight and sedentary lifestyle of pregnant women increases the deficiency of minerals and vitamins.
In addition, malnutrition in infants, increasing incidence of other congenital disabilities, and increasing awareness about the benefits
of prenatal supplements are some of the factors driving the market. The U.S. prenatal vitamin supplements market was identified as a
lucrative region in 2023. Strong endorsements and guidelines from healthcare providers such as the CDC and ACOG bolster confidence in
the efficacy and necessity of prenatal vitamins among expectant mothers, driving widespread adoption and market growth in the U.S. According
to the American College of Obstetricians and Gynecologists (ACOG), during pregnancy, essential nutrients such as iron, folic acid, choline,
calcium, omega-3 fatty acids, vitamin D, B vitamins, and vitamin C are crucial for fetal development and maternal health. A balanced
diet rich in sources such as leafy greens, dairy, lean meats, fortified foods, and a prenatal vitamin containing folic acid ensures adequate
intake to support both mother and baby's needs.
56
According
to Grand View Research, the global CBD consumer health market was valued at USD $19.5B in 2023 and is anticipated to grow at a CAGR of
18.1% during the forecast period. The leading factor attributed to the growth is the positive government reforms for the legalization
of CBD in various regions. CBD consumer products are gaining significant acceptance due to the rising awareness of their health benefits.
Furthermore, the demand for hemp-derived CBD products is increasing globally due to the legalization of hemp in various countries. These
statements have not been reviewed and/or approved by the FDA. The U.S. market value for CBD in 2023 was valued at USD $8.3B, and is expected
to grow at a CAGR of 7.6% through 2030.
57
We believe that increasing awareness regarding
CBD's benefits has influenced buyers to buy CBD products. Because CBD products have a greater profit margin, commercial retailers
are now focusing on selling cannabis-based products. Numerous health and wellness retailers, such as Rite Aid, CVS Health, and Walgreens
Boots Alliance are now offering CBD-based products. For example, CVS Health decided to offer CBD topicals at its 800 stores and Walgreens
Boots Alliance is selling CBD-containing topicals across 1,500 of its stores in the United States. As referenced by Forbes health, there
are several benefits for CBD that include offsetting anxiety and depression, treating select epilepsy syndromes, reducing PTSD symptoms,
treating opioid addiction, alleviating ALS symptoms, relieving unmanageable pain, easing diabetic complications, protecting against neurological
disease, and inhibiting arthritic symptoms. Given the growing cannabidiol (CBD) products market, the U.S. Food and Drug Administration
has convened a high-level internal working group to explore potential regulatory pathways for CBD products. On January 26, 2023, the
FDA announced that it would not seek to regulate CBD as a dietary supplement. Rather, after careful review, the FDA has concluded that
a new regulatory pathway for CBD is needed that balances individuals' desire for access to CBD products with the regulatory oversight
needed to manage risks. The agency is prepared to work with Congress on this matter
10
. With FDA's lack of regulating
CBD products, numerous states have authorized hemp-derived extract (CBD and other cannabinoids) products and affirmatively regulate their
consumer safety. Meanwhile, FDA's enforcement priorities focus directly on disease claims and intoxicating products appealing to
children. As discussed above, we make sure that our products and marketing collateral neither make disease claims or appeal to youth
11
.
FDA still has not issued any regulations regarding CBD. The agency is awaiting direction from Congress.
FDA has
approved Epidiolex, which contains a purified form of the drug substance cannabidiol (CBD) for the treatment of seizure associated with
Lennox-Gastaut syndrome or Dravet syndrome in patients 2 years of age and older. That means the FDA has concluded that this particular
drug product is safe and effective for its intended use.
The FDA
has also approved Marinl and Syndros for therapeutic uses in the United States, including for nausea associated with cancer chemotherapy
and for the treatment of anorexia associated with weight loss in AIDS patients. Mariol and Syndros include the active ingredient dronabinol,
a synthetic delta-9-tetrahydrocannabinol (THC) which is considered the psychoactive intoxicating component of cannabis (i.e. the component
responsible for the ''high'' people may experience from using cannabis). Another FDA-approved drug, Cesamet,
contains the active ingredient nabilone, which has a chemical structure to THC and is synthetically derived. Cesamet, like dronabinol-containing
products, is indicated for nausea associated with cancer chemotherapy.
According to Grand View Research, CBD derived
from hemp is anticipated to witness rapid growth owing to the increasing demand from the pharmaceutical sector and rising awareness among
consumers regarding health. Increasing consumer disposable income along with the legalization of medicinal cannabis is anticipated to
have a positive impact on the demand for CBD in the pharmaceutical sector. Oils, tinctures, concentrates, capsules, topical solutions
such as salves, lip balms, lotions and edibles such as baked goods, coffee, chocolates, gums and candies are some of the CBD products
that are in high demand.
Competitive Strengths
Our competitive strengths lie in the fact that
the Kirkman brand has been in business for over 70 years with a loyal consumer base and we believe that we maintain high purity and quality
standards in the industry. We source all materials from high quality suppliers. We test our finished goods in certified laboratories
with state-of-the-art equipment and manufacture our supplements in our US-based cGMP certified and FDA registered facility located in
Lake Oswego, Oregon. Our formulations use proprietary blends. Although we are authorized to produce hemp derived products because we
hold a hemp handler's license, we currently do not grow any hemp. Instead, we source our hemp derived products from registered
growers in operation. Our products are not FDA approved and they do not require a prescription; all our products are sold over the counter.
The FDA does not require any testing on dietary supplements; however, we test for approximately 90 metals and toxins in raw materials.
Growth Strategy
We aim to be a leader in the nutraceutical space
by manufacturing products held to the highest standard of quality in terms of toxins, metals, and other impurities. Our goal is to build
a well-rounded portfolio of products including regular as well as mushroom-based supplements targeted for everyday use, prenatal, athletes
and beyond.
We plan to do this by using the net proceeds
from the Offering in the following manner. Net proceeds are defined after deducting the estimated underwriter discounts and commissions
and offering expenses payable by us, we expect to invest the net process of approximately $4,500,000.
●
Approximately 14% of net
                                            proceeds (approximately $650,000) for Go-Public Attorney / Partner Fees
●
Approximately 7% of net proceeds
                                            (approximately $300,000) for market awareness marketing
●
Approximately 53% of the
                                            net proceeds (approximately $2.4 million) for a deferred payment in connection with the Kirkman
                                            acquisition which has a maturity date of January 1, 2025. The payment is comprised solely
                                            of principal, since there is currently a $20,000 monthly interest payment payable; and
●
Approximately 26% of net
                                            proceeds (approximately $1,150,000) for sales, marketing and working capital
Why do people on the spectrum need supplements?
Some on the spectrum are restrictive in what
they will eat, preferring certain textures or colors over others. This can lead to vitamin and mineral deficiencies since they aren't
eating a wide variety of food types.
10
www.forbes.com/health/body/cbd-oil-benefits/
11
Source:
                                            www.FDA.gov
58
According to Grand View Research, there is evidence
that people with autism may not absorb or metabolize nutrients in the way that persons without autism absorb or metabolize nutrients.
This could mean that even if persons with autism are consuming the nutrients they need, their body cannot utilize them effectively.
Technology & Intellectual Property
On December 10, 2020, we were granted a licensing
agreement from Hemptown Organics Corp. The licensing agreement, dated December 10, 2020, provides Functional Brands Inc. as licensee,
a license to use the Hemptown USA and Hemptown Naturals brands and trademarks on a perpetual, non-exclusive, non-transferable basis,
with no expiry date. This licensing agreement will be transferred to full ownership to Functional Brands upon the completion of the Offering,
at which time HOC will dividend out the majority of the Company's shares currently held by HOC.
The following is a list of our current trademark
registrations:
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Marketing
We market our products through various sales
channels, primarily trade shows and through print and digital advertisements, focusing on several customer types. These customers include
consumers, wholesalers, distributors, and those seeking private label products. We repeatedly test new marketing venues, platforms and
approaches and measure results to improve the cost-effectiveness of our efforts.
Trade Shows
We participate in a variety of trade shows each
year with differing attendee focuses. These include health and wellness shows, Autism conferences, OBGYN conferences, convenience and
grocery stores, consumer product distribution, and private labels.
Digital and Printed Advertisements
We utilize sophisticated digital tools to place
ads primarily through Google and Facebook (now Meta) that target potential customers and those showing interest in our products. In addition,
we have recently begun to place traditional print ads in journals and magazines focused on convenience stores, distributors, and private
label products.
In addition to new prospect acquisition programs,
our marketing team produces newsletters that are distributed to our contacts with the goal of keeping our company top-of-mind, and this
newsletter has historically resulted in conversion of contacts into current customers.
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Customers and Markets
We sell our Kirkman branded supplements to 45
countries through international distributors that have partnered with the Kirkman brand for two decades. We have recurring consumers
that purchase Kirkman brand products via our website at www.kirkmangroup.com, as well as through Amazon. Our core B2B customers are iHerb,
Emerson and FullScript. We also have several hundred direct customers, classified as professionals, where we sell our supplements. These
customers include doctors, chiropractors, and practitioners who sell our products to their patients. In addition, we plan to focus our
commercial efforts for P2i by Kirkman prenatal to OBGYN's and expectant mothers.
Our hemp related products are sold in the United
States. We have several thousand customers on our e-commerce sites. For Hemptown Naturals, we have 3,189 subscribers and 6,355 non-investor
emails in our database. For Kirkman, we have 36,762 active emails in our email database. As for our white/private label business, we
have twelve customers who use us to manufacture white/private label products for them.
Competition
●
There are several competitors in the supplement
    space. Within the Vitamin segment, 66% of vitamins purchased are classified as multivitamins, as indicated by Nielsen Retail Measurement
    Data. Market leaders in the multi-vitamin segment are 'private label store brands' followed by Nature Made, Centrum,
    One-A-Day and Nature's Bounty, respectively.
●
Minerals remain a steady category, and they
    include Calcium, Magnesium and Iron as the main mineral categories. Private Label brands, again, lead the way, followed by Nature
    Made, Caltrate, Citracal and Nature's Bounty.
●
Supplement growth outpaces the Vitamin and
    Minerals categories (Source: Nielsen). The segments within the supplement category include, but are not limited to, Digestive Health,
    General Health, Heart Health, Energy, and Sleep Aids. The leaders within this space are Nature's Bounty, Nature Made, Emergen-C,
    Baush+Lomb and Airbourne. 91% of the supplement revenue (Nielsen Homescan Panel Data) is generated within the following four sales
    channels: Warehouse Club, Grocery, Super Centers and Drug Stores.
●
There are several product delivery methods
    for vitamins, minerals and supplements. These delivery methods could be tablets, capsules, liquids, effervescent tablets, and powders.
    Kirkman has the ability to produce capsules, tablets, liquids and powders to properly compete with core competitors.
●
Within the special needs category, competition
    includes New Beginnings, Claire Labs, Houston Enzymes and Lifetrients. These companies primarily focus on the dietary sensitivities
    of their respective consumers.
●
Within the Hemp Industry, products include
    gummies, tinctures, creams/lotions and capsules, Charlotte's Web, cbdMD, Social CBD, Joy Organics, MedTerra produce CBD related
    products. There is limited market share data due to the fact that the majority of product sales occur online.
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Facilities
We lease a 24,000 square foot facility located
in Lake Oswego, OR. This facility houses our manufacturing operation, warehouse, back-end offices and fulfillment center. Although
we are authorized to produce hemp derived products because we hold a hemp handler's license, we currently do not grow any hemp,
instead, we source our hemp derived products from registered growers in operation.
Employees
As of the date of this prospectus, we have 40
full-time employees and 1 part-time employee, and we consider our employee relations to be good. Our human capital resource objectives
are designed to attract, and retain, highly motivated and well-qualified employees. We have worked diligently to provide a flexible and
safe work environment. The health and safety of our employees and clientele is of the upmost importance to us.
Legal Proceedings
From time to time, we may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business.
On May 25, 2021, True Health Medical Center,
S.C. ("True Health") amended an existing complaint against Kirkman Group, Inc. ("Kirkman"), James Hall and David
Humphries to assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings, Inc. are
referred to as the "HTO Parties"). Kirkman is the seller of certain assets to the HTO Parties and is a separate legal entity.
Affiliates of the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit Court for the
Eighteenth Judicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets to the HTO
Parties but the royalty agreement has a provision that allows True Health to continue to receive royalties after the termination of the
agreement. True Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties.
There is no dispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO
Parties have never paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties
should be bound by the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the
damages claim against the HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties
have engaged in some discovery including a limited number of depositions. True Health has filed a motion for summary judgment that addresses
its claims against Kirkman, but does not address any claim against the HTO Parties. Briefing is not yet complete on the summary judgment
motion and a ruling is likely more than 60 days away. Regardless of how the court rules on summary judgment, there will be remaining
claims in the case and it is likely that additional discovery will be conducted. No trial date has been scheduled at this time.
Regulation
Trade Regulations
Our suppliers generally source or manufacture
finished goods in parts of the world that may be affected by the imposition of duties, tariffs or other import regulations by the United
States. We believe that our redundant network of suppliers provides sufficient capacity to mitigate any dependency risks on a single
supplier.
We buy necessary components or ingredients for
our products from suppliers or factories both domestically and internationally. We do not depend on any single supplier. However, if
we are unable to continue to obtain our finished products from international locations or if our suppliers are unable to source raw materials,
it could significantly disrupt our business. Further, we are affected by economic, political and other conditions in the United States
and internationally, including those resulting in the imposition or increase of import duties, tariffs and other import regulations and
widespread health emergencies, which could have a material adverse effect on our business.
62
Laws and Regulations Relating to Our Products
Nutraceutical
The dietary supplement industry is regulated
on a federal level in the U.S. by the Food and Drug Administration ("FDA") and the Federal Trade Commission ("FTC")
as well as by government agencies in each of the 50 states. FDA regulates both finished dietary supplement products and dietary ingredients.
FDA regulates dietary supplements under a different set of regulations than those covering "conventional" foods and drug
products. Under the Dietary Supplement Health and Education Act of 1994 (DSHEA):
Manufacturers and distributors of dietary supplements
and dietary ingredients are prohibited from marketing products that are adulterated or misbranded. That means that these firms are responsible
for evaluating the safety and labeling of their products before marketing to ensure that they meet all the requirements of the Federal
Food, Drug, and Cosmetic Act as amended by DSHEA and FDA regulations. The FDA has the authority to take action against any adulterated
or misbranded dietary supplement product after it reaches the market. Most dietary supplement manufacturing, labeling and marketing is
covered by extensive regulations issued and enforced by the FDA and the FTC. The FDA has regulatory authority under the Federal Food,
Drug and Cosmetic Act as amended in 1994 by the Dietary Supplement Health and Education Act (DSHEA) and in 2006 by the Dietary Supplement
and Nonprescription Drug Consumer Protection Act. Under the DSHEA, dietary supplements are regulated as a category of food. The FDA regulates
both finished dietary supplement products and dietary ingredients. By law, it is illegal to manufacture or market dietary supplement
products that are adulterated or misbranded, and the FDA has regulatory authority to remove such products from the marketplace.
Key Regulations
Responsible companies in the dietary supplement
industry abide by extensive regulations that cover manufacturing, labeling, quality control, safety, post-market surveillance and more.
New Dietary Ingredient Notifications
The Food Drug & Cosmetic Act, as amended
by the Dietary Supplement Health and Education Act (DSHEA), established that dietary supplements that were in commerce prior to 1994
have a history of safe use, and therefore, can remain on the market without additional safety review. All new ingredients marketed
after that date, however, must submit a formal 75-day notice along with evidence that the product is reasonably expected to be safe.
This is referred to as a new dietary ingredient (NDI) notification. If the FDA has concerns about the ingredient or its safety profile,
the agency has clear authority to request more information or to reject the notification and deny the product's entry into the
market.
Dietary Supplement Labeling Requirements
The following are the minimum labeling requirements:
1.
Statement
                                            of Identity
The statement must include the product name and
identify itself as a dietary supplement. Although you may replace the term dietary with the type of ingredients that are in the product,
having one of them on the product label is a mandatory requirement. The product must be labeled either as conventional foods and beverages
or dietary supplement based on its actuals.
2.
Net
                                            Quantity of Contents
The net quantity of content informs consumers
of the amount of dietary supplement that is in the container or package. The net quantity of content must be located on the product label
as a distinct item in the bottom 30 percent of the principal display panel in lines generally parallel to the base of the container.
3.
Supplements
                                            Chart
The supplement facts must contain the list of
names and quantities of dietary ingredients present in the product's serving size and servings per container.
4.
Ingredients
                                            List
The list of ingredients must be displayed in
descending order of predominance by weight. If all source ingredients are listed in the supplement facts panel, and there are no other
ingredients, such as excipients or fillers, an ingredient statement is not needed.
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5.
Other Details
Other details required include manufacturer,
packer, or distributor name and address, and domestic U.S. mail address and phone number to which a consumer can report a serious adverse
event. If an adverse event is reported, the company must notify the FDA.
Hemp and marijuana regulatory regimes in each
state where we sell hemp derived products.
State
D9
Ingestibles
Legislative
    and Enforcement Notes
Registration/
License
Required
CBD
    /
CBG
Ingestibles
Notes
(THC
caps)
CBD
    /
CBG
Inhalables
Inhalables
prohibited?
*Alabama
23
    Leg session: SB 66 enacted limits psychoactive cannabinoid products to 21+; attempt by DPH to stop CBD sales challenged in court:
    TRO issued against DPH; SB 255 (2019) authorized hemp farming, including its derivatives and extracts, with less than 0.3% D9 on
    a dry weight basis; products not affirmatively authorized. Products must be less than 0.3% D9
No
All
    states in this column that HT is selling into are OK but must meet THC cap, if applicable
No
*Arizona
24
    Leg session: SB 1401 would have criminalized D8, etc. as a dengerous drug but it DIED in committee; 23 Leg Session: SB 1271 would
    have authorized the manufacturing of hemp-derived products, license required but it stalled in the House; SB 1098 (2018) authorized
    hemp farming with less than 0.3% D9
No
No
*Arkansas
HB
    1640 (2021) authorized hemp/farming, including its derivatives and extracts, with less than 0.3% THC (all THCs)
No
No
*California
24
    Leg Session: AB 2223 would cap THC at .25mg/1mg per serving/product (PASSAGE LIKELY); AB 45 (2021) authorized hemp manufacturing;
    0.3% THC limit applies to final form extract ingredient, not final form product; otherwise must be sold in cannabis retail
Yes,
    Extract and Product Manufacturer License; out-of-state extract manufacturer only
Yes,
    until a tax is adopted.
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Colorado
23
    Leg Session: SB 23-271 caps total THC at 1.75 mg/serging and 5 serving/product
Yes
Total
    THC cap: 1.75 mg/serving & 5 mg/product
No
*Connecticut
24
    Leg Session: HB 5150 ENACTED total THC limit: 1mg/serving and 5mg/product for edible products; 25mg/product for vape products; and
    0.3% for flower; 23 Leg Update: HB 6699 enacted Caps total THC at 1mg/serving and 5mg/product; up to 25mg/product for tinctures/concentrates;
    D8/D9/HHC/THC-O included in total THC 0.3% limit for hemp products; otherwise must be sold in marijuana retail. SB 1201 (2021) separated
    hemp from marijuana and defined it the same as the federal act (less than 0.3% D9 including extracts/derivatives); D8/D9/HHC/THC-O
    included in total THC so **all THCs considered in hemp products.
No
Total
    THC Cap: 1mg/serving & 5mg/product for edible products; 25mg/product for vape products; and 0.3% for flower
No
*Delaware
23
    Leg session: HB 1 enacted relating to MJ possession for 21+, wholly removed hemp from MJ definition. This arguably authorizes possession
    of D9 etc. products. Title 3, Chapter 28 authorized hemp farming/research with less than 0.3% D9; flower derivatives and extracts
    not specifically authorized
No
No
65
*Florida
24
    Leg Session: AB 1698 would have included THCa in D9 count and cap D9 at 5mg/50mg per serving/product (GOV VETOED); 23 Leg Session:
    SB 1676 enacted and regulates hemp extract products under 0.3% D9, including D8, etc. limited to 21+; HB 333 (2019) authorized hemp/farming/products,
    including its derivatives and extracts, with less than 0.3% D9 on a dry weight basis; food establishment permit required for all
    products sold in state including inhalable products. Labeling/packaging requirements
Yes,
    Food Establishment Permit if presence in state beyond online sales
No
*Georgia
24
    Leg Session: SB 494 (ENACTED) prohibits food infused w/THC/CBD - gummies excluded; now Total D9 THC/THCa standard (0.3% total D9
    THC/THCa) for hemp products; HB 1127/SB 437/SB 350 would have limited all consumable hemp products to 21+ (DEAD); 23 Leg Session:
    SB 22 would have limited all hemp products to 18+ but stalled before the Legislature adjourned; HB 213 (2019) authorized hemp/farming/products,
    including its derivatives and extracts, with the federally defined THC (D9) level
No
Yes
Hawaii
24
    Leg Session HB 1424/SB516 would have invoked state protectionism in labels; and HB 2449/SB 3138 would have allowed hemp in food/bev
    (ALL DEAD); HB 2689 (2020) authorized hemp products with less than 0.3% D9, however, State code §328G-3 prohibits adding cannabinoids
    as an ingredient to foods and inhalable products
No
Yes
Idaho
State's
    CSA prohibits hemp products with any THC. The only CBD allowed is 0.00% Isolate products
No
0 THC
    state
Yes
66
*Illinois
24
    Leg Session: HB 5306/SB 3790 would have limited all consumable hemp products to 21+; SB 3926 would have limited all hemp products
    to 0.5mg THC (ALL DEAD); Chicago Ordinance 4215 would cap D9 products at .5mg/serving / 2.5mg/product; SB 2298 (2018) authorized
    hemp farming/products with less than 0.3% D9.
No
No
*Indiana
SEA
    516 (2019) authorized hemp products with less than 0.3% D9.
No
Yes
*Iowa
24
    Leg Session: HF 2605 (ENACTED) caps Total THC at 4mg/serving 10/mg/product; SF 2417 would have imposed 25% tax on hemp products in
    bars/restaurants (DEAD); Iowa Administrative Code 481, Chapter 32 (2021) requires a consumable hemp product registration for retailers
    (in store/online) and must be less than 0.3% total THC
Yes,
    Retailer registration
Yes
*Kansas
SB
    263 (2018) authorized hemp research farming with less than 0.3% D9; no specific product authorization, but, state statute 2-3908
    prohibits extracts with D9 greater than 0.3% and also references federal law (FDA); from AG Opinion: "Thus, we conclude that
    the limit of 0.3% applies to the total amount of all tetrahydrocannabinols in a final hemp product, including Delta-8, Delta-9, and
    all other tetrahydrocannabinols."
No
No
67
*Kentucky
23
    Leg Session: HB 544 enacted and the state will strictly regulate intoxicating products and limit them to 21+; regulations in process;
    State law authorizes hemp products with less than 0.3% D9
No
Flower
    prohibited/vapes OK
*Louisiana
24
    Leg Session: SB 237 would have limited consumable hemp products to 0.0% THC; SB 495 would have prohibited out of state products (BOTH
    DEAD); HB 491 (2019 – Hemp Farming Act) 0.3% THC limit applies to D9 only. HB 491 (2019) authorized hemp, including extracts
    and derivatives, with D9 less than 0.3% ; products must be approved by the state (RS 3-1483) and wholesalers are required to obtain
    a permit
Yes,
    Product registration and hemp vendor license
No
Maine
HP
    459/LD 630 (2019) fully authorized hemp products with less than 0.3% D9
No
No
Maryland
24
    Leg Session: SB 1109 would have restricted who can sell intoxicating hemp products (DEAD); 23 Update: Consumable and inhalable products
    with more than 0.5mg total THC/serving and 2.5mg THC/product are cannabis/MJ; tinctures OK w/less than 2.5mg total THC/serving and
    100mg THC/product; HB 698 (2018) authorized hemp pilot program with less than 0.3% D9, flower derivatives and extracts not specifically
    authorized
No
Consumable
    and inhalable products with more than 0.5mg total THC/serving and 2.5mg THC/product are cannabis/MJ; **tinctures OK w/less than 2.5mg
    total THC/serving and 100mg THC/product**
No
68
*Massachusetts
24
    Update: Department of AG adopted a new policy prohibiting hemp flower and hemp products with any THC other than topicals; '23
    Leg Session: H.90 would have regulated hemp products and license in-state manufacturers but stalled before leg. adjournment 8/1 (DEAD);
    state operates under USDA's state hemp plan program and the federal 0.3% D9 limit; CBD food/dietary supplement product wholesaling
    prohibited, but retail sales currently not regulated
Not
    yet
Sold
    in MJ retail only
*Michigan
HB
    4517 (2021) authorized hemp products with less than 0.3% THC on a dry weight basis (THC generally, not just D9)
MJ
    license/Hemp handler-processor license to sell hemp products including smokable flower
No
*Minnesota
24 Leg Session:
                                    HF 4629 would have allowed lower potency hemp products (DEAD); 23 Leg session: HF 100 enacted limits
                                    D9 to 5 mg and require a retail license. HF 3595 (2022) limits edible hemp products to 5mg/serving
                                    and 50mg/package total THC including D8, etc.; sales limited to 21+; RS 18K.02 (2021) authorized
                                    hemp, including extracts and derivatives, with
less 0.3% D9.
Retailer
    license
D9
    cap: 5 mg/serving & 50 mg/product
No
Mississippi
24
    Leg Update: HB 1676 would have capped THC in consumable hemp products at 0.5mg/2.5mg & 20:1 CBD: THC (DEAD); SB 2725 (2020) adopted
    the federal D9 THC limit, including extracts and derivatives, but consumable hemp products must be "FDA approved".
No
No
69
*Missouri
24
    Leg Update: SB 984 would have moved all intoxicating cannabinoids to MJ retail (all ingestible/consumable products - not smoking)
    (DEAD); HB 2034 (2018) authorized hemp, including extracts and derivatives, with less 0.3% D9.
No
No
*Montana
HB
    701 (2021) kept hemp products with less than 0.3% D9 out of marijuana system and thus allowed, but not affirmatively authorized
No
No
Nebraska
24
    Leg Session: LB 999 would have prohibited all cannabinoids other than CBD in hemp products (DEAD); LB 657 (2019) authorized hemp/farming,
    including its derivatives and extracts, with less than 0.3% D9 on a dry weight basis; products not affirmatively authorized.
No
No
*Nevada
Hemp
    farming authorized with less than 0.3% total THC; products not affirmatively authorized; SB 49 (2021) clarifies that 0.3% THC limit
    is total THC, not just D9
No
No
*New Hampshire
HB
    459-FN (2019) limits hemp products to 0.3% D9 THC only. Product registration
Product
    registration
No
*New Jersey
24
    Leg Session: A3580/S2313 would limit all hemp products w/any THC to 21+; S3235 would push all hemp products over 2.5mg total THC
    to MJ (ON GUV'S DESK); AB 5322 (2020) limits hemp products to 0.3% D9 THC only. Dept of Ag license for selling hemp products
    may be required.
Dept
    of Ag. license may be required for sales
No
*New Mexico
HB
    581(2019) limits hemp products to 0.3% D9 THC only
No
No
70
*
New York
24
                                            Les Session: A09047/S8463 would have re-legalized synthetic hemp THC in MJ retail (DEAD);
                                            S3235 would have allowed up to 5mg THC in hemp beverages (DEAD); 23 update: Cannabis agency
                                            enforcement against high THC products imminent along with THC caps; Hemp products authorized
                                            in 2020 with less than 0.3% D9; hemp retailer license required for in store/online sales;
                                            food/beverage products limited to 25 mg total cannabinoids/product; supplement products have
                                            much higher total cannabinoid limits
Manufacturer
    and Retailer Permit
Cannabis
    regulatory agency enforcement against high THC hemp products and THC cap imminent
Flower prohibited;
    oil OK
*
North Carolina
24 Leg Session: H563
    would have established THC caps including synthetic THC (DEAD); '23 Leg session: HB 563 would have limited hemp cannabinoid
    products to 21+ but it appears to have died; SB 455 (2022) permanently authorized hemp products with less than 0.3% D9 only. All
    hemp derived cannabinoids removed from CSA
No
No
North Dakota
24
                                            Update: Adopted administrative rule caps total THC/serving at 1.25mg and 15:1 CBD:THC ratio
                                            for "cannabinoid product"; '23 Leg Session: SB 2096 enacted - prohibits
                                            all "chemically derived cannabinoids" including Delta 8, 9, etc. - **full/broad
                                            spectrum OK with THC limit in an amount to be determined.** HB 1045 authorizes hemp products
                                            with less than 0.3% THC (all THCs);
products with converted D9 prohibited
No
Yes
*
Ohio
24 Leg Session: SB
    278 would limit hemp products to 0.3% Total THC and products over 2.5mg/serving limited to 21+; HB 642 would direct depts. to do
    study re: adult use hemp limits; '23 Leg Session: A replacement of SB 9 would have prohibited any amount of D8/9/10 in hemp
    products. SB 57 (2019) limits hemp products to 0.3% D9 THC only (DIED)
No
No
71
*
Oklahoma
23 Leg
    Session: SB 365 would have required registration of hemp cannabinoid products but it died before adjournment. SB 238 (2019) authorized
    hemp products with less than 0.3% D9
Not yet
No
Oregon
HB 3000 (2021) and
    OLCC have limited hemp products to 0.5mg THC/product; otherwise it must be sold in MJ retail
MJ license if exceed
    0.5mg THC/product
Sold in MJ retail only
*
Pennsylvania
HB 967 (2016) authorized
    hemp farming with less than 0.3% total THC; products not affirmatively authorized
No
No
*
Rhode Island
Hemp-derived products
    with less than 0.3% D9 are authorized; retail license required
Yes, retailer license
No
*
South Carolina
24 Leg Session: H4628
    would have limited all hemp-derived cannabinoid products to 21+, excluding CBD, CBN, CBG, etc. (DEAD); Hemp products with less than
    0.3% D9 are authorized as the state follows federal definition (HB 3449)
No
No
*
South Dakota
24 Leg Session: HB1125
    enacted prohibits synthetic/converted cannabinoids; HB 1292 (signed into law March '22) limits intoxicating product sales to
    21 and over. HB 1008 (2020) authorized hemp products with less than 0.3% D9
No
Yes
*
Tennessee
24 Leg Session: Department
    regulations finalized on 7/2/24 adopt a total THC standard; '23 leg session: HB 403 enacted and limits any product w/non-Delta-9
    THC to 21+; license required; SB 357 (2019) authorized hemp products with less than 0.3% D9; Smoking limited to 21+
Not for D9 products
No, but 21+ only
72
*
Texas
23 Leg
    session: HB 4918 would have reversed in-state smokable hemp ban but died; HB 1325 (2019) authorized hemp products with less than
    0.3% D9; Sup Ct. in June 22 upheld manufacturing smokable hemp ban
Consumable
    hemp product license
No
Utah
23 leg session: HB
    227 enacted and limits any product with THC to 21+; HB 58 (2016) and HB 3001 (2018) authorized hemp extract products with less than
    0.3% THC (all THCs) and with at least 5% CBD by weight. HB 385 (2022) requires product class and cannabinoid product registration
    with the state. Smokable flower prohibited - vape products not identified. Attempting to register vape product will ferret out whether
    state agrees that smokable prohibition applies only to flower.
Retailer permit; Product
    class or cannabinoid product registration
Yes, but possibly not
    vapes
Vermont
23 Leg Session: Cannabis
    Control Board issued emergency rule prohibiting synthetic THCs and limits hemp products to 1.5mg of THC per serving, or 10mg of THC
    per package (unless the product has at least 20:1 CBD-to-THC. State hemp rules adopt federal D9 limits for hemp products; however,
    all synthetically derived/converted THCs are prohibited (2020).
No
1.5 mg/serving &
    10 mg/product
No
Virginia
24 Leg Session: **SB
    582 (ENACTED) limits inhaled products to 21+; SB 448 would have improved regulatory environment (lower tax) while HB 1509 would further
    restrict hemp businesses; Cap of 2.5mg THC/product or a 25:1 CBD:THC ratio
Yes, Retailer registration
2.5mg THC/product or
    a 25:1 CBD:THC ratio
No
Washington
23 leg session: SB
    5367 enacted prohibits any detectable THC in hemp products.
No
0 THC state
No
73
*
West Virginia
24 Leg
    Session: SB 679 limits hemp cannabinoid products to 21+ and sales require business reg. certificate; '23 Leg Session: SB 220
    enacted limits D9, D8, etc. products to 21+ and requires permit. HB 2694 (2019) Authorized hemp products with less than 0.3% THC
    (all THCs). Inhalable hemp products must be approved by the Commissioner.
Yes, permit
No, but must
    be approved
*
Wisconsin
Statute 94.55 authorizes
    hemp products with less than 0.3% D9. Products must be sold by a licensed retailer and meet strict packaging rules including flower.
Retailer license
No
*
Wyoming
23 leg session: HB
    108 enacted limits any edible or vaping product with any THC to 18+; HB 0171 (2019) authorized hemp products with less than 0.3%
    D9. Attempt to limit inhalable sales to 21+ failed.
No, but 18+ only
*
asterisk
= we sell product in this state
74
Good Manufacturing Practices
Good manufacturing practices ("GMPs")
for dietary supplements are specific rules for the manufacturing processes of vitamins, minerals, herbs and botanicals, amino acids and
all other supplements. Finalized in 2007, these rigorous practices impose higher standards on dietary supplements than food GMPs applied
to conventional foods. Dietary supplement GMPs include thorough requirements for identity testing for all ingredients as they arrive
at the manufacturer's site.  Manufacturers must qualify their suppliers before receiving goods, incoming ingredients must
be quarantined until their identity is confirmed using scientifically valid methods of analysis, and all components of dietary supplements
must meet specifications established by the manufacturer regardless of where the ingredient was sourced.
Manufacturers are accountable to the FDA for
the manufacturing process as well as the ingredients. During an inspection, the FDA has access to all the manufacturers' records,
including access to the country of origin of all supplement ingredients. The existing bioterrorism law already requires all parties in
the production and distribution of dietary ingredients to keep records of suppliers and customers ("one up and one down")
that permit the agency to trace the pedigree of ingredients back to their original source. In addition, the GMP rules examine sanitation,
batch records for production, employee training, validation of the manufacturing procedures, and testing final products for conformance
with the label.
Adverse Event Reporting
In 2006, Congress passed The Dietary Supplement
and Nonprescription Drug Consumer Protection Act, commonly referred to as the "adverse event reporting law." The passage
of this law was strongly supported by CRN and others in the industry as it provides an important regulatory tool for the FDA to protect
consumers. Under this law, dietary supplement companies are required to report serious adverse events to the FDA no later than 15 business
days after the company receives the report.
This post-market surveillance program alerts
the FDA to possible signals or potential patterns of a problem, enabling the agency to identify concerns with ingredient safety, manufacturing
issues, contamination (of either raw ingredients or finished products), tampering, and even bioterrorism. However, adverse events do
not demonstrate a causal relationship between the product and the event.
Since the law went into effect, the dietary supplement
industry's track record demonstrates a strong safety profile for the industry's products both in comparison to other FDA-regulated
industries and considering that more than 170 million Americans take dietary supplements. In 2016, the FDA announced it would make
data from the FDA Adverse Event Reporting System (FAERS) public.
Additional Safety Protections
Once a dietary supplement enters the stream of
commerce, the FDA may remove a product if it is "adulterated" or "misbranded." A product is considered adulterated
if it contains unlisted ingredients or is not prepared or packaged under good manufacturing conditions. It is misbranded if its
labeling is false or misleading.  In either case, the agency has enforcement authority to seize and destroy the product, impose
fines or even imprisonment. In addition, the FDA can remove a product from the market if it "presents a significant or unreasonable
risk of illness or injury" under conditions of use recommended in its labeling. A separate provision gives the FDA authority to
declare a product "an imminent hazard to public health or safety." In less dramatic situations, the FDA can request manufacturers
to modify products and claims or to provide warnings to consumers. The Food Safety & Modernization Act, signed into law in 2011,
gave the FDA additional authority to issue a mandatory recall when a company fails to voluntarily recall an unsafe food (including dietary
supplements) after being asked to by the FDA.
75
Food Safety Regulations
Title 21 Code of Federal Regulations, Part
111: Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements
This regulation applies to manufacturers, packagers,
labelers, or holders and includes importers as well. The manufacturing facilities of certain types of human food including dietary supplements
are required to have a production and process control system in place.
Hemp
The production, distribution and sale in the
United States of many of our products are subject to the Federal Food, Drug, and Cosmetic Act, the Federal Trade Commission Act, the
Lanham Act, state consumer protection laws, competition laws, federal, state and local workplace health and safety laws, various federal,
state and local environmental protection laws, various other federal, state and local statutes applicable to the production, transportation,
sale, safety, advertising, labeling and ingredients of such products, and rules and regulations adopted pursuant to these laws. Outside
the United States, the distribution and sale of our many products and related operations are also subject to numerous similar and other
statutes and regulations. We only sell our hemp derived products to states which permit this activity with certain restrictions such
as the content of THC which differs depending on the state.
76
On December 20, 2018, the Agricultural Improvement
Act of 2018, which is also known as the "2018 Farm Bill," was enacted and, among other things, further legalized hemp under
U.S. federal law, but with compliance still being required with all applicable state hemp laws. The 2018 Farm Bill includes certain benefits
for the hemp industry in the United States, including: (i) the extension of the protections for hemp research and researchers and the
conditions in which hemp research can be done, (ii) the protection of hemp farmers and hemp production under federal crop insurance programs,
(iii) the permitting of the cultivation, interstate transportation and sale of hemp and hemp products in the U.S. in compliance with
all other applicable federal and state laws, and (iv) the removal of hemp and hemp derived products from Schedule 1 of the Controlled
Substances Act ("CSA").
As of August 1, 2024,
all
50 states and the District of Columbia have legalized hemp
Our activities in the United States only involve
legal hemp in compliance with the CSA. The hemp and the marijuana plants are both part of the same
cannabis
genus, except that
hemp does not have more than 0.3% dry weight content of tetrahydrocannabinol ("THC").   While 2018 Farm Bill legalized
hemp and cannabinoids extracted from hemp in the United States, such extracts remain subject to state laws and regulation by other U.S.
federal agencies such as the FDA, U.S. Drug Enforcement Administration ("DEA"), and the U.S. Department of Agriculture ("USDA").
The same plant, with a higher THC content is marijuana, which is legal under certain state laws, but which is currently not legal under
U.S. federal law. The similarities between these plants can cause confusion.
A California law known as Proposition 65 requires
a specific warning to appear on any product containing a component listed by the state as having been found to cause cancer or birth
defects. The state maintains lists of these substances and periodically adds other substances to these lists. Proposition 65 exposes
all food and beverage producers to the possibility of having to provide warnings on their products in California because it does not
provide for any generally applicable quantitative threshold below which the presence of a listed substance is exempt from the warning
requirement. Consequently, the detection of even a trace amount of a listed substance can subject an affected product to the requirement
of a warning label. However, Proposition 65 does not require a warning if the manufacturer of a product can demonstrate that the use
of that product exposes consumers to a daily quantity of a listed substance that is:
●
below a "safe
    harbor" threshold that may be established;
●
naturally occurring;
●
the result of necessary
    cooking; or
●
subject to another
    applicable exemption.
In January 2019, New York State's governor
announced the "Consumer Right to Know Act," a proposed law that would impose similar and potentially more stringent labeling
requirements than California Proposition 65. The law has not yet been adopted, and to our knowledge California Proposition 65 remains
the most onerous state-level chemical exposure labeling statutory scheme. However, due in part to the large size of California's
market, promotional products sold or distributed anywhere in the United States may be subject to California Proposition 65.
We are unable to predict whether a component
found in a product that we assisted a client in producing might be added to the California list in the future. Furthermore, we are also
unable to predict when or whether the increasing sensitivity of detection methodology may become applicable under this law and related
regulations as they currently exist, or as they may be amended.
77
We are subject to various federal, state and
local laws and regulations, including but not limited to, laws and regulations relating to labor and employment, U.S. customs and consumer
product safety, including the Consumer Product Safety Improvement Act, or the "CPSIA." The CPSIA created more stringent safety
requirements related to lead and phthalates content in children's products. The CPSIA regulates the future manufacture of these
items and existing inventories and may cause us to incur losses if we offer for sale or sell any non-compliant items. Failure to comply
with the various regulations applicable to us may result in damage to our reputation, civil and criminal liability, fines and penalties
and increased cost of regulatory compliance. These current and any future laws and regulations could harm our business, results of operations
and financial condition.
Legal requirements apply in various jurisdictions
in the United States and overseas requiring deposits or certain taxes or fees be charged for the sale, marketing and use of certain non-refillable
beverage containers. The precise requirements imposed by these measures vary. Other types of beverage container-related deposit, recycling,
tax and/or product stewardship statutes and regulations also apply in various jurisdictions in the United States and overseas. We anticipate
additional, similar legal requirements may be proposed or enacted in the future at local, state and federal levels, both in the United
States and elsewhere.
New legislation or regulation, the application
of laws from jurisdictions whose laws do not currently apply to our business, or the application of existing laws and regulations to
the Internet and e-commerce generally could result in significant additional taxes on our business. Further, we could be subject to fines
or other payments for any past failures to comply with these requirements. The continued growth and demand for e-commerce is likely to
result in more laws and regulations that impose additional compliance burdens on e-commerce companies.
Laws and Regulations Relating to Data Privacy
In the ordinary course of our business, we might
collect and store in our internal and external data centers, cloud services and networks sensitive data, including our proprietary business
information and that of our customers, suppliers and business collaborators, as well as personal information of our customers and employees.
The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. The number
and sophistication of attempted attacks and intrusions that companies have experienced from third parties has increased over the past
few years. Despite our security measures, it is impossible for us to eliminate this risk.
A number of states in the United States have
enacted data privacy and security laws and regulations that govern the collection, use, disclosure, transfer, storage, disposal, and
protection of personal information, such as social security numbers, financial information and other sensitive personal information.
For example, all 50 states and several U.S. territories now have data breach laws that require timely notification to affected individuals,
and at times regulators, credit reporting agencies and other bodies, if a company has experienced the unauthorized access or acquisition
of certain personal information. Other state laws, particularly the California Consumer Privacy Act, as amended ("CCPA"),
among other things, contain disclosure obligations for businesses that collect personal information about residents in their state and
afford those individuals new rights relating to their personal information that may affect our ability to collect and/or use personal
information. The Virginia Consumer Data Protection Act ("CDPA") also establishes rights for Virginia consumers to control
how companies use individuals' personal data. The CDPA dictates how companies must protect personal data in their possession and
respond to consumers exercising their rights, as prescribed by the law, regarding such personal data. The CDPA went into effect on January
1, 2023. Further, the California Privacy Rights Act (CPRA) was recently voted into law by California residents. The CPRA significantly
amends the CCPA and imposes additional data protection obligations on covered companies doing business in California, including additional
consumer rights processes and opt outs for certain uses of sensitive data. It also creates a new California data protection agency specifically
tasked to enforce the law, which would likely result in increased regulatory scrutiny of California businesses in the areas of data protection
and security. The substantive requirements for businesses subject to the CPRA went into effect on January 1, 2023, and became enforceable
on July 1, 2023. Meanwhile, several other states and the federal government have considered or are considering privacy laws like the
CCPA. We will continue to monitor and assess the impact of these laws, which may impose substantial penalties for violations, impose
significant costs for investigations and compliance, allow private class-action litigation and carry significant potential liability
for our business.
Outside of the United States, data protection
laws, including the EU General Data Protection Regulation (the "GDPR"), also might apply to some of our operations or business
collaborators. Legal requirements in these countries relating to the collection, storage, processing and transfer of personal data/information
continue to evolve. The GDPR imposes, among other things, data protection requirements that include strict obligations and restrictions
on the ability to collect, analyze and transfer personal data/information of persons located in the European Union (EU), a requirement
for prompt notice of data breaches to data subjects and supervisory authorities in certain circumstances, and possible substantial fines
for any violations (including possible fines for certain violations of up to the greater of €20 million or 4% of total company revenue).
Other governmental authorities around the world have enacted or are considering similar types of legislative and regulatory proposals
concerning data protection.
78
The interpretation and enforcement of the laws
and regulations described above are uncertain and subject to change, and may require substantial costs to monitor and implement and maintain
adequate compliance programs. Failure to comply with United States and international data protection laws and regulations could result
in government enforcement actions (which could include substantial civil and/or criminal penalties), private litigation and/or adverse
publicity and could negatively affect our operating results and business.
Environmental Regulations
We use certain plastic, glass, fabric, metal
and other products in our business which may be harmful if released into the environment. In view of the nature of our business, compliance
with federal, state, and local laws regulating the discharge of materials into the environment, or otherwise relating to the protection
of the environment, has had no material effect upon our operations or earnings, and we do not expect it to have a material impact in
the foreseeable future.
Tax Laws and Regulations
Changes in tax laws or regulations in the jurisdictions
in which we do business, including the United States, or changes in how the tax laws are interpreted, could further impact our effective
tax rate, further restrict our ability to repatriate undistributed offshore earnings, or impose new restrictions, costs or prohibitions
on our current practices and reduce our net income and adversely affect our cash flows.
We are also subject to tax audits in the United
States and other jurisdictions and our tax positions may be challenged by tax authorities. Although we believe that our current tax provisions
are reasonable and appropriate, there can be no assurance that these items will be settled for the amounts accrued, that additional tax
exposures will not be identified in the future or that additional tax reserves will not be necessary for any such exposures. Any increase
in the amount of taxation incurred as a result of challenges to our tax filing positions could result in a material adverse effect on
our business, results of operations and financial condition.
Other Regulations
We are subject to international, federal, national,
regional, state, local and other laws and regulations affecting our business, including those promulgated under the Occupational Safety
and Health Act, the Consumer Product Safety Act, the Flammable Fabrics Act, the Textile Fiber Product Identification Act, the rules and
regulations of the Consumer Products Safety Commission, the Food, Drug, and Cosmetic Act, the Foreign Corrupt Practices Act of 1977 (FCPA),
various securities laws and regulations including but not limited to the Securities Exchange Act of 1934, as amended, the Securities
Exchange Act of 1933, as amended, and the NASDAQ Rules, various labor, workplace and related laws, and environmental laws and regulations.
Failure to comply with such laws and regulations may expose us to potential liability and have an adverse effect on our results of operations.
79
MANAGEMENT
Directors and Executive Officers
Set forth below is information regarding our
directors and executive officers as of the date of this prospectus.
Name
Age
Position
Eric Gripentrog
57
Chief Executive Officer
Tariq Rahim
37
Chief Financial Officer
[                   ]
(1)
[   ]
(1)
Nominee
                                            director whose tenure shall be effective and commence immediately on the date in which this
                                            registration statement is declared effective by the SEC.
Eric Gripentrog,
Chief Executive Officer
and Director
Mr. Gripentrog combines over 30 years of experience
in the Consumer-Packaged Goods industry ("CPG"). Previously, he worked with three other companies in the CPG space holding
several positions including CEO, SVP, and other senior management positions including Board Member. From 1992 to 2018, Eric held multiple
roles in the Kellogg Company, both domestically and internationally (Europe and Latin America) leading business units with P&L responsibility.
His last two roles at the Kellogg Company were Vice President/General Manager of the Caribbean business unit from 2009 to 2014; and Vice
President, Strategy and Operations for North America from 2014 - 2018. From 2018 to 2019, Mr. Gripentrog was the SVP and General Manager
of Panera Bread's Consumer Packaged Goods division. This senior management position led this business unit covering six different
product categories. He grew this division double-digit in both top-line and bottom-line performance, and his CPG division outperformed
all other Panera business units and functions. From 2019 to 2020, Eric was the CEO and board member for Gina Cucina, Inc, a company involved
in manufacturing and selling fresh soup into the retail grocery outlets and direct-to-consumer. His expertise in leading a business,
managing the P&L and identifying margin enhancing opportunities for both business-to-business and direct-to-consumer clientele is
critically important for the current role. Since 2020 Eric has been acting as the CEO of Hemptown USA, a director of Functional Brands,
and a director of HTO Nevada, dba Kirkman. Whether Eric is leading a multi-billion-dollar operation or a small start-up; his experience
in developing strategic plans and policies to bring the company vision to reality, implementing supporting plans, budgeting and forecasting,
communicating with the Board of Directors, tracking company performance and establishing a high performing working culture, will enable
his success in his current CEO role. Eric has an undergraduate degree from Western Michigan University.
Tariq Rahim,
Chief Financial Officer
Mr. Rahim brings over 15 years of professional
experience with over 10 years as a qualified Chartered Professional Accountant (CPA, CA – Canada). Having worked in a wide
variety of industries including cannabis, hemp, prop-tech, professional services spaces, among others. In addition to his current
position as CFO at FBIC since April 2023 and VP, Finance since June 2021, his previous roles included Controller at Nobul (prop-tech
startup) from June 2020 to June 2021 and Controller at Tokyo Smoke (cannabis start-up) from September 2018 to May 2020. Beginning his
post-qualification careers in the Fall of 2011, he has held consistently progressive roles from a junior in public accounting leading
up to the current position as an executive. Having worked with companies ranging in size from small to multi-million dollar publicly
listed companies, he has tremendous experience in leveraging his financial skills to lead companies and clients through the full gamut
of accounting and finance challenges – strategic planning, financial reporting, financial planning & analysis, budgeting &
forecasting, to mention just a few. From 2018 onward, Mr. Rahim focused his career on startups and utilizing his experience to build
and scale. Since 2021 Tariq has been serving as CFO of Hemptown USA, director of Functional Brands, and director of HTO Nevada, dba Kirkman.
He has an Honors Bachelor of Accounting degree in Accounting from Brock University.
80
Family Relationships
There are no family relationships among any of
our officers or directors.
Involvement in Certain Legal Proceedings
To the best of our knowledge, except as described
below, none of our directors or executive officers has, during the past ten years:
●
been convicted in a
    criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
●
had any bankruptcy
    petition filed by or against the business or property of the person, or of any partnership, corporation or business association of
    which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that
    time;
●
been subject to any
    order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction or federal or
    state authority, permanently or temporarily enjoining, barring, suspending or otherwise limiting, his involvement in any type of
    business, securities, futures, commodities, investment, banking, savings and loan, or insurance activities, or to be associated with
    persons engaged in any such activity;
●
been found by a court
    of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission
    to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;
●
been the subject of,
    or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended
    or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any
    federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance
    companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty
    or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire
    fraud or fraud in connection with any business entity; or
●
been the subject of,
    or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined
    in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity
    Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority
    over its members or persons associated with a member.
Corporate Governance
Governance Structure
We will choose to appoint a separate Chairman
of the Board who is not our Chief Executive Officer. Our board of directors' decision is based on the belief that an independent
Chairman of the Board can act as a balance to the Chief Executive Officer, who also serves as a non-independent director.
The Board's Role in Risk Oversight
The board of directors oversees that the assets
of our company are properly safeguarded, that the appropriate financial and other controls are maintained, and that our business is conducted
wisely and in compliance with applicable laws and regulations and proper governance. Included in these responsibilities is the board's
oversight of the various risks facing our company. In this regard, our board seeks to understand and oversee critical business risks.
Our board does not view risk in isolation. Risks are considered in virtually every business decision and as part of our business strategy.
Our board recognizes that it is neither possible nor prudent to eliminate all risk. Indeed, purposeful and appropriate risk-taking is
essential for our company to be competitive on a global basis and to achieve its objectives.
While the board oversees risk management, company
management is charged with managing risk. Management communicates routinely with the board and individual directors on the significant
risks identified and how they are being managed. Directors are free to, and indeed often do, communicate directly with senior management.
Our board administers its risk oversight function
as a whole by making risk oversight a matter of collective consideration. Much of this work has been delegated to committees, which will
meet regularly and report back to the full board. The audit committee oversees risks related to our financial statements, the financial
reporting process, accounting and legal matters, the compensation committee evaluates the risks and rewards associated with our compensation
philosophy and programs, and the nominating and corporate governance committee evaluates risk associated with management decisions and
strategic direction.
81
Independent Directors
NASDAQ's rules generally require that a
majority of an issuer's board of directors consist of independent directors. Our board of directors currently consists of three
(3) directors, with ____ and _____considered independent within the meaning of NASDAQ's rules. We have entered into independent
director agreements with [●], pursuant to which [he/she] has been appointed to serve as an independent director of our company,
whose tenure shall be effective and commence immediately on the date in which this the registration statement is declared effective by
the SEC. As a result of these board changes, our board of directors will consist of ___ ( ) directors, ___ ( ) of which will be independent
within the meaning of NASDAQ's rules.
Committees of the Board of Directors
Our board has established an audit committee,
a compensation committee, and a nominating and corporate governance committee, each with its own charter approved by the board. The committee
charters have been filed as exhibits to the registration statement of which this prospectus is a part. Upon completion of this offering,
we intend to make each committee's charter available on our website at https://functionalbrandsinc.com/.
In addition, our board of directors may, from
time to time, designate one or more additional committees, which shall have the duties and powers granted to it by our board of directors.
Audit Committee
[     ], [     ],
and [     ], each of whom satisfies the "independence" requirements of Rule 10A-3 under the Exchange
Act and NASDAQ's rules, will serve on our audit committee upon their appointment to the board, with [     ]
serving as the chairman. Our board has determined that [     ] qualifies as an "audit committee financial
expert." The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements
of our company.
The audit committee is responsible for, among
other things: (i) retaining and overseeing our independent accountants; (ii) assisting the board in its oversight of the integrity of
our financial statements, the qualifications, independence and performance of our independent auditors and our compliance with legal
and regulatory requirements; (iii) reviewing and approving the plan and scope of the internal and external audit; (iv) pre-approving
any audit and non-audit services provided by our independent auditors; (v) approving the fees to be paid to our independent auditors;
(vi) reviewing with our chief executive officer and principal financial officer and independent auditors the adequacy and effectiveness
of our internal controls; (vii) reviewing hedging transactions; and (viii) reviewing and assessing annually the audit committee's
performance and the adequacy of its charter.
Compensation Committee
[     ], [     ]
and [     ], each of whom satisfies the "independence" requirements of Rule 10C-1 under the Exchange
Act and NASDAQ's rules, will serve on our compensation committee upon their appointment to the board, with [ ] serving as the chairman.
The members of the compensation committee are also "outside directors" as defined in Section 162(m) of the Internal Revenue
Code of 1986, as amended, or the Code, and "non-employee directors" within the meaning of Section 16 of the Exchange Act.
The compensation committee assists the board in reviewing and approving the compensation structure, including all forms of compensation
relating to our directors and executive officers.
The compensation committee is responsible for,
among other things: (i) reviewing and approving the remuneration of our executive officers; (ii) making recommendations to the board
regarding the compensation of our independent directors; (iii) making recommendations to the board regarding equity-based and incentive
compensation plans, policies and programs; and (iv) reviewing and assessing annually the compensation committee's performance and
the adequacy of its charter.
Nominating and Corporate Governance Committee
[     ] and [     ]
each of whom satisfies the "independence" requirements of NASDAQ's rules, will serve on our nominating and corporate
governance committee upon their appointment to the board, with [     ] serving as the chairman. The nominating
and corporate governance committee assists the board of directors in selecting individuals qualified to become our directors and in determining
the composition of the board and its committees.
82
The nominating and corporate governance committee
will be responsible for, among other things: (i) identifying and evaluating individuals qualified to become members of the board by reviewing
nominees for election to the board submitted by shareholders and recommending to the board director nominees for each annual meeting
of shareholders and for election to fill any vacancies on the board; (ii) advising the board with respect to board organization, desired
qualifications of board members, the membership, function, operation, structure and composition of committees (including any committee
authority to delegate to subcommittees), and self-evaluation and policies; (iii) advising on matters relating to corporate governance
and monitoring developments in the law and practice of corporate governance; (iv) overseeing compliance with the our code of ethics;
and (v) approving any related party transactions.
The nominating and corporate governance committee's
methods for identifying candidates for election to our board of directors (other than those proposed by our shareholders, as discussed
below) will include the solicitation of ideas for possible candidates from a number of sources - members of our board of directors, our
executives, individuals personally known to the members of our board of directors, and other research. The nominating and corporate governance
committee may also, from time-to-time, retain one or more third-party search firms to identify suitable candidates.
In making director recommendations, the nominating
and corporate governance committee may consider some or all of the following factors: (i) the candidate's judgment, skill, experience
with other organizations of comparable purpose, complexity and size, and subject to similar legal restrictions and oversight; (ii) the
interplay of the candidate's experience with the experience of other board members; (iii) the extent to which the candidate would
be a desirable addition to the board and any committee thereof; (iv) whether or not the person has any relationships that might impair
his or her independence; and (v) the candidate's ability to contribute to the effective management of our company, taking into
account the needs of our company and such factors as the individual's experience, perspective, skills and knowledge of the industry
in which we operate.
No person entitled to vote at an election for
directors may cumulate votes to which such person is entitled, unless, at the time of such election, the corporation is subject to Section
2115(b) of the CGCL. During such time or times that the corporation is subject to Section 2115(b) of the CGCL, every stockholder entitled
to vote at an election for directors may cumulate such stockholder's votes and give one candidate a number of votes equal to the
number of directors to be elected multiplied by the number of votes to which such stockholder's shares are otherwise entitled,
or distribute the stockholder's votes on the same principle among as many candidates as such stockholder thinks fit. No stockholder,
however, shall be entitled to so cumulate such stockholder's votes unless (i) the names of such candidate or candidates have been
placed in nomination prior to the voting and (ii) the stockholder has given notice at the meeting, prior to the voting, of such stockholder's
intention to cumulate such stockholder's votes. If any stockholder has given proper notice to cumulate votes, all stockholders
may cumulate their votes for any candidates who have been properly placed in nomination. Under cumulative voting, the candidates receiving
the highest number of votes, up to the number of directors to be elected, are elected.
Code of Ethics
We have adopted a code of ethics that applies
to all of our directors, officers and employees, including our principal executive officer, principal financial officer and principal
accounting officer. Such code of ethics addresses, among other things, honesty and ethical conduct, conflicts of interest, compliance
with laws, regulations and policies, including disclosure requirements under the federal securities laws, and reporting of violations
of the code.
83
EXECUTIVE COMPENSATION
The following discussion and analysis of compensation
arrangements should be read together with the compensation tables and related disclosures that follow. This discussion contains forward-looking
statements that are based on our current plans and expectations regarding future compensation programs. Actual compensation programs
that we adopt may differ materially from the programs summarized in this discussion. The following discussion may also contain statements
regarding corporate performance targets and goals. These targets and goals are disclosed in the limited context of our compensation programs
and should not be understood to be statements of management's expectations or estimates of results or other guidance. We specifically
caution investors not to apply these statements to other contexts.
Summary Compensation Table – Years Ended
December 31, 2023, and 2022
The following table sets forth information concerning
all cash and non-cash compensation awarded to, earned by or paid to the named persons for services rendered in all capacities during
the noted periods. No other executive officers received total annual salary and bonus compensation in excess of $100,000.
Summary Compensation Table
Fiscal
Stock
Option
All Other
Name and Principal Position
Year
Salary
Bonus
Awards
Awards
Compensation
Total
Eric Gripentrog
2024
$
280,000
$
-
$
-
$
-
$
-
$
280,000
Chief Executive Officer
2023
$
280,000
$
-
$
-
$
-
$
-
$
280,000
Tariq Rahim
2024
$
200,000
$
-
$
-
$
-
$
-
$
200,000
Chief Financial Officer
2023
$
200,000
$
-
$
-
$
-
$
-
$
200,000
Employment Agreements
We have entered into contractual agreements with
our CEO and CFO.
Employment Agreement – Eric Gripentrog,
CEO
Effective as of April 1, 2023, the employment
agreement has an original term of 12 months subject to automatic renewal unless terminated for cause. In addition to the salary described
above, the CEO will be issued 1,000,000 company restricted stock units with an exercise price and vesting period to be determined after
the initial public offering. The CEO is also entitled to a performance-based bonus payout.
The bonus is based upon a combination of achieving
the consolidated revenue targets as set forth in the chart below:
Consolidated
    Revenue Target (USD)
Functional Brands
    Inc. Stock Payout (common shares)
Below $10,000,000
1,000,000
$10,000,000
2,000,000
$15,000,000
3,000,000
$20,000,000
4,000,000
$25,000,000
5,000,000
$30,000,000
6,000,000
$35,000,000
7,000,000
$40,000,000
8,000,000
84
Employment Agreement – Tariq Rahim,
CFO
Effective as of April 1, 2023, the employment
agreement has an original term of 12 months subject to automatic renewal unless terminated for cause. In addition to the salary described
above, the CFO will be issued 500,000 company restricted stock units with an exercise price and vesting period to be determined after
the initial public offering and 3,500,000 stock options with an exercise price and date of issuance to be determined by the Company's
board of directors, with an expiration term of three years after termination of the employment agreement unless terminated for cause.
The CFO is also entitled to a performance-based bonus payout.
Consolidated
    Revenue Target (USD)
Functional Brands
    Inc. Stock Payout (common shares)
Below $10,000,000
500,000
$10,000,000
1,000,000
$15,000,000
1,500,000
$20,000,000
2,000,000
$25,000,000
2,500,000
$30,000,000
3,000,000
$35,000,000
3,500,000
$40,000,000
4,000,000
Outstanding Equity Awards at Fiscal Year-End
Except as described in the employment agreement
above, no executive officer named above had any unexercised options, stock that has not vested or equity incentive plan awards outstanding
as of December 31, 2023, and 2022.
Director Compensation
No member of our board of directors received
any compensation for his or her services as a director during the fiscal years ending December 31, 2023, and 2022, nor do they currently
receive any compensation for such services.
Equity Incentive Plans
Long-Term Incentive Plans.
We do not provide
our officers or employees with pension, stock appreciation rights, long-term incentive or other plans, nor do we provide non-qualified
deferred compensation to our officers or employees, and therefore, the Summary Compensation Table above does not include columns for
nonequity incentive plan compensation and nonqualified deferred compensation earnings since there were none.
Employee Pension, Profit Sharing or other
Retirement Plans.
We do not have a defined benefit, pension plan, profit sharing or other retirement plan, although we may adopt
one or more of such plans in the future.
85
CERTAIN RELATIONSHIPS AND
RELATED PARTY TRANSACTIONS
Transactions with Related Persons
Except as described below, there were no transactions
during the fiscal years ending December 31, 2023 and 2022, or any currently proposed transaction, in which we were or are to be a participant
and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at year-end for
the last three completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other
than compensation described under "
Executive Compensation
" above). We believe the terms obtained or consideration
that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the
amounts that would be paid or received, as applicable, in arm's-length transactions.
Debt facility with related parties
On March 11, 2024, the Company executed a loan
agreement with a related party in the amount of $130,000, with an annual interest rate of 20%, with a maturity date of March 10, 2031.
In December 2022, the Company entered into a
short-term debt facility with a related party, an officer and director of the parent company – Hemptown Organics Corp., whereby
the Company received $247,634. The loan is non-interest bearing with a 2-year term.
86
PRINCIPAL SHAREHOLDERS
The following table sets forth certain information
with respect to the beneficial ownership of our common stock as of the date of this prospectus for (i) each of our named executive officers
and directors; (ii) all of our named executive officers and directors as a group; and (iii) each other shareholder known by us to be
the beneficial owner of more than 5% of our outstanding common stock. The following table assumes that the Underwriter has not exercised
the over-allotment option.
Beneficial ownership is determined in accordance
with SEC rules and generally includes voting or investment power with respect to securities. For purposes of this table, a person or
group of persons is deemed to have "beneficial ownership" of any shares of common stock that such person or any member of
such group has the right to acquire within sixty (60) days of the date of this prospectus. For purposes of computing the percentage of
outstanding shares of our common stock held by each person or group of persons named above, any shares that such person or persons has
the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding for such person, but not deemed
to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares listed
as beneficially owned does not constitute an admission of beneficial ownership by any person.
The percentages below are calculated based on [
] shares of our common stock, and [ ] shares of our preferred stock, issued and outstanding as of [ ], 2024. We do not have any outstanding
options, warrants exercisable for, or other securities convertible into shares of our common stock within the next 60 days which are
deemed beneficially owned by the holder thereof. Unless otherwise indicated, the address of each beneficial owner listed in the table
below is c/o our company, Functional Brands Inc., 6400 SW Rosewood Street, Lake Oswego, Oregon 97035.
Name of Beneficial Owner
Title of Class
Amount and
Nature of
Beneficial
Ownership
Percent of
Class Before
This
Offering
Percent
of Class
After
This Offering
Eric Gripentrog
Common Stock
13,000,000
10.59
%
[    
                                            ]
%
Tariq Rahim
Common Stock
3,200,00
2.61
%
[    
                                            ]
%
All Officers and Directors as a Group (4)
Common Stock
16,000,000
13.20
%
[    
                                            ]
%
Hemptown Organics Corp.
Common Stock
88,000,000
71.68
%
[    
                                            ]
87
DESCRIPTION OF SECURITIES
General
Our authorized capital stock currently consists
of 220,000,000 shares of common stock as of October 10, 2024 (previously 100,000,000), par value $0.00001 per share.
The following description summarizes important
terms of the classes of our capital stock following the filing of our articles of incorporation. This summary does not purport to be
complete and is qualified in its entirety by the provisions of our articles of incorporation and our bylaws which have been filed as
exhibits to the registration statement of which this prospectus is a part.
As of the date of this prospectus, there were
122,767,274
shares of common stock and no shares of preferred stock issued and outstanding.
Common Stock
Voting Rights.
The holders of common stock
are entitled to one vote for each share held of record on all matters submitted to a vote of the shareholders. Under our articles of
incorporation and bylaws, any corporate action to be taken by vote of shareholders other than for election of directors shall be authorized
by the affirmative vote of the majority of votes cast. Directors are elected by a plurality of votes. Shareholders do not have cumulative
voting rights.
Dividend Rights
. Subject to preferences
that may be applicable to any then-outstanding preferred stock, holders of common stock are entitled to receive ratably those dividends,
if any, as may be declared from time to time by the board of directors out of legally available funds.
Liquidation Rights
. In the event of our
liquidation, dissolution or winding up, holders of common stock will be entitled to share ratably in the net assets legally available
for distribution to shareholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation
preference granted to the holders of any then-outstanding shares of preferred stock.
Other Rights
. Holders of common stock
have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable to the common
stock. The rights, preferences and privileges of the holders of common stock are subject to, and may be adversely affected by, the rights
of the holders of shares of any series of preferred stock.
Securities Other than Common Stock Offered
in this Offering
Warrants
The Warrants will be issued in the respective
forms filed as an exhibit to the registration statement of which this prospectus is a part and the following summary is subject to and
qualified in its entirety by the filed exhibits. You should review a copy of each form of Series A Warrant and Series B Warrant for a
complete description of the terms and conditions applicable to the Warrants.
The following is a brief summary of the Warrants
and is still subject in all respect to the provisions contained in the form of each applicable Warrant.
Duration and Exercise Price
Each Series A Warrant offered hereby has an initial
exercise price per share equal to $[ ] . Each Series B Warrant offered hereby has an initial exercise price per share equal to $[ ] .
The exercise price and number of shares of common stock issuable upon exercise is subject to appropriate adjustment in the event of certain
stock dividends and distributions, stock splits, stock combinations, reclassifications or similar events affecting our common stock and
also upon any distributions of assets, including cash, stock or other property to our stockholders.
The Warrants will be issued separately from the
common stock included in this offering. Each share of our common stock purchased in this offering will include a Series A Warrant and
Series B Warrant, each to purchase one share of our common stock. The Series A Warrants and Series B Warrants will be issued in certificated
form only.
Exercisability
The Series A Warrants and the Series B Warrants
are exercisable at any time after their original issuance. The Series A Warrants will expire on the third-year anniversary of their original
issuance date and the Series B Warrants will expire on the fifth-year anniversary of their original issuance date.
Each Warrant will be exercisable, at the option
of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in full of the exercise
price in immediately available funds for the number of shares of our common stock purchased upon such exercise (except in the case of
a cashless exercise as discussed below). A holder will not have the right to exercise any portion of the Series A Warrants or Series
B Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% of the number of shares of our common
stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the
terms of the Series A Warrants and Series B Warrants. However, any holder may increase or decrease such percentage to any other percentage
not in excess of 9.99%, provided that any increase in such percentage shall not be effective until 61 days following notice from the
holder to us.
88
Cashless Exercise and Alternative Cashless Exercise
If, at the time a holder exercises its Warrant,
there is no effective registration statement registering, or the prospectus contained therein is not available for an issuance of the
shares underlying the Warrant to the holder, then in lieu of making the cash payment otherwise contemplated to be made to us upon such
exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in
part) the net number of shares of common stock determined according to a formula set forth in the Warrant.
Fractional Shares
No fractional shares of Common Stock will be
issued upon exercise of the Warrants. If, upon exercise of the Warrant, a holder would be entitled to receive a fractional interest in
a share, we will, upon exercise, pay a cash adjustment in respect of such fraction in an amount equal to such fraction multiplied by
the exercise price or round up to the next whole share. If multiple warrants are exercised by the holder at the same time, we shall pay
a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the exercise price.
Transferability
Subject to applicable laws, a Warrant may be
transferred at the option of the holder upon surrender of the Warrant to us together with the appropriate instruments of transfer.
Fundamental Transactions
In the event of a "fundamental transaction,"
as described in the Warrants and generally including any reorganization, recapitalization or reclassification of our Common Stock, the
sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into
another person, the acquisition of more than 50% of our outstanding Common Stock, or any person or group becoming the beneficial owner
of 50% of the voting power represented by our outstanding Common Stock, the holders of the Warrants will be entitled to receive upon
exercise of the Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised
the Warrants immediately prior to such fundamental transaction.
Exchange Listing
There is no established trading market for the
Warrants. In addition, we do not intend to apply for the listing of the Warrants on any national securities exchange. Without an active
trading market, the liquidity of the Warrants will be limited.
Right as a Stockholder
Except as otherwise provided in the Warrants
or by virtue of such holder's ownership of shares of our common stock, the holders of the Warrants do not have the rights or privileges
of holders of our common stock, including any voting rights, until they exercise their Warrants.
Representative's Warrants
Upon the closing of this offering, there will
be up to [ ] shares of common stock issuable upon exercise of the Representative's warrants. See "
Underwriting
"
below for a description of the Representative's warrants.
Restricted stock options
Upon the closing of this offering, there will
be up to 4,500,000 restricted stock units issuable at the discretion of the board of directors of the Company.
89
Anti-Takeover Provisions
Certain Anti-takeover Provisions of Delaware
Law, our Certificate of Incorporation and Bylaws
As a Delaware corporation, we are governed by
the provisions of Section 203 of the Delaware General Corporation Law, which generally has an anti-takeover effect for transactions not
approved in advance by our Board. This may discourage takeover attempts that might result in payment of a premium over the market price
for the shares of common stock held by stockholders. In general, Section 203 prohibits a publicly held Delaware corporation from engaging
in a "business combination" with an "interested stockholder" for a three-year period following the time that
such stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A "business
combination" includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit
to the interested stockholder. An "interested stockholder" is a person who, together with affiliates and associates, owns,
or did own within three years prior to the determination of interested stockholder status, 15% or more of Functional Brands' voting
stock.
Under Section 203, a business combination between
a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:
●
before
                                            the stockholder became interested, the board of directors approved either the business combination
                                            or the transaction which resulted in the stockholder becoming an interested stockholder;
                                            or
●
upon
                                            consummation of the transaction which resulted in the stockholder becoming an interested
                                            outstanding, shares owned by:
●
persons
                                            who are directors and also officers, and
●
employee
                                            stock plans, in some instances; or
●
at
                                            or after the time the stockholder became interested, the business combination was approved
                                            by the board of directors are authorized at an annual or special meeting of the stockholders
                                            by the affirmative vote of at least two-thirds of the outstanding voting stock which is not
                                            owned by the interested stockholder.
Special meeting of stockholders
Our bylaws provide that special meetings of our
stockholders may be called by the Chairman of the Board, the Board, President of the Company, or by the Board upon written request by
the holders of a majority of the voting stock of the Company.
Removal of directors
Subject to any limitations imposed by applicable
law (and assuming the corporation is not subject to Section 2115 of the CGCL), the Board of Directors or any director may be removed
from office at any time (i) with cause by the affirmative vote of the holders of a majority of the voting power of all then-outstanding
shares of capital stock of the corporation entitled to vote generally at an election of directors or (ii) without cause by the affirmative
vote of the holders of a majority of the voting power of all then-outstanding shares of capital stock of the corporation, entitled to
elect such director.
During such time or times that the corporation
is subject to Section 2115(b) of the CGCL, the Board of Directors or any individual director may be removed from office at any time without
cause by the affirmative vote of the holders of at least a majority of the outstanding shares entitled to vote on such removal; provided,
however, that unless the entire Board is removed, no individual director may be removed when the votes cast against such director's
removal, or not consenting in writing to such removal, would be sufficient to elect that director if voted cumulatively at an election
which the same total number of votes were cast (or, if such action is taken by written consent, all shares entitled to vote were voted)
and the entire number of directors authorized at the time of such director's most recent election were then being elected.
90
Limitation of Liability and Indemnification
of Directors and Officers
Our bylaws provide that our directors and officers
will be indemnified by us to the fullest extent authorized by Delaware law.
These provisions may discourage stockholders
from bringing a lawsuit against our directors for breach of their fiduciary duty. These provisions also may have the effect of reducing
the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit
us and our stockholders. Furthermore, a stockholder's investment may be adversely affected to the extent we pay the costs of settlement
and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, insurance
and the indemnity agreements are necessary to attract and retain talented and experienced directors and officers.
We are not aware of any threatened litigation
or proceeding that might result in a claim for such indemnification, except as disclosed below. Insofar as indemnification for liabilities
arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions,
or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable.
Cumulative Voting
The holders of our common stock do not have cumulative
voting rights in the election of our directors. The combination of the present ownership by a few shareholders of a significant portion
of our issued and outstanding common stock and lack of cumulative voting makes it more difficult for other shareholders to replace our
board of directors or for a third party to obtain control of our company by replacing its board of directors.
Transfer Agent and Registrar
We have appointed Endeavor Trust Corporation
as the transfer agent for our common stock. Endeavor Trust Corporation is located at 702 - 777 Hornby Street, Vancouver, BC, V6Z 1S4.
91
SHARES ELIGIBLE FOR FUTURE
SALE
Before this offering, there has not been a public
market for shares of our common stock. Future sales of substantial amounts of shares of our common stock, including shares issued upon
the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this offering, or the
possibility of these sales occurring, could cause the prevailing market price for our common stock to fall or impair our ability to raise
equity capital in the future.
Immediately following the closing of this offering,
we will have [ ] shares of common stock issued and outstanding. In the event the Underwriter exercises its over-allotment option to purchase
additional shares of common stock, we will have [ ] shares of common stock issued and outstanding. The common stock sold in this offering
will be freely tradable without restriction or further registration or qualification under the Securities Act.
Previously issued shares of common stock that
were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee stock options,
are or will be upon issuance, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These
restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale
qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.
Rule 144
In general, a person who has beneficially owned
restricted shares of our common stock for at least twelve months, or at least six months in the event we have been a reporting company
under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person
is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90)
days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:
●
1%
                                            of the number of shares of our common stock then outstanding; or
●
1%
                                            of the average weekly trading volume of our common stock during the four calendar weeks preceding
                                            the filing by such person of a notice on Form 144 with respect to the sale;
provided that, in each case, we are subject to
the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the
manner of sale, notice and other provisions of Rule 144, to the extent applicable.
Rule 701
In general, Rule 701 allows a shareholder who
purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate
of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply
with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however,
are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.
Lock-Up Agreements
We, all of our directors and officers and holders
of [5]% or more of our common stock have agreed with the Underwriter, subject to certain exceptions, not to sell, transfer or dispose
of, directly or indirectly, any of our common stock or securities convertible into or exercisable or exchangeable for our common stock
for a period of six months after the closing of this offering. See the "
Underwriting
" section below for more information.
92
MATERIAL U.S. FEDERAL TAX
CONSIDERATIONS FOR NON-U.S. HOLDERS OF OUR SECURITIES
The following is a summary of the material U.S.
federal income and estate tax consequences of the ownership and disposition of our common stock that is being issued pursuant to this
offering. This summary is limited to Non-U.S. Holders (as defined below) that hold our common stock as a capital asset (generally, property
held for investment) for U.S. federal income tax purposes. This summary does not discuss all of the aspects of U.S. federal income and
estate taxation that may be relevant to a Non-U.S. Holder in light of the Non-U.S. Holder's particular investment or other circumstances.
Accordingly, all prospective Non-U.S. Holders should consult their own tax advisors with respect to the U.S. federal, state, local and
non-U.S. tax consequences of the ownership and disposition of our common stock.
This summary is based on provisions of the Code,
applicable U.S. Treasury regulations and administrative and judicial interpretations, all as in effect or in existence on the date of
this prospectus. Subsequent developments in U.S. federal income or estate tax law, including changes in law or differing interpretations,
which may be applied retroactively, could alter the U.S. federal income and estate tax consequences of owning and disposing of our common
stock as described in this summary. There can be no assurance that the Internal Revenue Service, or IRS, will not take a contrary position
with respect to one or more of the tax consequences described herein and we have not obtained, nor do we intend to obtain, a ruling from
the IRS with respect to the U.S. federal income or estate tax consequences of the ownership or disposition of our common stock.
As used in this summary, the term "Non-U.S.
Holder" means a beneficial owner of our common stock that is not, for U.S. federal income tax purposes:
●
an
                                            individual who is a citizen or resident of the United States;
●
a
                                            corporation (or other entity treated as a corporation) created or organized in or under the
                                            laws of the United States, any state thereof, or the District of Columbia;
●
an
                                            entity or arrangement treated as a partnership;
●
an
                                            estate whose income is includible in gross income for U.S. federal income tax purposes regardless
                                            of its source; or
●
a
                                            trust, if (1) a U.S. court is able to exercise primary supervision over the trust's
                                            administration and one or more "United States persons" (within the meaning of
                                            the Code) has the authority to control all of the trust's substantial decisions, or
                                            (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to
                                            be treated as a United States person.
If an entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in such a partnership generally will depend
upon the status of the partner, the activities of the partnership and certain determinations made at the partner level. Partnerships,
and partners in partnerships, that hold our common stock should consult their own tax advisors as to the particular U.S. federal income
and estate tax consequences of owning and disposing of our common stock that are applicable to them.
This summary does not consider any specific facts
or circumstances that may apply to a Non-U.S. Holder and does not address any special tax rules that may apply to particular Non-U.S.
Holders, such as:
●
a
                                            Non-U.S. Holder that is a financial institution, insurance company, tax-exempt organization,
                                            pension plan, broker, dealer or trader in securities, dealer in currencies, U.S. expatriate,
                                            controlled foreign corporation or passive foreign investment company;
●
a
                                            Non-U.S. Holder holding our common stock as part of a conversion, constructive sale, wash
                                            sale or other integrated transaction or a hedge, straddle or synthetic security;
●
a
                                            Non-U.S. Holder that holds or receives our common stock pursuant to the exercise of any employee
                                            stock option or otherwise as compensation; or
●
a
                                            Non-U.S. Holder that at any time owns, directly, indirectly or constructively, 5% or more
                                            of our outstanding common stock.
In addition, this summary does not address any
U.S. state or local, or non-U.S. or other tax consequences, or any U.S. federal income or estate tax consequences for beneficial owners
of a Non-U.S. Holder, including shareholders of a controlled foreign corporation or passive foreign investment company that holds our
common stock.
Each Non-U.S. Holder should consult its own
tax advisor regarding the U.S. federal, state, local and non-U.S. income and other tax consequences of owning and disposing of our common
stock.
93
Distributions on Our Common Stock
We do not currently expect to pay any cash dividends
on our common stock. If we make distributions of cash or property (other than certain pro rata distributions of our common stock) with
respect to our common stock, any such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax rules. If a distribution exceeds
our current and accumulated earnings and profits, the excess will be treated as a nontaxable return of capital to the extent of the Non-U.S.
Holder's adjusted tax basis in our common stock and will reduce (but not below zero) such Non-U.S. Holder's adjusted tax
basis in our common stock. Any remaining excess will be treated as gain from a disposition of our common stock subject to the tax treatment
described below in "
— Dispositions of Our Common Stock
."
Distributions on our common stock that are treated
as dividends and that are effectively connected with a Non-U.S. Holder's conduct of a trade or business in the United States will
be taxed on a net income basis at the regular graduated rates and in the manner applicable to United States persons. An exception may
apply if the Non-U.S. Holder is eligible for, and properly claims, the benefit of an applicable income tax treaty and the dividends are
not attributable to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United States. In such case, the
Non-U.S. Holder may be eligible for a lower rate under an applicable income tax treaty between the United States and its jurisdiction
of tax residence. Dividends that are effectively connected with a Non-U.S. Holder's conduct of a trade or business in the United
States will not be subject to the U.S. withholding tax if the Non-U.S. Holder provides to the applicable withholding agent a properly
executed IRS Form W-8ECI (or other applicable form) in accordance with the applicable certification and disclosure requirements. A Non-U.S.
Holder treated as a corporation for U.S. federal income tax purposes may also be subject to a "branch profits tax" at a 30%
rate (unless the Non-U.S. Holder is eligible for a lower rate under an applicable income tax treaty) on the Non-U.S. Holder's earnings
and profits (attributable to dividends on our common stock or otherwise) that are effectively connected with the Non-U.S. Holder's
conduct of a trade or business within the United States. The amount of taxable earnings and profits is generally reduced by amounts reinvested
in the operations of the U.S. trade or business and increased by any decline in its equity.
The certifications described above must be provided
to the applicable withholding agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder may obtain
a refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. Non-U.S. Holders should
consult their own tax advisors regarding their eligibility for benefits under any relevant income tax treaty and the manner of claiming
such benefits.
The foregoing discussion is subject to the discussions
below under "
Backup Withholding and Information Reporting
" and "
FATCA Withholding
."
Dispositions of Our Common Stock
A Non-U.S. Holder generally will not be subject
to U.S. federal income tax (including U.S. withholding tax) on gain recognized on any sale or other disposition of our common stock unless:
●
the
                                            gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business
                                            in the United States (and, if required by an applicable income tax treaty, is attributable
                                            to a permanent establishment or fixed base maintained by the Non-U.S. Holder in the United
                                            States); in such case, the gain would be subject to U.S. federal income tax on a net income
                                            basis at the regular graduated rates and in the manner applicable to United States persons
                                            (unless an applicable income tax treaty provides otherwise) and, if the Non-U.S. Holder is
                                            treated as a corporation for U.S. federal income tax purposes, the "branch profits
                                            tax" described above may also apply;
●
the
                                            Non-U.S. Holder is an individual who is present in the United States for 183 days or more
                                            in the taxable year of the disposition and meets certain other requirements; in such case,
                                            except as otherwise provided by an applicable income tax treaty, the gain, which may be offset
                                            by certain U.S. source capital losses, generally will be subject to a flat 30% U.S. federal
                                            income tax, even if the Non-U.S. Holder is not treated as a resident of the United States
                                            under the Code; or
●
we
                                            are or have been a "United States real property holding corporation" for U.S.
                                            federal income tax purposes at any time during the shorter of (i) the five-year period ending
                                            on the date of disposition and (ii) the period that the Non-U.S. Holder held our common stock.
94
Generally, a corporation is a "United States
real property holding corporation" if the fair market value of its "United States real property interests" equals or
exceeds 50% of the sum of the fair market value of its worldwide real property interests plus its other assets used or held for use in
a trade or business. We believe that we are not currently, and we do not anticipate becoming in the future, a United States real property
holding corporation. However, because the determination of whether we are a United States real property holding corporation is made from
time to time and depends on the relative fair market values of our assets, there can be no assurance in this regard. If we were a United
States real property holding corporation, the tax relating to disposition of stock in a United States real property holding corporation
generally will not apply to a Non-U.S. Holder whose holdings, direct, indirect and constructive, constituted 5% or less of our common
stock at all times during the applicable period, provided that our common stock are "regularly traded on an established securities
market" (as provided in applicable U.S. Treasury regulations) at any time during the calendar year in which the disposition occurs.
However, no assurance can be provided that our common stock will be regularly traded on an established securities market for purposes
of the rules described above. Non-U.S. Holders should consult their own tax advisors regarding any possible adverse U.S. federal income
tax consequences to them if we are, or were to become, a United States real property holding corporation.
The foregoing discussion is subject to the discussions
below under "
Backup Withholding and Information Reporting
" and "
FATCA Withholding
."
Federal Estate Tax
Any shares of our common stock that are owned
(or treated as owned) by an individual who is not a U.S. citizen or resident of the United States (as specially defined for U.S. federal
estate tax purposes) at the time of death will be included in that individual's gross estate for U.S. federal estate tax purposes,
unless an applicable estate tax or other treaty provides otherwise and, therefore, may be subject to U.S. federal estate tax.
Backup Withholding and Information Reporting
Backup withholding (currently at a rate of 24%)
may apply to dividends paid by U.S. corporations in some circumstances, but will not apply to payments of dividends on our common stock
to a Non-U.S. Holder if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person or is otherwise
entitled to an exemption. However, the applicable withholding agent generally will be required to report to the IRS (and to such Non-U.S.
Holder) payments of dividends on our common stock and the amount of U.S. federal income tax, if any, withheld from those payments. In
accordance with applicable treaties or agreements, the IRS may provide copies of such information returns to the tax authorities in the
country in which the Non-U.S. Holder resides.
The gross proceeds from sales or other dispositions
of our common stock may be subject, in certain circumstances discussed below, to U.S. backup withholding and information reporting. If
a Non-U.S. Holder sells or otherwise disposes of any of our common stock outside the United States through a non-U.S. office of a non-U.S.
broker and the disposition proceeds are paid to the Non-U.S. Holder outside the United States, the U.S. backup withholding and information
reporting requirements generally will not apply to that payment. However, U.S. information reporting, but not U.S. backup withholding,
will apply to a payment of disposition proceeds, even if that payment is made outside the United States, if a Non-U.S. Holder sells our
common stock through a non-U.S. office of a broker that is a United States person or has certain enumerated connections with the United
States, unless the broker has documentary evidence in its files that the Non-U.S. Holder is not a United States person and certain other
conditions are met or the Non-U.S. Holder otherwise qualifies for an exemption.
If a Non-U.S. Holder receives payments of the
proceeds of a disposition of our common stock to or through a U.S. office of a broker, the payment will be subject to both U.S. backup
withholding and information reporting unless the Non-U.S. Holder provides to the broker a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person, or the Non-U.S.
Holder otherwise qualifies for an exemption.
Backup withholding is not an additional tax.
Any amounts withheld under the backup withholding rules may be credited against the Non-U.S. Holder's U.S. federal income tax liability
(which may result in the Non-U.S. Holder being entitled to a refund), provided that the required information is timely furnished to the
IRS.
FATCA Withholding
The Foreign Account Tax Compliance Act and related
Treasury guidance (commonly referred to as FATCA) impose U.S. federal withholding tax at a rate of 30% on payments to certain foreign
entities of (i) U.S.-source dividends (including dividends paid on our common stock) and (ii) the gross proceeds from the sale or other
disposition of property that produces U.S.-source dividends (including sales or other dispositions of our common stock). This withholding
tax applies to a foreign entity, whether acting as a beneficial owner or an intermediary, unless such foreign entity complies with (i)
certain information reporting requirements regarding its U.S. account holders and its U.S. owners and (ii) certain withholding obligations
regarding certain payments to its account holders and certain other persons. Accordingly, the entity through which a Non-U.S. Holder
holds its common stock will affect the determination of whether such withholding is required. While withholding under FATCA would have
also applied to payments of gross proceeds from the sale or other disposition of our common stock on or after January 1, 2019, U.S. Treasury
regulations proposed in December 2018 eliminate such withholding on payments of gross proceeds entirely. Taxpayers generally may rely
on these proposed U.S. Treasury regulations until final U.S. Treasury regulations are issued. Non-U.S. Holders are encouraged to consult
their tax advisors regarding FATCA.
95
UNDERWRITING
In connection with this offering, we are entering
into an underwriting agreement with Joseph Gunnar & Co., LLC (who we refer to as the Representative), as representative of the Underwriter
named in this prospectus, with respect to the common stock in this offering. Under the terms and subject to the conditions contained
in the underwriting agreement, the Representative will agree to purchase from us on a firm commitment basis the respective number of
shares of common stock at the public price less the underwriting discounts and commissions set forth on the cover page of this prospectus,
and each of the Underwriter has severally agreed to purchase, and we have agreed to sell to the Underwriter, at the public offering price
per shares less the underwriting discounts and commissions set forth on the cover page of this prospectus, the number of shares of common
stock listed next to its name in the following table.
Underwriter
Number of
Units
Total
The Units stock sold by the Underwriter to the
public will initially be offered at the initial public offering price set forth on the cover page of this prospectus. Any shares of common
stock sold by the Underwriter to securities dealers may be sold at a discount from the initial public offering price not to exceed $[
] per Unit. If all of the shares are not sold at the initial offering price, the Representative may change the offering price and the
other selling terms. The Representative has advised us that the Underwriter does not intend to make sales to discretionary accounts.
The underwriting agreement will provide that the obligations of the Underwriter to pay for and accept delivery of the shares of common
stock are subject to the passing upon certain legal matters by counsel and certain conditions such as confirmation of the accuracy of
representations and warranties by us about our financial condition and operations and other matters. The obligation of the Underwriter
to purchase the shares of common stock is conditioned upon our receiving approval to list the shares of common stock on NASDAQ.
We have granted to the Representative an option,
exercisable one or more times in whole or in part, not later than 45 days after the date of this prospectus, to purchase up to [
] additional shares of common stock at the public offering price less the underwriting discounts and commissions set forth on the
cover page of this prospectus, constituting 15% of the total number of shares of common stock to be offered in this offering (excluding
shares subject to this option). The Representative may exercise this option solely for the purpose of covering over-allotments in connection
with this offering. This offering is being conducted on a firm commitment basis. Any shares of common stock issued or sold under the
option will be issued and sold on the same terms and conditions as the other shares of common stock that are the subject of this offering.
Discounts and Commissions; Expenses
The underwriting discounts and commissions are
a cash fee equal to: (i) eight percent (8%) of gross proceeds from the sale of securities in this offering. We have been advised by the
representative that the Underwriter proposes to offer the common stock to the public at the public offering price set forth on the cover
of this prospectus and to dealers at a price that represents a concession not in excess of $[ ] per Unit under the public offering price.
After the offering, the representative may change the public offering price and other selling terms.
The following table summarizes the public offering
price and the underwriting discounts and commissions payable to the Underwriter by us in connection with this offering (assuming both
the exercise and non-exercise of the over-allotment option that we have granted to the Representative):
Per Unit
Total Without
Over-Allotment
Option
Total With Full
Over-Allotment
Option
Public offering price
$
[●]
$
$
Underwriting discounts and commissions (1)
$
[●]
$
$
Non-accountable expense allowance (1%)
$
$
$
Proceeds, before expenses, to us
$
$
$
(1)
Does
                                            not include (i) the warrant to purchase a number of shares of common stock equal to 6% of
                                            the number of shares sold in the offering, or (ii) amounts representing reimbursement of
                                            certain out-of-pocket expenses, each as described below.
96
Representative's Warrants
We have agreed to issue to the Representative
(or its permitted assignees) warrants to purchase up to a total of [ ] shares of common stock equal to 6% of the total number of
shares of common stock sold in this offering at an exercise price equal to 100% of the public offering price of the common stock sold
in this offering. The Representative's warrants will be exercisable at any time, and from time to time, in whole or in part, commencing
from the closing of the offering and expiring five (5) years from the effectiveness of the offering, will have a cashless exercise provision
and will terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus is a part. The
Representative's warrants are not exercisable or convertible for more than five years from the commencement of sales of the public
offering. The Representative's warrants also provide for customary anti-dilution provisions and immediate "piggyback"
registration rights with respect to the registration of the shares underlying the warrants for a period of seven years from commencement
of sales of this offering. We have registered the Representative's warrants and the shares underlying the Representative's
warrants in this offering.
The Representative's warrants and the underlying
shares are deemed to be compensation by FINRA, and therefore will be subject to a 180-day lock-up period pursuant to FINRA Rule 5110(e)(1).
In accordance with FINRA Rule 5110(e)(1), neither the Representative's warrants nor any of our common stock issued upon exercise
of the Representative's warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging,
short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person,
for a period of 180 days immediately following commencement of sale of this offering subject to certain exceptions permitted by FINRA
Rule 5110(e)(2).
We have agreed to pay the Representative a non-accountable
expense reimbursement equal to one percent (1%) of the gross proceeds from the sale of securities in this offering. We have also agreed
to reimburse the Representative for reasonable out-of-pocket expenses incurred by the Representative in connection with this offering,
regardless of whether the offering is consummated, up to $150,000. The Representative out-of-pocket expenses include but are not limited
to: (i) road show and travel expenses, (ii) reasonable fees of Representative's legal counsel, (iii) the cost of background check
on our officers, directors and major shareholders and due diligence expenses. As of the date of this prospectus, we have paid the Representative
refundable advances of $10,000 which shall be applied against its actual out-of-pocket accountable expenses. Such advance payments will
be returned to us to the extent any portion of the advance is not actually incurred, in accordance with FINRA Rule 5110(g)(4)(A).
In connection with the offering, the Underwriter
may purchase and sell shares in the open market. Purchases and sales in the open market may include short sales, purchases to cover short
positions, which may include purchases pursuant to the over-allotment option, and stabilizing purchases.
●
Short
                                            sales involve secondary market sales by an underwriter of a greater number of shares than
                                            they are required to purchase in the offering.
●
"Covered"
                                            short sales are sales of shares in an amount up to the number of shares represented by the
                                            over-allotment option.
●
"Naked"
                                            short sales are sales of shares in an amount in excess of the number of shares represented
                                            by the over-allotment option.
●
Covering
                                            transactions involve purchases of shares either pursuant to the over-allotment option or
                                            in the open market after the distribution has been completed in order to cover short positions.
●
To
                                            close a naked short position, an underwriter must purchase shares in the open market after
                                            the distribution has been completed. A naked short position is more likely to be created
                                            if an underwriter is concerned that there may be downward pressure on the price of the shares
                                            in the open market after pricing that could adversely affect investors who purchase in the
                                            offering.
●
To
                                            close a covered short position, an underwriter must purchase shares in the open market after
                                            the distribution has been completed or must exercise the over-allotment option. In determining
                                            the source of shares to close the covered short position, the Underwriter will consider,
                                            among other things, the price of shares available for purchase in the open market as compared
                                            to the price at which they may purchase shares through the over-allotment option.
●
Stabilizing
                                            transactions involve bids to purchase shares so long as the stabilizing bids do not exceed
                                            a specified maximum.
Purchases to cover short positions and stabilizing
purchases, as well as other purchases by an underwriter for its own account, may have the effect of preventing or retarding a decline
in the market price of the common stock. They may also cause the price of the common stock to be higher than the price that would otherwise
exist in the open market in the absence of these transactions. The Underwriter may conduct these transactions in the over-the-counter
market or otherwise. If the Underwriter commences any of these transactions, they may discontinue them at any time.
97
Determination of Offering Price
In determining the initial public offering price,
we and the Representative have considered a number of factors, including:
●
the
                                            information set forth in this prospectus and otherwise available to the Representative;
●
our
                                            prospects and the history and prospects for the industry in which we compete;
●
an
                                            assessment of our management;
●
our
                                            prospects for future revenue and earnings;
●
the
                                            general condition of the securities markets at the time of this offering;
●
the
                                            recent market prices of, and demand for, publicly traded securities of generally comparable
                                            companies; and
●
other
                                            factors deemed relevant by the Representative and us.
The estimated initial public offering price set
forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither
we nor the Representative can assure investors that an active trading market will develop for our common stock, or that the shares will
trade in the public market at or above the initial public offering price.
Indemnification
We have agreed to indemnify the Representative
and the other Underwriter against certain liabilities, including liabilities under the Securities Act. If we are unable to provide this
indemnification, we will contribute to payments that the Representative and the other Underwriter may be required to make for these liabilities.
Right of First Refusal
The Representative has the right of first refusal
for fifteen months following the consummation of this offering or the termination or expiration of the engagement with the Representative
to act as sole financial advisor on any public or private financing (debt or equity), merger, business combination, recapitalization
or sale of some or all of our equity or our assets (collectively, "Future Services"). In the event that we engage the Representative
to provide such Future Services, the Representative will be compensated consistent with the engagement agreement with the Representative,
unless we mutually agree otherwise. To the extent we are approached by a third party to lead any public or private financing (debt or
equity), merger, business combination, recapitalization or sale of some or all of our equity or assets, the Representative will be notified
of the transaction and be granted the right to exercise its right of first refusal with respect thereto.
No Sales of Similar Securities
We have agreed not to offer, issue, sell, contract
to sell, encumber, grant any option for the sale of or otherwise dispose of any shares of our common stock or other securities convertible
into or exercisable or exchangeable for shares of common stock at a price per share that is less than the price per shares of common
stock in this offering, or modify the terms of any existing securities, whether in conjunction with another broker-dealer or on our own
volition for a period of twelve months following date on which our common stock are trading on the NASDAQ, without the prior written
consent of the Representative.
98
Lock-Up Agreements
Our executive officers, directors and holder(s)
of 5% or more of our outstanding common stock have agreed not to offer, sell, agree to sell, directly or indirectly, or otherwise dispose
of any shares of our common stock for a period of six months following the closing of this offering, subject to certain exceptions (the
"Lock-Up Period").
Notwithstanding the above, the Underwriter of
this offering may engage in stabilization activities as described above. The Representative may in its sole discretion and at any time
without notice release some or all of the shares subject to lock-up agreements prior to the expiration of the Lock-Up Period. When determining
whether or not to release shares from the lock-up agreements, the Representative will consider, among other factors, the security holder's
reasons for requesting the release, the number of shares for which the release is being requested and market conditions at the time.
Electronic Offer, Sale and Distribution of
Common Stock
A prospectus in electronic format may be made
available on the website maintained by the Representative. In addition, shares of common stock may be sold by the Representative to securities
dealers who resell our common stock to online brokerage account holders. Other than the prospectus in electronic format, the information
on the Representative's website and any information contained in any other website maintained by the Representative is not part
of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or
the Representative in its capacity as Representative and should not be relied upon by investors.
Selling Restrictions
No action has been taken in any jurisdiction
(except in the United States) that would permit a public offering of our common stock, or the possession, circulation or distribution
of this prospectus or any other material relating to us or our common stock, where action for that purpose is required. Accordingly,
our common stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material or advertisements
in connection with our common stock may be distributed or published, in or from any country or jurisdiction except in compliance with
any applicable rules and regulations of any such country or jurisdiction.
Offer Restrictions Outside the United States
Other than in the United States, no action has
been taken by us or the Underwriter that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules
and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and
to observe any restrictions relating to this offering and the distribution of this prospectus. This prospectus does not constitute an
offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer
or a solicitation is unlawful. In particular, our common stock has not been qualified for distribution by prospectus in Canada and may
not be offered or sold in Canada during the course of their distribution hereunder except pursuant to a Canadian prospectus or prospectus
exemption.
99
LEGAL MATTERS
Lucosky Brookman LLP has acted as our counsel
in connection with the preparation of this prospectus. The validity of the securities offered, shares of common stock, and warrants covered
by this prospectus will be passed upon for us by Lucosky Brookman LLP, Woodbridge, New Jersey. The Underwriter has been represented in
connection with this offering by Pryor Cashman LLP, New York, New York.
EXPERTS
The financial statements of our company included
in this registration statement and have been audited by TAAD LLP an independent registered public accounting firm, as indicated in its
report with respect thereto, and have been so included in reliance upon the report of such firm given on the authority of said firm as
experts in accounting and auditing.
WHERE YOU CAN FIND MORE
INFORMATION
We have filed a registration statement, of which
this prospectus is a part, on Form S-1 with the SEC relating to this offering. This prospectus does not contain all of the information
in the registration statement and the exhibits included with the registration statement. For further information pertaining to us and
the securities to be sold in this offering, you should refer to the registration statement and its exhibits, portions of which have been
omitted as permitted by SEC rules and regulations. References in this prospectus to any of our contracts, agreements or other documents
are not necessarily complete, and you should refer to the exhibits attached to the registration statement for copies of the actual contracts,
agreements or documents. The SEC maintains an internet site that contains reports, proxy and information statements and other information
regarding issuers that file with the SEC at http://www.sec.gov.
Upon the effectiveness of the registration statement,
we will be subject to the informational requirements of the Exchange Act, and, in accordance with the Exchange Act, will file reports,
proxy and information statements and other information with the SEC. Annual, quarterly and special reports, proxy and information statements
and other information can be inspected and copied at the locations set forth above. We will also make these documents publicly available,
free of charge, on our website at https://functionalbrandsinc.com/ as soon as reasonably practicable after filing such documents with
the SEC. Information on, or accessible through, our website is not part of this prospectus.
100
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc
.)
F-
1
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
(In
U.S. Dollars, except share data or otherwise noted)
September 30,
2024
December 31,
2023
(Unaudited)
Amount
                                            in $
(Audited)
Amount
                                            in $
Assets
Current
Cash
$
246,903
$
374,435
Accounts receivable, net
275,799
170,938
Inventories, net
1,753,986
1,694,020
Prepaid expenses and other current assets
74,280
72,441
Deferred offering costs
327,535
231,910
Total
                                 current assets
2,678,503
2,543,744
Non-current
Property and equipment, net
57,359
96,054
Right-of-use assets, net
2,079,115
2,307,027
Intangible assets, net
1,455,074
1,489,671
Goodwill
818,139
818,139
Total noncurrent
    assets
4,409,687
4,710,891
Total Assets
$
7,088,190
$
7,254,635
Liabilities and Shareholders'
    Equity
Current
Accounts payable & accrued liabilities
$
1,959,288
$
1,630,399
Line of credit
22,649
68,315
Government loans, current
3,264
3,280
Lease liabilities, current
47,272
261,015
Other current liabilities
7,452
40,825
Total current liabilities
2,039,925
2,003,834
Non-current
Lease liabilities, net of current
2,136,032
2,136,032
Government loans, net of current
141,482
143,888
Payable for acquisition
2,397,368
2,597,368
Loan payable
150,000
-
Loan payable – related parties
373,142
247,634
Convertible debenture
100,000
100,000
Total non-current
    liabilities
5,298,024
5,224,922
Total liabilities
7,337,949
7,228756
Shareholders' equity (deficit)
Common stock, par value $0.00001, authorized
    220,000,000 shares; 122,767,778 and 122,472,933 shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively
1,228
1,228
Additional paid-in capital
7,126,225
7,126,225
Accumulated deficit
(7,377,212
)
(7,101,574
)
Total Shareholders' Equity
    (Deficit)
(249,759
)
25,879
Total Liabilities and Shareholders' Equity
$
7,088,190
$
7,254,635
The accompanying notes are
an integral part of these unaudited consolidated financial statements.
F-
2
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)
CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
(In
U.S. Dollars, except share data or otherwise noted)
For the
Nine Months end
September 30,
2024
For the
Nine Months end
September 30,
2023
Revenues, net of returns
4,886,331
5,268,405
Costs and expenses:
Cost of goods sold
2,272,561
2,852,939
Sales & marketing
454,714
434,740
General and administrative expenses
2,248,954
2,369,918
Operating loss
(89,898
)
(389,192
)
Other income (expenses)
Interest expense
(187,031
)
(247,705
)
Interest income
1,291
-
Net loss
$
(275,638
)
$
(636,897
)
Net loss per share of common stock attributable to common stockholders
Basic and diluted
$
(0.01
)
$
(0.01
)
Weighted average shares used in computing net loss per share of common stock
Basic
122,677,071
122,677,071
Diluted
122,677,071
122,677,071
The accompanying notes are
an integral part of these unaudited consolidated financial statements.
F-
3
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT) (UNAUDITED)
(In
U.S. Dollars, except share data or otherwise noted)
No. of
Shares
Common
Stock
APIC
Accumulated
Deficit
Total
Shareholders'
Equity/(Deficit)
December 31, 2022
122,472,933
1,225
4,600,182
(5,860,480
)
(1,259,073
)
Shares issued
    as part of Reg CF campaign, net of refunds
6,483
-
9,076
9,076
Shares issued as part of Reg D
286,486
3
105,997
106,000
Net loss for the nine-month period
    ended September 30, 2023
-
-
(636,897
)
(636,897
)
September 30, 2023
122,765,903
1,228
4,715,255
(6,497,377
)
(1,780,894
)
No. of
Shares
Common
Stock
APIC
Accumulated
Deficit
Total
Shareholders'
Equity/(Deficit)
December 31, 2023
122,767,778
1,228
7,126,225
(7,101,574
)
25,879
Net loss for the nine-month period
    ended September 30, 2024
(275,638
)
(275,638
)
September 30, 2024
122,767,778
$
1,228
$
7,126,225
$
(7,377,212
)
$
(249,759
)
The accompanying notes are
an integral part of these unaudited consolidated financial statements.
F-
4
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)
CONSOLIDATED
STATEMENTS OF CASH FLOW (UNAUDITED)
(In
U.S. Dollars, except share data or otherwise noted)
For the
Nine Months
Ended
September 30,
2024
For the
Nine Months
ended
September 30,
2023
Amount in $
Amount in $
Cash flows from operating activities:
Net loss
$
(275,638
)
$
(636,897
)
Reconcile net loss to cash used in operating activities
Allowance for doubtful accounts receivable
36,287
-
Depreciation of property & equipment assets
40,576
79,214
Amortization of right-of-use assets
227,912
204,232
Amortization of intangible assets
34,597
34,597
Changes in operating assets and liabilities:
Accounts receivable
(141,148
)
(321,693
)
Inventories
(59,966
)
47,101
Prepaid expenses and other current assets
(1,839
)
35,490
Accounts payable & Accrued liabilities
328,889
901,340
Other current liabilities
(33,373
)
7,118
Payments on lease liabilities
(213,743
)
(124,271
)
Due to/from related parties
-
(326,026
)
Net cash used in operating activities
(57,446
)
(99,795
)
Cash flows from investing activities:
Purchases of property and equipment
(1,881
)
(3,500
)
Net cash used in investing activities
(1,881
)
(3,500
)
Cash flows from financing activities:
Capitalization of cost incurred in initial public offering
(95,625
)
Addition of long-term debt
275,508
-
Payments for payable acquisition
(200,000
)
(75,134
)
Issuance of equity in respect of Reg CF campaign
-
9,076
Issuance of equity in respect of Reg D
-
106,000
Proceeds from debt facilities
123,466
400,000
Equipment loan repayment
-
(4,125
)
Line of credit repayment
(169,132
)
(253,569
)
Government debt repayment
(2,422
)
(2,021
)
Net cash provided by (used in) financing activities
(68,205
)
180,227
Net increase (decrease) in cash and cash equivalents
(127,532
)
76,932
Cash and cash equivalents, beginning of period
374,435
202,827
Cash and cash equivalents, end of period
246,903
279,759
Supplemental disclosures of cash flow information
Cash paid for interest
187,031
158,591
Non-cash investing and financing activities
Beneficial conversion feature on convertible notes payable
-
Right-of-use and lease liability upon lease commencement
2,500,612
Forgiveness of balances due to/from related parties
1,648,145
The accompanying notes are
an integral part of these unaudited consolidated financial statements.
F-
5
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1.
ORGANIZATION
                                            AND NATURE OF OPERATIONS
Functional
Brands Inc. (formerly HT Naturals Inc. - the "Company") was organized under the General Corporation Law in the State of Delaware
on November 19, 2020.  The Company's principal business is in the production, marketing, sales, and distribution of smokable
hemp related products in certain states within the United States of America that permit such sales.
As
of September 30, 2024, and December 31, 2023, the Consolidated Financial Statements consist of the Company and its wholly owned subsidiary
HTO Nevada Inc. (d/b/a Kirkman), which is a nutraceutical manufacturer and distributor based in the Pacific Northwest. All intercompany
transactions and balances have been eliminated in consolidation.
2.
GOING
                                            CONCERN
The
accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company had a loss of
$275,638 for the nine-months ended September 30, 2024, and net loss in the amount of $636,897  for the nine-months ended September
30, 2023. As of September 30, 2024, our accumulated deficit was $7,377,212. These conditions raise substantial doubt about the Company's
ability to continue as a going concern.
In
order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly
dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances
that the Company will be successful in obtaining additional capital.
The
financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts
of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These financial statements
do not include any adjustments that might arise from this uncertainty.
3.
BASIS
                                            OF PRESENTATION
Basis
of preparation and principles of consolidation
The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America ("U.S. GAAP").
F-
6
The
consolidated financial statements comprise the financial statements of the Company and its wholly owned subsidiary, HTO Nevada Inc. dba
Kirkman. The subsidiary consists of an entity over which the Company is exposed to, or has rights to, variable returns as well as the
ability to affect these returns through the power to direct the relevant activities of the entity. To the extent that subsidiaries provide
services that relate to the Company's activities, they are fully consolidated from the date control is transferred and are deconsolidated
from the date control ceases. All intercompany balances and transactions have been eliminated.
The
financial statements of the subsidiary are prepared for the same reporting period as the parent company, using consistent accounting
policies.
Functional
Brands Inc. (formerly HT Naturals Inc.)
Functional
Brands Inc. (formerly HT Naturals Inc.) is the parent company which in turn is 72% owned by Hemptown Organics Corp.
HTO
Nevada Inc. dba Kirkman
The
principal subsidiary is HTO Nevada Inc. dba Kirkman which is solely and wholly owned by Functional Brands Inc. (formerly HT Naturals
Inc.)
As
part of the restructuring efforts, ownership of HTO Nevada Inc. dba Kirkman was transferred from HTO Holdings Inc. to Functional Brands
Inc. (formerly HT Naturals Inc.) on May 19, 2023, in exchange for 80,000,000 common shares of the Company. As a result, HTO Nevada Inc.
dba Kirkman became a wholly owned subsidiary of Functional Brands Inc. (formerly HT Naturals Inc.).
The
initial accounting for acquisition of HTO Nevada Inc. dba Kirkman was accounted at fair value (See note13) on July 3, 2019. Since after
the acquisition date and part of the restructuring efforts under ASC 850-50, the consolidated financial statements for the years ended
December 31, 2021, December 31, 2022, and December 31, 2023 have been presented as historical carrying value to give effect to the merger
transaction as occurred on July 3, 2019, which is the earliest date the entities were under common control.
4.
SUMMARY
                                            OF SIGNIFICANT ACCOUNTING POLICIES
The
significant accounting policies used in the preparation of these consolidated financial statements are described below.
Cash
Cash
consists of cash in readily available checking accounts and deposits in transit. As of September 30, 2024, and December 31, 2023, cash
balances were deposited at a major financial institution. Cash balances are subject to minimal credit risk as the balances are with high
credit quality financial institutions.
F-
7
Trade
and other receivables
Accounts
receivables are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides
for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for
doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts
receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in
the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful
accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account
balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered
remote. For the nine-month ended September 30, 2024, the Company did not record an allowance for doubtful accounts.
Inventories
Inventory
consists of raw materials, work in process and finished goods. Inventory is measured at the lower of cost or net realizable value. Inventory
costs include direct labor and certain overhead expenses such as in-bound shipping and handling costs incurred to bring the inventory
to its present location and conditions. Cost is determined using the weighted average method. Net realizable value is the estimated selling
price in the ordinary course of business, less the estimated costs of completion and selling expenses. If the Company determines that
the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to impairment
expenses.
Property
and equipment
Property
and equipment are stated at cost. Depreciation of property and equipment is recorded using the straight-line method over the assets'
estimated useful lives. Computer equipment and capitalized software are depreciated over two to five years and furniture, and fixtures
are depreciated over five years. Amortization of fixed assets under capital leases is included in depreciation expense.
The
categories of capital assets are amortized on a straight-line basis as follows:
●
Machinery
                                            & equipment
7
                                            years, straight-line
●
Furniture
                                            & fixtures
7
                                            years, straight-line
●
Computer
                                            equipment
5
                                            years, straight-line
The
Company allocates the amount initially recognized in respect of a capital asset to its significant parts and amortizes separately each
such part. Residual values, methods of amortization and useful lives of the capital assets are reviewed annually and adjusted if appropriate.
Gains
and losses on disposals of capital assets are determined by comparing the proceeds with the carrying amount of the capital asset and
is included in the consolidated statement of operations and comprehensive loss.
The
assets' residual values, useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively
if appropriate. An item of equipment is retied upon disposal or when no future economic benefits are expected from its use. Any gain
or loss arising on sale or retirement of the asset (calculated as the difference between the net disposal proceeds and the carrying value
of the asset) is included in the consolidated statement of operations in the year the asset is retired. Such assets are tested annually
for impairment, or more frequently, if events or changes in circumstances indicate that they might be impaired.
F-
8
Intangible
Assets
Intangible
assets are recorded at cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination
are measured at fair value at the acquisition date. Amortization is provided on a straight-line basis over their estimated useful lives,
which do not exceed the contractual period, if any. Intangible assets that have indefinite useful lives are not subject to amortization
and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
The estimated useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are
accounted for prospectively.
The
categories of the intangible assets are amortized on a straight-line basis as follows:
●
Customer
                                            relationships
10
                                            years
●
cGMP
                                            certification
Indefinite
                                            life
●
Goodwill
                                            (including Assembled Workforce)
Indefinite
                                            life
●
Kirkman
                                            brand
Indefinite
                                            life
Expenditures
in the research phase and post-development maintenance costs are expensed as incurred.
Goodwill
Goodwill
arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus
the fair value of any non-controlling interests in the acquire, over the fair value of the net assets acquired and liabilities assumed
as of the acquisition date. Goodwill acquired in a business combination is not amortized but tested for impairment at least annually
or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed.
Goodwill is
tested for impairment at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred
to as a component). We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business
combination. Assets and liabilities are assigned to each reporting unit if they are employed by a reporting unit and are considered in
the determination of the reporting unit fair value. We have one reporting unit with goodwill, which is the Kirkman business.
The
Company's indefinite-lived intangible assets is tested for impairment at the consolidated level. In evaluating the recoverability
of the Kirkman Brand name and CGMP License, we compare the fair value of the asset to its carrying amount to determine potential impairment.
The Company's estimate of the fair value of the Kirkman Brand name is derived using the income approach, specifically the relief-from-royalty
method and the fair value of the CGMP License is derived using the income approach.
F-
9
The
fair value determination of the reporting units and the indefinite-lived intangible asset is judgmental in nature and requires the use
of significant estimates and assumptions that are sensitive to changes. Assumptions include estimation of the royalty rate, estimation
of future revenue and projected margins, which are dependent on internal cash flow forecasts, estimation of the terminal growth rates
and capital spending, and determination of discount rates. As a result, there can be no assurance that the estimates and assumptions
made for purposes of the quantitative goodwill and indefinite-lived intangible impairment tests will prove to be an accurate
prediction of future results. Examples of events or circumstances that could reasonably be expected to negatively affect the underlying
key assumptions and ultimately impact the estimated fair value of the reporting units may include such items as: (i) volatility in the
equity and debt markets or other macroeconomic factors, (ii) an increase in the weighted-average cost of capital due to further increases
in interest rates, (iii) decrease in future cash flows due to lower than expected sales, or (iv) fluctuations in foreign currency exchange
rates that may negatively impact the Company's reported results of operations. Accordingly, if the current cash flow assumptions
are not realized, we experience further increases in costs of capital, it is possible that an additional impairment charge may be recorded
in the future, which could be material.
Right-of-use
Assets and Lease Liabilities
The
Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use).
Right-of-use assets are measured at cost, less any accumulated amortization and impairment losses, and adjusted for any re-measurement
of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred,
and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain
to obtain ownership of the leased asset at the end of the lease term, right-of-use assets are amortized on a straight-line basis over
the shorter of its estimated useful life and the lease term.
At
the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made
over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable,
variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees, if applicable.
The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments
of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments
that do not depend on an index or a rate are recognized as occupancy expense in the period on which the event or condition that triggers
the payment occurs.
In
calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date if the
interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
re-measured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in
the assessment to purchase the underlying asset.
Leases
as lessee
The
Company determines if an arrangement is a lease at inception of an arrangement. Operating and finance lease assets and liabilities are
recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent
the Company's right to use an underlying asset for the lease term, while lease liabilities represent the Company's obligation
to make lease payments arising from the lease. The Company uses the internal incremental borrowing rate based on the information available
at the lease commencement date, in determining the present value of lease payments. The length of a lease term includes options to extend
or terminate the lease when it is reasonably certain the Company will exercise those options. The Company made an accounting policy election
to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the
Company combines payments for leased assets, related services and other components of a lease. The Company applies a portfolio approach
to determine the discount rate for leases with similar characteristics.
F-
10
For leases classified as operating,
the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial
direct costs, plus/(minus) any unamortized prepaid/(accrued) lease payments, less the unamortized balance of lease incentives received.
Lease expense for lease payments is recognized on a straight-line basis over the lease term.
For leases classified as finance leases,
the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of
its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company, or the Company
is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful
life of the underlying asset. The Company expects to exercise the options to purchase the assets which are leased under finance leases.
Accordingly, these assets are included in property and equipment, and depreciation thereon is recognized as depreciation expense. When
the Company makes contractually required payments under finance leases, a portion is allocated to reduce the finance lease obligation,
and a portion is recognized as interest expense.
Stock-based compensation plans
The Company has a stock-based compensation
plan that is used to compensate the Board, officers, employees and consultants for services rendered.
The restricted share units ("RSU's)
are measured by reference to the fair value of the Company's Common Share at the date on which they are granted. In situations
where equity instruments are issued to non-employees and the fair value of goods or services received by the entity as consideration
cannot be estimated reliably, they are measured at fair value of the equity instruments granted.
The costs of equity settled transactions
are recognized as expenses, together with a corresponding increase in equity, over the period in which the performance and/or service
conditions are fulfilled, ending on the date on which the relevant party becomes fully entitled to the award.
No expense is recognized for performance-based
awards that do not vest. Expense for service-based award is recognized upon vesting. Where the terms of an equity settled award are modified,
the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification
which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at
the date of modification.
Compensation expense is recognized
for all share-based payments to employees and non-employees, including restricted stock units, in the statements of operation based on
the fair value of the awards that are granted. As necessary, the Company's stock price at the date of grant was estimated using
an acceptable valuation technique such as a recent round of fundraising or the probability-weighted expected return model. The fair value
of RSUs is determined at the date of grant using the price per share offered at the most recent round of fundraising, the Reg CF campaign.
Compensation expense for restricted
stock awards with performance-based vesting conditions is calculated based on the number of awards that are expected to vest during the
performance period if it is probable that the performance metrics will be achieved. Generally, measured compensation cost, net of actual
forfeitures, is recognized on a straight-line basis over the vesting period of the related share-based compensation award. The Company
accounts for forfeitures of stock-based awards as they occur.
F-
11
Revenue recognition
We account for revenue in accordance
with the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 606, "Revenue
from Contracts with Customers". Revenue is measured based on the amount of consideration that we expect to receive, reduced by
discounts and estimates for credits and returns (calculated based upon previous experience and management's evaluation). Outbound
shipping charged to customers is recognized at the time the related merchandise revenues are recognized and are included in net revenues.
Per Company policy, any product that
doesn't meet the customer's expectations can be returned within the first 30 days of delivery in exchange for another product
or for a full refund. Any product sold through a distributor or retailer must be returned to the original purchase location for any return
or exchange.  For the nine-month period ended September 30, 2024, and 2023, the Company has not recorded any reserves on revenue.
Loss per Share
Basic net loss per common share is
calculated by dividing the net loss distributed to the common class, by the weighted-average number of common shares outstanding during
the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss
attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for
the period.
For purposes of the diluted net loss
per share calculation, restricted stock units (RSUs) are considered to be potentially dilutive securities. As of September 30, 2024,
and September 30, 2023, there were 513,712 and 329,143 RSUs, respectively, of potential common stock equivalents excluded
from the diluted loss per share calculations as their effect is anti-dilutive. Because the Company has reported a net loss for the nine-month
period ended September 30, 2024, diluted net loss per common share is the same as basic net loss per common share for this period.
Business Combinations
Business combinations are accounted
for using the acquisition method. The fair value of total purchase consideration is allocated to the fair values of identifiable tangible
and intangible assets acquired and liabilities assumed, with the remaining amount being classified as goodwill. All assets, liabilities
and contingent liabilities acquired or assumed in a business combination are recorded at their fair values at the date of acquisition.
Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including
the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies.
Estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a
result, actual results may differ from those estimates. During the measurement period, not to exceed one year from the date of acquisition,
the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill. At the conclusion
of the measurement period, any subsequent adjustments are reflected in the statements of operations. Transaction costs associated with
business combinations are expensed as incurred and are included in general and administrative expenses in the Company's statements
of operations.
Significant accounting estimates
and judgments
The most significant judgements made
in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements
include:
●
Obsolescence
                                            of inventories
●
Recoverability
                                            of the carrying value of long-lived assets including property & equipment and intangible
                                            assets
F-
12
●
Recoverability
                                            of carrying value of goodwill
●
Discount
                                            rate used to calculate present value of future minimum lease payments for right-of-use asset
                                            and liabilities
●
Recognition
                                            and measurement of provisions and contingencies
●
Valuation
                                            of deferred income tax assets
Inventories, net
The Company periodically reviews the
value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions, including
forecasted demand compared to quantities on hand, as well as other factors such as potential excess or aged inventories based on product
shelf life, and other factors that affect inventory obsolescence.
Long-Lived Assets
Long-lived assets consist primarily
of property and equipment. Long-lived assets are tested for impairment when events and circumstances indicate the assets might be impaired
by first comparing the estimated future undiscounted cash flows of the asset or asset group to the carrying value. If the carrying value
exceeds the estimated future undiscounted cash flows, an impairment loss is recognized based on the amount that the carrying value exceeds
the fair value of the asset or asset group. The Company did not recognize impairment losses during the nine-month period ended September
30, 2024, and 2023.
Fair value of financial instruments
The individual fair values attributed
to the different components of a financing transaction, notably investment in equity securities, derivative financial instruments, convertible
debt and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions
and in performing the fair value calculations in order to determine (a) the values attributed to each component of a transaction at the
time of their issuance; (b) the fair value measurements for certain instruments that require subsequent measurement at fair value on
a recurring basis; and (c) for disclosing the fair value of financial instruments subsequently carried at amortized cost. These valuation
estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of
these instruments that are not quoted in an active market.
As required by the Fair Value Measurements
and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other
than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which
there is little or no market data, which require the reporting entity to develop its own assumptions.
Segment Reporting
The Company has two reportable
segments: 1) Kirkman, which sells a range of nutraceuticals, supplements and related products direct to consumers; 2) HT Naturals,
which sells a range of hemp products; and 3) Corporate, which generates no revenue, but reflects corporate expenses related primarily
to management of the company, including costs associated with legal, audit, accounting, tax, SEC reporting, and investor/public relations,
among other corporate expenses. As the hemp segment makes up less than 10% of net revenue, the Company has not disclosed summarized financial
segment information.
F-
13
Income taxes
The Company must exercise judgment
in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of
business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for expected tax
audit issues based on the Company's current understanding of the tax law. For matters where it is probable that an adjustment will
be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision.
In addition, the Company recognizes
deferred tax assets relating to tax losses carried forward to the extent there are sufficient taxable temporary differences (deferred
tax liabilities) relating to the same taxation authority and the same taxable entity against which the unused tax losses can be utilized.
However, utilization of the tax losses also depends on the ability of the taxable entity to satisfy certain tests at the time the losses
are recouped.
Risks and uncertainties
The Company's business and operations
are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and federal governmental
policy decisions. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions
may include but are not limited to changes in US laws surrounding the sale of smokable CBG/CBD products, consumer demand, and COVID-19
issues more fully described below. These adverse conditions could affect the Company's consolidated financial condition and the
results of its operations.
5.
CASH
Cash consists of liquid funds and
deposits in transit.
September
                                            30,
2024
(Unaudited)
December
                                            31,
2023
(Audited)
Cash
$
240,507
$
364,350
Deposits in transit
6,396
10,085
Cash
$
246,903
$
374,435
6.
ACCOUNTS
                                            RECEIVABLE
Accounts receivable consist of trade
receivables, net of allowance.
September
                                            30,
2024
(Unaudited)
December
                                            31,
2023
(Audited)
Trade receivables
$
312,086
$
207,225
Allowance for doubtful accounts
(36,287
)
(36,287
)
Accounts receivable
$
275,799
$
170,938
F-
14
7.
INVENTORIES
Inventories consisted of raw materials
(minerals – magnesium, Calcium, vitamins, botanical extracts, hemp, trim and flower – CBG and CBD), finished goods (capsules,
tablets, powders, creams, cigs, gummies, tinctures, pre-rolls, and vapes) and packaging & supplies (bottles, labels, covers, filters,
tipping paper and packaging materials).
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Raw materials, packaging / labels and others
$
824,940
$
813,236
Work in process
-
-
Finished goods
929,046
880,784
Total inventories
$
1,753,986
$
1,694,020
During the nine-month period ended
September 30, 2024, the Company did not record an allowance for inventory obsolescence.
8.
PREPAIDS & OTHER CURRENT ASSETS
Balance consists of prepayments made
to vendors and legal retainers.
September 30,
2024
(Unaudited)
December 31,
2023 (Audited)
Prepaids & deposits
$
74,173
$
45,538
Other current assets
107
26,903
Total prepaids and other current assets
$
74,280
$
72,441
9.
DEFERRED OFFERING COSTS
Schedule below represent capitalization of deferred cost
incurred for the preparation of Initial Public Offering ("IPO"):
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Administrative fees
$
52,500
$
7,500
Legal services
171,063
171,063
Professional services
103,972
53,347
Total IPO Cost
$
327,535
$
231,910
F-
15
10.
PROPERTY & EQUIPMENT
Property and equipment consist of
the following:
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Furniture & fixtures
3,302
$
3,302
Computer equipment
30,988
30,988
Machinery & equipment
730,508
728,627
Total property and equipment, gross
764,798
762,917
Less: accumulated depreciation
(707,439
)
(666,863
)
Property and equipment, net
$
57,359
$
96,054
Depreciation
expenses totaled $40,576
and $79,215 for the nine-month period
ended September 30, 2024, and December 31, 2023, respectively.
11.
RIGHT-OF-USE ASSETS & LEASE LIABILITY
Lease expense for minimum lease payments
is recognized on a straight-line basis over the lease term. The following are the expected lease payments as of December 31, 2023. The
lease is considered an "operating lease" and consequently lease payments are calculated on a straight-line basis, including
the total amount of interest related.
Lease
expense, on the straight-line basis was $227,912 and $283,197
during
the nine-month period ended September 30, 2024, and December 31, 2023, respectively.
The movement in the right-of-use assets
is as follows:
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Right of use assets:
Right of use assets recognized as of January 1
$
2,307,027
$
89,611
Additions
-
2,500,613
Amortization Expense
(227,912
)
(283,197
)
Right of use assets
$
2,079,115
$
2,307,027
The movement in lease liability is
as follows:
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Lease liabilities recognized as at January 1
$
2,397,047
$
92,905
Additions
-
2,500,612
Lease payments
(213,743
)
(196,470
)
Lease liabilities as at period end
2,183,304
2,397,047
Less: current portion
(47,272
)
(261,015
)
Long-term portion
$
2,136,032
$
2,136,032
Right-of-use assets and lease liabilities
comprise of three leases.
F-
16
LEASE 1 – OPERATING FACILITY
On January 1, 2023, the Company entered
a 7-year and 2-month lease to lease approximately 24,400 square feet industrial building containing 9,095 square feet of office space
and 9,663 square feet of production area. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation.
The base monthly rent is $26,500 per
month per month, with subsequent annual increases of 3%. Operating expense came to $10,774 per month for 2024 borne by the lessee.
LEASES 2 & 3 – OFFICE EQUIPMENT
The Company entered into a 5-year
lease to lease office equipment that consists of four copiers for daily office use commencing on September 30, 2021. At inception of
the lease, the Company recorded a right of use asset and liability. The Company used an effective borrowing rate of 9.0% within the calculation.
The base monthly payment amount is
$1,979 per month per month, with subsequent annual increases of 6%. Operating expenses came to $2,119 per month for 2024 borne by the
lessee.
In addition, The Company also entered
into a 4-year and 7-month lease agreement to lease a Paper Source Accessory for daily office use commencing on March 14, 2022, to complement
the previous office equipment discussed. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation. The base monthly payment amount is $89 per month, with no subsequent
annual increases.
12.
BUSINESS COMBINATION
On July 3, 2019, the Company entered
into an asset purchase agreement (the "APA") with the Kirkman Group Inc. ("Kirkman") to acquire certain tangible
and intangible assets for a purchase price of $5,000,000.
As per ASC 805 – Business Combinations,
an entity shall determine whether a transaction or other event is a business combination by applying the definition in this Subtopic,
which requires that the assets acquired and liabilities assumed constitute a business.
Excerpt from ASC 805-10-55-3A
provides that a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose
of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members,
or participants.
According to ASC 805-10-55-4, a business
consists of inputs and processes applied to those inputs that have the ability to contribute to the creation of outputs. The three elements
of a business are defined as follows:
a.
Input. Any economic resource that
                                            creates, or has the ability to contribute to the creation of, outputs when one or more processes
                                            are applied to it. Examples include long-lived assets (including intangible assets or rights
                                            to use long-lived assets), intellectual property, the ability to obtain access to necessary
                                            materials or rights, and employees.
b.
Process. Any system, standard,
                                            protocol, convention, or rule that when applied to an input or inputs, creates or has the
                                            ability to contribute to the creation of outputs. Examples include strategic management processes,
                                            operational processes, and resource management processes. These processes typically are documented,
                                            but the intellectual capacity of an organized workforce having the necessary skills and experience
                                            following rules and conventions may provide the necessary processes that are capable of being
                                            applied to inputs to create outputs. Accounting, billing, payroll, and other administrative
                                            systems typically are not processes used to create outputs.
c.
Output. The result of inputs and
                                            processes applied to those inputs that provide goods or services to customers, investment
                                            income (such as dividends or interest), or other revenues.
F-
17
The property plant and equipment purchased,
along with the assembled workforce, are inputs which have the ability to create outputs so condition a. above is met. In addition, The
Company also obtained the cGMP (Current Good Manufacturing Practice)-certified process in this asset acquisition.
That process, when applied to the
inputs also acquired, are able to produce outputs, namely the manufacturing of over-the-counter remedies, generic drugs, and nutritional
supplements. As such, conditions b. and c. above are met. Therefore, acquisition transaction meets the elements of (a) (b) and (c) of
the definition of a business. Accordingly, the transaction is considered a business acquisition and accounted for under the guidance
of ASC 805.
The present value of the acquisition
fair value of the deferred cash payment transferred for Kirkman was $4,329,317, which consisted of the following:
Kirkman Group Inc.
Purchase consideration
Fair Value
Cash
$
1,250,000
Deferred cash payment - $750,000 raise or 1st anniversary of closing
722,388
Deferred cash payment - $1,500,000 on 1st anniversary of closing
1,270,649
Deferred cash payment - $1,500,000 on 2nd anniversary
    of closing
1,086,280
Total consideration - $5,000,000
$
4,329,317
The following table summarizes the
finalized fair value of assets acquired, and liabilities assumed as of the date of the acquisition in 2019:
Kirkman Group Inc.
Purchase consideration
Fair Value
Net assets
$
1,513,878
Kirkman brand
1,226,000
cGMP certification
310,000
Customer relationships
461,300
Net assets acquired
3,511,178
Goodwill
818,139
Total Consideration
$
4,329,317
The excess of purchase consideration
over the fair value of net assets acquired was recorded as goodwill which is not deductible for tax purposes.
Payable for acquisition
As of September 30, 2024 and December
31, 2023, the Company owed $2,417,366 and $2,597,368, respectively, in connection with the aforementioned APA, which is due in its entirety
on January 1, 2025, subject to the Forbearance Agreement and Confession of Judgement.
On September 24, 2024, the Company
executed a Forbearance Agreement which allows the seller to postpone the payment of principal balance without pursuing rights under the
APA.
On September 24, 2024, the Company
executed a Confession of Judgement in respect of the principal owed in the amount of $2,417,366 which allowed the seller to enter a judgement
against the Company in The Circuit Court of The State of Oregon for the County of Clackamas.
The execution of these documents will
impact the Company if it fails to settle the balance owed by the due date, January 1, 2025. As a result, the seller has the right to
foreclose on the business.
F-
18
13.
INTANGIBLE ASSETS & GOODWILL
Balance consists of intangible assets
acquired from the acquisition of Kirkman in July 2019. The Kirkman brand and the c-GMP certification were assigned an indefinite useful
life, whereas the customer relationships were assigned a life span of 10 years.
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Kirkman brand, net
$
925,700
$
925,700
cGMP certification
310,000
310,000
Customer relationships
461,300
461,300
Total intangible assets, gross
1,697,000
1,697,000
Less: Accumulated amortization: Customer relationships
(241,926
)
(207,329
)
Intangible assets
$
1,455,074
$
1,489,671
There were further impairments to
the intangible assets during the nine-month period ended September 30, 2024, and the year ended December 31, 2023.
Balance consists of goodwill (including
assembled workforce) acquired from acquisition of Kirkman in July 2019 which was assigned an indefinite useful life.
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Goodwill
$
818,139
$
818,139
14.
ACCOUNTS PAYABLE & ACCRUED LIABILITIES
Balance consists of trade payables
and accruals.
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Trade payables
$
1,087,800
$
562,519
Accrued liabilities
-          Professional services
107,307
462,499
-          Legal & audit fees
316,352
316,352
-          Audit fees
17,329
17,329
440,988
796,180
Accrued compensation - shares earned but not issued
430,500
271,700
Total
    accounts payable and accrued liabilities
$
1,959,288
$
1,630,399
F-
19
15.
EQUIPMENT LOANS
Balance consists of equipment loans
for production & packaging machinery.
September 30,
2024
(Unaudited)
December
                                            31,
2023
(Audited)
Equipment loans recognized as of January 1
-
$
4,125
Proceeds from debt facilities
-
-
Payments on debt facilities
-
(4,125
)
Equipment loans at period end
-
-
Less: current portion
-
-
Long-term portion
$
-
$
-
16.
LINES OF CREDIT
On March 12, 2024, the Company entered
into a line of credit agreement with a third-party whereby the third party would pay the Company's vendor $35,162. The terms of
the loan were for 17 weeks, with finance charges of $2,092. On July 8, 2024, the loan was settled in full, at which point the security
interest was released by the lender.
Additionally, on March 20, 2024, the
Company entered into a line of credit agreement with a third-party whereby the third party would pay the Company's vendor $51,500.
The terms of the loan were for 26 weeks, with finance charges of $5,021. On September 25, 2024, the loan was settled in full, at which
point the security interest was released by the lender.
Furthermore, on July 16, 2024, the
Company entered into a line of credit agreement with a third-party whereby the third party would pay the Company's vendor $36,804.
The terms of the loan were for 26 weeks, with finance charges of $4,048.
On January 20, 2023, the Company entered
into a line of credit agreement with a third-party whereby the Company received $300,000. The terms of the loan were for one year, with
a 27% contract interest rate. On January 22, 2024, the loan was settled in full, at which point the security interest was released by
the lender.
On July 14, 2023, the Company entered
into an additional line of credit agreement with a third-party whereby the Company received $100,000. The terms of the loan were for
42 weeks, with a 5% contract interest rate. On May 7, 2024, the loan was settled in full, at which point the security interest was released
by the lender.
September 30,
2024
(Unaudited)
December 31,
2023
(Audited)
Line of credit recognized as of January 1
$
68,315
$
27,973
Proceeds from lines of credit
123,466
400,000
Payments on lines of credit
(169,132
)
(359,522
)
Line of credit at period end
22,649
68,315
Less: current portion
(22,649
)
(68,315
)
Long-term portion
$
-
$
-
F-
20
17.
GOVERNMENT LOANS PAYABLE
On July 7, 2020, Kirkman applied and
was a granted thirty (30) year loan from the U.S. Small Business Administration for $150,000 with an interest of 3.75% per annum accrued
daily, to alleviate financial burden caused due to COVID-19.
September 30,
2024
December 31,
2023
(Unaudited)
(Audited)
Government loans recognized as of January 1
$
147,168
$
150,000
Proceeds from debt facilities
-
-
Payments on debt facilities
(2,422
)
(2,832
)
Debt forgiveness
-
-
Government loans at December 31
144,746
147,168
Less: current portion
(3,264
)
(3,280
)
Long-term portion
$
141,482
$
143,888
The Company has the following government
loan commitments as of September 30, 2024.
Amount
2024
$
843
2025
3,437
2026
3,595
2027 and beyond
136,871
Total
$
144,746
18.
OTHER CURRENT LIABILITIES
Balance consists of credit cards,
employee benefits and sales tax payable.
September 30,
December 31,
2023
2024
(Audited)
Credit cards
$
29,263
$
25,787
Employee benefits payable
-
-
Sales tax
1,385
1,242
Other
(23,196
)
13,796
$
7,452
$
40,825
Credit cards are utilized for software
and technology costs for which no other form of payment is available.
F-
21
19.
LOAN PAYABLE
Convertible Promissory Note
On June 18, 2024, the Company executed
a loan agreement with a lender in the amount of $150,000. The payment terms are 12.5% OID, initial principal amount consisting of a $150,000
loan plus $21,500 OID totaling $171,500. To mature the earlier of six months from execution, completion of a senior exchange listing
of the Company or as mutually agreed, with an interest rate of the higher of 12% or WSJ Prime plus 4% guaranteed.
With a conversion feature for the
Lender to be paid in full in cash at the IPO or convert the note into shares of the Company's common stock at the time of the Senior
Exchange Listing.
20.
RELATED PARTY TRANSACTIONS
Long-term debt
In December 2023, the Company entered
into a short-term debt facility with a related party, an officer and director of the parent company – Hemptown Organics Corp.,
whereby the Company received $247,634. The loan is non-interest bearing with a 2-year term.
On March 11, 2024, the Company executed
a loan agreement with a related party in the amount of $130,000, with an annual interest rate of 20% to be paid off in 7 years.
21.
CONVERTIBLE DEBENTURE
On October 7, 2022, the Company entered
into Convertible Debenture Purchase Agreements pursuant to which the Company issued unsecured convertible promissory note ("Convertible
Debenture"). The Company issued Convertible Debenture in the aggregate principal amount of $100,000 that was used to pay the expenses
of the organization and reorganization and for other general corporate purposes. Interest accrued on the principal balance of the Convertible
Debenture at 10.0% per annum totaled $2,338. The Convertible Debenture ranks on a parity with the Company's other existing debt
and matured on December 31, 2022. The Convertible Debenture was to convert the outstanding principal and accrued interest into shares
of the Company's common stock on maturity date at a price per share equal to $0.05 per share. As of September 30, 2024, the holder
had still not converted the debenture.
22.
SHARE CAPITAL
Authorized share capital
Common Shares
Upon incorporation, the Company authorized
1,000,000 common shares with a par value of $0.001 per share were initially authorized for issuance. The Initial Share of the Company
was allotted and issued to Zayn Kalyan as fully paid on November 19, 2020, the date of the organization. The issuance of the Initial
Share was recorded in the central securities register of the Company and represents the only share initially issued. The Company purchased
the Initial Share from Zayn Kalyan for the price of $0.01 and the Initial Shared formed part of the authorized but unissued share capital
of the Company. The repurchase of the Incorporator's Share was recorded in the central securities register of the Company and the
director confirms that no share certificate was issued or shall be issued in respect of the Initial Share.
On December 10, 2020, the Company
altered its authorized share capital to 100,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.
F-
22
On August 31, 2023, this was changed
to 220,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.
All Common Shares are entitled to
one vote in respect to each Common Share held at all meetings of shareholders of the Company.
Issued share capital
Common share issuances
On December 10, 2020, the Company
entered into a licensing agreement with Hemptown Organics Corp. (the "licensor") to use the Hemptown Naturals brand (the
"asset") on a non-exclusive, non-transferable basis for a period of 4 years. In return, 40,000,000 common shares were issued
to the licensor at $0.00001 per share with deemed proceeds of $40,000 as consideration.
On May 19, 2023, the Company entered
into a Share Exchange Agreement (SEA) to acquire HTO Nevada Inc. dba Kirkman from a related party, Hemptown Organics Corp. and its wholly
owned subsidiary, HTO Holdings Inc. As part this SEA, HTO Holdings Inc. exchanged 1,000 restricted shares of common stock, par value
$0.0001 per share of HTO Nevada Inc. dba Kirkman, being all of the issued and outstanding capital stock of HTO Nevada Inc. dba Kirkman,
for issuance of 80,000,000 restricted shares of common stock of Functional Brands Inc., $0.00001 par value per share to Hemptown Organics
Crop., with deemed proceeds of $80,000 as consideration, such that, HTO Nevada Inc. dba Kirkman shall be wholly-owned subsidiary of Functional
Brands Inc. This was retroactively recorded in 2019 as the acquisition was completed on July 3, 2019.
This SEA was in respect of the asset
purchase agreement (the "APA") the Company entered into on July 3, 2019, with the Kirkman Group ("Kirkman") to
acquire certain tangible and intangible assets.
Regulation Crowdfunding (Reg CF)
Campaign
Under the Securities act of 1933,
the offer and sale of securities must be registered unless an exemption from registration is available. Title III of the Jumpstart Our
Business Startups (JOBS) Act of 2012 added Securities Act Section 4(a)(6) that provides and exemption from registration for certain crowdfunding
transactions. The Company is currently completing a Regulation Crowdfunding offering ("Offering") subject to the above regulations
and had filed its Offering statement on Form C through the EDGAR system and with the Title3Funds.com as intermediary.
The Offering is for up to a maximum
of $5,000,000 at a price of $1.40 per share with an offering deadline of December 31, 2022, which was extended to May 31, 2023. The securities
purchased in this Offering will be subject to a number of restrictions including restrictions on resale for a period of one year. The
use of the proceeds will be towards the fees associated with this Offering, further development of the Company's business –
sales & marketing, and for general working capital purposes.
During the nine-month period ended
September 30, 2024, the Company did not issue any common shares stemming from the Reg CF campaign.
Regulation D (Reg D) Campaign
During the nine-month period ended
September 30, 2024, the Company did not issue any common shares stemming from the Reg D campaign.
F-
23
Accrued stock-based compensation
For the nine-month period ended September
30, 2024, and December 31, 2023, accrued stock-based compensation was $158,800 and $760,200, respectively.
Restricted stock units (RSUs) for
services
Number of shares RSUs
Amount
January 2024
23,714
33,200
February 2024
23,714
33,200
March 2024
23,714
33,200
April 2024
23,714
33,200
May 2024
3,714
5,200
Jun 2024
3,714
5,200
July 2024
3,714
5,200
August 2024
3,714
5,200
September 2024
3,714
5,200
Total accrued
113,426
$
158,800
During the nine-month period ended
September 30, 2024, the Company incurred $158,800 in contracting services resulting from 113,426 of restricted stock units for consultants
providing sales & marketing services at fair value of $1.40 per share.
23.
REVENUES, NET
This table shows revenue by product
type – Functional Brands (formerly HT Naturals) reflects hemp derived products whereas Kirkman reflects nutraceutical products.
September 30,
2024
(Unaudited)
September 30,
2023
Kirkman
$
4,797,856
$
4,863,369
Functional Brands (formerly HT Naturals)
88,475
685,036
$
4,886,331
$
5,548,405
24.
CONCENTRATION
During
the nine-month period ended September 30, 2024, sales from two customers represented 29% and 24% for a total of 54% of sales totaling
$2,629,706. During the nine-month period ended September 30, 2023, sales from two customers represented 26%, 18
%
for a total of 44%
of sales totaling $2,435,902.
As
at September 30, 2024, accounts receivable balance from one customer represented 66% of accounts receivable totaling $177,332. As at
December 31, 2023, accounts receivable balance from three customers represented 14%, 12%, and 8%
for
a total of 34% of accounts receivable totaling $53,055.
F-
24
25.
COMMITMENTS AND CONTINGENCIES
The Company has an exclusive license
agreement with the Trailer Park Boys to market & sell hemp derived products. This license came into effect on July 21,
2021, and will expire on December 31, 2025. Under the amended license agreement, the Company will pay the Trailer Park Boys,
an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to be paid during
the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000 shares of common stock of the
Company. The royalty rates under this agreement are between 15% - 30% of the net sales of the company derived from sales related to the
license. During the nine-month period ended September 30, 2024, and December 31, 2023, the Company made payments in the amounts of $25,000
and $200,000, respectively, with total payments amounting to $225,000. The license agreement may be terminated with reasonable cause
upon six months' written notice or for certain triggering events without recourse or an opportunity to cure.
On January 1, 2024, the Company executed
an Advisory Agreement with a service provider to support the IPO process. The scope of work includes strategic review, consulting services,
IPO readiness & execution as well as capital market advisory. Payment structure is as follows:
●
Monthly payment of $5,000 per month to be settled in the following manner
○
50% to be paid in cash
○
50% to be converted into shares of the Company's common stock
●
Payment of $100,000 upon completion of the liquidity event
●
Ability to purchase common stock at $0.01 per share equal to 1.25% of the issue and outstanding shares
    of the Company
●
Issuance of 200,000 warrants for a period of 5 years with an exercise price to be equal to the price
    of the offering to be undertaken with the listing
26.
LEGAL PROCEEDINGS
From time to time, we may become involved
in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. On May 25, 2021, True Health
Medical Center, S.C. ("True Health") amended an existing complaint against Kirkman Group, Inc. ("Kirkman"), James
Hall and David Humphries to assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings,
Inc. are referred to as the "HTO Parties"). Kirkman is the seller of certain assets to the HTO Parties and is a separate
legal entity. Affiliates of the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit
Court for the Eighteenth Judicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets
to the HTO Parties but the royalty agreement has a provision that allows True Health to continue to receive royalties after the termination
of the agreement. True Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties.
There is no dispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO
Parties have never paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties
should be bound by the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the
damages claim against the HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties
have engaged in some discoveries including a limited number of depositions. True Health has filed a motion for summary judgment that
addresses its claims against Kirkman but does not address any claim against the HTO Parties. The briefing is not yet complete on the
summary judgment motion and a ruling is likely more than 60 days away. Regardless of how the court rules on summary judgment, there will
be remaining claims in the case, and it is likely that additional discovery will be conducted. No trial date has been scheduled at this
time. The parties have largely completed both fact and expert discovery. Kirkman Group has recently filed a motion for leave to amend
its counterclaims against True Health. None of these proposed counterclaims are alleged against HTO Nevada. However, if the Court permits
the amended counterclaims to be filed, it is possible that additional discovery will be needed on the amended counterclaims. It is also
likely that True Health will move to dismiss some or all the amended counterclaims. Either additional discovery or motion practice would
typically mean that the prospective trial date will not occur until a later date than would have been the case absent these additional
steps in the litigation. As of today, the court has not set a trial date.
F-
25
27.
SUBSEQUENT EVENTS
The Company follows the guidance in
FASB ASC Topic 855, Subsequent Events ("ASC 855"), which provides guidance to establish general standards of accounting for
and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are
available to be issued. ASC 855 sets forth the following:
(i)
The period after the balance sheet
                                            date during which management of a reporting entity evaluates events or transactions that
                                            may occur for potential recognition or disclosure in the consolidated financial statements
(ii)
The circumstances under which
                                            an entity should recognize events or transactions occurring after the balance sheet date
                                            in its consolidated financial statements, and
(iii)
The disclosures that an entity
                                            should make about events or transactions that occurred after the balance sheet date. Accordingly,
                                            the Company did not have any subsequent events that require disclosure other than the following.
Invoice Financing
The Company executed multiple lending
agreements to satisfy vendor debts.
Date
Amount Financed
Finance Charges
Repayment Terms
October 2, 2024
$
3,199
$
176
17 weeks
October 2, 2024
$
7,870
$
433
17 weeks
October 17, 2024
$
46,127
$
4,151
26 weeks
F-
26
CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in United States dollars)
FUNCTIONAL BRANDS INC.
(Formerly HT Naturals Inc.)
And Independent Auditors' Report thereon
For the years ended December 31, 2023 and December 31, 2022
F-
27
FUNCTIONAL BRANDS INC. (formerly HT Naturals Inc.)
TABLE OF CONTENTS
REPORT OF INDEPENDENT
    REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID NO. 5854)
F-29
CONSOLIDATED BALANCE SHEETS
F-30
CONSOLIDATED STATEMENTS OF OPERATIONS
F-31
CONSOLIDATED STATEMENTS OF CHANGES
    IN EQUITY/DEFICIT
F-32
CONSOLIDATED STATEMENTS OF CASH
    FLOWS
F-33
NOTES TO THE CONSOLIDATED FINANCIAL
    STATEMENTS
F-34
F-
28
FUNCTIONAL
BRANDS INC. (formerly
HT Naturals Inc.)
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Directors and
Stockholders of Functional Brands, Inc. (formerly HT Naturals Inc.)
Opinion on the
Financial Statements
We have audited the accompanying consolidated
balance sheets of Functional Brands, Inc.(formerly HT Naturals Inc.) (the "Company") as of December 31, 2023, and 2022, and
the related consolidated statements of operations, stockholders' equity, and cash flows for each of the two years in the period
ended December 31, 2023, and the related notes (collectively referred to as the financial statements). In our opinion, the consolidated
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 two years in the period ended December 31, 2023, in conformity with
accounting principles generally accepted in the United States of America.
Restatement of Financial Statements
As discussed in Note 4 to the financial statements,
the 2022 financial statements have been restated to correct misstatements identified by management of the Company.
The financial statements of the Company as of
and for the year ended December 31, 2022, were audited by other auditors whose report dated May 30, 2023, expressed an unqualified opinion
on those statements. We also audited the adjustments described in Note 4 that were applied to restate the 2022 financial statements.
In our opinion, such adjustments are appropriate and have been properly applied.
Going Concern
The accompanying
consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
2 to the financial statements, the Company has an accumulated deficit and negative cash flows from operations. These factors, among others,
raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these
matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.
Basis for Opinion
These consolidated 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. 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. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion.
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 2024
Diamond Bar, CA
October 24, 2024, except for Notes 3, 4, 13,
and 21, as to which the date is December 4, 2024
F-
29
FUNCTIONAL
BRANDS INC. (formerly
HT Naturals Inc.)
CONSOLIDATED
BALANCE SHEETS
(In U.S. Dollars, except share
data or otherwise noted)
2023
RESTATED
2022
Assets
Current
Cash
$
374,435
$
202,827
Accounts receivable, net
170,938
238,927
Inventories, net
1,694,020
2,119,233
Prepaid expenses and other current assets
72,441
146,936
Deferred offering costs
231,910
20,250
Total
    current assets
2,543,744
2,728,173
Noncurrent
Property and equipment, net
96,054
197,729
Right-of-use assets
2,307,027
89,611
Intangible assets, net
1,489,671
1,535,801
Goodwill
818,139
818,139
Due from related parties
-
1,074,925
Total
    noncurrent assets
4,710,891
3,716,205
Total assets
$
7,254,635
$
6,444,378
Liabilities
Current
Accounts payable & accrued liabilities
$
1,630,399
$
1,292,423
Equipment loans, current
-
4,125
Line of credit
68,315
27,837
Government loans, current
3,280
2,832
Lease liabilities, current
261,015
19,096
Other current liabilities
40,825
142,344
Loan payable – related party
247,634
-
Total
    current liabilities
2,251,468
1,488,657
Noncurrent
Lease liabilities, net of current
2,136,032
73,808
Government loans, net of current
143,888
147,168
Due to related parties
-
3,038,818
Payable for acquisition
2,597,368
2,855,000
Convertible debenture
100,000
100,000
Total
    noncurrent liabilities
4,977,288
6,214,794
Total Liabilities
$
7,228,756
$
7,703,451
Shareholders'
    equity (deficit)
Common
    stock, par value $0.00001, authorized 220,000,000 shares; 122,767,778 and 122,472,933 shares issued and outstanding at December 31,
    2023, and December 31, 2022, respectively
1,228
1,225
Additional paid-in capital
7,126,225
4,600,182
Accumulated deficit
(7,101,574
)
(5,860,480
)
Total Shareholders' Equity
    / (Deficit)
25,879
(1,259,073
)
Total liabilities
    and shareholders' equity / (deficit)
$
7,254,635
$
6,444,378
F-
30
FUNCTIONAL BRANDS INC. (formerly
HT Naturals Inc.)
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In U.S. Dollars, except share
data or otherwise noted)
2023
RESTATED
2022
Revenues, net of returns
6,820,499
7,051,224
Costs and expenses:
Cost of goods sold
3,641,648
4,049,780
Sales & marketing
588,772
796,860
General and administrative expenses
3,672,582
3,542,436
Operating loss
(1,082,503
)
(1,337,852
)
Other income / (expenses)
Interest expense
(158,591
)
(133,069
)
Gain on forgiveness of Paycheck Protection Program loan
-
528,586
Net loss for the year
$
(1,241,094
)
$
(942,335
)
Net loss per share of common stock attributable to common stockholders
Basic and diluted
$
(0.01
)
$
(0.01
)
Weighted average shares used in computing net loss per share of common stock
Basic
122,677,071
122,157,489
Diluted
122,677,071
122,157,489
F-
31
FUNCTIO
NAL BRANDS INC. (formerly
HT Naturals Inc.)
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY
(In U.S. Dollars, except share
data or otherwise noted)
No. of Shares
Common
Stock
APIC
Accumulated
Deficit
Total
Shareholders'
Equity/ (Deficit)
December 31, 2021 (Restated)
121,582,314
1,216
2,841,024
(4,918,145
)
(2,075,905
)
Stock-based compensation
60,000
1
496,299
-
496,300
Shares issued as part of Reg CF campaign
830,619
8
1,162,859
-
1,162,867
Beneficial conversion feature on convertible debenture
-
-
100,000
-
100,000
Net loss
-
-
-
(942,335
)
(942,335
)
December 31, 2022 (Restated)
122,472,933
1,225
4,600,182
(5,860,480
)
(1,259,073
)
Stock-based compensation
1,875
-
762,825
-
762,825
Shares issued as part of Reg CF campaign, net
6,484
-
9,076
-
9,076
Shares issued as part of Reg D, net
286,486
3
105,997
-
106,000
Forgiveness of balances from related parties
-
-
1,648,145
-
1,648,145
Net loss
-
-
-
(1,241,094
)
(1,241,094
)
December 31, 2023
122,767,778
$
1,228
$
7,126,225
$
(7,101,574
)
$
25,879
F-
32
FUNCTIONAL
BRANDS INC. (formerly HT Naturals Inc.)
CONSOLIDATED
STATEMENTS OF CASH FLOW
(In
U.S. Dollars, except share data or otherwise noted)
2023
RESTATED
2022
Amount in $
Amount in $
Cash flows from operating activities:
Net loss
$
(1,241,094
)
$
(942,335
)
Reconcile net loss to cash provided by operating activities
Gain on forgiveness of Paycheck Protection Program loan
-
(528,586
)
Allowance for doubtful accounts receivable
36,287
Allowance for inventory obsolescence
79,033
76,774
Loss on disposal of property
-
3,241
Depreciation of property & equipment
105,175
109,485
Amortization of right-of-use assets
283,197
402,855
Amortization of convertible debenture
-
100,000
Stock-based compensation
762,825
496,300
Amortization of intangible assets
46,130
46,130
Changes in operating assets and liabilities:
Accounts receivable
31,702
54,455
Inventories
346,180
(492,047
)
Prepaid expenses and other current assets
74,495
(50,344
)
Accounts payable & Accrued liabilities
337,976
142,209
Other current liabilities
(101,519
)
28,404
Lease liabilities
(196,470
)
(416,069
)
Due to/from related parties
(315,748
)
279,648
Net cash provided by (used in) operating activities
248,169
(689,880
)
Cash flows from investing activities:
Purchases of property and equipment
(3,500
)
(967
)
Net cash used in investing activities
(3,500
)
(967
)
Cash flows from financing activities:
Payment for deferred offering costs
(211,660
)
(20,250
)
Proceeds from long-term debt
247,634
-
Proceeds from issuance of convertible debenture
-
100,000
Payments for payable for acquisition
(257,632
)
(445,001
)
Share issuance for cash from Reg CF
9,076
1,162,867
Share issuance for cash from Reg D
106,000
-
Proceeds from debt facilities
400,000
156,800
Equipment loan repayment
(4,125
)
(39,252
)
Line of credit repayment
(359,522
)
(362,231
)
Government debt repayment
(2,832
)
-
Net cash (used in) provided by financing
    activities
(73,061
)
552,933
Net increase (decrease) in cash
171,608
(137,914
)
Cash beginning of year
202,827
340,741
Cash, end of year
374,435
202,827
Supplemental disclosures of cash flow information
Cash paid for interest
158,591
133,069
Non-cash investing and financing activities
Beneficial conversion feature on convertible debenture
-
100,000
Right-of-use and lease liability upon lease commencement
2,500,613
4,088
Forgiveness of balances due to/from related parties
1,648,145
-
F-
33
FUNCTIONAL BRANDS INC. (formerly
HT Naturals Inc.)
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
1.
ORGANIZATION AND NATURE OF OPERATIONS
Functional Brands Inc. (formerly HT
Naturals Inc. - the "Company") was organized under the General Corporation Law in the State of Delaware on November 19, 2020. 
The Company's principal business is in the production, marketing, sales, and distribution of smokable hemp related products in
certain states within the United States of America that permit such sales.
On March 22, 2023, the Company changed
its name from HT Naturals Inc. to Functional Brands Inc. to better reflect its corporate identity.
As of December 31, 2023, and 2022,
the Consolidated Financial Statements consist of the Company and its wholly owned subsidiary HTO Nevada Inc. (d/b/a Kirkman), which is
a nutraceutical manufacturer and distributor based in the Pacific Northwest. All intercompany transactions and balances have been eliminated
in consolidation.
2.
GOING CONCERN
The accompanying financial statements
have been prepared assuming the Company will continue as a going concern. The Company had a loss of $1,241,094 for the year ended December
31, 2023, and losses in the amount of $942,335 for the year ended December 31, 2022. As of December 31, 2023, our accumulated deficit
was $7,101,574. These conditions raise substantial doubt about the Company's ability to continue as a going concern.
In order to continue as a going concern,
the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and
will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful
in obtaining additional capital.
The financial statements do not include
any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities
that might be necessary in the event the Company cannot continue in existence. These financial statements do not include any adjustments
that might arise from this uncertainty.
F-
34
3.
BASIS OF PRESENTATION
Basis of preparation and principles
of consolidation
The accompanying consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.
GAAP").
The consolidated financial statements
comprise the financial statements of the Company and its wholly owned subsidiary, HTO Nevada Inc. dba Kirkman. The subsidiary consists
of an entity over which the Company is exposed to, or has rights to, variable returns as well as the ability to affect these returns
through the power to direct the relevant activities of the entity. To the extent that subsidiaries provide services that relate to the
Company's activities, they are fully consolidated from the date control is transferred and are deconsolidated from the date control
ceases. All intercompany balances and transactions have been eliminated.
The financial statements of the subsidiary are prepared
for the same reporting period as the parent company, using consistent accounting policies.
Functional Brands Inc. (formerly
HT Naturals Inc.)
Functional Brands Inc. (formerly HT
Naturals Inc.) is the parent company which in turn is 72% owned by Hemptown Organics Corp.
HTO Nevada Inc. dba Kirkman
The principal subsidiary is HTO Nevada
Inc. dba Kirkman which is solely and wholly owned by Functional Brands Inc. (formerly HT Naturals Inc.)
As
                                            part of the restructuring efforts, ownership of HTO Nevada Inc. dba Kirkman was transferred
                                            from HTO Holdings Inc. to Functional Brands Inc. (formerly HT Naturals Inc.) on May 19, 2023,
                                            in exchange 80,000,000 common shares of the Company. As a result, HTO Nevada Inc. dba Kirkman
                                            became a wholly-owned subsidiary of Functional Brands Inc. (formerly HT Naturals Inc.).
The initial accounting for acquisition
of HTO Nevada Inc. dba Kirkman was accounted at fair value (See note13) on July 3, 2019. Since after the acquisition date and part of
the restructuring efforts under
ASC 850-50, the consolidated financial statements for the years
ended December 31, 2021, December 31, 2022 and December 31, 2023 have been presented as historical carrying value to give effect to the
merger transaction as occurred on July 3, 2019, which is the earliest date the entities were under common control.
4.
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
The Company identified errors in our
financial statements for the year ended December 31, 2022. The Company has restated herein our audited consolidated financial statements
as at December 31, 2022, and for the year ended December 31, 2022. When the previous audit engagement with Ben Borgers
was terminated , we engaged a new auditor (TAAD), and through the audit process, TAAD identified several errors that required changes.
As an example, common stock was adjusted to reclass the appropriate portion to APIC and notes payable was restated to reclass equipment
loans, lines of credit and government loans and present them individually on the balance sheet. On the statement of income, general &
administrative expenses were restated to recognize stock-based compensation for RSUs issued to contractors. Through this new audit process,
the financial statements required adjustments to properly reflect the business results.
The accounting errors impacting our
2022 Financial Statements includes:
a)
Cash
Adjustment reflects deposits in-transit
for the year-end resulting from ecommerce sales of $18,530, previously not recorded.
b)
Accounts receivable
Decreased accounts receivable $256,915
as a result of recording additional allowances for balances deemed uncollectible after further review by management.
F-
35
c)
Inventories
Inventory was increased by $169,542
due to the following.
-
Increase of $78,555 due to account reclassifications from property
                                            & equipment;
-
Increase of $167,761 as a result of revision of costing for
                                            certain finished goods, previously not recorded; and
-
Decrease of $76,774 by recording
                                            additional write-downs, previously not recorded.
d)
Prepaid expenses and
                                            other current assets
Increased prepaids by $49,429 for
payments made to vendors prior to year-end, previously not recorded.
e)
Deferred offering costs
Increased deferred offering costs
to capitalize expenditures related to professional services for the Initial Public Offering of $20,250, previously not recorded.
f)
Property and equipment
Property and equipment was decreased
by $339,506 due to the following not recorded previously.
-
Decrease of $78,555 due to account reclassifications to inventory;
-
Decrease of $219,904 as a result
                                            of correction for depreciation expense; and
-
Decrease of $41,047 due to disposal
                                            of property and equipment.
g)
Right-of-use (ROU) assets
Right-of-use was decreased by $620,742
due to the following not recorded previously.
-
Decrease of $710,353 due to amortization for right-of-use of
                                            operating building;
-
Increase of $111,253 due to recognition
                                            of equipment leases that fall under the ASC 842, Lease; and
-
Decrease of $21,642 as of result
                                            of the amortization expense for equipment leases.
h)
Intangible assets and
                                            goodwill
To record correct amounts for intangible
assets and goodwill based on the final purchase price allocation report from third-party appraiser, previously not recorded.
F-
36
i)
Due to / from related
                                            parties
Due from related parties
Due from related parties increased
by $375,781 due to the following.
-
Decreased by $827,338 as a result
                                            of adjustments made to reclass due from balances as an asset, previously recorded in one
                                            line as part of due from related parties; and
-
Increased by $1,203,119 due to
                                            payments made on behalf of related parties, previously netted out with due to related party
                                            balance and reclassed to due from related parties because the related party has a debit balance
                                            to be offset.
Due to related parties
Due to related parties increased by
$3,038,818, due to the following.
-
Increase of $2,145,000 as part
                                            of the push-down accounting for Kirkman acquisition, the Company recorded a balance due to
                                            related parties for payments made by related parties to the Kirkman's seller, previously
                                            not recorded;
-
Increased by $827,338 as a result
                                            of adjustments made to reclass due to balances as a liability, previously recorded in one
                                            line as part of due from related parties; and
-
Increased by $66,480 as a result
                                            of payments made by related parties to vendors on behalf of the Company, previously not recorded.
j)
Accounts payable &
                                            accrued liabilities
Accounts payable & accrued liabilities
were increased by $1,049,037 due to the following not recorded previously.
-
Increase of $556,603 due to accruals not previously recorded
o
$365,251 in professional services
o
$191,352 in legal services & audit services
-
Increase of $471,500 as a result
                                            of stock-based compensation, not previously recorded, and;
-
Increase of $20,934 to adjust year-end
                                            balance to accounts payable.
k)
Equipment loans
Equipment loans, current increased
by $4,125, due to the following.
-
Reclassed equipment loans, current in the amount of $8,878, previously
                                            combined with notes payable; and
-
Decreased equipment loan balances in the amount of $4,753 due to
                                            error in calculation of interest expense, previously not recorded.
l)
Lines of credit
Lines of credit, current increased
by $27,837, previously combined with notes payable.
m)
Government loans, current
Government loans, current increased
by $2,832, previously combined with notes payable.
F-
37
n)
Lease liabilities, current
                                            and noncurrent
Lease liabilities, current and noncurrent
decreased by $694,941, due to the following not recorded previously.
-
Lease amortization for building lease in the amount of $787,845;
-
Recognized lease liabilities for equipment lease in the amount
                                            of $111,253; and
-
Lease amortization for equipment leases in the amount of $18,349.
o)
Other current liabilities
Reduced other current liabilities
in the amount of $17,513 for royalty fee payable, incorrectly recorded.
p)
Notes payable
Notes payable decreased by $201,981,
due to reclassed liabilities as follows:
-
Decrease of $27,837 due to reclass
                                            to credit lines
-
Decrease of $8,878 due to reclass
                                            to equipment loans
-
Decrease of $165,266 due to reclass
                                            of government loans, noncurrent
q)
Government loans, noncurrent
Government loans, current increased
by $147,168, due to the following.
-
Increased by $165,266, previously
                                            combined with notes payable;
-
Decreased by $10,000 for loan forgiveness,
                                            previously not recorded;
-
Decreased by $10,000 for loan recorded
                                            in error, and
-
Increased by $1,902 as a result
                                            of adjustments recorded to correct principal balance and interest paid.
r)
Payable for acquisition
Recorded balance payable for acquisition
in the amount of $2,855,000, stemming from the June 2019 Asset Purchase Agreement to acquire Kirkman, previously not recorded. Balance
represents the difference between agreed upon consideration of $5,000,000 and $2,145,000 in payments made by December 31, 2022. See Business
Combination note details on total consideration and balance owing.
s)
Convertible debenture
Increased the debenture balance
of $100,000 as a liability as the required shares hadn't been issued as per request of the debenture holder.
F-
38
t)
Stockholders'
                                            equity
Increased shareholders' equity
by $124,662 due to following changes in common stock and additional paid-in capital.
Common stock
Allocation of par value of Reg CF
(3,122,585
)
Allocation of par value of stock-based compensation
2
Refunds of Reg CF investments
(9,584
)
Elimination of equity from Kirkman acquisition
(1,593,877
)
Shares issued for Hemptown licensing agreement
400
Shares issued for purchase of Kirkman
800
(4,724,844
)
Additional paid-in capital
Allocation of value above par value of Reg CF
3,122,585
Allocation of value above par value stock-based compensation
1,258,797
Shares issued for Hemptown licensing agreement
39,600
Shares issued for purchase of Kirkman
79,200
Beneficial conversion feature on convertible debenture
100,000
4,600,182
Net impact on stockholders' equity
$
(124,662
)
Common stock
Common stock decreased by $4,724,844
due to the following.
-
Decrease of $3,122,585 for adjustments
                                            to common stock for Reg CF to allocate difference between amount paid and par value to additional
                                            paid-in capital;
-
Increase of $2 for stock-based
                                            compensation at par value;
-
Decreased of $9,584 for refund
                                            adjustments to Reg CF;
-
Decrease of $1,593,877 for eliminating
                                            Kirkman equity upon consolidation resulting from for the asset purchase agreement;
-
Increase of $400 for share issuance
                                            to HOC for a licensing agreement; and
-
Increase of $800 for share issuance
                                            to HOC for purchase of Kirkman.
Additional paid-in capital (APIC)
APIC increased by $4,600,182 due to
the following.
-
Increase of $4,381,382 to reflect the amount paid above par
                                            value for Reg CF;
-
Increase of $118,800 shares issuances
                                            to parent company and Kirkman acquisition; and
-
Increase of $100,000 as of a result
                                            of beneficial conversion feature on convertible debenture.
Accumulated deficit
The adjustments to the statement of
comprehensive income (loss) amounted to a reduction of $1,284,954 as explained in subsections u, v, w, x and y below.
u)
Revenue
Adjustment to sales discount made
for the year in the amount of $4,672, not previously recorded.
F-
39
v)
Cost of goods sold
Cost of goods sold increased by $1,800,665
due to the following:
-
Increase of $76,774 as a result of inventory write down, previously
                                            not recorded;
-
Decrease of $167,761 due to correction of costing for finished
                                            goods inventory;
-
Increase of $109,485 to record
                                            depreciation expense, previously not recognized;
-
Increase of $1,379,312 as of a
                                            result of reclassification of payroll costs (salary & wages, benefits and other expenses)
                                            from general and administrative expenses; and
o
$788,965 incurred in direct labor
o
$590,347 incurred in indirect labor
-
Increase of $402,855 to record
                                            amortization expenses for right-of-use assets for the year.
w)
Sales and marketing
Reclassed sales and marketing in the
amount of $428,596 to reallocate payroll costs (salaries, benefits and other expenses) recorded originally in general and administrative.
x)
General and administrative
Decreased by $983,051 due to the following.
-
Increase of $496,300 to record stock-based compensation for
                                            the year, previously not recorded;
-
Increase of $776,574 for accrual
                                            of expenses, previously not recognized;
o
$556,603 for professional services
o
$66,353 for legal services
o
$153,618 for consulting services
-
Decrease of $1,807,908 as of a
                                            result of the reclassification of payroll costs (salaries, benefits and other expenses);
o
$1,379,312 in payroll costs associated
                                            with the cost of goods sold; and
o
$428,596 in payroll costs associated
                                            with sales and marketing.
-
Decrease of $402,855 due to allocation
                                            of right-of-use amortization for the year; and
-
Decrease of $45,162 due to reversal
                                            of royalties payable.
y)
Interest Expense
Interest expense increased by $34,072
due to the following.
-
Increase of $2,329 due to accrued interest not recorded for
                                            convertible debenture;
-
Increase of $9,487 due to correction
                                            of interest incurred during the year for loans; and,
-
Increase of $22,256 as a result
                                            of interest incurred in lease liabilities during the year.
F-
40
Balance Sheet
As filed
Restatement
adjustments
As restated
2022
2022
2022
Assets
Current
Cash
a
$
221,357
$
(18,530
)
$
202,827
Accounts receivable
b
495,842
(256,915
)
238,927
Inventories
c
1,949,691
169,542
2,119,233
Prepaid expenses and other current assets
d
97,507
49,429
146,936
Deferred operating costs
e
-
20,250
20,250
Total current assets
2,764,397
(36,224
)
2,728,173
Noncurrent
Property and equipment
f
537,235
(339,506
)
197,729
Right-of-use assets
g
710,353
(620,742
)
89,611
Intangible assets
h
-
1,535,801
1,535,801
Goodwill
h
-
818,139
818,139
Due from related parties
i
699,144
375,781
1,074,925
Total
    noncurrent assets
1,946,732
1,769,473
3,716,205
Total assets
$
4,711,129
$
1,733,249
$
6,444,378
Liabilities
Current
Accounts payable & Accrued liabilities
j
$
243,386
$
1,049,037
$
1,292,423
Equipment loans, current
k
-
4,125
4,125
Line of credit
l
-
27,837
27,837
Government loans, current
m
-
2,832
2,832
Lease liabilities, current
n
441,224
(422,128
)
19,096
Other current liabilities
o
159,857
(17,513
)
142,344
Notes payable
p
201,981
(201,981
)
-
Total current liabilities
1,046,448
442,209
1,488,657
Noncurrent
Lease liabilities, net of current
n
346,621
(272,813
)
73,808
Government loans, net of current
q
-
147,168
147,168
Due to related parties
i
-
3,038,818
3,038,818
Payable for acquisition
r
-
2,855,000
2,855,000
Convertible debenture
s
-
100,000
100,000
Total
    noncurrent liabilities
346,621
5,868,173
6,214,794
Total liabilities
$
1,393,069
$
6,310,382
$
7,703,451
Shareholders' equity (deficit)
Stockholders' Equity
t
Common stock, par value $0.00001, authorized
    220,000,000 shares; 122,767,778 and 122,472,933 shares issued and outstanding at December 31, 2023, and December 31, 2022, respectively
4,726,069
(4,724,844
)
1,225
Additional paid-in capital
t
-
4,600,182
4,600,182
Accumulated deficit
(1,408,009
)
(4,452,471
)
(5,860,480
)
Total Stockholders' Equity
    / (Deficit)
3,318,060
(4,577,133
)
(1,259,073
)
Total liabilities
    and shareholders' Deficit
$
4,711,129
$
1,733,249
$
6,444,378
F-
41
Statement of comprehensive income/(loss)
As filed
Restatement
adjustments
As restated
2022
2022
2022
Revenues, net of returns
u
7,055,896
(4,672
)
7,051,224
Costs and expenses:
Cost of goods sold
v
2,249,115
1,800,665
4,049,780
Sales & marketing
w
368,264
428,596
796,860
General and administrative expenses
x
4,525,487
(983,051
)
3,542,436
Operating loss
(86,970
)
(1,250,882
)
(1,337,852
)
Other income /(expenses)
Interest expense
y
(98,997
)
(34,072
)
(133,069
)
Gain on forgiveness of Paycheck Protection Program loan
528,586
-
528,586
Total income (loss) for the year, net of tax
$
342,619
$
(1,284,954
)
$
(942,335
)
F-
42
Statement of cash flows
As filed
Restatement
adjustments
As restated
2022
2022
2022
Amount in $
Amount in $
Amount in $
Cash flows from operating activities:
Net income / (loss)
$
342,619
$
(1,284,954
)
$
(942,335
)
Reconcile net loss to cash used in operating activities
Gain on forgiveness of Paycheck Protection Program loan
-
(528,586
)
(528,586
)
Allowance for inventory obsolescence
-
76,774
76,774
Loss on disposal of property
-
3,241
3,241
Depreciation of property & equipment
-
109,485
109,485
Amortization of right-of-use assets
-
402,855
402,855
Amortization of convertible debenture
-
100,000
100,000
Stock-based compensation
-
496,300
496,300
Amortization of intangible assets
-
46,130
46,130
Changes in operating assets and liabilities:
Accounts receivable
(19,837
)
74,292
54,455
Inventories
(307,556
)
(184,491
)
(492,047
)
Prepaid expenses and other current assets
(915
)
(49,429
)
(50,344
)
Accounts payable & accrued liabilities
(227,700
)
369,909
142,209
Other current liabilities
85,990
(57,586
)
28,404
Payments on lease liabilities
(5,497
)
(410,572
)
(416,069
)
Due to / from related parties
(447,473
)
727,121
279,648
Notes payable
(766,128
)
766,128
-
Net cash used in operating activities
(1,346,497
)
656,617
(689,880
)
Cash flows from investing activities:
Purchases of property and equipment
81,977
(82,944
)
(967
)
Net cash used in investing activities
81,977
(82,944
)
(967
)
Cash flows from financing activities:
Issuance of equity
1,122,865
(1,122,865
)
-
Payment for deferred offering costs
-
(20,250
)
(20,250
)
Proceeds from issuance of convertible debenture
-
100,000
100,000
Payments for payable for acquisition
-
(445,001
)
(445,001
)
Share issuance for cash from Reg CF
-
1,162,867
1,162,867
Proceeds from debt facilities
-
156,800
156,800
Equipment loan repayment
-
(39,252
)
(39,252
)
Line of credit repayment
-
(362,231
)
(362,231
)
Net cash provided by financing activities
1,122,865
(569,932
)
552,933
Net increase (decrease) in cash
(141,655
)
3,741
(137,914
)
Cash, beginning of year
363,012
(22,271
)
340,741
Cash, end of year
221,357
(18,530
)
202,827
Supplemental disclosures of cash flow information
Cash paid for interest
(98,997
)
(34,072
)
(133,069
)
Non-cash investing and financing activities
Beneficial conversion feature on convertible debenture
-
100,000
100,000
Right-of-use and lease liability upon lease commencement
-
4,088
4,088
F-
43
Statement of changes in equity
As filed
Restatement
adjustments
As restated
2022
2022
2022
Total
Shareholders'
Equity/(Deficit)
Total
Shareholders'
Equity/(Deficit)
Total
Shareholders'
Equity/(Deficit)
December 31, 2021 (Restated)
$
1,852,574
$
(3,928,479
)
$
(2,075,905
)
Shares issued for the year
1,122,867
(1,122,867
)
-
Shares based compensation
-
496,300
496,300
Shares issued as part of Reg CF campaign
-
1,162,867
1,162,867
Beneficial conversion feature on convertible debenture
-
100,000
100,000
Net income (loss)
342,619
(1,284,954
)
(942,335
)
December 31, 2022 (Restated)
$
3,318,060
$
(4,577,133
)
$
(1,259,073
)
Cumulative effect of the change in common
stock, additional paid-in capital, and accumulated deficit
Common
Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Net effect of prior years
$
(3,601,986
)
$
2,841,024
$
(3,167,521
)
Change for the year ended December 31, 2022
(1,122,858
)
1,759,158
(1,284,950
)
Net change
$
(4,724,844
)
$
4,600,182
$
(4,452,471
)
F-
44
5.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies used in the preparation
of these consolidated financial statements are described below.
Cash
Cash consists of cash in readily available
checking accounts and deposits in transit. As of December 31, 2023, and 2022, cash balances were deposited at a major financial institution.
Cash balances are subject to minimal credit risk as the balances are with high credit quality financial institutions.
Trade and other receivables
Accounts receivables are stated at
the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible
amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company's
best estimate of the amount of probable credit losses in the Company's existing accounts receivable; however, changes in circumstances
relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management
evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the
current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance
after all collection efforts have been exhausted and the potential for recovery is considered remote. For the year ended December 31,
2023, the Company recorded an allowance for doubtful accounts of $36,287.
Inventories
Inventory consists of raw materials,
work in process and finished goods. Inventory is measured at the lower of cost or net realizable value. Inventory costs include direct
labor and certain overhead expenses such as in-bound shipping and handling costs incurred to bring the inventory to its present location
and conditions. Cost is determined using the weighted average method. Net realizable value is the estimated selling price in the ordinary
course of business, less the estimated costs of completion and selling expenses. If the Company determines that the estimated net realizable
value of its inventory is less than the carrying value of such inventory, it records a charge to impairment expenses.
Property and equipment
Property and equipment are stated
at cost. Depreciation of property and equipment is recorded using the straight-line method over the assets' estimated useful lives.
Computer equipment and capitalized software are depreciated over two to five years and furniture, and fixtures are depreciated over five
years. Amortization of fixed assets under capital leases is included in depreciation expense.
F-
45
The categories of capital assets are
amortized on a straight-line basis as follows:
●
Machinery &
                                            equipment
7 years, straight-line
●
Furniture &
                                            fixtures
7 years, straight-line
●
Computer equipment
5 years, straight-line
The Company allocates the amount initially
recognized in respect of a capital asset to its significant parts and amortizes separately each such part. Residual values, methods of
amortization and useful lives of the capital assets are reviewed annually and adjusted if appropriate.
Gains and losses on disposals of capital
assets are determined by comparing the proceeds with the carrying amount of the capital asset and is included in the consolidated statement
of operations and comprehensive loss.
The assets' residual values,
useful lives and methods of depreciation are reviewed at each fiscal year-end and adjusted prospectively if appropriate. An item of equipment
is retied upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on sale or retirement
of the asset (calculated as the difference between the net disposal proceeds and the carrying value of the asset) is included in the
consolidated statement of operations in the year the asset is retired. Such assets are tested annually for impairment, or more frequently,
if events or changes in circumstances indicate that they might be impaired.
Intangible Assets
Intangible assets are recorded at
cost less accumulated amortization and impairment losses, if any. Intangible assets acquired in a business combination are measured at
fair value at the acquisition date. Amortization is provided on a straight-line basis over their estimated useful lives, which do not
exceed the contractual period, if any. Intangible assets that have indefinite useful lives are not subject to amortization and are tested
annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. The estimated
useful lives, residual values, and amortization methods are reviewed at each year end, and any changes in estimates are accounted for
prospectively.
The categories of the intangible assets
are amortized on a straight-line basis as follows:
●
Customer relationships
10 years
●
cGMP certification
Indefinite life
●
Goodwill (including
                                            Assembled Workforce)
Indefinite life
●
Kirkman brand
Indefinite life
Expenditures in the research phase
and post-development maintenance costs are expensed as incurred.
Goodwill
Goodwill arises from business combinations
and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any non-controlling
interests in the acquire, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill
acquired in a business combination is not amortized but tested for impairment at least annually or more frequently if events and circumstances
exist that indicate that a goodwill impairment test should be performed.
F-
46
Goodwill is tested for impairment
at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment (referred to as a component).
We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. Assets
and liabilities are assigned to each reporting units if they are employed by a reporting unit and are considered in the determination
of the reporting unit fair value. We have one reporting unit with goodwill, which is the Kirkman business.
Impairment of long-lived assets
The Company's indefinite-lived
intangible assets is tested for impairment at the consolidated level. In evaluating the recoverability of the Kirkman Brand name and
CGMP License, we compare the fair value of the asset to its carrying amount to determine potential impairment. The Company's estimate
of the fair value of the Kirkman Brand name is derived using the income approach, specifically the relief-from-royalty method and the
fair value of the CGMP License is derived using the income approach.
The fair value determination of the
reporting units and the indefinite-lived intangible asset is judgmental in nature and requires the use of significant estimates and assumptions
that are sensitive to changes. Assumptions include estimation of the royalty rate, estimation of future revenue and projected margins,
which are dependent on internal cash flow forecasts, estimation of the terminal growth rates and capital spending, and determination
of discount rates. As a result, there can be no assurance that the estimates and assumptions made for purposes of the quantitative goodwill and
indefinite-lived intangible impairment tests will prove to be an accurate prediction of future results. Examples of events or circumstances
that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair value
of the reporting units may include such items as: (i) volatility in the equity and debt markets or other macroeconomic factors, (ii)
an increase in the weighted-average cost of capital due to further increases in interest rates, (iii) decrease in future cash flows due
to lower than expected sales, or (iv) fluctuations in foreign currency exchange rates that may negatively impact the Company's
reported results of operations. Accordingly, if the current cash flow assumptions are not realized, we experience further increases in
costs of capital, it is possible that an additional impairment charge may be recorded in the future, which could be material. The Company
recorded an impairment loss of $300,300, at December 31, 2021.
Right-of-use Assets and Lease Liabilities
The Company recognizes right-of-use
assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured
at cost, less any accumulated amortization and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at
or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the
leased asset at the end of the lease term, right-of-use assets are amortized on a straight-line basis over the shorter of its estimated
useful life and the lease term.
At the commencement date of the lease,
the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments
include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend
on an index or a rate, and amounts expected to be paid under residual value guarantees, if applicable. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a
lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index
or a rate are recognized as occupancy expense in the period on which the event or condition that triggers the payment occurs.
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In calculating the present value of
lease payments, the Company uses its incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease
is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is re-measured if there is a modification,
a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying
asset.
Leases as lessee
The Company determines if an arrangement
is a lease at inception of an arrangement. Operating and finance lease assets and liabilities are recognized at the commencement date
of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company's right to use
an underlying asset for the lease term, while lease liabilities represent the Company's obligation to make lease payments arising
from the lease. The Company uses the internal incremental borrowing rate based on the information available at the lease commencement
date, in determining the present value of lease payments. The length of a lease term includes options to extend or terminate the lease
when it is reasonably certain the Company will exercise those options. The Company made an accounting policy election to not recognize
lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines
payments for leased assets, related services and other components of a lease. The Company applies a portfolio approach to determine the
discount rate for leases with similar characteristics.
For leases classified as operating,
the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus unamortized initial
direct costs, plus/(minus) any unamortized prepaid/(accrued) lease payments, less the unamortized balance of lease incentives received.
Lease expense for lease payments is recognized on a straight-line basis over the lease term.
For leases classified as finance leases,
the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of
its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company, or the Company
is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful
life of the underlying asset. The Company expects to exercise the options to purchase the assets which are leased under finance leases.
Accordingly, these assets are included in property and equipment, and depreciation thereon is recognized as depreciation expense. When
the Company makes contractually required payments under finance leases, a portion is allocated to reduce the finance lease obligation,
and a portion is recognized as interest expense.
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Stock-based compensation plans
The Company has a stock-based compensation
plan that is used to compensate the Board, officers, employees and consultants for services rendered.
The restricted share units ("RSU's)
are measured by reference to the fair value of the Company's Common Share at the date on which they are granted. In situations
where equity instruments are issued to non-employees and the fair value of goods or services received by the entity as consideration
cannot be estimated reliably, they are measured at fair value of the equity instruments granted.
The costs of equity settled transactions
are recognized as expenses, together with a corresponding increase in equity, over the period in which the performance and/or service
conditions are fulfilled, ending on the date on which the relevant party becomes fully entitled to the award.
No expense is recognized for performance-based
awards that do not vest. Expense for service-based award is recognized upon vesting. Where the terms of an equity settled award are modified,
the minimum expense recognized is the expense as if the terms had not been modified. An additional expense is recognized for any modification
which increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee as measured at
the date of modification.
Compensation expense is recognized
for all share-based payments to employees and non-employees, including restricted stock units, in the statements of operation based on
the fair value of the awards that are granted. As necessary, the Company's stock price at the date of grant was estimated using
an acceptable valuation technique such as a recent round of fundraising or the probability-weighted expected return model. The fair value
of RSUs is determined at the date of grant using the price per share offered at the most recent round of fundraising, the Reg CF campaign.
Compensation expense for restricted
stock awards with performance-based vesting conditions is calculated based on the number of awards that are expected to vest during the
performance period if it is probable that the performance metrics will be achieved. Generally, measured compensation cost, net of actual
forfeitures, is recognized on a straight-line basis over the vesting period of the related share-based compensation award. The Company
accounts for forfeitures of stock-based awards as they occur.
Revenue recognition
We account for revenue in accordance
with the Financial Accounting Standards Board ("FASB") Accounting Standard Codification Topic 606, "Revenue
from Contracts with Customers". Revenue is measured based on the amount of consideration that we expect to receive, reduced by
discounts and estimates for credits and returns (calculated based upon previous experience and management's evaluation). Outbound
shipping charged to customers is recognized at the time the related merchandise revenues are recognized and are included in net revenues.
Per Company policy, any product that
doesn't meet the customer's expectations can be returned within the first 30 days of delivery in exchange for another product
or for a full refund. Any product sold through a distributor or retailer must be returned to the original purchase location for any return
or exchange.  For the years ended December 31, 2023, and 2022, the Company has not recorded any reserves on revenue.
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Loss per Share
Basic net loss per common share is
calculated by dividing the net loss distributed to the common class, by the weighted-average number of common shares outstanding during
the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss
attributable to common stockholders by the weighted-average number of common shares and potentially dilutive securities outstanding for
the period.
For purposes of the diluted net loss
per share calculation, vested restricted stock units (RSUs) are considered to be potentially dilutive securities. As of December 31,
2023, and 2022, there were no potential common stock equivalents excluded from the diluted loss per share calculations as their effect
is anti-dilutive. Because the Company has reported a net loss for the years ended December 31, 2023, and 2022, diluted net loss per common
share is the same as basic net loss per common share for such years.
Business Combinations
Business combinations are accounted
for using the acquisition method. The fair value of total purchase consideration is allocated to the fair values of identifiable tangible
and intangible assets acquired and liabilities assumed, with the remaining amount being classified as goodwill. All assets, liabilities
and contingent liabilities acquired or assumed in a business combination are recorded at their fair values at the date of acquisition.
Determining the fair value of assets acquired and liabilities assumed requires management to use significant judgment and estimates including
the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates, and selection of comparable companies.
Estimates of fair value are based on assumptions believed to be reasonable, but are inherently uncertain and unpredictable and, as a
result, actual results may differ from those estimates. During the measurement period, not to exceed one year from the date of acquisition,
the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill. At the conclusion
of the measurement period, any subsequent adjustments are reflected in the statements of operations. Transaction costs associated with
business combinations are expensed as incurred and are included in general and administrative expenses in the Company's statements
of operations.
Significant accounting estimates
and judgments
The most significant judgements made
in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements
include:
●
Obsolescence of inventories
●
Recoverability of the carrying
                                            value of long-lived assets including property & equipment and intangible assets
●
Recoverability of carrying
                                            value of goodwill
●
Discount rate used to calculate
                                            present value of future minimum lease payments for right-of-use asset and liabilities
●
Recognition and measurement
                                            of provisions and contingencies
●
Valuation of deferred income
                                            tax assets
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Inventories, net
The Company periodically reviews the
value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions, including
forecasted demand compared to quantities on hand, as well as other factors such as potential excess or aged inventories based on product
shelf life, and other factors that affect inventory obsolescence.
Long-Lived Assets
Long-lived assets consist primarily
of property and equipment. Long-lived assets are tested for impairment when events and circumstances indicate the assets might be impaired
by first comparing the estimated future undiscounted cash flows of the asset or asset group to the carrying value. If the carrying value
exceeds the estimated future undiscounted cash flows, an impairment loss is recognized based on the amount that the carrying value exceeds
the fair value of the asset or asset group. The Company did not recognize impairment losses during the years ended December 31, 2023,
and 2022.
Fair value of financial instruments
The individual fair values attributed
to the different components of a financing transaction, notably investment in equity securities, derivative financial instruments, convertible
debt and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions
and in performing the fair value calculations in order to determine (a) the values attributed to each component of a transaction at the
time of their issuance; (b) the fair value measurements for certain instruments that require subsequent measurement at fair value on
a recurring basis; and (c) for disclosing the fair value of financial instruments subsequently carried at amortized cost. These valuation
estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of
these instruments that are not quoted in an active market.
As required by the Fair Value Measurements
and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs
used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other
than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which
there is little or no market data, which require the reporting entity to develop its own assumptions.
Segment Reporting
The Company has two reportable
segments: 1) Kirkman, which sells a range of nutraceuticals, supplements and related products direct to consumers; 2) HT Naturals,
which sells a range of hemp products; and 3) Corporate, which generates no revenue, but reflects corporate expenses related primarily
to management of the company, including costs associated with legal, audit, accounting, tax, SEC reporting, and investor/public relations,
among other corporate expenses. As the hemp segment makes up less than 10% of net revenue, the Company has not disclosed summarized financial
segment information.
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Income taxes
The Company must exercise judgment
in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of
business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for expected tax
audit issues based on the Company's current understanding of the tax law. For matters where it is probable that an adjustment will
be made, the Company records its best estimate of the tax liability including the related interest and penalties in the current tax provision.
In addition, the Company recognizes
deferred tax assets relating to tax losses carried forward to the extent there are sufficient taxable temporary differences (deferred
tax liabilities) relating to the same taxation authority and the same taxable entity against which the unused tax losses can be utilized.
However, utilization of the tax losses also depends on the ability of the taxable entity to satisfy certain tests at the time the losses
are recouped.
Risks and uncertainties
The Company's business and operations
are sensitive to general business and economic conditions in the U.S. and worldwide along with local, state, and federal governmental
policy decisions. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions
may include but are not limited to changes in US laws surrounding the sale of smokable CBG/CBD products, consumer demand, and COVID-19
issues more fully described below. These adverse conditions could affect the Company's consolidated financial condition and the
results of its operations.
6.
CASH
Cash consists of liquid funds and
deposits in transit.
RESTATED
December 31,
2023
December 31,
2022
Cash
$
364,350
$
201,103
Deposits in transit
10,085
1,724
Cash
$
374,435
$
202,827
7.
ACCOUNTS RECEIVABLE
Accounts receivable consist of trade
receivables, net of allowance.
RESTATED
December 31,
2023
December 31,
2022
Trade receivables
$
207,225
$
238,927
Allowance for doubtful accounts
(36,287
)
-
Accounts receivable
$
170,938
$
238,927
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8.
INVENTORIES
Inventories consisted of raw materials
(minerals – magnesium, Calcium, vitamins, botanical extracts, hemp, trim and flower – CBG and CBD), finished goods (capsules,
tablets, powders, creams, cigs, gummies, tinctures, pre-rolls, and vapes) and packaging & supplies (bottles, labels, covers, filters,
tipping paper and packaging materials).
RESTATED
December 31,
2023
December 31,
2022
Raw materials, packaging / labels and others
$
813,236
$
847,462
Work in process
-
89,415
Finished goods
880,784
1,182,356
Total inventories
$
1,694,020
$
2,119,233
During the year ended December 31,
2023, the Company recorded an allowance for inventory obsolescence in the amount of $79,033. This obsolescence allowance is continually
re-evaluated and adjusted as necessary.
9.
PREPAIDS & OTHER CURRENT ASSETS
Balance consists of prepayments made
to vendors and legal retainers.
RESTATED
December 31,
2023
December 31,
2022
Prepaids & deposits
$
45,538
$
108,576
Other current assets
26,903
38,360
Total prepaids and other current assets
$
72,441
$
146,936
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10.
DEFERRED OFFERING COSTS
Schedule below represent capitalization of deferred cost
incurred for the preparation of Initial Public Offering ("IPO"):
RESTATED
December 31,
2023
December 31,
2022
Administrative fees
$
7,500
$
-
Legal services
171,063
-
Professional services
53,347
20,250
Total IPO Cost
$
231,910
$
20,250
11.
PROPERTY & EQUIPMENT
Property and equipment consist of
the following:
RESTATED
December 31,
2023
December 31,
2022
Furniture & fixtures
3,302
$
3,302
Computer equipment
30,988
30,988
Machinery & equipment
728,627
725,128
Total property and equipment, gross
762,917
759,418
Less: accumulated depreciation
(666,863
)
(561,689
)
Property and equipment, net
$
96,054
$
197,729
Depreciation expenses totaled $105,175
and $109,485 for the years ended December 31, 2023, and 2022, respectively.
12.
RIGHT-OF-USE ASSETS & LEASE LIABILITY
Lease expense for minimum lease payments
is recognized on a straight-line basis over the lease term. The following are the expected lease payments as of December 31, 2023. The
lease is considered an "operating lease" and consequently lease payments are calculated on a straight-line basis, including
the total amount of interest related.
Lease expense, on the straight-line
basis was $507,508 and $372,066 during the years ended December 31, 2023, and 2022.
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54
The movement in the right-of-use assets
is as follows:
RESTATED
December 31,
2023
December 31,
2022
Right of use assets:
Right of use assets recognized as of January 1
$
89,611
$
488,378
Additions
2,500,613
4,088
Amortization Expense
(283,197
)
(402,855
)
Right of use assets
$
2,307,027
$
89,611
The movement in lease liability is
as follows:
RESTATED
December 31,
2023
December 31,
2022
Lease liabilities recognized as at January 1
$
92,904
$
504,885
Additions
2,500,612
4,088
Lease payments
(196,469
)
(416,069
)
Lease liabilities as at December 31
2,397,047
92,904
Less: current portion
(261,015
)
(19,096
)
Long-term portion
$
2,136,032
$
73,808
Right-of-use assets and lease liabilities
comprise of three leases.
LEASE 1 – OPERATING FACILITY
On January 1, 2023, the Company entered
a 7-year and 2-month lease to lease approximately 24,400 square feet industrial building containing 9,095 square feet of office space
and 9,663 square feet of production area. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation.
The base monthly rent is $26,500 per
month per month, with subsequent annual increases of 3%. Operating expense came to $10,774 per month for 2023 borne by the lessee.
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55
LEASES 2 & 3 – OFFICE EQUIPMENT
The Company entered into a 5-year
lease to lease office equipment that consists of four copiers for daily office use commencing on September 30, 2021. At inception of
the lease, the Company recorded a right of use asset and liability. The Company used an effective borrowing rate of 9.0% within the calculation.
The base monthly payment amount is
$1,979 per month per month, with subsequent annual increases of 6%. Operating expense came to $2,119 per month for 2023 borne by the
lessee.
In addition, The Company also entered
into a 4-year and 7-month lease agreement to lease a Paper Source Accessory for daily office use commencing on March 14, 2022, to complement
the previous office equipment discussed. At inception of the lease, the Company recorded a right of use asset and liability. The Company
used an effective borrowing rate of 9.0% within the calculation. The base monthly payment amount is $89 per month, with no subsequent
annual increases.
13.
BUSINESS COMBINATION
On July 3, 2019, the Company entered
into an asset purchase agreement (the "APA") with the Kirkman Group Inc. ("Kirkman") to acquire certain tangible
and intangible assets for a purchase price of $5,000,000.
As per ASC 805 – Business Combinations,
an entity shall determine whether a transaction or other event is a business combination by applying the definition in this Subtopic,
which requires that the assets acquired and liabilities assumed constitute a business.
Excerpt from ASC 805-10-55-3A
provides that a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose
of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members,
or participants.
According to ASC 805-10-55-4, a business
consists of inputs and processes applied to those inputs that have the ability to contribute to the creation of outputs. The three elements
of a business are defined as follows:
a.
Input. Any economic resource that
                                            creates, or has the ability to contribute to the creation of, outputs when one or more processes
                                            are applied to it. Examples include long-lived assets (including intangible assets or rights
                                            to use long-lived assets), intellectual property, the ability to obtain access to necessary
                                            materials or rights, and employees.
b.
Process. Any system, standard,
                                            protocol, convention, or rule that when applied to an input or inputs, creates or has the
                                            ability to contribute to the creation of outputs. Examples include strategic management processes,
                                            operational processes, and resource management processes. These processes typically are documented,
                                            but the intellectual capacity of an organized workforce having the necessary skills and experience
                                            following rules and conventions may provide the necessary processes that are capable of being
                                            applied to inputs to create outputs. Accounting, billing, payroll, and other administrative
                                            systems typically are not processes used to create outputs.
c.
Output. The result of inputs and
                                            processes applied to those inputs that provide goods or services to customers, investment
                                            income (such as dividends or interest), or other revenues.
The property plant and equipment purchased,
along with the assembled workforce, are inputs which have the ability to create outputs so condition a. above is met. In addition, The
Company also obtained the cGMP (Current Good Manufacturing Practice)-certified process in this asset acquisition.
That process, when applied to the
inputs also acquired, are able to produce outputs, namely the manufacturing of over-the-counter remedies, generic drugs, and nutritional
supplements. As such, conditions b. and c. above are met. Therefore, acquisition transaction meets the elements of (a) (b) and (c) of
the definition of a business. Accordingly, the transaction is considered a business acquisition and accounted for under the guidance
of ASC 805.
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56
The
                                            present value of the acquisition fair value of the deferred cash payment transferred for
                                            Kirkman was $4,329,317, which consisted of the following:
Kirkman Group Inc.
Purchase consideration
Fair Value
Cash
$
1,250,000
Deferred cash payment - $750,000 raise or 1st anniversary of closing
722,388
Deferred cash payment - $1,500,000 on 1st anniversary of closing
1,270,649
Deferred cash payment - $1,500,000 on 2nd anniversary of closing
1,086,280
Total consideration - $5,000,000
$
4,329,317
The following table summarizes the
finalized fair value of assets acquired, and liabilities assumed as of the date of the acquisition in 2019:
Kirkman Group Inc.
Purchase consideration
Fair Value
Net assets
$
1,513,878
Kirkman brand
1,226,000
cGMP certification
310,000
Customer relationships
461,300
Net assets acquired
3,511,178
Goodwill
818,139
Total Consideration
$
4,329,317
The excess of purchase consideration
over the fair value of net assets acquired was recorded as goodwill which is not deductible for tax purposes.
Payable for acquisition
As of December 31, 2023, and 2022,
the Company owed $2,597,368 and $2,855,000, respectively, in connection with the aforementioned APA, which is due in its entirety on
January 1, 2025, subject to the Forbearance Agreement and Confession of Judgement.
On September 24, 2024, the Company
executed a Forbearance Agreement which allows the seller to postpone the payment of principal balance without pursuing rights under the
APA.
On September 24, 2024, the Company
executed a Confession of Judgement in respect of the principal owed in the amount of $2,417,366 which allowed the seller to enter a judgement
against the Company in The Circuit Court of The State of Oregon for the County of Clackamas.
The execution of these documents will
impact the Company if it fails to settle the balance owed by the due date, January 1, 2025. As a result, the seller has the right to
foreclose on the business.
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57
14.
INTANGIBLE ASSETS & GOODWILL
Balance consists of intangible assets
acquired from acquisition of Kirkman in July 2019. The Kirkman brand and the c-GMP certification were assigned an indefinite useful life,
whereas the customer relationships were assigned a life span of 10 years.
RESTATED
December 31,
2023
December 31,
2022
Kirkman brand, net
$
925,700
$
925,700
cGMP certification
310,000
310,000
Customer relationships
461,300
461,300
Total intangible assets, gross
1,697,000
1,697,000
Less: Accumulated amortization: Customer relationships
(207,329
)
(161,199
)
Intangible assets
$
1,489,671
$
1,535,801
During the year ended December 31, 2021, the
Company recorded an impairment charge in the amount of $300,300 against the Kirkman brand. There were no further impairments to the intangible
assets during the years ended December 31, 2023 and 2022.
Balance consists of goodwill (including assembled
workforce) acquired from acquisition of Kirkman in July 2019 which was assigned an indefinite useful life.
RESTATED
December 31,
2023
December 31,
2022
Goodwill
$
818,139
$
818,139
15.
ACCOUNTS PAYABLE & ACCRUED LIABILITIES
Balance consists of trade payables
and accruals.
RESTATED
December 31,
2023
December 31,
2022
Trade payables
$
562,519
$
264,320
Accrued liabilities
-	Professional services
462,499
365,251
-	Legal & audit fees
316,352
191,352
-	Audit fees
17,329
-
796,180
556,603
Accrued compensation - shares earned but not issued
271,700
471,500
Total accounts payable and accrued liabilities
$
1,630,399
$
1,292,423
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16.
EQUIPMENT LOANS
Balance consists of equipment loans
for production & packaging machinery.
RESTATED
December 31,
2023
December 31,
2022
Equipment loans recognized as of January 1
$
4,125
$
43,377
Proceeds from debt facilities
-
-
Payments on debt facilities
(4,125
)
(39,252
)
Equipment loans at December 31
-
4,125
Less: current portion
-
(4,125
)
Long-term portion
$
-
$
-
17.
LINES OF CREDIT
On January 20, 2023, the Company entered
a line of credit agreement with a third-party whereby the Company received $300,000. The terms of the loan were for one year, with a
27% contract interest rate. On January 22, 2024, the loan was settled in full, at which point the security interest was released by the
lender.
On July 14, 2023, the Company entered
into an additional line of credit agreement with a third-party whereby the Company received $100,000. The terms of the loan were for
42 weeks, with a 5% contract interest rate. On July 7, 2024, the loan was settled in full, at which point the security interest was released
by the lender.
In addition, during the year ended
December 31, 2022, the Company executed a line of credit agreement with a third-party on April 12, 2022, whereby the Company received
$140,000. The terms of the loan were for an undefined period, with a 12% contract interest rate. Repayment rate was 20% of daily credit
card sales paid on a daily until the balance was settled in full on February 23, 2023.
RESTATED
December 31,
2023
December 31,
2022
Line of credit recognized as of
    January
1
$
27,837
$
233,268
Proceeds from lines of credit
400,000
156,800
Payments on lines of credit
(359,522
)
(362,231
)
Line of credit at December 31
68,315
27,837
Less: current portion
(68,315
)
(27,837
)
Long-term portion
$
-
$
-
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18.
GOVERNMENT LOANS PAYABLE
On July 7, 2020, Kirkman applied and
was a granted thirty (30) year loan from the U.S. Small Business Administration for $150,000 with an interest of 3.75% per annum accrued
daily, to alleviate financial burden caused due to COVID-19.
In addition, on January 21, 2021,
Kirkman also applied for a Payment Protection Program loan from U.S. Small Business Administration receiving $528,586 in cash at 1% per
annum accruing interest daily. This loan was later forgiven in its totality on August 10, 2022.
RESTATED
December 31,
2023
December 31,
2022
Government loans recognized as of January 1
$
150,000
$
678,586
Proceeds from debt facilities
-
-
Payments on debt facilities
(2,832
)
-
Debt forgiveness
-
(528,586
)
Government loans at December 31
147,168
150,000
Less: current portion
(3,280
)
(2,832
)
Long-term portion
$
143,888
$
147,168
The Company has the following government
loan commitments as at December 31, 2023.
Amount
2024
$
3,280
2025
3,437
2026
3,595
2027 and beyond
136,856
Total
$
147,168
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60
19.
OTHER CURRENT LIABILITIES
Balance consists of credit cards,
employee benefits and sales tax payable.
RESTATED
December 31,
2023
December 31,
2022
Credit cards
$
25,787
$
13,789
Employee benefits payable
-
13,932
Sales tax
1,242
11,272
Other
13,796
103,351
$
40,825
$
142,344
Credit cards are utilized for software
and technology costs for which no other form of payment is available.
20.
CONVERTIBLE DEBENTURE
On October 7, 2022, the Company entered
into Convertible Debenture Purchase Agreements pursuant to which the Company issued unsecured convertible promissory note ("Convertible
Debenture"). The Company issued Convertible Debenture in the aggregate principal amount of $100,000 that was used to pay the expenses
of the organization and reorganization and for other general corporate purposes. Interest accrued on the principal balance of the Convertible
Debenture at 10.0% per annum totaled $2,338. The Convertible Debenture ranks on a parity with the Company's other existing debt
and matured on December 31, 2022. The Convertible Debenture was to convert the outstanding principal and accrued interest into shares
of the Company's common stock on maturity date at a price per share equal to $0.05 per share. As of December 31, 2023, the holder
had still not converted the debenture.
21.
RELATED PARTY TRANSACTIONS
Long-term debt
In December 2023, the Company entered
into a short-term debt facility with a related party, an officer and director of the parent company – Hemptown Organics Corp.,
whereby the Company received $247,634. The loan is non-interest bearing with a 2-year term.
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61
Inter-company transactions
During the years ended December 31,
2023, and 2022, the Company engaged in inter-company transactions with its parent company, Hemptown Organics Corp. and sister companies,
L2F, LLC and HTO Holdings Inc., to borrow funds for operational activities and debt repayment. At December 31, 2022, the Company had
balances due from related party of $1,074,925 and $3,038,818 respectively. During the Year ended December 31, 2023 the Company made payments
of ($615,257) and received $299,509 for a net reduction of $315,748 and reached an agreement with the parent and sister companies to
forgive the net balance of $1,648,145 and the forgiveness amount was recorded in additional-paid-in-capital.
Executive contracts
On April 1, 2023, the Company executed
contracts with the Chief Executive Officer for a term of 1 year, totaling $280,000.
On April 1, 2023, the Company executed
contracts with the Chief Financial Officer for a term of 1 year, totaling $200,000.
22.
DEFERRED TAXES
The provision for income taxes for
the year ended December 31, 2023, and 2022 consists of the following:
2023
2022
Current:
Federal
$
(259,139
)
$
(286,515
)
State
(64,341
)
(71,138
)
Change in Valuation Allowance
323,480
357,653
Income Tax Expense
$
-
$
-
The Company has the following net deferred tax
asset (liability):
As of
December 31,
2023
As of
December 31,
2022
Net Operating Losses
$
1,204,862
$
1,156,009
Inventory Reserve
20,718
28,234
Accounts Receivable Provision for uncollectable
9,512
-
ROU Assets
23,598
864
Accrued Liabilities
188,330
72,507
Stock Compensation
254,983
108,080
Book to Tax Depreciation – Property, Plant & Equipment
(25,033
)
(51,832
)
Book to tax amortization – Intangible Assets
(120,646
)
(80,939
)
Valuation Allowance
(1,556,324
)
(1,232,923
)
Net Deferred Tax Assets (liabilities)
$
-
$
-
F-
62
In assessing the realizability of
deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment. The Company has net loss carryforwards of approximately $5,539,000 available
to offset future taxable income. Tax returns for the years 2019 through 2023 remain open to review by both Federal and State Tax Authorities.
23.
SHARE CAPITAL
Authorized share capital
Common Shares
Upon incorporation, the Company authorized
1,000,000 common shares with a par value of $0.001 per share were initially authorized for issuance. The Initial Share of the Company
was allotted and issued to Zayn Kalyan as fully paid on November 19, 2020, the date of the organization. The issuance of the Initial
Share was recorded in the central securities register of the Company and represents the only share initially issued. The Company purchased
the Initial Share from Zayn Kalyan for the price of $0.01 and the Initial Shared formed part of the authorized but unissued share capital
of the Company. The repurchase of the Incorporator's Share was recorded in the central securities register of the Company and the
director confirms that no share certificate was issued or shall be issued in respect of the Initial Share.
On December 10, 2020, the Company
altered its authorized share capital to 100,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.
On August 31, 2023, this was changed
to 220,000,000 common shares with a par value of $0.00001 per share to be issued from its treasury.
All Common Shares are entitled to
one vote in respect to each Common Share held at all meetings of shareholders of the Company.
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63
Issued share capital
Common share issuances
On December 10, 2020, the Company
entered into a licensing agreement with Hemptown Organics Corp. (the "licensor") to use the Hemptown Naturals brand (the
"asset") on a non-exclusive, non-transferable basis for a period of 4 years. In return, 40,000,000 common shares were issued
to the licensor at $0.001 per share with deemed proceeds of $40,000 as consideration.
On May 19, 2023, the Company entered
into a Share Exchange Agreement (SEA) to acquire HTO Nevada Inc. from a related party, Hemptown Organics Corp. and its wholly owned subsidiary,
HTO Holdings Inc. This SEA was in respect of the asset purchase agreement (the "APA") the Company entered into on July 3,
2019, with the Kirkman Group ("Kirkman") to acquire certain tangible and intangible assets. As part of the SEA, the Company
issued 80,000,000 common shares as part of the compensation from the agreement at $0.001 per share with deemed proceeds of $80,000 as
consideration. This was retroactively recorded in 2019 as the acquisition was completed on July 3, 2019.
Regulation Crowdfunding (Reg CF)
Campaign
Under the Securities act of 1933,
the offer and sale of securities must be registered unless an exemption from registration is available. Title III of the Jumpstart Our
Business Startups (JOBS) Act of 2012 added Securities Act Section 4(a)(6) that provides and exemption from registration for certain crowdfunding
transactions. The Company is currently completing a Regulation Crowdfunding offering ("Offering") subject to the above regulations
and had filed its Offering statement on Form C through the EDGAR system and with the Title3Funds.com as intermediary.
The Offering is for up to a maximum
of $5,000,000 at a price of $1.40 per share with an offering deadline of December 31, 2022, which was extended to May 31, 2023. The securities
purchased in this Offering will be subject to a number of restrictions including restrictions on resale for a period of one year. The
use of the proceeds will be towards the fees associated with this Offering, further development of the Company's business –
sales & marketing, and for general working capital purposes.
Number of
shares issued
Price per
Share
Amount
May 2023
6,484
$
1.40
$
9,076
Total issuance for the year
6,484
$
9,076
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64
During the year ended December 31,
2023, the Company issued 6,484 common shares with net proceeds of $9,076 as part of Reg CF campaign in pre-IPO funding at a price of
$1.40 per share.
Number of
shares issued
Price
                                            per
Share
Amount
January 2022
72,027
$
1.40
$
100,840
February 2022
61,549
1.40
86,168
March 2022
105,330
1.40
147,462
April 2022
93,021
1.40
130,230
May 2022
139,616
1.40
195,462
Jun 2022
88,593
1.40
124,030
July 2022
36,143
1.40
50,600
August 2022
45,428
1.40
63,599
September 2022
65,717
1.40
92,004
October 2022
120,909
1.40
169,272
December 2022
2,286
1.40
3,200
Total issuance for the year
830,619
$
1,162,867
During the year ended December 31,
2022, the Company issued 830,619 common shares with net proceeds of $1,162,867 as part of Reg CF campaign in pre-IPO funding at a price
of $1.40 per share.
Regulation D (Reg D) Campaign
During the year ended December 31,
2023, the Company issued 286,486 shares with net proceeds of $106,000 as part of Reg D campaign in pre-IPO funding at a price of $0.37
per share.
Number of
shares issued
Price per
share
Amount
April 2023
270,270
$
0.37
$
100,000
May 2023
16,216
0.37
6,000
Total issuance for the year
286,486
$
106,000
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65
As of December 31, 2023, the Company
has received net proceeds of $106,000 and incurring transaction costs of $10,480 at a price of $0.37 per share.
Stock based compensation
For the years ended December 31, 2023
and 2022, stock-based compensation was $762,825 and $496,299, respectively.
Restricted stock units (RSUs) for
services
During the year ended December 31,
2023, the Company incurred $560,400 in contracting services resulting from 400,286 of restricted stock units for consultants providing
sales & marketing services at fair value of $1.40 per share.
Number of
shares RSUs
Amount
January 2023
33,000
46,200
February 2023
33,000
46,200
March 2023
33,000
46,200
April 2023
33,000
46,200
May 2023
43,000
60,200
Jun 2023
43,000
60,200
July 2023
43,714
61,200
August 2023
43,714
61,200
September 2023
23,714
33,200
October 2023
23,714
33,200
November 2023
23,714
33,200
December 2023
23,714
33,200
Total issuance for the year
400,286
$
560,400
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66
During the year ended December 31,
2022, the Company incurred $457,100 in contracting services resulting from 326,500 of restricted stock units for consultants providing
sales & marketing services at fair value of $1.40 per share.
Number of
shares RSUs
Amount
January 2022
28,500
39,900
February 2022
28,500
39,900
March 2022
28,500
39,900
April 2022
26,000
36,400
May 2022
26,000
36,400
Jun 2022
26,000
36,400
July 2022
26,000
36,400
August 2022
26,000
36,400
September 2022
26,000
36,400
October 2022
26,000
36,400
November 2022
26,000
36,400
December 2022
33,000
46,200
Total issuance for the year
326,500
$
457,100
24.
REVENUES, NET
This table shows revenue by product type –
Functional Brands (formerly HT Naturals) reflects hemp derived products whereas Kirkman reflects nutraceutical products.
RESTATED
December 31,
2023
December 31,
2022
Kirkman
$
6,435,735
$
6,870,433
Functional Brands (formerly HT Naturals)
384,764
180,791
$
6,820,499
$
7,051,224
25.
OTHER INCOME
Gain on loan forgiveness pertains
to the Paycheck Protection Program (PPP) loan forgiven by the Small Business Administration (SBA) on August 10, 2022, in the amount of
$528,586 during year ended December 31, 2022.
F-
67
26.
CONCENTRATION
During the year ended December 31,
2023, sales from two customers represented 22% and 19% for a total of 41% of sales totaling $2,918,058. During the year ended December
31, 2022, sales from three customers represented 17%, 13%, and 16% for a total of 46% of sales totaling $3,205,613.
As at December 31, 2023, accounts
receivable balance from three customers represented 17%, 13%, and 11% for a total of 41% of accounts receivable totaling $68,928. As
at December 31, 2022, accounts receivable balance from one customer represented 46% of total accounts receivable, totaling $110,082.
27.
COMMITMENTS AND CONTINGENCIES
The Company has an exclusive license
agreement with the Trailer Park Boys to market & sell hemp derived products. This license came into effect on July 21,
2021, and will expire on December 31, 2025. Under the amended license agreement, the Company will pay the Trailer Park Boys,
an amount equal to $200,000 with $50,000 advance against royalties payable upon execution of the agreement and $150,000 to be paid during
the second year of the agreement, additionally, the Trailer Park Boys are entitled to 1,000,000 shares of common stock of the
Company. The royalty rates under this agreement are between 15% - 30% of the net sales of the company derived from sales related to the
license. During the years ended December 31, 2023, and 2022, the Company made payments in the amount of $200,000 and $175,000, respectively,
with total payments amounting to $425,000. The license agreement may be terminated with reasonable cause upon six months' written
notice or for certain triggering events without recourse or an opportunity to cure.
28.
LEGAL PROCEEDINGS
From time to time, we may become involved
in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. On May 25, 2021, True Health
Medical Center, S.C. ("True Health") amended an existing complaint against Kirkman Group, Inc. ("Kirkman"), James
Hall and David Humphries to assert claims against HTO Nevada, Inc. and HTO Holdings, Inc. (collectively, HTO Nevada, Inc. and HTO Holdings,
Inc. are referred to as the "HTO Parties"). Kirkman is the seller of certain assets to the HTO Parties and is a separate
legal entity. Affiliates of the HTO Parties were first named in the lawsuit on September 23, 2020. The case is pending in the Circuit
Court for the Eighteenth Judicial Circuit, DuPage County, Illinois. Kirkman had terminated a royalty agreement prior to selling its assets
to the HTO Parties but the royalty agreement has a provision that allows True Health to continue to receive royalties after the termination
of the agreement. True Health claims that Kirkman underpaid the royalties due to True Health prior to the sale of assets to the HTO Parties.
There is no dispute that Kirkman stopped paying royalties to True Health around the time it terminated the agreement and that the HTO
Parties have never paid royalties to True Health. True Health contends that as the purchaser of certain Kirkman assets, the HTO Parties
should be bound by the terms of the royalty agreement. There is no certain amount at this time in connection with the alleged in the
damages claim against the HTO Parties. It is not possible to predict the outcome of this proceeding at this time. To date, the parties
have engaged in some discovery including a limited number of depositions. True Health has filed a motion for summary judgment that addresses
its claims against Kirkman but does not address any claim against the HTO Parties. The briefing is not yet complete on the summary judgment
motion and a ruling is likely more than 60 days away. Regardless of how the court rules on summary judgment, there will be remaining
claims in the case, and it is likely that additional discovery will be conducted. No trial date has been scheduled at this time. The
parties have largely completed both fact and expert discovery. Kirkman Group has recently filed a motion for leave to amend its counterclaims
against True Health. None of these proposed counterclaims are alleged against HTO Nevada. However, if the Court permits the amended counterclaims
to be filed, it is possible that additional discovery will be needed on the amended counterclaims. It is also likely that True Health
will move to dismiss some or all the amended counterclaims. Either additional discovery or motion practice would typically mean that
the prospective trial date will not occur until a later date than would have been the case absent these additional steps in the litigation.
As of today, the court has not set a trial date.
F-
68
29.
SUBSEQUENT EVENTS
The Company follows the guidance in
FASB ASC Topic 855, Subsequent Events ("ASC 855"), which provides guidance to establish general standards of accounting for
and disclosures of events that occur after the balance sheet date but before the consolidated financial statements are issued or are
available to be issued. ASC 855 sets forth the following:
(i)
The period after the balance sheet
                                            date during which management of a reporting entity evaluates events or transactions that
                                            may occur for potential recognition or disclosure in the consolidated financial statements
(ii)
The circumstances under which
                                            an entity should recognize events or transactions occurring after the balance sheet date
                                            in its consolidated financial statements, and
(iii)
The disclosures that an entity
                                            should make about events or transactions that occurred after the balance sheet date. Accordingly,
                                            the Company did not have any subsequent events that require disclosure other than the following.
Payable for acquisition
On September 24, 2024, the Company
executed a Forbearance Agreement with former owner of Kirkman. This allows the postponement of principal payment. On the same date, the
Company executed a Confession of Judgement in respect of the principal owed. This allowed the seller to enter a judgement against the
Company in The Circuit Court of The State of Oregon for the County of Clackamas.
Related party transactions
On March 11, 2024, the Company executed
a loan agreement with a related party in the amount of $130,000, with an annual interest rate of 20%, with a maturity date of March 10,
2031.
F-
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Long-term debt
Convertible Promissory Note
On April 29, 2024, the Company executed
a loan agreement with a lender in the amount of $150,000. The payment terms are 15% OID, initial principal amount consisting in $150,000
loan plus $26,500 OID totaling $176,500. To mature the earlier of six months from execution, completion of a Senior Exchange Listing
of the Company or as mutually agreed, with an interest rate of the higher of 12% or WSJ Prime plus 4% guaranteed.
With a conversion feature for the
Lender to be paid in full in cash at the IPO or convert the note into shares of the Company's common stock at the time of the Senior
Exchange Listing.
Invoice Financing
The Company executed multiple lending
agreements to satisfy vendor debts.
Date
Amount
Financed
Finance
Charges
Repayment Terms
March 12, 2024
$
35,162
$
2,092
17 weeks
March 20, 2024
$
51,500
$
5,021
26 weeks
July 16, 2024
$
36,804
$
4,048
26 weeks
The financing agreement executed on
March 12, 2024 was settled in full on July 8, 2024 and the financing agreement executed on March 20, 2024 was settled in full on September
25, 2024.
Material contract
On January 1, 2024, the Company executed
an Advisory Agreement with a service provider to support the IPO process. The scope of work includes strategic review, consulting services,
IPO readiness & execution as well as capital market advisory. Payment structure is as follows:
·
Monthly
                                            payment of $5,000 per month to be settled in the following manner
o
50% to be paid in cash
o
50% to be converted into shares of
                                            the Company's common stock
·
Payment
                                            of $100,000 upon completion of the liquidity event
·
Ability
                                            to purchase common stock at $0.01 per share equal to 1.25% of the issue and outstanding shares
                                            of the Company
·
Issuance
                                            of 200,000 warrants for a period of 5 years with an exercise price to be equal to the price
                                            of the offering to be undertaken with the listing
F-
70
Functional Brands Inc.
PRELIMINARY PROSPECTUS
Underwriter
JOSEPH GUNNAR & CO., LLC
, 2025
Until [   ], 2024, 25 days after the
date of this prospectus, all dealers that buy, sell or trade our securities, whether or not participating in this offering, may be required
to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as Underwriter and
with respect to their unsold allotments or subscriptions.
[Alternate Page for Resale Prospectus]
The information in
this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed
with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it
is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
SUBJECT TO COMPLETION,
DATED January 8, 2025
PRELIMINARY PROSPECTUS
FUNCTIONAL BRANDS INC.
Shares of Common Stock
This prospectus relates to [●] shares of
common stock of Functional Brands Inc., par value $0.00001 per share, that may be sold from time to time by the selling shareholders
named in this prospectus.
We will not receive any proceeds from the sales
of outstanding common shares by the selling shareholders.
Currently, there is no public market for our
common stock. We intend to apply to list our common stock on the NASDAQ Capital Market ("NASDAQ"), under the symbol "FBIC".
There can be no assurance that our common stock will be approved for listing on the NASDAQ.
We are an "emerging growth company,"
as that term is used in the Jumpstart Our Business Startups Act of 2012, and as such, have elected to comply with certain reduced
public company reporting requirements for this prospectus and future filings. See "
Prospectus Summary — Implications
of Being an Emerging Growth Company
."
The selling shareholders may offer and sell the
shares of common stock being offered by this prospectus from time to time in public or private transactions, or both. These sales will
occur at a fixed price of $ per share until our shares are listed on a national securities exchange. Thereafter, these sales will occur
at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices.
The selling shareholders may sell shares to or through underwriters, broker-dealers or agents, who may receive compensation in the form
of discounts, concessions or commissions from the selling shareholders, the purchasers of the shares, or both. Any participating broker-dealers
and any selling shareholders who are affiliates of broker-dealers may be deemed to be "underwriters" within the meaning of
the Securities Act of 1933, as amended, and any commissions or discounts given to any such broker-dealer or affiliates of a
broker-dealer may be regarded as underwriting commissions or discounts under the Securities Act of 1933, as amended. The selling
shareholders have informed us that they do not have any agreement or understanding, directly or indirectly, with any person to distribute
their shares of common stock. See "
Plan of Distribution
" for a more complete description of the ways in which the
shares may be sold.
Investing in our common stock involves a high
degree of risk. Before buying any shares, you should carefully read the discussion of the material risks of investing in our common stock
under the heading "Risk Factors" beginning on page 13 of this prospectus.
Neither the Securities and Exchange Commission
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.
The date of this prospectus is                , 2025
[Alternate
                                            Page for Resale Prospectus]
THE OFFERING
Shares offered by the selling shareholders:
This prospectus relates to [●]
    shares of common stock that may be sold from time to time by the selling shareholders named in this prospectus.
Shares outstanding
(1)
:
[●] shares of common stock (or  [●]
    shares if the underwriters exercise the over-allotment option in full).
Use of proceeds:
We will not receive any proceeds from the
    sales of outstanding  common stock by the selling shareholders.
Risk factors:
Investing in our common stock involves a
    high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider
    the information set forth in the "
Risk Factors
" section beginning on page 13.
Trading market and symbol:
We have applied to list our common stock
    on the NASDAQ under the symbol "FBIC". There can be no assurance that we will be approved for listing.
(1)
The
                                            number of shares of common stock outstanding assumes the issuance by us of shares of common
                                            stock pursuant to the Public Offering Prospectus filed contemporaneously herewith.
Alt-
1
[Alternate Page for Resale Prospectus]
USE OF PROCEEDS
We will not receive any proceeds from the sale
of common stock by the selling shareholders.
Alt-
2
[Alternate Page for Resale Prospectus]
SELLING SHAREHOLDERS
The shares of common stock being offered by the
selling shareholders are those restricted shares previously issued to the selling shareholders. We are registering the shares in order
to permit the selling shareholders to offer the shares for resale from time to time. Except for the ownership of these shares, the selling
shareholders have not had any material relationship with us within the past three years and based on the information provided to
us by the selling shareholders, no selling shareholder is a broker-dealer or an affiliate of a broker-dealer.
The table below lists the selling shareholders
and other information regarding the ownership of the common stock by each of the selling shareholders. The second column lists the number
of shares of common stock owned by each selling shareholder. The third column lists the common stock being offered by this prospectus
by the selling shareholders. The fourth column assumes the sale of all of the shares of common stock offered by the selling shareholders
pursuant to this prospectus.
The selling shareholders may sell all, some
or none of their shares in this offering. See "
Plan of Distribution
."
Number
    of
Shares of
Common
Stock
Beneficially
Owned
Prior to this
Number
of
Shares
Being
Common
    Stock
Beneficially Owned
After this Offering
Name
    of Selling Shareholder
Offering
Offered
Shares
Percent
(1)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Explanatory Note
Shares issued to certain investors in connection
with the restructuring of the Company and received pursuant to that certain exchange agreement executed by HOC and the investors (the
"Exchange Shares) will be subject to the following: [●] shares of the Company representing sixty percent (60%) of the Exchange
Shares shall immediately become eligible to enter the public float of the Company's shares upon issuance. On [●], which is
the date that is six months following the effective date of this registration statement, [●] of the Company's shares representing
twenty percent (20%) of the Exchange Shares shall become eligible to enter the public float of the Company. On [●], which is the
date that is nine months following the effective date of this registration statement, [●] of the Company's shares representing
twenty percent (20%) of the Exchange Shares shall become eligible to enter the public float of the Company, after which all of the Exchange
Shares shall have entered the public float.
Alt-
3
[Alternate Page for Resale Prospectus]
PLAN OF DISTRIBUTION
Each selling shareholder and any of their pledgees,
assignees and successors-in-interest may, from time to time, sell any or all of their shares covered hereby on any stock exchange, market
or trading facility on which the shares of common stock are traded or in private transactions. These sales will occur at a fixed price
of $ per share until our ordinary shares are listed on a national securities exchange. Thereafter, these sales will occur at fixed prices,
at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. A selling shareholder
may use any one or more of the following methods when selling the shares:
●
ordinary brokerage transactions and transactions
    in which the broker-dealer solicits purchasers;
●
block trades in which the broker-dealer
    will attempt to sell the securities 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;
●
an exchange distribution in accordance with
    the rules of the applicable exchange;
●
privately negotiated transactions;
●
settlement of short sales;
●
in transactions through broker-dealers that
    agree with the selling shareholders to sell a specified number of such securities at a stipulated price per security;
●
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.
The selling shareholders may also sell shares
under Rule 144 of the Securities Act, if available, rather than under this prospectus. The selling shareholders shall have the sole
and absolute discretion not to accept any purchase offer or make any sale of shares if it deems the purchase price to be unsatisfactory
at any particular time.
The selling shareholders or their respective
pledgees, donees, transferees or other successors in interest, may also sell the shares directly to market makers acting as principals
and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may receive compensation in the form of
discounts, concessions or commissions from the selling shareholders and/or the purchasers of shares for whom such broker-dealers may
act as agents or to whom they sell as principal or both, which compensation as to a particular broker-dealer might be in excess of customary
commissions. Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk. It is possible
that a selling shareholder will attempt to sell shares in block transactions to market makers or other purchasers at a price per share
which may be below the then existing market price. We cannot assure that all or any of the shares offered in this prospectus will be
issued to, or sold by, the selling shareholders. The selling shareholders and any brokers, dealers or agents, upon effecting the sale
of any of the shares offered in this prospectus, may be deemed to be "underwriters" as that term is defined under the Securities
Act, the Exchange Act and the rules and regulations of such acts. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under
the Securities Act.
We are required to pay all fees and expenses
incident to the registration of the shares, including fees and disbursements of counsel to the selling shareholders, but excluding brokerage
commissions or underwriter discounts.
The selling shareholders, alternatively, may
sell all or any part of the shares offered in this prospectus through an underwriter. The selling shareholders have not entered into
any agreement with a prospective underwriter and there is no assurance that any such agreement will be entered into.
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[Alternate Page for Resale Prospectus]
The selling shareholders may pledge their shares
to their brokers under the margin provisions of customer agreements. If a selling shareholder defaults on a margin loan, the broker may,
from time to time, offer and sell the pledged shares. The selling shareholders and any other persons participating in the sale or distribution
of the shares will be subject to applicable provisions of the Exchange Act, and the rules and regulations under such act, including,
without limitation, Regulation M. These provisions may restrict certain activities of, and limit the timing of purchases and
sales of any of the shares by, the selling shareholders or any other such person. In the event that any of the selling shareholders are
deemed an affiliated purchaser or distribution participant within the meaning of Regulation M, then the selling shareholders will
not be permitted to engage in short sales of common shares. Furthermore, under Regulation M, persons engaged in a distribution of
securities are prohibited from simultaneously engaging in market making and certain other activities with respect to such securities
for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. In addition,
if a short sale is deemed to be a stabilizing activity, then the selling shareholders will not be permitted to engage in a short sale
of our shares. All of these limitations may affect the marketability of the shares.
If a selling shareholder notifies us that it
has a material arrangement with a broker-dealer for the resale of the shares, then we would be required to amend the registration statement
of which this prospectus is a part, and file a prospectus supplement to describe the agreements between the selling shareholder and the
broker-dealer.
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[Alternate Page for Resale Prospectus]
LEGAL MATTERS
The validity of the securities offered, shares
of common stock, covered by this prospectus will be passed upon by Lucosky Brookman LLP.
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PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The following table sets forth the costs and
expenses, other than underwriting discounts and commissions, payable by us in connection with the sale of common stock being registered.
All amounts, other than the SEC registration fee, NASDAQ listing fee and FINRA filing fee, are estimates. We will pay all these expenses.
Amount
SEC registration fee
$
2,893.59
NASDAQ listing fee
*
FINRA filing fee
*
Accounting fees and expenses
*
Legal fees and expenses
*
Transfer agent fees and expenses
*
Printing and related fees
*
Miscellaneous
*
Total
$
2,893.59
*
To
                                            be filed by amendment.
Item 14. Indemnification of Directors and
Officers
Section 102 of the General Corporation Law of
the State of Delaware (the "DGCL") permits a corporation to eliminate the personal liability of directors of a corporation
to the corporation or its shareholders for monetary damages for a breach of fiduciary duty as a director, except where the director breached
his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment
of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. Our certificate
of incorporation provides that none of our directors shall be personally liable to us or our shareholders for monetary damages for any
breach of fiduciary duty as a director, notwithstanding any provision of law imposing such liability, except to the extent that the DGCL
prohibits the elimination or limitation of liability of directors for breaches of fiduciary duty.
Section 145 of the DGCL provides that a corporation
has the power to indemnify a director, officer, employee, agent of the corporation or a person serving at the request of the corporation
for another corporation, partnership, joint venture, trust or other enterprise in related capacities against expenses (including attorneys'
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with an action, suit
or proceeding to which he was or is a party or is threatened to be made a party to any threatened, ending or completed action, suit or
proceeding by reason of such position, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the corporation, and, in any criminal action or proceeding, had no reasonable cause to believe his conduct was
unlawful, except that, in the case of actions brought by or in the right of the corporation, no indemnification shall be made with respect
to any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the
extent that the Court of Chancery or other adjudicating court determines that, despite the adjudication of liability.
Our Certificate of Incorporation and our Bylaws
provide for indemnification of our directors and officers. Our Bylaws provide that we will indemnify any person who was or is a party
or threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative
(other than an action by or in the right of the corporation) by reason of the fact that such person is or was a legal representative,
director, officer or employee or agent of our company, against expenses (including attorney's 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 our company, and
with respect to any criminal action or proceeding, had no reasonable cause to believe such person's conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent will
not, without more, create a presumption that the person did not act in good faith and in a manner which such person reasonably believed
to be in or not opposed to the best interest of the corporation, and, with respect to any criminal action or proceeding, had reasonable
cause to believe that his conduct was unlawful.
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Item 15. Recent Sales of Unregistered Securities
During the past three years, we issued the following
securities, which were not registered under the Securities Act.
The Company completed a Regulation Crowdfunding
offering ("Offering") under Section 4(a)(6) which provided an exemption from registration for certain crowdfunding transactions.
The company filed its Offering statement on Form C through the EDGAR system and with Title3Funds.com as intermediary.
The Offering is for up to a maximum of $5,000,000
at a price of $1.40 per share with an offering deadline of Dec 31, 2023. The securities purchased in this Offering are subject to a number
of restrictions including a restriction on resale for a period of one year.
On December 10, 2020, the Company entered into
a licensing agreement with Hemptown Organics Corp. (the "licensor") to use the Hemptown Naturals brand (the "asset")
on a non-exclusive, non-transferable basis for a period of 4 years. In return, 40,000,000 common shares were issued to the licensor at
$0.001 per share with deemed proceeds of $40,000 as consideration.
Item 16. Exhibits
(a) Exhibits.
Exhibit
    No.
Description
1.1**
Form of Underwriting Agreement
3.1**
Articles of Incorporation
3.2*
Amended and Restated Articles of Incorporation
3.3**
Bylaws of Functional Brands Inc.
4.1**
Form of Representative's Warrant (included
    in Exhibit 1.1)
5.1**
Opinion of Lucosky Brookman LLP as to the
    legality of the shares
10.1*
License Agreement, dated July 7, 2021, between
    Trailer Park Boys Incorporated and Hemptown Organics Corp.
10.2*
Amendment to the License Agreement, dated
    August 16, 2023, between Trailer Park Boys Incorporated and Hemptown Organics Corp.
10.3*
Agreement, dated January 20, 2023, between
    HS Wholesale and Hemptown Naturals, Inc.
10.4*
Asset Purchase Agreement dated June 28,
    2019
10.5*
Amendment No. 1 to the Asset Purchase Agreement
    dated November 30, 2021
10.6*
Amendment No. 2 to the Asset Purchase Agreement
    dated May 16, 2022
10.7*
Trademark Assignment Agreement dated July
    11, 2019
10.8*
Domain Names Transfer Agreement dated July
    11, 2019
10.9*
Assignment of Intangible Assets dated July
    11, 2019
10.10*
Forbearance Agreement dated July 23, 2022
10.11*
First Amended Forbearance Agreement dated
    December [   ], 2022
10.12*
Employment Agreement, dated April 1, 2023,
    between HTO Holdings Inc., Functional Brands Inc. and Hemptown Organics Corp., and Eric Gripentrog
10.13*
Employment Agreement, dated April 1, 2023,
    between HTO Holdings Inc., Functional Brands Inc. and Hemptown Organics Corp., and Tariq Rahim
10.14*
ISO Certification - Purity Labs
10.15*
Kirkman Certification validation from Purity
10.16*
Testing Standards - The Forum
10.17*
Schedule A to the Asset Purchase Agreement (Warranty Bill of Sale)
10.18*
iHerb Inc agreement - Kirkman
10.19*
Amendment to License Agreement with the Trailer Park Boys 9/24/2024
10.20*
Fourth Amended Forbearance
10.21*
Conf of Judgement
23.1*
Consent of TAAD CPA PC
23.2**
Consent of Lucosky Brookman LLP (included
    in Exhibit 5.1)
24.1*
Power of Attorney (included
    on the signature page of this registration statement)
97.1**
Executive Compensation Clawback Policy
99.1**
Audit Committee Charter
99.2**
Compensation Committee Charter
99.3**
Nominating and Corporate Governance Committee
    Charter
99.4**
Consent of [●] as Director Nominee
99.5**
Consent of [●] as Director Nominee
99.6**
Consent of [●] as Director Nominee
107*
Filing Fee Table
*
Filed herewith.
**
To
                                            be filed by amendment.
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(b) Financial Statement Schedules.
All financial statement schedules are omitted
because the information called for is not required or is shown either in the financial statements or in the notes thereto.
Item 17. Undertakings
The undersigned registrant hereby undertakes
to provide to the Underwriter at the closing specified in the underwriting agreement, certificates in such denominations and registered
in such names as required by the Underwriter to permit prompt delivery to each purchaser.
Insofar as indemnification for liabilities arising
under the Securities Act 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 SEC such indemnification is against public policy
as expressed in the Securities Act 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 and will be governed by the final adjudication of such issue.
The undersigned registrant hereby undertakes
that:
(1)
For
                                            purposes of determining any liability under the Securities Act, the information omitted from
                                            the form of prospectus filed as part of this registration statement in reliance upon Rule
                                            430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1)
                                            or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration
                                            statement as of the time it was declared effective.
(2)
For
                                            purposes of determining any liability under the Securities Act, each post-effective amendment
                                            that contains a form of prospectus 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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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized on January 8, 2025.
Functional Brands Inc.
By:
/s/ Eric Gripentrog
Eric Gripentrog
Chief Executive Officer
POWER OF ATTORNEY
Each person whose signature appears below constitutes
and appoints Eric Gripentrog as his or her true and lawful attorneys-in-fact and agents with full power of substitution and resubstituting,
for him and his name, place stead, in any and all capacities, to sign any or all amendments (including post-effective amendments) to
this registration statement and to file a new registration statement under Rule 461, and to file the same, with all exhibits thereto,
and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents
full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the foregoing,
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 their substitutes, may lawfully do or cause to be done 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 and on the dates indicated.
SIGNATURE
TITLE
DATE
/s/ Eric Gripentrog
Chief Executive Officer
January 8, 2025
Eric Gripentrog
/s/ Tariq Rahim
Chief Financial Officer
January 8, 2025
Tariq Rahim
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