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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>As filed with the Securities and Exchange
Commission on June 21, 2022</B></P>

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

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

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 100%"><DIV STYLE="border-top: Black 2pt solid; font-size: 1pt; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-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: 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"><B>REGISTRATION STATEMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>THE SECURITIES ACT OF&nbsp;1933</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>Nanomix Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B>(Exact name of registrant
as specified in its charter)</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: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3841</B></FONT></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>27-0801073</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or other jurisdiction of</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard Industrial</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">incorporation or organization)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Classification Code Number)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification Number)</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2121 Williams St.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>San Leandro, CA 94577</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(510) 428-5300</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Nanomix Corp.</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>2121 Williams St.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>San Leandro, CA 94577</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(510) 428-5300</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Sheppard, Mullin, Richter&nbsp;&amp; Hampton&nbsp;LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>30 Rockefeller Plaza</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, NY 10112-0015</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Telephone: (212) 653-8700 </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Facsimile: (212) 653-8701</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">Approximate date of commencement of proposed sale
to the public:</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>As soon as practicable after the effective date
of this registration statement becomes effective.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of the securities being
registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule&nbsp;415 under the Securities Act of 1933
check the following box:&nbsp; &#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is filed to register
additional securities for a registration statement pursuant to Rule&nbsp;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 registration statement.&nbsp;
&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is a post-effective
amendment filed pursuant to Rule&nbsp;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 registration statement.&nbsp; &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this Form is a post-effective
amendment filed pursuant to Rule&nbsp;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 registration statement.&nbsp; &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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&nbsp;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: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large&nbsp;accelerated&nbsp;filer&nbsp; </FONT></TD>
    <TD STYLE="width: 25%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="width: 25%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated&nbsp;filer&nbsp;</FONT></TD>
    <TD STYLE="width: 25%; text-align: justify"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated&nbsp;filer&nbsp; </FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller&nbsp;reporting&nbsp;company&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging&nbsp;growth&nbsp;company&nbsp; </FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided to Section&nbsp;7(a)(2)(B) of the Securities Act.&nbsp;&#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><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 will file
a further amendment which specifically states that this registration statement will thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act of 1933, as amended, or until the registration statement will become effective on such date as the Securities and
Exchange 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; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B></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"><FONT STYLE="color: Red"><B>The information in
this preliminary 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 preliminary prospectus is not an offer to sell nor does it seek an offer
to buy these securities in any jurisdiction 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"><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 JUNE 21, 2022</B></FONT></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">NANOMIX CORP.</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>19,507,630 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; text-indent: 0.5in">This prospectus relates to
the sale from time to time of up to 19,507,630 shares of common stock held by the selling stockholders named in this prospectus, including
(i) up to 7,500,000 shares of common stock issuable upon conversion of outstanding series D convertible preferred stock, or the Series
D Preferred Stock, (ii) up to 2,250,000 shares of common stock issuable upon exercise of certain outstanding warrants issued or to be
issued in connection with the issuer of the Series D Preferred Stock, the GHS Warrants, (iii) up to 416,032 shares of common stock issuable
upon exercise of certain outstanding warrants assumed by the Company in connection with the merger with Nanomix, Inc., or the Merger Warrants,
(iv) up to 7,904,822 shares of common stock issued in connection with the merger with Nanomix, Inc., or the Merger Shares, and (v) up
to 1,302,123 shares of common stock that were issued upon the automatic conversion of our Series B convertible preferred Stock, the Conversion
Shares and (vi) up to 134,653 shares of common stock that were issued upon the Company&rsquo;s acquisition of CureDM Group Holdings LLC,
or the CureDM Shares. The Series D Preferred Stock and March 2022 Warrants are subject to a blocker provision, or the Blocker, which restricts
the conversion of the Series D Preferred Stock and exercise of a GHS Warrants if, as a result of such exercise, the holder, together with
its affiliates and any other person whose beneficial ownership of common stock would be aggregated with the holder&rsquo;s for purposes
of Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, would beneficially own in excess of 9.99% of
our then issued and outstanding shares of common stock (including the shares of Common Stock issuable upon such conversion and/or exercise).</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; text-indent: 0.5in">We are not selling any common
stock under this prospectus and will not receive any of the proceeds from the sale of shares by the selling stockholders. We will, however,
receive the net proceeds of any GHS Warrants and Merger Warrants exercised for cash.</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; text-indent: 0.5in">The selling stockholders identified
in this prospectus may offer the shares from time to time through public or private transactions at fixed prices, at prevailing market
prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at
negotiated prices.&nbsp;The registration of the shares of common stock on behalf of the selling stockholders, however, does not necessarily
mean that any of the selling stockholders will offer or sell their shares under this registration statement or at any time in the near
future. We provide more information about how the selling stockholders may sell their shares of common stock in the section entitled &ldquo;<I>Plan
of Distribution</I>&rdquo; on page 83.</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; text-indent: 0.5in">The selling stockholders will
bear all commissions and discounts, if any, attributable to the sale or disposition of the shares, or interests therein and all costs,
expenses and fees in connection with the registration of the shares. We will not be paying any underwriting discounts or commissions in
this offering or costs, expenses, and fees in connection with the registration of the shares of common stock described in this prospectus.
We will pay the expenses of registering the shares.</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; text-indent: 0.5in">Our common stock is traded
on the OTCQB maintained by OTC Markets Group, Inc. under the symbol &ldquo;NNMX.&rdquo; On June 17, 2022, the last reported sale price
of our common stock was $0.62 per share.</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; text-indent: 0.5in">On March 2, 2022, we consummated
a 1-for-173 reverse split of our preferred stock and common stock, which we refer to as the reverse split, and all of the shares of our
outstanding preferred stock converted to common stock. Unless otherwise noted in this registration statement on Form S-1 of which this
prospectus forms a part and except as set forth in the financial statements included in this prospectus, all share numbers and prices
are presented on a reverse stock split basis. No fractional shares of common stock were issued in connection with the reverse split, and
all such fractional interests were rounded up to the nearest whole number. Issued and outstanding stock options and warrants were split
on the same basis and exercise prices will be adjusted accordingly. Unless otherwise noted in this registration statement on Form S-1
of which this prospectus forms a part and except as set forth in the financial statements included in this prospectus, all share numbers
and prices are presented on a reverse split basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>An investment in our common
stock involves a high degree of risk.&nbsp;See &ldquo;<I>Risk Factors</I>&rdquo; on page 11 of this prospectus for more information on
these risks.</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; text-align: justify; text-indent: 0.5in"><B>Neither the U.S. Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities, or passed upon the adequacy
or accuracy of this prospectus.&nbsp;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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2022.</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"></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-top: 0pt; margin-bottom: 0pt; text-align: center"><B>TABLE OF CONTENTS</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="vertical-align: top; width: 90%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; 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; font-size: 10pt"><B>Page</B></FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PROSPECTUS SUMMARY</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">1</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; font-size: 10pt">RISK FACTORS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">11</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INFORMATION REGARDING FORWARD-LOOKING STATEMENTS</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INDUSTRY AND MARKET DATA</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">46</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">USE OF PROCEEDS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">46</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DIVIDEND POLICY</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">47</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATIONS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">48</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BUSINESS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">56</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MANAGEMENT</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">66</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXECUTIVE AND DIRECTOR COMPENSATION</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">68</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">70</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SECURITY OWNERSHIP OF BENEFICIAL OWNERS AND MANAGEMENT</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">71</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DESCRIPTION OF CAPITAL STOCK</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">73</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SELLING STOCKHOLDERS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">81</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PLAN OF DISTRIBUTION</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">83</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LEGAL MATTERS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">85</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXPERTS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">85</TD></TR>
  <TR STYLE="background-color: white">
    <TD STYLE="vertical-align: top"><A HREF="#a_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHERE YOU CAN FIND MORE INFORMATION</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">86</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#a_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INDEX TO FINANCIAL STATEMENTS</FONT></A></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-1</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>We have not authorized anyone to provide any
information or to make any representations other than those contained in this prospectus or in any free writing prospectus prepared by
or on behalf of us or to which we have referred you. We take no responsibility for and can provide no assurance as to the reliability
of, any other information that others may give to you. The information contained in this prospectus is accurate only as of the date of
this prospectus, regardless of the time of delivery of this prospectus or any sale of our common stock.</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; text-align: justify"><B>You should rely only on the information contained
in this prospectus. No dealer, salesperson or other person is authorized to give information that is not contained in this prospectus.
This prospectus is not an offer to sell nor is it seeking an offer to buy these securities in any jurisdiction where the offer or sale
is not permitted. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery
of this prospectus or of any sale of these securities.</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: center"><B></B></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>ABOUT THIS PROSPECTUS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In this prospectus, unless otherwise noted, references
to &ldquo;the Company,&rdquo; &ldquo;NNMX,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo; and &ldquo;our&rdquo; refer to Nanomix Corp. and
its subsidiaries.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Neither we, nor any of our officers, directors,
agents or representatives or underwriters, make any representation to you about the legality of an investment in our common stock. You
should not interpret the contents of this prospectus or any free writing prospectus to be legal, business, investment or tax advice. You
should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other
issues that you should consider before investing 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">You should rely only on the information contained
in this prospectus or in any amended prospectus that we may authorize to be delivered or made available to you. We and the underwriter
have not authorized anyone to provide you with different 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">The information in this prospectus is accurate
only as of the date hereof, regardless of the time of its delivery or any sale of shares of our common stock.</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"></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>SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS</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 prospectus contains forward-looking statements.
These forward-looking statements contain information about our expectations, beliefs or intentions regarding our product development and
commercialization efforts, business, financial condition, results of operations, strategies or prospects, and other similar matters. These
forward-looking statements are based on management&rsquo;s current expectations and assumptions about future events, which are inherently
subject to uncertainties, risks and changes in circumstances that are difficult to predict. These statements may be identified by words
such as &ldquo;expects,&rdquo; &ldquo;plans,&rdquo; &ldquo;projects,&rdquo; &ldquo;will,&rdquo; &ldquo;may,&rdquo; &ldquo;anticipates,&rdquo;
&ldquo;believes,&rdquo; &ldquo;should,&rdquo; &ldquo;intends,&rdquo; &ldquo;estimates,&rdquo; and other words of similar meaning.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 statements relate to future events or our
future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied
by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among
other things, those listed under the section titled &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus, in any related prospectus
supplement and in any related free writing 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">Any forward-looking statement in this prospectus,
in any related prospectus supplement and in any related free writing prospectus reflects our current view with respect to future events
and is subject to these and other risks, uncertainties and assumptions relating to our business, results of operations, industry and future
growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. No forward-looking statement
is a guarantee of future performance. You should read this prospectus, any related prospectus supplement and any related free writing
prospectus and the documents that we reference herein and therein and have filed as exhibits hereto and thereto completely and with the
understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking
statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even
if new information becomes available 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">This prospectus, any related prospectus supplement
and any related free writing prospectus also contain or may contain estimates, projections and other information concerning our industry,
our business and the markets for our products, including data regarding the estimated size of those markets and their projected growth
rates. We obtained the industry and market data in this prospectus from our own research as well as from industry and general publications,
surveys and studies conducted by third parties. This data involves a number of assumptions and limitations and contains projections and
estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty, including
those discussed in &ldquo;Risk Factors.&rdquo; We caution you not to give undue weight to such projections, assumptions and estimates.
Further, industry and general publications, studies and surveys generally state that they have been obtained from sources believed to
be reliable, although they do not guarantee the accuracy or completeness of such information. While we believe that these publications,
studies and surveys are reliable, we have not independently verified the data contained in them. In addition, while we believe that the
results and estimates from our internal research are reliable, such results and estimates have not been verified by any independent source.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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: center"><B>&nbsp;</B></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>The following summary highlights selected information
contained elsewhere in this prospectus and is qualified in its entirety by the more detailed information and financial statements included
elsewhere in this prospectus. It does not contain all the information that may be important to you and your investment decision. You should
carefully read this entire prospectus, including the matters set forth under &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations,&rdquo; and our financial statements and related notes included elsewhere
in this prospectus. In this prospectus, unless context requires otherwise, references to &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo;
&ldquo;NNMX,&rdquo; &ldquo;Nanomix-DE,&rdquo; or &ldquo;the Company&rdquo; refer to Nanomix Corp. and its subsidiaries.</I></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"><B>Overview</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; background-color: white">On June 6, 2021, the
Company and Nanomix, Inc., or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation (the
&ldquo;Company&rdquo;). As consideration for the Merger, The Company issued to the shareholders of Nanomix 1,000,000 shares of a newly
created Series C Convertible Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). On March 2, 2022, all such shares of
Preferred Stock issued to Nanomix shareholders automatically converted into approximately 35,644,997 shares of common stock of the Company,
the warrants assumed at closing may be exercisable into approximately 2,124,687 shares of common stock of the Company and the options
and restricted stock units assumed at closing may be exercisable into approximately 5,718,838 shares of common stock of the Company. The
shares of common stock issued upon conversion of the Preferred Stock together with warrants, restricted stock units and options assumed
on the closing date represent approximately 80% of the outstanding shares of Common Stock of the Company upon closing of the Merger. After
the merger, the Company changed its name to Nanomix Corporation and its ticker symbol to NNMX. A previously approved 173:1 reverse stock
split was effective on March 2, 2022.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">After the Merger, our
primary focus is on the development and commercialization of Nanomix&rsquo;s advanced mobile Point-of-Care, or POC, diagnostic system
that can be used in performing a wide range of in vitro diagnostic tests in many environments. Nanomix&rsquo;s goal is to provide laboratory
quality testing for time sensitive medical conditions, at the first point of contact that a patient has with the healthcare system, no
matter where that occurs. The Nanomix eLab&reg; system is CE Marked, a 510(k) application is currently in development, and Emergency Use
Application (EUA) for COVID antigen testing has been submitted to the FDA. Nanomix intends to market and sell this system for the detection
and diagnosis of a variety of time sensitive medical conditions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Prior to the Merger,
we were a pre-clinical and clinical-stage pharmaceutical development company focused on the clinical development, outsourced contract
manufacture and test marketing for commercialization of carbohydrate-based patented formulation of investigative materials as medical
food, supplements, drug and drug combination, and other clinical exploratory outsourced exploratory peptide therapeutic options. Due to
limited funding and the merger, our activity including any drug development during year ended December 31, 2021 was severely limited.
Following the closing of the Merger, the Company intends to conduct a comprehensive review of strategic alternatives for our legacy products
and product candidates pertaining to the commercialization of our therapeutic drugs including SUGARDOWN&reg;, BTI-320 and IPOXYN. The
Company does not expect to receive any form of material consideration in connection with such alternatives. In the event it is not able
to dispose of these assets, the Company expects to cease all operations in connection therewith in order to avoid incurring any further
associated expense.</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"><B>Nanomix eLab System</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">Nanomix believes that quality healthcare should
be available to consumers anywhere and anytime. The foundation of quality healthcare is timely information supporting a proper diagnosis
and associated treatment. Our vision is to make healthcare accessible to patients without compromise, by delivering the highest quality,
fastest, most cost-effective and portable detection systems that bring the patient and caregiver closer together.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>
</DIV>
<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>
<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: justify">The Nanomix eLab System is a proprietary diagnostic
platform developed by Nanomix to meet the growing need for decentralized medical diagnostic solutions. The platform is designed to provide
rapid test results in a handheld device at the first point of patient contact in locations that range from Emergency Departments, to long
term and assisted care facilities, to urgent care and emergency medical response settings.</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">The Nanomix eLab system is a rapid, easy-to-use,
quantitative detection platform that performs a range of in vitro diagnostic assays, such as electrochemical immunoassay and enzymatic
assays. The platform consists of a hand-held analyzer and a disposable cartridge. The eLab System utilizes a proprietary nano-biosensor
with multiple detection electrodes to generate multiple electrochemical assay results from a single patient sample. Specificity is generated
by functionalizing each of the electrodes on the sensor for particular biomarkers. The sensor is incorporated into a single-use consumable
microfluidics cartridge that processes the biological sample and reports its results through the handheld eLab System.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The eLab system is designed to be operated by
medical and non-medically trained persons. An assay is run by inserting the cartridge into the eLab Analyzer. Following the prompts on
the Analyzer interface, the user identifies the subject, scans a barcode on the consumable package, loads the test sample into the cartridge,
and presses start. Assay results generally take between 10 and 15 minutes, from sample collection to answer. A wide variety of biomolecules
with varying chemistries can be tested on a single device in one operation. The electrochemical detection system eliminates the need for
ongoing instrument calibration and maintenance commonly associated with optical systems. Wireless connectivity provides for transmission
of patient results to other devices for data sharing, management, and EMR integration.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Compared with other POC testing systems, the Nanomix
eLab system provides testing in traditional laboratories as well as non-traditional decentralized environments with enhanced sensitivity
and specificity, advanced multiplexing and multimodal capabilities, quantitative results, Bluetooth communication of results and an on
board electronic data base of testing activities. The Nanomix eLab&reg; system is CE Marked, a 510(k) is currently in development, and
a COVID-19 Antigen test has been submitted to the FDA for Emergency Use Authorization.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 strategy is to develop a menu of diagnostic
tests for the detection and diagnosis of time sensitive medical conditions on the Nanomix eLab Analyzer and to sell, market and distribute
the eLab Analyzer and associated tests on a worldwide basis.</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>Products</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 Nanomix eLab is an in vitro diagnostic test
platform for the quantitative determination of analytes in biological samples that include plasma, whole blood, and nasal swab specimens.
The eLab system consists of a handheld analyzer, a sample transfer device and a disposable cartridge. The Nanomix eLab is a platform technology
and Nanomix intends to develop a range of test cartridges compatible with Nanomix eLab analyzer. The key advantages of our approach are:</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%">
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    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Laboratory quality results;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Multiplexing and multimodal testing;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quantitative determination of test results;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operates in distributed environments; and</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Electronic record storage with Bluetooth communication of results.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 33pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The eLab has been shown to be easily operated
by non-medically trained personnel. The platform performs immunoassays and enzymatic assays. All tests run on the eLab Analyzer utilize
the same disposable cartridge format.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanomix&rsquo;s first product, the S1 Panel Assay
for use in aiding the diagnosis of critical infections, received CE marking for the assay and the eLab Analyzer in November of 2019. Filing
of a 510(k) was started in 2020 through a third-party reviewer for the CRP assay. With the advent of the Coronavirus pandemic, Nanomix
shifted to developing COVID-19 testing products in April of 2020. Preparation of a 510(k) for the S1 Panel Assay using plasma samples
is currently in process.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>eLab Analyzer</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 eLab Analyzer is a handheld portable instrument
that operates via a touch screen using a simple instruction menu. The analyzer works from a rechargeable battery or wall power and can
be operated during recharging. The eLab Analyzer contains electronics, a pneumatic system, a barcode scanner, data storage, USB connections,
and Bluetooth communications. To use the eLab system, an operator signs into the system and then follows the prompts on the eLab screen
to run an assay, run controls, or review past test results. To run a test, the operator scans or enters a patient ID and scans the consumable
test package using the built-in bar code scanner. The barcode contains information about the test including manufacturing lot codes and
expiration dating for the consumable. The operator loads the patient sample into the disposable cartridge and inserts the cartridge into
the eLab analyzer. The operator is then prompted on the screen to start the assay. The eLab automatically runs through to completion using
the programmed test protocol specific for that assay. At conclusion of the test protocol, results are displayed on the screen and can
be sent electronically via Bluetooth as selected by the operator. All test information is recorded in the onboard database. The instrument
includes a robust control system and, if there are errors in processing, the eLab displays an error code on the screen.</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>COVID-19 Rapid IgG/IgM Test Panel</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 Nanomix eLab COVID-19 Rapid IgG/IgM Panel
is an electrochemical immunoassay test intended for qualitative detection of IgG and IgM antibodies (without differentiation) to SARS-CoV-2
in human venous whole blood and plasma (K2EDTA, lithium-heparin, sodium-heparin, sodium citrate).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Venous whole blood or plasma samples are collected
and using a provided transfer device the sample is transferred to the single-use, microfluidic cartridge. The cartridge is then run on
Nanomix eLab Analyzer, which will display results after about 10 minutes. The presence of SARS-CoV-2 antibodies is determined using a
quantitative electrochemical reading which is then compared to a cutoff level to report a qualitative result of positive or negative.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An EUA for the COVID-19 Rapid IgG/IgM Test Panel
was filed with the FDA in July 2020. In April of 2021, the FDA notified us that given the volume of EUA requests the Agency had received,
FDA is having to prioritize EUA requests and they will not be reviewing our product as filed.&nbsp; Nanomix is currently tracking use
cases and reviewing alternative approaches to potentially market the COVID antibody test but at this time does not expect to actively
market the COVID-19 Rapid IgG/IgM Test Panel.&nbsp;&nbsp;</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>COVID-19 Rapid Antigen Test Panel</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 Nanomix eLab COVID-19 Rapid Antigen Panel
is an electrochemical immunoassay test intended for the qualitative detection of nucleocapsid antigens from SARS-CoV-2 in nasal (anterior
nares) swabs from individuals who are suspected of COVID-19.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nasal swab samples are collected using a provided
swab and sample collection tube, then transferred to the single-use, microfluidic cartridge. The cartridge is then run on Nanomix eLab
Analyzer, which will display results after about 15 minutes. The presence of SARS-CoV-2 antigen is determined using a quantitative electrochemical
reading which is then compared to a cutoff level to report a qualitative result of positive or negative.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 COVID-19 Rapid Antigen Test Panel is CE marked.
An EUA for the COVID-19 Antigen Test panel was submitted to the FDA in February of 2021. The Company received comments from the FDA in
May and conducted further clinical and analytical work identified by the FDA. The EUA for the COVID-19 Antigen Test panel was resubmitted
to the FDA in November. The FDA has requested additional data primarily from clinical testing sites prior to beginning their formal review.
Given reductions in COVID-19 infection rates, the timing of any potential EUA, and the current pricing of COVID-19 tests, the Company
doesn&rsquo;t expect significant revenue to be produced by the COVID-19 Antigen Test panel.</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></I></P>
</DIV>
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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>S1 Assay Panel</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 S1 Assay panel was developed as an aid in
rapidly diagnosing critical infections, including sepsis. The panel provides quantitative tests results for Lactate (LAC), C-Reactive
Protein (CRP) and Procalcitonin (PCT) from a single patient sample. The S1 Assay panel is CE marked for both plasma and venous whole blood
sample types. A de novo application for FDA clearance for a plasma sample is in development. The assay runs on the eLab Analyzer with
results available in approximately 11 minutes, providing information rapidly versus the current diagnostic solutions which can take hours
to provide a test result.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Nanomix S1 Panel Cartridge quantitatively
measures two biomarkers, CRP, and PCT and the metabolite Lactate (LAC) in lithium heparinized (Li-heparinized) plasma specimens.</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">CRP test results can be used to evaluate infection,
tissue injury, and inflammatory disorders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">PCT test results can be used:</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in decision making on antibiotic therapy for patient with suspected or confirmed lower respiratory tract infections (LRTI) defined as community acquired pneumonia (CAP) acute bronchitis, and acute exacerbation of chronic obstructive pulmonary disease (AECOPD) in an inpatient setting or Emergency Department.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in antibiotic decision making from therapy to discontinuation of treatment for patients with suspected or confirmed sepsis.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in the risk assessment of critically ill patients on their first day of ICU admission for progression of severe sepsis and septic shock.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in assessing the cumulative 28-day risk of all-cause mortality for patients diagnosed with sever sepsis or septic shock in the ICU or when obtained in the emergency department of other medical wards prior to ICU admission, using a change in PCT level over time.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LAC test results can be used in the diagnosis
and treatment of lactic acidosis, monitoring tissue hypoxia, and diagnosis of hyperlactatemia and septicemia.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 of the three tests provides important information
about a patient&rsquo;s condition. Having all three of these answers in a short time period provides a healthcare provider with important
information about the patient&rsquo;s status within the clinical window for infection diagnosis. All of the test results are used in the
context of other information about the patient.</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>S1 Assay Panel use in Sepsis</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">One potential use of the S1 Assay panel is in
the diagnosis of Sepsis. Sepsis has been highlighted as a global health crisis and there is intense pressure to improve management of
sepsis from early identification to administration of antimicrobial therapy, monitoring and de-escalation of therapy.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sepsis is the body&rsquo;s overwhelming and life-threatening
response to infection that can lead to tissue damage, organ failure, and death.&nbsp;There are more than 49 million cases of Sepsis annually
with more the 6 million associated deaths. Sepsis is the #1 cost of hospitalization in the U.S with costs for acute sepsis hospitalization
and skilled nursing estimated to be $62 billion annually. As many as 87% of sepsis cases start in the community. According to the Sepsis
Alliance, Mortality from sepsis increases 8% every hour that treatment is delayed. As many as 80% of sepsis deaths could be prevented
with rapid diagnosis and treatment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sepsis testing and diagnosis can be viewed as
a 2-stage process:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediate patient testing and assessment focused on emergency treatment decisions, and </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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Specific diagnosis of bacterial or fungal pathogen </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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<P STYLE="font: 10pt Times New Roman, Times, 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 Nanomix S1 test panel focuses on the first
phase, the need for rapid screening or patients suspected of sepsis. The S1 test panel provides an easy to use, rapid test at the first
point of patient contact to deliver important information about the patient&rsquo;s condition. The panel includes Lactate, the current
tool most used in sepsis screening, and adds two other tests (CRP and PCT) that are currently used to confirm a diagnosis. By using our
multiplexing and multimodal technology, we are able to bring all three of these test results from a single sample to healthcare providers
in an 11-minute test providing clinicians with host response diagnostics at the time of initial evaluation, in any care setting, may help
assess the following questions and advance standards of care: 1) is there an infection or not? 2) is the infection viral or bacterial?
3) what is the severity and deficit of tissue perfusion?</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once hospitalized, a sepsis patient spends on
average 8 days in an ICU. The S1 panel can also be used to monitor the progress of a patient and to support modification or discontinuation
of antibiotic therapy.</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>Approach to Market</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">Nanomix uses a Distributor centric model for product
sales and support outside the United States. Distributors are engaged to market, sell, and support our products in specific territories.
Often, these distribution arrangements involve exclusive rights to a territory. Distributors purchase product from Nanomix, resell the
products, and provide support to customers in their territory. The Company is primarily focused on the European and Asian markets where
CE marking is sufficient for commercial sales of the S1 Assay Panel. Currently, Nanomix has distribution agreements for the Peoples Republic
of China and certain countries in Asia and the Middle East. Additional arrangements are expected 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">Inside the United States and after FDA clearance,
Nanomix expects to primarily utilize a national distributor for the customer interface activities. The Distributor will be supported by
a Nanomix sales force that will coordinate with the Distributor&rsquo;s account teams. Nanomix expects to provide training and initial
implementation support to customers.</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>Recent Developments</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"><U>Reverse Stock Split and Name Change</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; background-color: white">On January 26, 2021,
our board of directors approved, subject to shareholder approval, a reverse stock split of our outstanding common stock in a ratio of
one-for-one hundred and seventy-three (1:173), provided that all fractional shares as a result of the split shall be automatically rounded
up to the next whole share, or the Reverse Split and (ii) to change our corporate name from &ldquo;Boston Therapeutics&rdquo;&rdquo; to
&ldquo;Nanomix Corporation&rdquo;, or the Name Change. On January 26, 2021, holders of 85.8% of the voting power of our capital stock
acted by written consent in lieu of a meeting to approve the Reverse Split and the Name Change. The Name Change and Reverse Split are
subject to approval by FINRA. The Name Change took effect on November 15, 2021 and Reverse Split took effect on March 2, 2022.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The shares of our Common
Stock being offered for resale by selling stockholders named herein pursuant to this prospectus were issued or are issuable in connection
with the transactions that are described below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><U>March 2022 Private
Placement&nbsp;</U></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On March 23, 2022, we
entered into a Securities Purchase Agreement (the &ldquo;Purchase Agreement&rdquo;) with GHS Investments, LLC (the &ldquo;Purchaser&rdquo;),
pursuant to which the Purchaser purchased five hundred (500) shares of the Company&rsquo;s Series D Convertible Preferred Stock (&ldquo;Series
D Preferred Stock&rdquo;) for an aggregate purchase price of $500,000. In addition, in connection with the issuance of the Series D Preferred
Stock, the Purchaser received a five year warrant to purchase 60,000 shares of the Company&rsquo;s common stock (the &ldquo;March 2022
Warrant&rdquo;). The March 2022 Warrant is exercisable at an exercise price of $2.0587 per share of Common Stock, subject to certain beneficial
ownership limitations&nbsp;(with a maximum ownership limit of 9.99%). The exercise price is also subject to adjustment due to certain
events, including stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of&nbsp;our
Common Stock or&nbsp;Common Stock equivalents at an effective price per share lower than the exercise price then in effect. The holders
may exercise the Warrants on a cashless basis if the shares of our Common Stock underlying the Warrants are not then registered pursuant
to an effective registration statement.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In addition, upon the
terms and subject to the conditions set forth in the Purchase Agreement, fifteen (15) calendar days following the effective date of a
registration statement registering the resale of the maximum aggregate number of (i) shares of Common Stock issuable pursuant to the conversion
of the Preferred Stock and (ii) Warrant Shares issuable upon exercise of the Warrants issuable pursuant to the Purchase Agreement (collectively,
the &ldquo;Registrable Securities&rdquo;), and on each of the 30<SUP>th</SUP>, 60<SUP>th</SUP>, 90<SUP>th</SUP>&nbsp;and 120<SUP>th</SUP>&nbsp;calendar
day anniversaries of the Effective Date, assuming no Event of Default (as defined in the Purchase Agreement) has taken or is taking place,
the Company agrees to sell, and the Purchaser agrees to purchase, an additional five hundred (500) shares of Preferred Stock at price
of $1,000 per share of Series D Preferred Stock. Concurrently with the issuance of any Series D Preferred Stock, the Company shall issue
to Purchaser a warrant to purchase up to a number of warrant shares equal to 30% of the quotient of (a) the Purchase Price due at the
relevant closing) and the Closing Price of the Company&rsquo;s Common Stock for the Trading Day preceding such additional closing date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In connection with the
entry into the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible
Preferred Stock (the &ldquo;COD&rdquo;) with the Delaware Secretary of State to create a new class of preferred stock designated Series
D Preferred Stock and authorized the issuance of up to ten thousand (10,000) shares of Series D Preferred Stock. The Series D Preferred
Stock has a stated value of $1,200 per share (&ldquo;Stated Value&rdquo;) and the holder of the Series D Preferred Stock has the right
to receive a dividend equal to eight percent (8%) per annum, payable quarterly, beginning on the issuance date of the Series D Preferred
Stock and ending on the date that the Series D Preferred Stock has been converted or redeemed. Dividends may be paid in cash or in shares
of Series D Preferred Stock at the discretion of the Company. At closing, the Company prepaid one year&rsquo;s worth of interest in shares
of Series D Preferred Stock. The Series D Preferred Stock will vote together with the common stock on an as-converted basis subject to
the Beneficial Ownership Limitations Further, the holders of the Series D Preferred Stock have the right to receive assets in the event
of liquidation, dissolution or winding up before any distribution or payment shall be made to the holders of any securities junior to
the Series D Preferred Stock. The Company is required to reserve and keep available out of our authorized and unissued shares of Common
Stock three times the number of Common Stock needed to convert or exercise all Series D Preferred Stock and Warrants issued pursuant to
the Purchase Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The conversion price
(the &ldquo;Conversion Price&rdquo;) for the Series D Preferred Stock shall be the amount equal to the lower of (1) $2.08, a fixed price
equaling the closing bid price of the Common Stock on the trading day immediately preceding the date of the Purchase Agreement and (2)
one hundred percent (100%) of the quotient of (A) the sum of the VWAP of the Common Stock for each of the three (3) trading days with
the lowest VWAP during the twenty (20) consecutive trading day period ending on the trading day immediately preceding the date of delivery
of a conversion notice and (B) three, subject to the Beneficial Ownership Limitations. Following an &ldquo;Event of Default,&rdquo; as
defined in the Purchase Agreement, the Conversion price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price
per share equaling eighty percent (80%) of the lowest traded price for the Company&rsquo;s common stock during the fifteen (15) Trading
Days immediately preceding, but not including, the Conversion Date. The Conversion Price is also subject to adjustment due to certain
events, including stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of&nbsp;our
Common Stock or&nbsp;Common Stock equivalents at an effective price per share lower than the Conversion Price then in effect.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Corporation shall
have the right to redeem, provided the notes issued in the June 2021 financing have been satisfied in full, all (but not less than all),
shares of the Preferred Stock issued and outstanding at any time after the date of issuance, upon five (5) business days&rsquo; notice,
at a redemption price per Series D Preferred Stock then issued and outstanding, equal to the product of (i) the Premium Rate multiplied
by (ii) the sum of (x) the Stated Value, (y) all accrued but unpaid dividends, and (z) all other amount due to the Holder pursuant to
the COD and/or any document entered into in connection with this financing. &ldquo;Premium Rate&rdquo; means (a) 1.15 if all of the Preferred
Stock is redeemed within ninety (90) calendar days from the issuance date thereof; (b) 1.2 if all of the Preferred Stock is redeemed after
ninety (90) calendar days.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">At any time on or prior
to the third anniversary of the date of the Purchase Agreement, upon a Subsequent Financing (as defined in the COD), a holder of at least
one hundred (100) shares of Preferred Stock shall have the right to participate in up to an amount of the Subsequent Financing equal to
35% of the Subsequent Financing (or, solely with respect to a Subsequent Financing consisting of only Common Stock and warrants to purchase
Common Stock (with warrant coverage not to exceed 25%) for aggregate gross proceeds to the Company of at least five million dollars ($5,000,000),
10% of the Subsequent Financing) on the same terms, conditions and price provided for in the Subsequent Financing.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Until the date when the
Purchaser no longer holds any Series D Preferred Stock, upon any issuance by the Company or any of its subsidiaries of Common Stock or
common stock equivalents (as defined in the COD) for cash consideration, indebtedness or a combination of units thereof (a &ldquo;Subsequent
Financing&rdquo;), the holder may elect, in its sole discretion, to exchange (in lieu of conversion), if applicable, all or some of the
shares of Series D Preferred Stock then held for any securities or units issued in a Subsequent Financing on a $1.00 for $1.00 basis.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">A Registration Rights
Agreement was executed in connection with the issuance of the Series D Preferred Stock and the March 2022 Warrants and the registration
statement of which this prospectus is a part is being filed to fulfill our obligations under such agreement.&nbsp; The Company shall use
is best efforts to have the registration statement declared &ldquo;effective&rdquo; within sixty (60) calendar days from its filing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The COD contains limited
negative covenants which restrict the ability of the Company to take certain actions without the consent of the Purchaser. In addition,
following a &ldquo;Triggering Event&rdquo; (as defined in the COD), all outstanding shares of Series D Preferred Stock shall come immediately
due for redemption and the redemption amount shall accrue interest at the lesser of: (a) eighteen percent (18%) per annum; or (b) the
maximum legal rate. Redemption following an Event of Default shall occur at an amount equaling: 1.35 multiplied by the sum of the Stated
Value, all accrued but unpaid dividends and all other amounts due pursuant to the Series D COD for all Series D Preferred Stock outstanding.
Additionally, following an Event of Default, the Conversion Price shall equal the lower of: (a) the then applicable conversion price;
or (b) a price per share equaling eighty percent (80%) of the lowest traded price for the Company&rsquo;s Common Stock during the fifteen
(15) trading days preceding the relevant conversion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Nanomix Merger</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">On June 6, 2021, the Company and Nanomix, Inc.,
or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation (the &ldquo;Company&rdquo;).
As consideration for the Merger, The Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible
Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). On March 2, 2022, all such shares of Preferred Stock issued to Nanomix
shareholders automatically converted into approximately 35,644,997 shares of common stock of the Company, the warrants assumed at closing
may be exercisable into approximately 2,124,687 shares of common stock of the Company and the options and restricted stock units assumed
at closing may be exercisable into approximately 5,718,838 shares of common stock of the Company. The shares of common stock issued upon
conversion of the Preferred Stock together with warrants, restricted stock units and options assumed on the closing date represent approximately
80% of the outstanding shares of Common Stock of the Company upon closing of the Merger. After the merger, the Company changed its name
to Nanomix Corporation and its ticker symbol to NNMX. A previously approved 173:1 reverse stock split was effective on March 2, 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"><U>2021 Restructuring</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">From January 25, 2021 through January 27, 2021,
the Company entered into various agreements with certain debt holders, including CJY Holdings Limited, a Hong Kong company controlled
by the Company&rsquo;s CEO and sole director&rsquo;s brother (&ldquo;CJY&rdquo;), pursuant to which liabilities exceeding approximately
$4.5 million were converted or exchanged into 730,783,181 shares of common stock. The Company granted CJY piggyback registration rights
for a period of one year. Further, the Company entered into Exchange Agreements with the holders of the Company&rsquo;s Series A Preferred
Stock pursuant to which the holders exchanged all outstanding shares of Series A Preferred Stock for 75,000,000 shares of common stock.
The Company entered into service agreements with various consultants and advisors pursuant to which it issued 963,964 shares of Series
B Preferred Stock. The rights, preferences, privileges and limitations of the Series B Preferred Stock are set forth in a certificate
of designation filed by the Company with the Secretary of State of the State of Delaware. The Series B Preferred Stock ranks senior to
the Company&rsquo;s common stock and junior with respect to the Company&rsquo;s Series C Preferred Stock with respect to dividend rights
and rights upon liquidation, winding-up or dissolution. Each Holder of Series B Preferred Stock shall be entitled to receive dividends
or distributions on each share of Series B Preferred Stock on an &ldquo;as converted&rdquo; into Common Stock basis when and if dividends
are declared on the Common Stock by the Board of Directors. Each outstanding share of the Series B Preferred Stock will automatically
convert into 1,000 shares of common stock on the date that approval of an amendment to the Corporation&rsquo;s Certificate of Incorporation,
as amended, to implement a one-for-173 reverse stock split of the Corporation&rsquo;s capital stock by a majority of the votes entitled
to be cast thereon, whether presented at a special or annual meeting of shareholders of the Corporation or by written consent of the
shareholders and the subsequent filing of such amendment with the Secretary of State of the State of Delaware. The consultants and advisors
were granted piggyback registration rights.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>CureDM Acquisition</U></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">On February 12, 2018, the Company acquired CureDM Group Holdings LLC,
or CureDM, for 275,960 shares of common stock of which 144,508 were delivered at closing and 131,452 were to be delivered in four equal
tranches of 32,863 each upon the achievement of specific milestones. Since the milestones were not achieved and the related programs
have been cancelled, the Company does not expect to issue the additional 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"></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>Risks Related to Our Business</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; text-align: justify">Our business and our ability to execute our business
strategy are subject to a number of risks as more fully described in the section titled &ldquo;Risk Factors&rdquo; beginning on page 11.
These risks include, among others:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The COVID-19 pandemic could materially adversely affect our business, financial condition and results of operations.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have incurred significant losses since inception and expect to incur losses in the future. We cannot be certain that we will achieve or sustain profitability.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our financial situation creates doubt whether we will continue as a going concern.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We will need to raise additional funding, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our product development efforts or other operations.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our obligations to the holders of our Notes are secured by a security interest in substantially all of our assets, so if we default on those obligations, the note holders could foreclose on our assets.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.25in"><FONT STYLE="font-size: 7pt">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our obligations under the Notes are secured by a security interest in substantially all of our assets. As a result, if we default in our obligations under the Notes, the holders of the notes, acting through their appointed agent, could foreclose on their security interests and liquidate some or all of these assets, which would harm our business, financial condition and results of operations and could require us to curtail or cease operations.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we cannot successfully develop, maintain, commercialize, or obtain regulatory approvals for new and existing diagnostic assays, our financial results will be harmed and our ability to compete will be harmed.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We are subject to many laws and governmental regulations and any adverse regulatory action may materially adversely affect our financial condition and business operations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disruptions at the FDA and other government agencies caused by funding shortages, COVID-19 or other global health concerns could shift their priorities or hinder their ability to hire, retain or deploy key leadership and other personnel.&nbsp;&nbsp;This could result in delays or may prevent new or modified products from being developed, cleared, approved, authorized, or commercialized in a timely manner or at all, which could negatively impact our business.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our diagnostic products have not been manufactured in significant volume and are subject to unforeseen scale-up risks.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We utilize third-party, single-source suppliers for some components and materials used in our products and product candidates, and the loss of any of these suppliers could have an adverse impact on our business.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our products may not be able to compete with new diagnostic products or existing products developed by well-established competitors, which would negatively affect our business.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If we are unable to recruit, train and retain key personnel, we may not achieve our goals.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">New technologies, techniques or assays could emerge that might offer better combinations of price and performance than our current or future assays.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have limited experience in marketing and selling our products, and if we are unable to expand, manage and maintain our direct sales and marketing organizations, or otherwise commercialize our products, our business may be adversely affected.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have a limited operating history and may face difficulties encountered by companies early in their commercialization in competitive and rapidly evolving markets.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have limited commercial scale capabilities. If we are unable to successfully implement commercial capabilities and manage our growth, our business will be harmed.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Customers may not adopt our products quickly, or at all.</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"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There has been a limited public market for our common stock, and we do not know whether one will develop to provide you adequate liquidity. Furthermore, the trading price for our common stock, should an active trading market develop, may be volatile and could be subject to wide fluctuations in per-share price.</FONT></TD></TR>
  </TABLE>
<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>Corporate Information</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; text-align: justify">We were formed as a Delaware corporation on August
24, 2009, under the name Avanyx Therapeutics, Inc. On November 15, 2021, we changed our name to &ldquo;Nanomix Corporation&rdquo; In
connection with the acquisition of Nanomix Inc., a California corporation. Our principal executive offices are located at 2121 Williams
Street, San Leandro, CA 94577, and our telephone number is (510) 428-5300. Our website address is nano.com. The information contained
on our website is not incorporated by reference into 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 shares.</P>

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

</DIV>
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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>THE OFFERING</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: top">
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock offered by selling security holders</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 74%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">19,507,630 shares of common stock held by the selling stockholders named in this prospectus, including (i) up to 7,500,000 shares of common stock issuable upon conversion of Series D Preferred Stock, (ii) up to 2,250,000 shares of common stock issuable upon exercise of the GHS Warrants, (iii) up to 416,032 shares of common stock issuable upon exercise of the Merger Warrants, (iv) up to 7,904,822 shares of common stock issued as the Merger Shares, (v) up to 1,302,123 shares of common stock that were issued as the Conversion Shares and (vi) up to 134,653 shares of common stock that were issued as the CureDM Shares.&nbsp;&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Offering price</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The prevailing market price for the shares or in privately negotiated transactions.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock outstanding before the offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">46,203,866
    shares<SUP>(1)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Common stock outstanding after the offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;56,369,898
    shares<SUP>(2)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of proceeds</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All of the shares sold pursuant to this prospectus will be offered and sold by the selling stockholders. We will not receive any proceeds from such sales. We would, however, receive proceeds upon the exercise of the Warrants held by the Selling Stockholders which, if such warrants are exercised in full, would be approximately $4.6 million.&nbsp;Proceeds, if any, received from the exercise of such Warrants will be used for working capital and general corporate purposes. No assurances can be given that any of such Warrants will be exercised.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investing in our securities is highly speculative and involves a significant degree of risk. You should carefully consider the information set forth in this prospectus and, in particular, the specific factors set forth in the &ldquo;<I>Risk Factors</I>&rdquo; section beginning on page 11 before deciding whether or not to invest in our common stock.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number of shares of common stock outstanding is based on 46,203,866 shares of common stock issued and outstanding as of March 31, 2022 and excludes the following:</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,534,608 shares of common stock issuable upon the conversion of outstanding convertible notes;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,605,658 shares of common stock issuable upon the exercise of outstanding warrants as of that date having a weighted average exercise price of $1.4152 per share;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,701,762 options to purchase shares of our common stock and 3,369,080 restricted stock units granted under our&nbsp;2021 Equity Incentive Plan, or the 2021 Plan. As of that date, the common options having a weighted average exercise price of $0.254 per share; and</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,500,000 shares of our common stock reserved for future issuance under our&nbsp;2021 Plan.</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 STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes (i) up to 7,500,000 shares of common stock issuable upon conversion of Series D Preferred Stock, (ii) up to 2,250,000 shares of common stock issuable upon exercise of the GHS Warrants and (iii) up to 416,032 shares of common stock issuable upon exercise of the Merger Warrants.&nbsp;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></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>SUMMARY FINANCIAL DATA </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 table sets forth our selected financial
data as of the dates and for the periods indicated. We have derived the statement of operations data for the years ended December&nbsp;31,
2021 and 2020 from our audited financial statements included elsewhere in this prospectus. The statements of operations data for the three
months ended March 31, 2022 and the balance sheet data as of March 31, 2022 have been derived from our unaudited financial statements
included elsewhere in this prospectus. Our historical results of operations presented below may not be reflective of our financial position,
results of operations and cash flows had we operated as a combined company during all periods presented given the change to our business
as a result of the merger with Boston Therapeutics (BTHE) on June 4, 2021, respectively. The following summary financial data should be
read with &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations&rdquo; and our financial
statements and related notes and other information included elsewhere in this prospectus. Our historical results are not necessarily indicative
of the results to be expected in the future and the results for the three months ended March 31, 2022 are not necessarily indicative&nbsp;of
the results that may be expected for the full fiscal year.&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 0pt 0.25in; text-indent: -0.25in"><B>Statement of Operations Data:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -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 STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></P><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Years Ended<BR> </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>December 31,</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" 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>Three Months<BR>
Ended<BR> </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>March 31,<BR> </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></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; font-weight: bold; text-align: center">2021</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">2020</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">2022</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">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">141,778</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">513,244</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">--</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">141,778</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,866,929</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,419,604</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,997,734</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">997,642</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating Income/(Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,725,151</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,906,360</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,997,734</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(855,864</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total Income/(Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,739,882</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,286,010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(847,299</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(356,586</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net Income/(Loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,465,033</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,192,370</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,845,033</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,212,450</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Pro forma basic and diluted net loss per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.79</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,440.76</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.15</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.99</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Pro forma weighted average of shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,300,084</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,298</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,936,485</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,225,881</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><B>Balance Sheet Data:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -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="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">December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">March 31,</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; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2020</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022 <BR>
(unaudited)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">297,351</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">15,098</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">10,961</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Working capital (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,856,259</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,564,028</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,664,161</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">905,712</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">530,471</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,158,201</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,325,098</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,736,822</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,785,445</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">Total stockholders&rsquo; equity (deficit)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21,670,048</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(52,595,613</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,244,525</TD><TD STYLE="text-align: left">)</TD></TR>
  </TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Working capital is defined as total current assets minus total
current liability</TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_002"></A>RISK FACTORS</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; text-align: justify"><I>An investment in our securities involves a
high degree of risk. Before making an investment decision, you should give careful consideration to the following risk factors, in addition
to the other information included in this prospectus, including our financial statements and related notes, before deciding whether to
invest in our securities. The occurrence of any of the adverse developments described in the following risk factors could materially and
adversely harm our business, financial condition, results of operations or prospects. In that case, the trading price of our common stock
could decline, and you may lose all or part of your investment.</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>Risks Related to Our Financial Position and
Need for Additional Capital</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"><B><I>The COVID-19 pandemic could materially adversely affect 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; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The COVID-19 pandemic, the measures attempted
to contain and mitigate the effects of the virus, including travel bans and restrictions, shelter-in-place, quarantine and other similar
governmental orders and restrictions on trade put in place around the world have caused widespread disruption in global economies, productivity
and financial markets and have materially altered the way in which we conduct our day-to-day business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The full extent to which the COVID-19 pandemic
and the various responses to it impact our business, operations and financial results will depend on numerous evolving factors that we
may not be able to accurately predict, including: the duration and scope of the pandemic, including any potential future waves of the
pandemic; governmental, business and individuals&rsquo; actions that have been and continue to be taken in response to the pandemic; disruptions
or restrictions on our employees&rsquo; ability to work and travel; and potential impact on the timeliness of FDA and other regulatory
bodies review and approval of our products. While some of our business operations can be performed remotely, our product development and
production activities need to be conducted on-site. Additionally, many of our employees are juggling additional work-related and personal
challenges, including adjusting communication and work practices to collaborate remotely with work colleagues and business partners, managing
technical and communication challenges of working from home, balancing the need to be on-site for many activities, , looking after children
as a result of remote-learning and school closures, making plans for childcare and caring for themselves, family members or other dependents
who are or may become ill. We will continue to actively monitor the issues raised by the COVID-19 pandemic and may take further actions
that alter our business operations, including as may be required by federal, state, local or foreign authorities or that we determine
are in the best interests of our employees, potential business partners and stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The duration and extent of the impact from the
COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the severity and transmission
rate of the virus, the existence of any additional waves of the pandemic, the extent and effectiveness of containment actions, treatment
and prevention measures, including vaccines, and the impact of these and other factors on our employees and potential customers and business
partners. If we are not able to respond to and manage the impact of such events effectively, our business may be harmed.</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 have incurred significant losses since
inception and expect to incur losses in the future. We cannot be certain that we will achieve or sustain profitability.</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 incurred significant losses since inception
through March 31, 2022 and expect to incur losses in the future. Our accumulated deficit as of March 31, 2022, December 31, 2021 and December
31, 2020 was approximately $109.7 million, $106.8 million and $97.3 million, respectively, and we incurred net losses each year since
inception. We expect that our losses may continue for at least the next few years as we will be required to invest significant additional
funds toward the continued development and commercialization of our technology. Our ability to achieve or sustain profitability depends
on numerous factors, many of which are beyond our control, including the market acceptance of our products and future product candidates,
future product development, our ability to achieve marketing clearance from the FDA and international regulatory clearance for future
product candidates, our ability to compete effectively against an increasing number of competitors and new products, and our market penetration
and margins. In spite of efforts to ramp sales of our products, we may never be able to generate sufficient revenue to achieve or sustain
profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Our financial situation creates doubt whether
we will 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 independent registered public accounting firm
has issued a report for our financial statements at December 31, 2021 that includes an explanatory paragraph referring to our recurring
losses from operations, which raises substantial doubt about our ability to continue as a going concern. We have not generated substantial
revenues to date. For the years ended December 31, 2021 and 2020, the Company had losses of $9.5 million and $6.2 million, respectively.
For the three months ended March 31, 2022, the Company had losses of $2.8 million. There can be no assurances that we will be able to
achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements,
public offerings and/or bank financing necessary to support our working capital requirements. To the extent that funds generated from
any private placements, public offerings and/or bank financing are insufficient, we will have to raise additional working capital. No
assurance can be given that additional financing will be available, or if available, will be on acceptable terms. These conditions raise
substantial doubt about our ability to continue as a going concern. If adequate working capital is not available, we may be forced to
discontinue operations, which would cause investors to lose their entire investment. Our auditors have indicated that 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; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will need to raise additional funding,
which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay,
limit or terminate our product development efforts or other 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 need to continue to seek capital from
time to time to continue development of our advanced mobile POC diagnostic system and to acquire and develop other products. Once approved
for commercialization, we cannot provide any assurances that any revenues it may generate in the future will be sufficient to fund our
ongoing operations. We expect that our current cash position is insufficient to fund our operations beyond the current period. However,
our operating plan may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than
planned, through public or private equity or debt financings, government or other third-party funding, marketing and distribution arrangements
and other collaborations, strategic alliances and licensing arrangements or a combination of these approaches. In any event, we will require
additional capital to obtain regulatory approval for, and to commercialize, our product candidates. Raising funds in the current economic
environment may present additional challenges. Even if we believe we have sufficient funds for our current or future operating plans,
we may seek additional capital if market conditions are favorable or if we have specific strategic considerations.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 additional fundraising efforts may divert
our management from their day-to-day activities, which may adversely affect our ability to develop and commercialize our product candidates.
In addition, we cannot guarantee that future financing will be available in sufficient amounts or on terms acceptable to us, if at all.
Moreover, the terms of any financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional
securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our shares to decline. The
sale of additional equity or convertible securities may dilute our existing stockholders. The incurrence of indebtedness would result
in increased fixed payment obligations and we may be required to agree to certain restrictive covenants, such as limitations on our ability
to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions
that could adversely impact our ability to conduct our business. We could also be required to seek funds through arrangements with collaborative
partners or otherwise at an earlier stage than otherwise would be desirable and we may be required to relinquish rights to some of our
technologies or product candidates or otherwise agree to terms unfavorable to us, any of which may have a material adverse effect on our
business, operating results 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">If we are unable to obtain funding on a timely
basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization
of any product candidate or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which
could materially affect our business, financial condition and results of operations.</P>

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

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





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our inability to raise capital on acceptable
terms in the future may cause us to delay, diminish, or curtail certain operational activities as we have done during the fiscal year
ended December 31, 2021, including research and development activities, sales and marketing, and other operations, in order to reduce
costs and sustain the business, and such inability would have a material adverse effect on our business and financial condition.</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">We expect capital outlays and operating expenditures
to increase over the next several years as we work to expand our commercial activities, expand our development activities, expand manufacturing
operations and expand our infrastructure. We may need to raise additional capital to, among other things:</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">sustain and expand the commercialization of our commercialized assays and assays under development or review by various regulatory agencies;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expand and automate our manufacturing capabilities and reduce our cost of sales;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase our sales and marketing efforts to drive market adoption and address competitive developments;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">finance capital expenditures and our general and administrative expenses;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">develop new assays to expand the product offerings on our eLab system;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">maintain, expand and protect our intellectual property portfolio;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">add operational, financial and management information systems; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">hire additional research and development, quality control, scientific, and general and administrative personnel.</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">Our present and future funding requirements will
depend on many 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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the progress and timing of our clinical trials;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the level of research and development investment required to maintain and improve our technology position;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights, if any;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our efforts to acquire or license complementary technologies or acquire complementary businesses;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in product development plans needed to address any difficulties in commercialization or changing market conditions;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">competing technological and market developments;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in regulatory policies or laws that may affect our operations; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in physician acceptance or medical society recommendations that may affect commercial efforts.</FONT></TD></TR>
  </TABLE>
<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"><B><I>Raising additional capital will cause dilution
to our existing stockholders and may restrict our operations or require us to relinquish certain intellectual property rights.</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">We will seek additional capital through a combination
of public and private equity offerings, debt financings, strategic partnerships and alliances, licensing arrangements and grants. To the
extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our existing
stockholders may be diluted, and the terms may include liquidation or other preferences that adversely affect the rights of our stockholders.
Debt and receivables financings may be coupled with an equity component, such as warrants to purchase shares, which could also result
in dilution of our existing stockholders&rsquo; ownership. The incurrence of indebtedness would result in increased fixed payment obligations
and could also result in certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our
ability to acquire or license intellectual property rights and other operating restrictions that could adversely impact our ability to
conduct our business. If we raise additional funds through strategic partnerships and alliances and licensing arrangements with third
parties, we may have to relinquish valuable rights to our product candidates, or grant licenses on terms that are not favorable to us.
A failure to obtain adequate funds may cause us to curtail certain operational activities, including research and development, regulatory
trials, sales and marketing, and manufacturing operations, in order to reduce costs and sustain the business, and would have a material
adverse effect on our business and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&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><I>We may be at risk of securities class action litigation.</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; text-align: justify">We may be at risk of securities class action litigation.
This risk is especially relevant for us due to our dependence on regulatory approvals of our diagnostic tests. In the past, life science
companies have experienced significant stock price volatility, particularly when associated with binary events such as clinical trials
and product approvals. Additionally, due to our price volatility and our high demand for cash to fund operations, we have had to conduct
a number of reverse stock splits and highly dilutive financings to continue as a going concern which exposes us to additional risk of
securities class action litigation. If we face such litigation, it could result in substantial costs and a diversion of management&rsquo;s
attention and resources, which could harm our business and result in a decline in the market price of our common stock. If such lawsuits
were successful we may not be able to pay awarded damages and we may be forced into bankruptcy which would likely result in the complete
loss of 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>Market and economic conditions may negatively
impact our business, financial condition and share price.</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">In recent years, concerns over inflation, energy
costs, geopolitical issues, the U.S. mortgage market and a declining real estate market, unstable global credit markets and financial
conditions, and volatile oil prices have led to periods of significant economic instability, diminished liquidity and credit availability,
declines in consumer confidence and discretionary spending, diminished expectations for the global economy and expectations of slower
global economic growth going forward, increased unemployment rates, and increased credit defaults. Our general business strategy may be
adversely affected by any such economic downturns, volatile business environments and unstable or unpredictable economic and market conditions.
If these conditions occur, deteriorate or do not improve, it may make any necessary debt or equity financing more difficult to complete,
more costly, and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material
adverse effect on our growth strategy, financial performance, and share price and could require us to delay or abandon development or
commercialization plans. In addition, there is a risk that one or more of our current and future service providers, manufacturers, suppliers,
hospitals and other medical facilities, our third party payors, and other partners could be negatively affected by these difficult economic
times, which could adversely affect our ability to attain our operating goals on schedule and on budget or meet our business and financial
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"><B><I>The small size of the Company&rsquo;s accounting
staff has limited segregation of financial duties which could result in material misstatements in our financial statements in future periods.</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 Company&rsquo;s CEO and Controller have identified
control deficiencies regarding the lack of segregation of duties and the need for a stronger internal control environment. The small size
of the Company&rsquo;s accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit
of such remediation.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 the Company has hired a Controller to
work on SEC reporting and accounting matters, we expect that the Company will need to hire accounting personnel with the requisite knowledge
to improve the levels of review of accounting and financial reporting matters. The Company may experience delays in doing so and any such
additional employees would require time and training to learn the Company&rsquo;s business and operating processes and procedures. For
the near-term future, until such personnel are in place, this will continue to be a weakness in the Company&rsquo;s internal control over
financial reporting that could result in material misstatements in the Company&rsquo;s financial statements not being prevented or detected.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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, other control weaknesses or deficiencies
may be identified in the future. If we are unable to correct such weaknesses or deficiencies in internal controls in a timely manner,
our ability to record, process, summarize and report financial information accurately and within the time periods specified in the rules
and forms of the SEC will be adversely affected, and could result in material misstatements in our financial statements in future periods.
This failure could negatively affect the market price and trading liquidity of our common stock, cause investors to lose confidence in
our reported financial information, subject us to civil and criminal investigations and penalties, and generally materially and adversely
impact our business and financial condition.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risks Related to the March 2022 Private Placement</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"><B><I>If the holders of our Series D Preferred
Stock elect to convert into shares of our common stock, our stockholders will experience substantial dilution in their investment.</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">If the holders of these Notes were to elect to
convert all of the stated value of the Series D Preferred Stock (and assuming no interest has accrued on the principal amount) into shares
of our common stock at the Conversion Price of $2.08, we would be required to issue approximately 1.45 million shares. These conversions
would result in significant dilution to the investments of our existing 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"><B><I>The holders of our Series D Preferred Stock
have certain rights upon an event of default under the Notes which could harm our business, financial condition and results of operations
and could require us to curtail or cease or operations.</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">Under the certificate of designations for the
Series D Preferred Stock, <FONT STYLE="background-color: white">following a &ldquo;Triggering Event&rdquo;, all outstanding shares of
Series D Preferred Stock shall come immediately due for redemption and the redemption amount shall accrue interest at the lesser of: (a)
eighteen percent (18%) per annum; or (b) the maximum legal rate. Redemption following a Triggering Event shall occur at an amount equaling:
1.35 multiplied by the sum of the stated value of the Series D Preferred Stock, all accrued but unpaid dividends and all other amounts
due. Additionally, following a Triggering Event, the Conversion Price shall equal the lower of: (a) the then applicable conversion price;
or (b) a price per share equaling eighty percent (80%) of the lowest traded price for the Company&rsquo;s Common Stock during the fifteen
(15) trading days preceding the relevant conversion.</FONT> If we were unable to come to an agreement with the holders of the Series D
preferred Stock regarding payment, the holders could seek to get a judgment against us, which could harm our business, financial condition
and results of operations and could require use to curtail or cease our operations.</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"><B>Risks Related to Product Development, Regulatory
Approval, Manufacturing and Commercialization</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"><B><I>If we cannot successfully develop, maintain,
commercialize, or obtain regulatory approvals for new and existing diagnostic assays, our financial results will be harmed and our ability
to compete will be harmed.</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">Our financial performance depends in part upon
our ability to successfully develop and market new assays in a rapidly changing technological and economic environment, and to maintain
and successfully commercialize previously cleared assays. If we fail to successfully introduce new assays or do not maintain approval
for previously FDA-cleared assays, we could lose customers and market share. We could also lose market share if our competitors introduce
new assays or technologies that render our assays less competitive or obsolete. In addition, delays in the introduction of new assays
due to regulatory, developmental or other obstacles could negatively impact our revenue and market share, as well as our earnings. Factors
that can influence our ability to introduce new assays, the timing associated with new product approvals and commercial success of these
assays 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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the scope of and progress made in our research and development activities;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to successfully initiate and complete clinical trial studies;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">timely expansion of our menu of assays;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the results of clinical trials needed to support any regulatory approvals of our assays;</FONT></TD></TR>
  </TABLE>
<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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to obtain and maintain requisite FDA or other regulatory clearances or approvals for our assays on a timely basis;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">demand for the new assays we introduce;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">product offerings from our competitors; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the functionality of new assays that address market requirements and customer demands.</FONT></TD></TR>
  </TABLE>
<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></I></B></P>

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<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 are subject to many laws and governmental
regulations and any adverse regulatory action may materially adversely affect our financial condition and business operations.</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 assays that we develop and commercialize in
the future are subject to regulation by numerous government agencies, including the FDA and comparable foreign agencies. To varying degrees,
each of these agencies requires us to comply with laws and regulations governing the development, testing, manufacturing, labeling, marketing
and distribution of our assays. In particular, FDA regulations govern activities such as product development, product testing, product
labeling, product storage, premarket clearance or approval, manufacturing, advertising, promotion, product sales, reporting of certain
product failures and distribution. Our assays will require 510(k) clearance from the FDA prior to marketing.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 unable to obtain marketing clearance
for our assays in development. If such approval is obtained, it may:</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">take a significant amount of time;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">require the expenditure of substantial resources;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">involve stringent clinical and pre-clinical testing;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">involve modifications, repairs, or replacements of our assays; and/or</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">result in limitations on the proposed uses of our assays.</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">Since 2009, the FDA has significantly increased
its oversight of companies subject to its regulations, including medical device companies, by hiring new investigators and stepping up
inspections of manufacturing facilities. The FDA has recently also significantly increased the number of warning letters issued to companies.
If the FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of our medical devices are
ineffective or pose an unreasonable health risk, the FDA could ban such medical devices, detain or seize adulterated or misbranded medical
devices, order a recall, repair, replacement, or refund of such devices, refuse to grant pending pre-market approval applications or require
certificates of foreign governments for exports, and/or require us to notify health professionals and others that the devices present
unreasonable risks of substantial harm to the public health. The FDA may also impose operating restrictions on a company-wide basis, enjoin
and restrain certain violations of applicable law pertaining to medical devices and assess civil or criminal penalties against our officers,
employees or us. The FDA may also recommend prosecution to the U.S. Department of Justice. Any adverse regulatory action, depending on
its magnitude, may restrict us from effectively marketing and selling our diagnostic tests.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Foreign governmental regulations have become increasingly
stringent and more common, and we may become subject to more rigorous regulation by foreign governmental authorities in the future. Penalties
for a company&rsquo;s non-compliance with foreign governmental regulation could be severe, including revocation or suspension of a company&rsquo;s
business license and criminal sanctions. Any domestic or foreign governmental law or regulation imposed in the future may have a material
adverse effect on 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">Our current and potential customers in the United
States and elsewhere may also be subject, directly or indirectly, to applicable anti-kickback, fraud and abuse, false claims, transparency,
health information privacy and security and other healthcare laws and regulations, which could expose us to criminal sanctions, civil
penalties, contractual damages, reputational harm, administrative burdens and diminished profits and future earnings.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 life sciences industry is highly competitive
and subject to rapid technological change. If our competitors and potential competitors develop superior assays and technologies, our
competitive position and results of operations would suffer.</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">We face intense competition from a number of companies
that offer assays in our target markets, many of which have substantially greater financial resources and larger, more established marketing,
sales and service operations than we do. The life sciences industry is characterized by rapid and continuous technological innovation.
We may need to develop new technologies for our existing product and our assays to be competitive. One or more of our current or future
competitors could render our existing products or assays under development obsolete or uneconomical by technological advances. We may
also encounter other problems in the process of delivering new assays to the marketplace, such as problems related to FDA clearance or
regulations, design, development or manufacturing of such assays, and as a result we may be unsuccessful in selling such assays. Our future
success depends on our ability to compete effectively against current technologies, as well as to respond effectively to technological
advances by developing and marketing assays that are competitive in the continually changing technological landscape.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 assays do not perform as expected
or the reliability of the technology on which our assays are based is questioned, we could experience delayed or reduced market acceptance
of our assays, increased costs and damage to our reputation.</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">Our success depends on the market&rsquo;s confidence
that we can provide reliable, high-quality analyzers and diagnostic program. We believe that customers in our target markets are likely
to be particularly sensitive to product defects and errors. Our reputation and the public image of our assays or technologies may be impaired
if our assays fail to perform as expected or our assays are perceived as difficult to use. Despite quality control testing, defects or
errors could occur in our assays or technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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, if our assays experience a material
defect or error, this could result in loss or delay of revenues, delayed market acceptance, product recalls, damaged reputation, diversion
of development resources, legal claims, increased insurance costs or increased service and warranty costs, any of which could harm our
business. Such defects or errors could also prompt us to amend certain warning labels or narrow the scope of the use of our assays, either
of which could hinder our success in the market. Even after any underlying concerns or problems are resolved, any widespread concerns
regarding our technology or any manufacturing defects or performance errors in our assays could result in lost revenue, delayed market
acceptance, damaged reputation, increased service and warranty costs and claims against us.</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>COVID-19 diagnostic tests are subject to
changes in CLIA, FDA, and other regulatory requirements.</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 COVID-19 tests are subject to regulations
of the FDA, International Organization for Standards and other regulatory requirements. The regulations regarding the manufacture and
sale of COVID-19 tests may be unclear and are subject to change. Newly promulgated regulations could require changes to our COVID-19 diagnostic
tests, necessitate additional procedures, or make it impractical or impossible for us to market our tests for certain uses, in certain
markets, or at all. The FDA and other regulatory authorities also have the ability to impose new or additional requirements relating to
COVID-19 tests. The implementation of such changes or new or additional requirements may result in substantial additional costs and could
delay or make it more difficult or complicated to sell our products. Further, our COVID-19 tests, if approved, will be marketed under
an Emergency Use Authorization (EUA) from the FDA. The FDA may decide to withdraw EUA designation for the SARS CoV-2 pandemic, resulting
in the need for us to apply for clearance to market under a 510(k) or other regulatory process. This could result in substantial additional
costs and time to develop the necessary data and information for such clearance.</P>

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

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

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<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; text-align: justify"><B><I>Disruptions at the FDA and other government
agencies caused by funding shortages, COVID-19 or other global health concerns could shift their priorities or hinder their ability to
hire, retain or deploy key leadership and other personnel. This could result in delays or may delay, or otherwise prevent new or modified
products from being developed, cleared, approved, authorized, or commercialized in a timely manner or at all, which could negatively impact
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">The ability of the FDA to review and clear, approve,
or authorize new products can be affected by a variety of factors, including government budget and funding levels, statutory, regulatory,
and policy changes, the FDA&rsquo;s ability to hire and retain key personnel and accept the payment of user fees, and other events that
may otherwise affect the FDA&rsquo;s ability to perform routine functions. Average review times at the agency have fluctuated in recent
years as a result. In addition, government funding of other government agencies that fund research and development activities is subject
to the political process, which is inherently fluid and unpredictable. Disruptions at the FDA and other agencies may also slow the time
necessary for medical devices or modifications to be cleared or approved, medical devices to be reviewed and/or approved by necessary
government agencies, which would adversely affect our business. For example, over the last several years, including for 35 days beginning
on December 22, 2018, the U.S. government has shut down several times and certain regulatory agencies, such as the FDA, have had to furlough
critical FDA employees and stop critical activities. Separately, in response to the global COVID-19 pandemic, on March 10, 2020 the FDA
announced its intention to postpone most foreign inspections of manufacturing facilities and products, and subsequently, on March 18,
2020, the FDA announced its intention to temporarily postpone routine surveillance inspections of domestic manufacturing facilities. Further,
the FDA&rsquo;s response to COID-19 has delayed and may continue to delay reviews of non-COVID products which in turn would impact our
ability to bring products to market. Regulatory authorities outside the United States may adopt similar restrictions or other policy measures
in response to the COVID-19 pandemic. If a prolonged government shutdown occurs, or if global health concerns continue to prevent the
FDA or other regulatory authorities from conducting their regular inspections, reviews, or other regulatory activities, it could significantly
impact the ability of the FDA or other regulatory authorities to timely review and process our regulatory submissions, 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"><B><I>If our S1 Assay Panel, COVID-19 Antigen
Panel, our COVID-19 IgG/IgM Antibody panel products or any of our other product candidates fail to achieve and sustain sufficient market
acceptance, we will not generate expected revenue and our growth prospects, operating results and financial condition may be harmed.</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 commercialization of our S1 Assay Panel products
and the future commercialization of our other product candidates in the United States and other jurisdictions in which we intend to pursue
marketing clearance are key elements of our strategy. If we are not successful in conveying to hospitals and other customers that our
current products and future product candidates provide equivalent or superior diagnostic information in a shorter period of time compared
to existing technologies, or that these products and future product candidates improve patient outcomes or decrease healthcare costs,
we may experience reluctance, or refusal, on the part of hospitals to order, and third-party payors to pay for performing a test in which
our product is utilized.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 hurdles may make it difficult to demonstrate
to hospitals and other healthcare providers that our current diagnostic products and future product candidates are appropriate options
for testing, may be superior to available tests and may be more cost-effective than alternative technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 fail to successfully commercialize our products
and product candidates, we may never receive a return on the significant investments in product development, sales and marketing, regulatory,
manufacturing and quality assurance we have made and further investments we intend to make and may fail to generate revenue and gain economies
of scale from such investments.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 any of our products, or the malfunctioning
of our products, causes or contributes to a death or a serious injury, we will be subject to medical device reporting regulations, which
can result in voluntary corrective actions or agency enforcement actions.</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">Under the FDA medical device reporting regulations,
medical device manufacturers are required to report to the FDA information that a device has or may have caused or contributed to a death
or serious injury or has malfunctioned in a way that would likely cause or contribute to death or serious injury if the malfunction of
the device were to recur. If we fail to report these events to the FDA within the required timeframes, or at all, FDA could take enforcement
action against us. Any such adverse event involving our assays could also result in future voluntary corrective actions, such as recalls
or customer notifications, or agency action, such as inspection or enforcement action. Any corrective action, whether voluntary or involuntary,
as well as defending ourselves in a lawsuit, will require the dedication of our time and capital, distract management from operating our
business, and may harm our reputation and 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"></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 assays may in the future be subject
to product recalls. A recall of our products, either voluntarily or at the direction of the FDA or another governmental authority, including
a third-country authority, or the discovery of serious safety issues with our products, could have a significant adverse impact on us.</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 FDA and similar foreign governmental authorities
have the authority to require the recall of commercialized products in the event of material deficiencies or defects in design or manufacture.
In the case of the FDA, the authority to require a recall must be based on an FDA finding that there is reasonable probability that the
device would cause serious injury or death. In addition, foreign governmental bodies have the authority to require the recall of our products
in the event of material deficiencies or defects in design or manufacture. Manufacturers may, under their own initiative, recall a product
if any material deficiency in a device is found. The FDA requires that certain classifications of recalls be reported to the FDA within
ten working days after the recall is initiated. A government-mandated or voluntary recall by us or one of our international distributors
could occur as a result of an unacceptable risk to health, component failures, malfunctions, manufacturing errors, design or labeling
defects or other deficiencies and issues. Recalls of any of our assays would divert managerial and financial resources and have an adverse
effect on our reputation, results of operations and financial condition, which could impair our ability to produce our products in a cost-effective
and timely manner in order to meet our customers&rsquo; demands. We may also be subject to liability claims, be required to bear other
costs, or take other actions that may have a negative impact on our future sales and our ability to generate profits. Companies are required
to maintain certain records of recalls, even if they are not reportable to the FDA or another third-country competent authority. We may
initiate voluntary recalls involving our products in the future that we determine do not require notification of the FDA or another third-country
competent authority. If the FDA disagrees with our determinations, it could require us to report those actions as recalls. A future recall
announcement could harm our reputation with customers and negatively affect our sales. In addition, the FDA could take enforcement action
for failing to report the recalls when they occur.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 required to follow detailed recordkeeping
requirements for all Company-initiated medical device corrections and removals. In addition, in December 2012, the FDA issued a draft
guidance intended to assist the FDA and industry in distinguishing medical device recalls from product enhancements. Per the guidance,
if any change or group of changes to a device that addresses a violation of the FDCA, that change would generally constitute a medical
device recall and require submission of a recall report to 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"><B><I>If we become subject to claims relating
to improper handling, storage or disposal of hazardous materials, we could incur significant cost and time to comply.</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">We are subject to foreign, federal, state and
local regulations governing the use, manufacture, storage, handling and disposal of materials and waste products. We may incur significant
costs complying with both existing and future environmental laws and regulations. In particular, we are subject to regulation by the Occupational
Safety and Health Administration, or OSHA, and the Environmental Protection Agency, or EPA, and to regulation under the Toxic Substances
Control Act and the Resource Conservation and Recovery Act in the United States. OSHA or the EPA may adopt additional regulations in the
future that may affect our research and development programs. The risk of accidental contamination or injury from hazardous materials
cannot be eliminated completely. In the event of an accident, we could be held liable for any damages that result, and any liability could
exceed the limits or fall outside the coverage of our workers&rsquo; compensation insurance. We may not be able to maintain insurance
on acceptable terms, if 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>Our diagnostic products have not been manufactured
in significant volume and are subject to unforeseen scale-up risks.</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">Although we have developed a process to manufacture
our diagnostic products, there can be no assurance that we can manufacture our diagnostic products at a scale that is adequate for our
future commercial needs. We may face significant or unforeseen difficulties in manufacturing our diagnostic products, 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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">technical issues relating to manufacturing components of our diagnostic products on a high volume commercial scale at reasonable cost, and in a reasonable time frame;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulty meeting demand or timing requirements for orders due to excessive costs or lack of capacity for part or all of an operation or process;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">lack of skilled labor or unexpected increases in labor costs needed to produce or maintain our analyzers or perform certain required operations;</FONT></TD></TR>
  </TABLE>
<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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in government regulations or in quality or other requirements that lead to additional manufacturing costs or an inability to supply product in a timely manner, if at all; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increases in raw material or component supply cost or an inability to obtain supplies of certain critical components or supplies needed to complete our manufacturing processes.</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">These and other difficulties may only become apparent
when scaling up to the manufacturing process of our diagnostic products to a more substantive commercial scale. If our diagnostic products
cannot be manufactured in sufficient commercial quantities or manufacturing is delayed, our future prospects could be significantly impacted
and our financial prospects would be materially harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 or our suppliers may experience development
or manufacturing problems or delays that could limit the growth of our revenue or increase our losses.</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">We may encounter unforeseen situations in the
manufacturing of our diagnostic products that could result in delays or shortfalls in our production. Our suppliers may also face similar
delays or shortfalls. In addition, our or our suppliers&rsquo; production processes may have to change to accommodate any significant
future expansion of our manufacturing capacity, which may increase our or our suppliers&rsquo; manufacturing costs, delay production of
our diagnostic products, reduce our product gross margin and adversely impact our business. If we are unable to satisfy demand for our
diagnostic products by successfully manufacturing and shipping our diagnostic products in a timely manner, our revenue could be impaired,
market acceptance for our assays could be adversely affected and our customers might instead purchase our competitors&rsquo; assays. In
addition, developing manufacturing procedures for assays under development may require developing specific production processes for those
assays. Developing such processes could be time consuming and any unexpected difficulty in doing so can delay the introduction of a product.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 utilize third-party, single-source suppliers
for some components and materials used in our products and product candidates, and the loss of any of these suppliers could have an adverse
impact on 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">We rely on single-source suppliers for some components
and materials used in our products and product candidates. Our ability to supply our products commercially and to develop any future products
depends, in part, on our ability to obtain these components in accordance with regulatory requirements and in sufficient quantities for
clinical testing and commercialization. While our suppliers have generally met our demand for their products on a timely basis in the
past, these were with limited production quantities and we cannot assure that they will in the future be able to meet our demand for their
products, either because we do not have long-term agreements with those suppliers, our relative importance as a customer to those suppliers,
or their ability to produce the components used in our products. For example, our supplier of printed electrodes has exited the printing
business. We purchased safety stock from the supplier prior to their discontinuing production and have begun qualification of a replacement
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">While we believe replacement suppliers exist for
all components and materials we obtain from single sources, establishing additional or replacement suppliers for any of these components
or materials, if required, may not be accomplished quickly. Even if we are able to find a replacement supplier, the replacement supplier
would need to be qualified and may require additional regulatory authority approval, which could result in further delay. While we will
seek to maintain adequate inventory of the single-source components and materials used in our products in the event of disruption, those
inventories may not be sufficient.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 third-party suppliers fail to deliver the
required commercial quantities of materials on a timely basis and at commercially reasonable prices, and we are unable to find one or
more replacement suppliers capable of production at a substantially equivalent cost in substantially equivalent volumes and quality on
a timely basis, the continued commercialization of our products, the supply of our products to customers and the development of any future
products would be delayed, limited or prevented, which could have an adverse impact on our business.</P>

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

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

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<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>Manufacturing risks may adversely affect
our ability to manufacture products and could reduce our gross margins and negatively affect our operating 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">Our business strategy depends on our ability to
manufacture and assemble our current and proposed products in sufficient quantities and on a timely basis to meet consumer demand, while
adhering to product quality standards, complying with regulatory requirements and managing manufacturing costs. We are subject to numerous
risks relating to our manufacturing capabilities, including:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">quality or reliability defects in or changes in the composition of product components that we source from third party suppliers;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our inability to secure product components in a timely manner, in sufficient quantities or on commercially reasonable terms;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our failure to increase production of products to meet demand;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;&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: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the challenge of implementing and maintaining acceptable quality systems while experiencing rapid growth;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our inability to build production lines to enable us to efficiently produce products; and</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.2in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulty identifying and qualifying alternative suppliers for components in a timely manner.</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">As demand for our products increases, we will
need to invest additional resources to purchase components, hire and train employees, and enhance our manufacturing processes and implement
manufacturing and quality systems. If we fail to increase our production capacity efficiently while also maintaining quality requirements,
our sales may not increase in line with our forecasts and our operating margins could fluctuate or decline. In addition, while we expect
most new products will utilize the eLab instrument system and existing consumable cartridge, manufacturing of future products may require
the modification of our production lines, the hiring of specialized employees, the identification of new suppliers for specific components,
or the development of new manufacturing technologies. It may not be possible for us to manufacture these products at a cost or in quantities
sufficient to make these products commercially viable. Any future interruptions we experience in the manufacturing or shipping of our
products could delay our ability to recognize revenues in a particular quarter and could also adversely affect our relationships with
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>We expect to rely on third parties to conduct
studies of our assays under development that will be required by the FDA or other regulatory authorities and those third parties may not
perform satisfactorily.</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">We do not have the ability to independently conduct
the field trial studies or other studies that may be required to obtain FDA and other regulatory clearances or approvals for our assays.
Accordingly, we expect to rely on third parties, such as independent testing laboratories and hospitals, to conduct such studies. Our
reliance on these third parties will reduce our control over these activities. These third-party contractors may not complete activities
on schedule or conduct studies in accordance with regulatory requirements or our study design. We cannot control whether they devote sufficient
time, skill and resources to our studies. Our reliance on third parties that we do not control will not relieve us of any applicable requirement
to prepare, and ensure compliance with, various procedures required under good clinical practices. If these third parties do not successfully
carry out their contractual duties or regulatory obligations or meet expected deadlines, if the third parties need to be replaced or if
the quality or accuracy of the data they obtain is compromised due to their failure to adhere to our clinical protocols or regulatory
requirements or for other reasons, our studies may be extended, delayed, suspended or terminated, and we may not be able to obtain regulatory
approval for additional assays.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B>&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>Any clinical trials that we may conduct
may not begin on time, or at all, may not be completed on schedule, or at all, or may be more expensive than we expect, which could prevent
or delay regulatory approval of our assays or impair our financial position.</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 commencement or completion of any clinical
trials that we may conduct may be delayed or halted for numerous reasons, including, but 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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the FDA or other regulatory authorities suspend or place on hold a clinical trial, or do not approve a clinical trial protocol or a clinical trial;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the data and safety monitoring committee or applicable hospital institutional ethics review board recommends that a trial be placed on hold or suspended;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">fewer patients meet our clinical study criteria and our enrollment rate is lower than we expected;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">clinical trial sites decide not to participate or cease participation in a clinical trial;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">third-party clinical investigators do not perform our clinical trials on schedule or consistent with the clinical trial protocol and good clinical practices, or other third-party organizations do not perform data collection and analysis in a timely or accurate manner;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we fail regulatory inspections of our manufacturing facilities requiring us to undertake corrective action or suspend or terminate our clinical trials;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">interim results of the clinical trial are inconclusive or negative;</FONT></TD></TR>
  </TABLE>
<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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pre-clinical or clinical data are interpreted by third parties in unanticipated ways; or</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our trial design is inadequate to demonstrate safety and/or efficacy.</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">Our clinical trial costs will increase if we have
material delays in those trials or if we need to perform more or larger trials than planned. Adverse events during a clinical trial could
cause us to repeat a trial, terminate a trial or cancel an entire program. Should our clinical development plan be delayed, this could
have a material adverse effect on our 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>Product liability claims could adversely
impact our financial condition and our earnings and impair our reputation.</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">Our business exposes us to potential product liability
risks that are inherent in the design, manufacture and marketing of medical devices. Device failures, manufacturing defects, design flaws,
or inadequate disclosure of product-related risks or product-related information with respect to our assays could result in an unsafe
condition regarding, injury to, or death of, a patient. The occurrence of such a problem could result in product liability claims or a
recall of, or safety alert relating to, one or more of our assays. Product liability claims or product recalls in the future, regardless
of their ultimate outcome, could have a material adverse effect on our business and reputation and on our ability to attract and retain
customers for our assays.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 diagnostic products do not perform
as expected, our operating results, reputation and business will 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">Our future success will depend on the market&rsquo;s
confidence that our technologies can provide reliable, high-quality diagnostic results. We believe that our customers are likely to be
particularly sensitive to any defects or errors in our products. If our technology fails to perform a clinical test, then we could face
claims against us or our reputation could suffer as a result of such failures. The failure of our current products or planned diagnostic
product candidates to perform reliably or as expected could significantly impair our reputation and the public image of our products,
and we may be subject to legal claims arising from any defects or errors.</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>Our products may not be able to compete
with new diagnostic products or existing products developed by well-established competitors, which would 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">The diagnostic industry is focused on the testing
of biological specimens in a laboratory or at the point-of-care and is highly competitive and rapidly changing. Important competitive
factors for our products include price, quality, performance, ease of use, and customer service.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 few large corporations produce a wide variety
of diagnostic tests and other medical devices and equipment. A larger number of mid-size companies generally compete only in the diagnostic
industry and a significant number of small companies produce only a few diagnostic products. As a result, the diagnostic test industry
is highly fragmented and segmented.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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"></P>

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

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<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">Some of our principal competitors may have considerably
greater financial, technical and marketing resources than we do. Several companies produce diagnostic tests that compete directly with
our testing product line, including Abbott (Alere), Siemens, Becton Dickinson, and Danaher. Some competitors offer broader product lines
and may have greater name recognition than we have. These and other companies have or may have products incorporating advanced technologies
that over time could directly compete with our testing product line.</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">As new products incorporating new technologies
enter the market, our products may become obsolete or a competitor&rsquo;s products may be more effective or more effectively marketed
and sold. If our competitors&rsquo; products take market share from our products through more effective marketing or competitive pricing,
our revenues, margins and operating results could be adversely affected.</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>Our future revenues and operating results
may be negatively affected by ongoing consolidation in the healthcare industry</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 has been a significant amount of consolidation
in the healthcare industry. This consolidation has increased the competition to provide goods and services to customers. In addition,
group purchasing organizations and integrated health delivery networks have served to concentrate purchasing decisions for some customers,
which has also placed pricing pressure on medical device suppliers. Due to ongoing consolidation, there could be additional pressure on
the prices of our products.</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>Undetected errors or defects in our products
or product candidates could harm our reputation, decrease market acceptance of our products or expose us to product liability claims.</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 products or product candidates may contain
undetected errors or defects. Disruptions or other performance problems with our products or product candidates may damage our customers&rsquo;
businesses and could harm our reputation. If that occurs, we may incur significant costs, the attention of our key personnel could be
diverted or other significant customer relations problems may arise. We may also be subject to warranty and liability claims for damages
related to errors or defects in our products or product candidates. A material liability claim or other occurrence that harms our reputation
or decreases market acceptance of our products or product candidates could harm our business and 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">The sale and use of products or product candidates
or services based on our technologies, or activities related to our research and clinical studies, could lead to the filing of product
liability claims if someone were to allege that one of our products contained a design or manufacturing defect. A product liability claim
could result in substantial damages and be costly and time consuming to defend, either of which could materially harm our business or
financial condition. We cannot assure you that our product liability insurance would adequately protect our assets from the financial
impact of defending a product liability claim. Any product liability claim brought against us, with or without merit, could increase our
product liability insurance rates or prevent us from securing insurance coverage in the future.</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 currently develop, manufacture and test
our products and product candidates and some of their components in a single facility. If these or any future facility or our equipment
were damaged or destroyed, or if we experience a significant disruption in our operations for any reason, our ability to continue to operate
our business could be materially harmed.</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 currently develop, manufacture and test our
products and product candidates exclusively in a facility in Emeryville, California. If this or any future facility were to be damaged,
destroyed or otherwise unable to operate, whether due to fire, floods, hurricanes, storms, tornadoes, other natural disasters, employee
malfeasance, terrorist acts, power outages, or otherwise, or if our business is disrupted for any other reason, we may not be able to
develop or test our products and product candidates as promptly as our potential customers expect, or possibly not 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">The manufacture of components of our products
and product candidates involves complex processes, sophisticated equipment and strict adherence to specifications and quality systems
procedures. Any unforeseen manufacturing problems, such as contamination of our facility, equipment malfunction, or failure to strictly
follow procedures or meet specifications, could result in delays or shortfalls in production of our products. Identifying and resolving
the cause of any manufacturing issues could require substantial time and resources. If we are unable to keep up with future demand for
our products by successfully manufacturing and shipping our products in a timely manner, our revenue growth could be impaired and market
acceptance of our product candidates could be adversely affected.</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>

<P STYLE="font: 10pt Times New Roman, Times, 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 March 31, 2022, we have entered into a new
facility lease and have relocated our operations to the new location. Moving our manufacturing and development facility requires revalidation
and startup of our manufacturing equipment and processes and may interrupt our business resulting in higher costs and potentially lost
revenue.</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">We maintain insurance coverage against damage
to our property and equipment, subject to deductibles and other limitations that we believe is adequate. If we have underestimated our
insurance needs with respect to an interruption, or if an interruption is not subject to coverage under our insurance policies, we may
not be able to cover our losses.</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>Third-Party reimbursement policies and potential
cost constraints could 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">The list of our product end-users includes hospitals
and other healthcare providers. If these end-users do not receive adequate reimbursement for the cost of our products from their patients&rsquo;
healthcare insurers or payors, the use of our products could be negatively impacted. Furthermore, the net sales of our products could
also be adversely affected by changes in reimbursement policies of government or private healthcare payors.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Hospitals and other healthcare providers who purchase
diagnostic products in the United States generally rely on third-party payors, such as private health insurance plans, Medicare and Medicaid,
to reimburse all or part of the cost of the product. Due to the overall escalating cost of medical products and services, there is increased
pressures on the healthcare industry, both foreign and domestic, to reduce the cost of products and services. Given the efforts to control
and reduce healthcare costs in the United States, available levels of reimbursement may change for our existing products or products under
development. Third-party reimbursement and coverage may not be available or adequate in either the United States or international markets,
current reimbursement amounts may be decreased in the future and future legislation, and regulation or reimbursement policies of third-party
payors, may reduce the demand for our products or our ability to sell our products on a profitable basis.</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>Ongoing changes in healthcare regulation
could negatively affect our revenues, business and financial condition.</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 have been several proposed changes in the
United States at the federal and state level for comprehensive reforms regarding the payment for, the availability of and reimbursement
for healthcare services. These proposals have ranged from fundamentally changing federal and state healthcare reimbursement programs,
including providing comprehensive healthcare coverage to the public under government-funded programs, to minor modifications to existing
programs. One example is the Patient Protection and Affordable Care or the Affordable Care Act, the Federal healthcare reform law enacted
in 2010.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Healthcare reform initiatives will continue to
be proposed and may reduce healthcare related funding in an effort. It is impossible to predict the ultimate content and timing of any
healthcare reform legislation and its resulting impact on us. If significant reforms are made to the healthcare system in the United States,
or in other jurisdictions, those reforms may increase our costs or otherwise negatively 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">In April 2017, the European Parliament passed
the Medical Devices Regulation (Regulation 2017/745), which repeals and replaces the European Union Medical Devices Directive and the
Active Implantable Medical Devices Directive. Unlike directives, which must be implemented into the national laws of the European Economic
Area, which we refer to as the EEA, member States, the regulations would be directly applicable, i.e., without the need for adoption of
EEA member State laws implementing them, in all EEA member States and are intended to eliminate current differences in the regulation
of medical devices among EEA member States. The Medical Devices Regulation, among other things, is intended to establish a uniform, transparent,
predictable and sustainable regulatory framework across the EEA for medical devices and ensure a high level of safety and health while
supporting innovation. The Medical Devices Regulation will, however, only become fully applicable three years after publication (in May
2020). Once applicable, the Medical Devices Regulation will, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">strengthen the rules on placing devices on the market and reinforce surveillance once they are available;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish explicit provisions on manufacturers&rsquo; responsibilities for the follow-up of the quality, performance and safety of devices placed on the market;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">improve the traceability of medical devices throughout the supply chain to the end-user or patient through a unique identification number;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">set up a central database to provide patients, healthcare professionals and the public with comprehensive information on products available in the EU; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">strengthen rules for the assessment of certain high-risk devices, such as implants, which may have to undergo an additional check by experts before they are placed on the market.</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">Expected to be implemented in 2022, the Medical
Devices Regulation may impose increased compliance obligations for us to access the EU market.</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>Legislative and other regulatory changes
could have an effect on 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">Changes in regulatory or economic conditions or
in the laws and policies governing foreign trade, taxes, manufacturing, and development in the United States could impact our business.
Economic and regulatory changes could also affect foreign currency exchange rates which, in turn, could affect our reported financial
results and our competitiveness on a worldwide basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Consolidation in the healthcare industry
could have an adverse effect on our revenues and results of operations.</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">Many healthcare companies, including healthcare
systems, are consolidating to create new companies with greater market power. As the healthcare industry consolidates, competition to
provide goods and services to industry participants will become more intense. These industry participants may try to use their market
power to negotiate price concessions or reductions for diagnostic tests. If we are forced to reduce our prices because of consolidation
in the healthcare industry, our projected revenues would decrease and our earnings, financial condition, and/or cash flows would suffer.</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 or our distributors do not comply
with the U.S. federal and state fraud and abuse laws, including anti-kickback laws for any products approved in the U.S., or with similar
foreign laws where we market our products, we could face significant liability.</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">There are numerous United States federal and state
laws pertaining to healthcare fraud and abuse, including anti-kickback laws, false claims, and physician transparency laws. Our relationships
with physicians and surgeons, hospitals and our independent distributors are subject to scrutiny under these laws. Violations of these
laws are punishable by criminal and civil sanctions, including significant fines, damages and monetary penalties and in some instances,
imprisonment and exclusion from participation in federal and state healthcare programs, including the Medicare, Medicaid and Veterans
Administration health programs.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Healthcare fraud and abuse regulations are complex,
and even minor irregularities can potentially give rise to claims that a statute or prohibition has been violated. The laws that may affect
our ability to operate 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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the federal healthcare program Anti-Kickback Statute, which prohibits, among other things, persons from knowingly and willfully soliciting, offering, receiving, or paying remuneration, directly or indirectly, in cash or in kind, to induce or reward the purchasing, leasing, ordering or arranging for or recommending the purchase, lease or order of any good or service for which payment may be made under federal healthcare programs such as Medicare and Medicaid;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">federal civil False Claims Act prohibits, among other things, knowingly presenting, or causing to be presented, claims for payment of government funds that are false or fraudulent or knowingly making, using or causing to be made or used a false record or statement material to an obligation to pay money to the government or knowingly concealing or knowingly and improperly avoiding, decreasing or concealing an obligation to pay money to the federal government;</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; text-align: center">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the federal Health Insurance Portability and Accountability Act of 1996, or HIPAA, as amended by the Health Information Technology and Clinical Health Act of 2009, which, among other things, imposes criminal and civil liability for executing a scheme to defraud any healthcare benefit program and also imposes obligations, including mandatory contractual terms, with respect to safeguarding the privacy, security and transmission of individually identifiable health information;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">HIPAA also created federal criminal laws that prohibit knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent statement or representation, or making or using any false writing or document knowing the same to contain any materially false fictitious or fraudulent statement or entry in connection with the delivery of or payment for healthcare benefits, items or services;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the Federal Trade Commission Act and similar laws regulating advertisement and consumer protections;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the federal Foreign Corrupt Practices Act of 1997, which makes it illegal to offer or provide money or anything of value to officials of foreign governments, foreign political parties, or international organizations with the intent to obtain or retain business or seek a business advantage; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">state law equivalents of each of the above federal laws, such as anti-kickback and false claims laws which may apply to items or services reimbursed by any third-party payor, including commercial insurers, and state laws governing the privacy of health information in certain circumstances, many of which differ from each other in significant ways and often are not preempted by HIPAA, thus complicating compliance efforts. In addition, there has been a recent trend of increased federal and state regulation of payments made to physicians. Some states, such as California, Massachusetts, Nevada, and Vermont mandate implementation of commercial compliance programs and/or impose restrictions on device manufacturer marketing practices and tracking and reporting of gifts, compensation and other remuneration to physicians.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Efforts to ensure that our business arrangements
with third parties will comply with applicable healthcare laws and regulations will involve substantial costs. It is possible that governmental
authorities will conclude that our business practices may not comply with current or future statutes, regulations or case law involving
applicable fraud and abuse or other healthcare laws and regulations. If our operations are found to be in violation of any of these laws
or any other governmental regulations that may apply to us, we may be subject to significant civil, criminal and administrative penalties,
damages, fines, exclusion from federal healthcare programs, such as Medicare and Medicaid, and the curtailment or restructuring of our
operations. To enforce compliance with the federal laws, the U.S. Department of Justice, or DOJ, has recently increased its scrutiny of
interactions between healthcare companies and healthcare providers, which has led to a number of investigations, prosecutions, convictions
and settlements in the healthcare industry. Dealing with investigations can be time and resource consuming and can divert management&rsquo;s
attention from the business. In addition, settlements with the DOJ or other law enforcement agencies have forced healthcare providers
to agree to additional onerous compliance and reporting requirements as part of a consent decree or corporate integrity agreement. Any
violations of these laws, or any action against us for violation of these laws, even if we successfully defend against it, could have
a material adverse effect on our reputation, business 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">Many foreign countries have enacted similar laws
addressing fraud and abuse in the healthcare sector. The shifting commercial compliance environment and the need to build and maintain
robust and expandable systems to comply with different compliance requirements in multiple jurisdictions increases the possibility that
we may run afoul of one or more of the requirements.</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><I>If we are unable to recruit, train and retain
key personnel, we may not achieve our goals.</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 success depends on our ability to recruit,
develop, retain and motivate key personnel, including individuals for our senior management, research and development, engineering, manufacturing
and sales and marketing teams. Additionally, we will need to hire additional executive personnel including a Chief Financial Officer and
other financial personnel in the future. We do not have employment contracts with management personnel. Competition for qualified personnel
is intense, particularly in the San Francisco Bay area. Our growth depends on attracting, retaining and motivating highly skilled personnel
with the necessary technical or scientific background and ability to understand our products at a technical and clinical level. In addition,
we will need to hire assay developers, automation engineers and other manufacturing employees to build our product offerings and meet
demand for our products as we scale up our sales and marketing operations. Because of the complex and technical nature of our products
and the dynamic market in which we compete, any failure to attract, develop, retain and motivate qualified personnel could materially
harm our operating results and growth 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>Changes in tax laws or exposure to additional
income tax liabilities could have a material impact on our financial condition and results of operations.</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">We are subject to income taxes as well as non-income
based taxes in both the United States and various foreign jurisdictions. Changes in existing tax laws, treaties, regulations or policies
or the interpretation or enforcement thereof, or the enactment or adoption of new tax laws, treaties, regulations or policies could materially
impact our effective tax rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 do not achieve, sustain or successfully
manage our anticipated growth, our business and prospects will be harmed.</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">If we are unable to obtain or sustain adequate
revenue growth, our financial results could suffer. Furthermore, significant growth will place strains on our management and our operational
and financial systems and processes and our operating costs may escalate even faster than planned. If we cannot effectively manage our
expanding operations and our costs, we may not be able to grow effectively or we may grow at a slower pace. Additionally, if we do not
successfully forecast the timing of regulatory authorization for our additional tests, marketing and subsequent demand for our diagnostic
tests or manage our anticipated expenses accordingly, our operating results will be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 companies or institutions have commercial
assays or may develop and market novel or improved methods for infectious disease diagnostics, which may make our diagnostic platform
less competitive or obsolete.</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 market for diagnostics is large and established,
and our competitors may possess significantly greater financial resources and have larger development and commercialization capabilities
than we do. We may be unable to compete effectively against these competitors either because their diagnostic platforms are superior or
because they may have more expertise, experience, financial resources or stronger business relationships.</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>New technologies, techniques or assays could
emerge that might offer better combinations of price and performance than our current or future assays.</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">It is critical to our success that we anticipate
changes in technology and customer requirements and to successfully introduce, on a timely and cost-effective basis, new, enhanced and
competitive technologies that meet the needs of current and prospective customers. If we do not successfully innovate and introduce new
technology into our product lines or manage the transitions to new product offerings, our revenues, results of operations and business
will be adversely impacted. Competitors may be able to respond more quickly and effectively than we can to new or changing opportunities,
technologies, standards or customer requirements. We anticipate that we will face increased competition in the future as existing companies
and competitors develop new or improved diagnostic tests and as new companies enter the market with new technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 could be exposed to liability if we experience
security breaches or other disruptions, which could harm our reputation and business</I></B><I>.</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 may be subject to cyber-attacks whereby computer
hackers may attempt to access our computer systems or our third-party IT service provider&rsquo;s systems and, if successful, misappropriate
personal or confidential information. In addition, a contractor or other third party with whom we do business may attempt to circumvent
our security measures or obtain such information and may purposefully or inadvertently cause a breach involving sensitive information.
We will continue to evaluate and implement additional protective measures to reduce the risk and detect cyber incidents, but cyber-attacks
are becoming more sophisticated and frequent and the techniques used in such attacks change rapidly. Even though we take cyber-security
measures that are continuously reviewed and updated, our information technology networks and infrastructure may still be vulnerable due
to sophisticated attacks by hackers or breaches.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even the most well protected IT networks, systems,
and facilities remain potentially vulnerable because the techniques used in security breaches are continually evolving and generally are
not recognized until launched against a target and, in fact, may not be detected. Any such compromise of our or our third party&rsquo;s
IT service providers&rsquo; data security and access, public disclosure, or loss of personal or confidential business information, could
result in legal claims proceedings, liability under laws to protect, privacy of personal information, and regulatory penalties, disrupt
our operations, require significant management attention and resources to remedy any damages that result, damage our reputation and customers
willingness to transact business with us, any of <I>which could adversely affect our business.</I></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></I></B></P>

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<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 expect to generate a portion of our revenue
internationally and are subject to various risks relating to those international activities which could adversely affect our operating
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">A portion of our revenue is expected to come from
international sources. Engaging in international business involves a number of difficulties and risks, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">required compliance with existing and changing foreign healthcare and other regulatory requirements and laws, such as those relating to patient privacy or handling of bio-hazardous waste;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">required compliance with anti-bribery laws, such as the U.S. Foreign Corrupt Practices Act and U.K. Bribery Act, data privacy requirements, labor laws and anti-competition regulations;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">export or import restrictions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">various reimbursement and insurance regimes;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">laws and business practices favoring local companies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal systems;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">political and economic instability;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potentially adverse tax consequences, tariffs, customs charges, bureaucratic requirements and other trade barriers;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">foreign exchange controls;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties and costs of staffing and managing foreign operations;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties protecting or procuring intellectual property rights; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -16.4pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pandemics and public health emergencies, such as the coronavirus (COVID-19), could result in disruptions to travel and distribution in geographic locations where our products are sold.</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">As we expand internationally, our results of operations
and cash flows will become increasingly subject to fluctuations due to changes in foreign currency exchange rates. Our expenses are generally
denominated in U.S. dollars. If the value of the U.S. dollar increases relative to foreign currencies in the future, in the absence of
a corresponding change in local currency prices, our future revenue could be adversely affected as we convert future revenue from local
currencies to U.S. dollars.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 dedicate resources to our international
operations and are unable to manage these risks effectively, our business, operating results and prospects will suffer.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Our employees, independent contractors,
principal investigators, consultants, commercial partners, distributors and vendors may engage in misconduct or other improper activities,
including non-compliance with regulatory standards and requirements.</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 exposed to the risk of fraud or other misconduct
by our employees, independent contractors, principal investigators, consultants, commercial partners, distributors and vendors. Misconduct
by these parties could include intentional, reckless or negligent failures to: comply with the regulations of the FDA and other similar
foreign regulatory bodies; provide true, complete and accurate information to the FDA and other similar regulatory bodies; comply with
manufacturing standards we have established; comply with healthcare fraud and abuse laws and regulations in the United States and similar
foreign fraudulent misconduct laws; or report financial information or data accurately, or disclose unauthorized activities to us. These
laws may impact, among other things, our activities with principal investigators and research subjects, as well as our sales, marketing
and education programs. In particular, the promotion, sales, marketing and business arrangements in the healthcare industry are subject
to extensive laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing and other abusive practices. These laws
may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs
and other business arrangements. Such misconduct could also involve the improper use of information obtained in the course of clinical
studies, which could result in regulatory sanctions and cause serious harm to our reputation. We currently have a code of conduct applicable
to all of our employees, but it is not always possible to identify and deter employee misconduct, and our code of conduct and the other
precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses, or in
protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with these laws or regulations.
If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions
could have a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary
fines, disgorgement, individual imprisonment, possible exclusion from participation in Medicare, Medicaid and other federal healthcare
programs, contractual damages, reputational harm, diminished profits and future earnings, and curtailment of our operations, any of which
could adversely affect our ability to operate our business and our results of operations. Any of these actions or investigations could
result in substantial costs to us, including legal fees, and divert the attention of management from operating our business.</P>

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

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



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We have limited experience in marketing
and selling our products, and if we are unable to expand, manage and maintain our direct sales and marketing organizations, or otherwise
commercialize our products, our business may 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">Because we received CE-mark for our S1 Assay Panel
in November of 2019 and began commercial sales activities in September 2020, we have limited experience marketing and selling our products.
We began staffing our sales and marketing organization in 2021 and currently have a staff of 3. Our financial condition and operating
results will be highly dependent upon the efforts of our sales and marketing organization. If we are unable to quickly build our sales
and marketing team or if our sales and marketing efforts fail to adequately promote, market and sell our products, our sales may not increase
at levels that are in line with our forecasts.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 sales growth will depend in large part
on our ability to successfully build and expand the size and geographic scope of our sales and marketing team. Accordingly, our future
success will depend largely on our ability to hire, train, retain and motivate skilled sales and marketing personnel. Because the competition
for individuals with their skillset is high, there is no assurance we will be able to hire and retain personnel on commercially reasonable
terms. If we are unable to build and expand our sales and marketing capabilities, we may not be able to effectively commercialize our
products and our business and operating results may be adversely affected. Additionally, we will need to implement management information
systems to support the sales and marketing operations. There is no assurance that these systems will be implemented and effective. Lack
of these management information systems may negatively impact sales efforts.</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">Outside of the United States, we will sell our
products through distribution partners and there is no guarantee that we will be successful in attracting or retaining desirable distribution
partners for these markets or that we will be able to enter into such arrangements on favorable terms. Distributors may not commit the
necessary resources to market and sell our products effectively or may choose to favor marketing the products of our competitors. If distributors
do not perform adequately, or if we are unable to enter into effective arrangements with distributors in particular geographic areas,
we may not realize our sales growth.</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: 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></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our ability to grow our business will be
limited if we fail to develop and maintain new and existing distribution channels.</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 plan to grow our business depends on third
parties and distributors to sell our products. The sale of our products depends in large part on our ability to sell products to these
customers and on the marketing and distribution abilities of the companies with which we collaborate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Reliance on distributors and third-parties to
market and sell our products could negatively impact our business for various reasons, including: (i) we may not be able to find suitable
distributors for our products on satisfactory terms, or at all; (ii) agreements with distributors may prematurely terminate or may result
in litigation between the parties; (iii) our distributors or other customers may not fulfill their contractual obligations and distribute
our products in the manner or at the levels we expect; (iv) our distributors may prioritize other products or their own private label
products that compete with our products; (v) Our existing distributor relationships or contracts may preclude or limit us from entering
into arrangements with other distributors; and (vi) we may not be able to negotiate new or renew existing distribution agreements on acceptable
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">We will try to maintain and expand our business
with distributors and third parties and make every effort to require that they fulfill their contractual obligations, but there can be
no assurance that such companies will do so or that new distribution channels will be available on satisfactory terms. If we are unable
to do so, our business will be negatively impacted.</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>Potential customers may not adopt rapid
Point-of-Care diagnostic testing.</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">Rapid point-of-care tests are beneficial because,
among other things, they can be administered by healthcare providers in their own facilities or used by healthcare facilities without
sending samples to central laboratories. But currently the majority of diagnostic tests used by healthcare providers in the U.S. are provided
by clinical reference laboratories and hospital-based laboratories. In some international markets, such as Europe, diagnostic testing
is performed primarily by centralized laboratories. Future sales of our products will depend, in part, on our ability to expand market
acceptance of rapid point-of-care testing and successfully compete against laboratory testing methods and products. However, we expect
that clinical reference and other hospital-based laboratories will continue to compete vigorously against our rapid point-of-care products.
Even if we can demonstrate that our products are more cost effective, save time, or have better performance or other benefits, healthcare
providers may resist changing to rapid point-of-care tests and instead may choose to obtain diagnostic results through laboratory tests.
If we fail to achieve and expand market acceptance of our rapid point-of-care diagnostic tests with customers, it would have a negative
effect on our future sales growth.</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>Even if we receive regulatory approval for
any of our product candidates, we may not be able to successfully commercialize the product and the revenue that we generate from their
sales, if any, may be limited.</I></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; text-align: justify">If approved for marketing, the commercial success
of our product candidates will depend upon each product&rsquo;s acceptance by the medical community, including physicians, patients and
health care payors. The degree of market acceptance for any of our product candidates will depend on a number of factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">demonstration of clinical safety and efficacy;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">relative convenience, dosing burden and ease of administration;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the prevalence and severity of any adverse effects;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the willingness of physicians to prescribe our product candidates, and the target patient population to try new therapies;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&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: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">efficacy of our product candidates compared to competing products;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the introduction of any new products that may in the future become available targeting indications for which our product candidates may be approved;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">new procedures or therapies that may reduce the incidences of any of the indications in which our product candidates may show utility;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">pricing and cost-effectiveness;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the inclusion or omission of our product candidates in applicable therapeutic and vaccine guidelines;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the effectiveness of our own or any future collaborators&rsquo; sales and marketing strategies;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">limitations or warnings contained in approved labeling from regulatory authorities;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our ability to obtain and maintain sufficient third-party coverage or reimbursement from government health care programs, including Medicare and Medicaid, private health insurers and other third-party payors or to receive the necessary pricing approvals from government bodies regulating the pricing and usage of therapeutics; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="text-align: justify; font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the willingness of patients to pay out-of-pocket in the absence of third-party coverage or reimbursement or government pricing approvals.</FONT></TD></TR>
  </TABLE>
<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">If any of our product candidates are approved,
but do not achieve an adequate level of acceptance by physicians, health care payors, and patients, we may not generate sufficient revenues
and we may not be able to achieve or sustain profitability. Our efforts to educate the medical community and third-party payors on the
benefits of our product candidates may require significant resources and may never be successful.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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, even if we obtain regulatory approvals,
the timing or scope of any approvals may prohibit or reduce our ability to commercialize our product candidates successfully. For example,
if the approval process takes too long, we may miss market opportunities and give other companies the ability to develop competing products
or establish market dominance. Any regulatory approval we ultimately obtain may be limited or subject to restrictions or post-approval
commitments that render our product candidates not commercially viable. For example, regulatory authorities may approve any of our product
candidates for fewer or more limited indications than we request, may grant approval contingent on the performance of costly post-marketing
clinical trials, or may approve any of our product candidates with a label that does not include the labeling claims necessary or desirable
for the successful commercialization for that indication. Further, the FDA or comparable foreign regulatory authorities may place conditions
on approvals or require risk management plans or a Risk Evaluation and Mitigation Strategy (&ldquo;REMS&rdquo;) to assure the safe use
of the drug. If the FDA or applicable foreign regulatory agency concludes a REMS is needed, the sponsor of the BLA must submit a proposed
REMS; the regulatory agencies will not approve the BLA without an approved REMS, if required. A REMS could include medication guides,
physician communication plans, or elements to assure safe use, such as restricted distribution methods, patient registries and other risk
minimization tools. The regulatory agencies may also require a REMS for an approved product when new safety information emerges. Any of
these limitations on approval or marketing could restrict the commercial promotion, distribution, prescription or dispensing of our product
candidates. Moreover, product approvals may be withdrawn for non-compliance with regulatory standards or if problems occur following the
initial marketing of the product. Any of the foregoing scenarios could materially harm the commercial success of our product candidates.</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"><B><I>Adverse events involving our products may
lead the FDA or applicable foreign regulatory agency to delay or deny clearance for our products or result in product recalls that could
harm our reputation, business and financial results.</I></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; text-align: justify">Once a product receives regulatory clearance or
approval, the agency has the authority to require the recall of commercialized products in the event of adverse side effects, material
deficiencies or defects in design or manufacture. The authority to require a recall must be based on a regulatory finding that there is
a reasonable probability that the product would cause serious injury or death. Manufacturers may, under their own initiative, recall a
product if any material deficiency in a product is found. A government-mandated or voluntary recall by us or one of our distributors could
occur as a result of adverse side effects, impurities or other product contamination, manufacturing errors, design or labeling defects
or other deficiencies and issues. Recalls of any of our products would divert managerial and financial resources and have an adverse effect
on our financial condition and results of operations. The regulatory agencies require that certain classifications of recalls be reported
to them within ten (10) working days after the recall is initiated. Companies are required to maintain certain records of recalls, even
if they are not reportable to the regulatory agency. We may initiate voluntary recalls involving our products in the future that we determine
do not require notification of the regulatory agencies. If the regulatory agency disagrees with our determinations, they could require
us to report those actions as recalls. A future recall announcement could harm our reputation with customers and negatively affect our
sales. In addition, the regulatory agency could take enforcement action for failing to report the recalls when they were conducted.</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; text-indent: 0.5in"></P>

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<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"><B><I>The in-licensing of technologies and the
successful testing and early development of technologies in the laboratory may not be indicative of future results and may not result
in commercially viable technologies or products. Further, our future products may have to be modified from their originally conceived
versions in order to reach or be successful in the market.</I></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; text-align: justify">Positive results from laboratory testing and early
developmental successes, may not be predictive of future successful development, commercialization and sales results and should not be
relied upon as evidence that products developed from our technologies will become commercially viable and successful. Further, the products
we plan to develop in the future may have to be significantly modified from their originally conceived versions in order for us to control
costs, compete with similar products, receive market acceptance, meet specific development and commercialization timeframes, avoid potential
infringement of the proprietary rights of others, or otherwise succeed in developing our business and earning ongoing revenues. This can
be a costly and resource draining activity. What appear to be promising technologies when we license them may not lead to viable technologies
or products, or to commercial success.</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"><B><I>We utilize third-party, single-source suppliers
for some components and materials used in our products and product candidates, and the loss of any of these suppliers could have an adverse
impact on 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">We rely on single-source suppliers for some components
and materials used in our products and product candidates. Our ability to supply our products commercially and to develop any future products
depends, in part, on our ability to obtain these components in accordance with regulatory requirements and in sufficient quantities for
clinical testing and commercialization. While our suppliers have generally met our demand for their products on a timely basis in the
past, these were with limited production quantities and we cannot assure that they will in the future be able to meet our demand for their
products, either because we do not have long-term agreements with those suppliers, our relative importance as a customer to those suppliers,
or their ability to produce the components used in our products. For example, our supplier of printed electrodes has exited the printing
business. We purchased safety stock from the supplier prior to their discontinuing production and have begun qualification of a replacement
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">While we believe replacement suppliers exist for
all components and materials we obtain from single sources, establishing additional or replacement suppliers for any of these components
or materials, if required, may not be accomplished quickly. Even if we are able to find a replacement supplier, the replacement supplier
would need to be qualified and may require additional regulatory authority approval, which could result in further delay. While we will
seek to maintain adequate inventory of the single-source components and materials used in our products in the event of disruption, those
inventories may not be sufficient.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 third-party suppliers fail to deliver the
required commercial quantities of materials on a timely basis and at commercially reasonable prices, and we are unable to find one or
more replacement suppliers capable of production at a substantially equivalent cost in substantially equivalent volumes and quality on
a timely basis, the continued commercialization of our products, the supply of our products to customers and the development of any future
products would be delayed, limited or prevented, which could have an adverse impact on our business.</P>

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

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

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<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>Manufacturing risks may adversely affect
our ability to manufacture products and could reduce our gross margins and negatively affect our operating 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">Our business strategy depends on our ability to
manufacture and assemble our current and proposed products in sufficient quantities and on a timely basis to meet consumer demand, while
adhering to product quality standards, complying with regulatory requirements and managing manufacturing costs. We are subject to numerous
risks relating to our manufacturing capabilities, including:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">quality or reliability defects in product components that we source from third party suppliers;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our inability to secure product components in a timely manner, in sufficient quantities or on commercially reasonable terms;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our failure to increase production of products to meet demand;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the challenge of implementing and maintaining acceptable quality systems while experiencing rapid growth;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our inability to build production lines to enable us to efficiently produce products; and</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulty identifying and qualifying alternative suppliers for components in a timely manner.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As demand for our products increases, we will
need to invest additional resources to purchase components, hire and train employees, and enhance our manufacturing processes and implement
manufacturing and quality systems. If we fail to increase our production capacity efficiently while also maintaining quality requirements,
our sales may not increase in line with our forecasts and our operating margins could fluctuate or decline. In addition, while we expect
most new products will utilize the eLab instrument system and existing consumable cartridge, manufacturing of future products may require
the modification of our production lines, the hiring of specialized employees, the identification of new suppliers for specific components,
or the development of new manufacturing technologies. It may not be possible for us to manufacture these products at a cost or in quantities
sufficient to make these products commercially viable. Any future interruptions we experience in the manufacturing or shipping of our
products could delay our ability to recognize revenues in a particular quarter and could also adversely affect our relationships with
our customers.</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>Risks Related to 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"><B><I>The extent to which we can protect our business
and technologies through intellectual property rights that we own, acquire or license is uncertain.</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">We employ a variety of proprietary and patented
technologies and methods in connection with the assays that we sell or are developing. We license some of these technologies from third
parties. We cannot provide any assurance that the intellectual property rights that we own or license provide effective protection from
competitive threats or that we would prevail in any litigation in which our intellectual property rights are challenged. In addition,
we may not be successful in obtaining new proprietary or patented technologies or methods in the future, whether through acquiring ownership
or through licenses from third parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 currently pending or future patent applications
may not result in issued patents, and we cannot predict how long it may take for a patent to issue on any of our pending patent applications,
assuming a patent does issue.</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">Other parties may challenge patents issued or
exclusively licensed to us, or courts or administrative agencies may hold our patents or the patents we license on an exclusive basis
to be invalid or unenforceable. We may not be successful in defending challenges made against our patents and other intellectual property
rights. Any third-party challenge to any of our patents could result in the unenforceability or invalidity of some or all of the claims
of such patents and could be time consuming and expensive.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 extent to which the patent rights of
life sciences companies effectively protect their diagnostic tests and technologies is often highly uncertain and involves complex legal
and factual questions for which important legal principles remain unresolved.</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">No consistent policy regarding the proper scope
of allowable claims of patents held by life sciences companies has emerged to date in the United States. Various courts, including the
U.S. Supreme Court, have rendered decisions that impact the scope of patentability of certain inventions or discoveries relating to diagnostic
tests or genomic diagnostic testing. These decisions generally stand for the proposition that inventions that recite laws of nature are
not themselves patentable unless they have sufficient additional features that provide practical assurance that the processes are genuine
inventive applications of those laws rather than patent drafting efforts designed to monopolize a law of nature itself. What constitutes
a &ldquo;sufficient&rdquo; additional feature for this purpose is uncertain. Although we do not generally rely on gene sequence patents,
this evolving case law in the United States may adversely impact our ability to obtain new patents and may facilitate third-party challenges
to our existing owned and exclusively licensed patents.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 cannot predict the breadth of claims that may
be allowed or enforced in patents we own or in those to which we have exclusive license rights. For example:</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the inventor(s) named in one or more of our patents or patent applications might not have been the first to have made the relevant invention;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the inventor (or his assignee) might not have been the first to file a patent application for the claimed invention;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">others may independently develop similar or alternative diagnostic tests and technologies or may successfully replicate our product and technologies;</FONT></TD></TR>
  </TABLE>
<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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">it is possible that the patents we own or in which have exclusive license rights may not provide us with any competitive advantages or may be challenged by third parties and found to be invalid or unenforceable;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any patents we obtain or exclusively license may expire before, or within a limited time period after, the assays and services relating to such patents are commercialized;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we may not develop or acquire additional proprietary assays and technologies that are patentable; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">others may acquire patents that could be asserted against us in a manner that could have an adverse effect on our business.</FONT></TD></TR>
  </TABLE>
<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>Changes in either the patent laws or in
interpretations of patent laws in the United States or other countries may diminish the value of our intellectual property rights.</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">On September 16, 2011, the Leahy-Smith America
Invents Act, or the Leahy-Smith Act, was signed into law. The Leahy-Smith Act includes a number of significant changes to U.S. patent
law. These include provisions that affect the way patent applications are prosecuted, redefine prior art, may affect patent litigation
and switch the U.S. patent system from a &ldquo;first-to-invent&rdquo; system to a &ldquo;first-to-file&rdquo; system. Under a first-to-file
system, assuming the other requirements for patentability are met, the first inventor to file a patent application generally will be entitled
to the patent on an invention regardless of whether another inventor had made the invention earlier. The U.S. Patent and Trademark Office,
or USPTO, recently developed new regulations and procedures to govern administration of the Leahy-Smith Act, and many of the substantive
changes to patent law associated with the Leahy-Smith Act, including the first-to-file provisions in particular, only became effective
on March 16, 2013. Accordingly, it is not clear what, if any, impact the Leahy-Smith Act will have on the operation of our business. However,
the Leahy-Smith Act and its implementation could increase the uncertainties and costs surrounding the prosecution of our owned and licensed
patent applications and the enforcement or defense of issued patents that we own or license, all of which could have a material adverse
effect on our business 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">Patent applications in the United States and many
foreign jurisdictions are not published until at least eighteen months after filing and it is possible for a patent application filed
in the United States to be maintained in secrecy until a patent issues on the application. In addition, publications in the scientific
literature often lag behind actual discoveries. We therefore cannot be certain that others have not filed patent applications that cover
inventions that are the subject of pending applications that we own or exclusively license or that we were the first to invent the technology
(if filed prior to the Leahy-Smith Act) or first to file (if filed after the Leahy-Smith Act). Our competitors may have filed, and may
in the future file, patent applications covering technology that is similar to or the same as our technology. Any such patent application
may have priority over patent applications that we own and, if a patent issues on such patent application, we could be required to obtain
a license to such patent in order to carry on our business. If another party has filed a U.S. patent application covering an invention
that is similar to, or the same as, an invention that we own, we may have to participate in an interference or other proceeding in the
USPTO or a court to determine priority of invention in the United States, for applications and patents made prior to the enactment of
the Leahy-Smith Act. For applications and patents made following the enactment of the Leahy-Smith Act, we may have to participate in a
derivation proceeding to resolve disputes relating to inventorship. The costs of these proceedings could be substantial, and it is possible
that such efforts would be unsuccessful, resulting in our inability to obtain or retain any U.S. patent rights with respect to such invention.</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"></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">In addition, the laws of foreign jurisdictions
may not protect our rights to the same extent as the laws of the United States. For example, European patent law restricts the patentability
of methods of treatment of the human body more than U.S. law does. Publications of discoveries in scientific literature often lag behind
the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months
after filing, or in some cases not at all. Therefore, we cannot be certain that we were the first to make the inventions claimed in our
owned or licensed patents or pending patent applications, or that we or our licensors were the first to file for patent protection of
such inventions. Moreover, the USPTO might require that the term of a patent issuing from a pending patent application be disclaimed and
limited to the term of another patent that is commonly owned or names a common inventor. As a result, the issuance, scope, validity, term,
enforceability and commercial value of our patent rights are highly uncertain.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 patent prosecution process is expensive
and time-consuming, is highly uncertain and involves complex legal and factual questions. Recent patent reform legislation could increase
the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our issued patents.</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">Our success depends in large part on our ability
to obtain and maintain patent protection in the United States and other countries with respect to our proprietary technology and product
candidates. We seek to protect our proprietary position by filing in the United States and in certain foreign jurisdictions patent applications
related to our novel technologies and product candidates that are important to 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">The patent prosecution process is expensive and
time-consuming, and we may not be able to file and prosecute all necessary or desirable patent applications at a reasonable cost or in
a timely manner. It is also possible that we will fail to identify patentable aspects of our research and development output before it
is too late to obtain patent protection. In addition, we may not pursue or obtain patent protection in all major markets. Moreover, in
some circumstances, we may not have the right to control the preparation, filing or prosecution of patent applications, or to maintain
the patents, covering technology that we license from third parties. In some circumstances, our licensors may have the right to enforce
the licensed patents without our involvement or consent, or to decide not to enforce or to allow us to enforce the licensed patents. Therefore,
these patents and patent applications may not be prosecuted and enforced in a manner consistent with the best interests of our business.
If any of our licensors fail to maintain such patents, or lose rights to those patents, the rights that we have licensed may be reduced
or eliminated and our right to develop and commercialize any of our product candidates that are the subject of such licensed rights 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: justify">Our pending and future patent applications may
not result in patents being issued which protect our technology or products, in whole or in part, or which effectively prevent others
from commercializing competitive technologies and products. In particular, during prosecution of any patent application, the issuance
of any patents based on the application may depend upon our ability to generate additional nonclinical or clinical data that support the
patentability of our proposed claims. We may not be able to generate sufficient additional data on a timely basis, or at all. Moreover,
changes in either the patent laws or interpretation of the patent laws in the United States or other countries may diminish the value
of our patents or narrow the scope of our patent 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">Moreover, we may be subject to a third-party pre-issuance
submission of prior art to the USPTO, or become involved in opposition, derivation, reexamination,&nbsp;<I>inter partes</I>&nbsp;review,
post-grant review or interference proceedings or other patent office proceedings or litigation, in the United States or elsewhere, challenging
our patent rights or the patent rights of others. An adverse determination in any such submission or proceeding could reduce the scope
of, or invalidate, our patent rights; allow third parties to commercialize our technology or products and compete directly with us, without
payment to us; or result in our inability to manufacture or commercialize products without infringing third-party patent rights. In addition,
if the breadth or strength of protection provided by our owned and licensed patents and patent applications is threatened, it could dissuade
companies from collaborating with us to license, develop or commercialize current or future product candidates.</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"></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>Obtaining and maintaining our patent protection
depends upon compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent
agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.</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 USPTO and various foreign governmental patent
agencies require compliance with a number of procedural, documentary, fee payment and other provisions during the patent prosecution process
and following the issuance of a patent. There are situations in which noncompliance with these requirements can result in abandonment
or lapse of a patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. In such
an event, competitors might be able to enter the market earlier than would otherwise have been the case if our patent were in force.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 intellectual property rights may not
be sufficient to protect our competitive position and to prevent others from manufacturing, using or selling competing assays.</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 scope of our owned and exclusively licensed
intellectual property rights may not be sufficient to prevent others from manufacturing, using or selling competing assays. Competitors
could purchase our product and attempt to replicate some or all of the competitive advantages we derive from our development efforts,
willfully infringe our intellectual property rights, design around our protected technology or develop their own competitive technologies
and thereby avoid infringing our intellectual property rights. If our intellectual property is not sufficient to effectively prevent our
competitors from developing and selling similar diagnostic tests, our competitive position and our business 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: justify"><B><I>We may become involved in disputes relating
to our intellectual property rights, and may need to resort to litigation in order to defend and enforce our intellectual property rights.</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">Extensive litigation regarding patents and other
intellectual property rights has been common in the medical diagnostic testing industry. Litigation may be necessary to assert infringement
claims, protect trade secrets or know-how and determine the enforceability, scope and validity of certain proprietary rights. Litigation
may even be necessary to resolve disputes of inventorship or ownership of proprietary rights. The defense and prosecution of intellectual
property lawsuits, USPTO interference or derivation proceedings and related legal and administrative proceedings (<I>e.g</I>., a re-examination)
in the United States and internationally involve complex legal and factual questions. As a result, such proceedings are costly and time
consuming to pursue, and their outcome is uncertain.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Even if we prevail in such a proceeding in which
we assert our intellectual property rights against third parties, the remedy we obtain may not be commercially meaningful or adequately
compensate us for any damages we may have suffered. If we do not prevail in such a proceeding, our patents could potentially be declared
to be invalid, unenforceable or narrowed in scope, or we could otherwise lose valuable intellectual property rights. Similar proceedings
involving the intellectual property we exclusively license could also have an impact on our business. Further, if any of our other owned
or exclusively licensed patents are declared invalid, unenforceable or narrowed in scope, our competitive position 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: justify"><B><I>We could face claims that our activities
or the manufacture, use or sale of our assays infringe the intellectual property rights of others, which could cause us to pay damages
or licensing fees and limit our ability to sell some or all of our assays and services.</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">Our research, development and commercialization
activities may infringe or be claimed to infringe patents or other intellectual property rights owned by other parties of which we may
be unaware because the relevant patent applications may have been filed but not yet published. Certain of our competitors and other companies
have substantial patent portfolios and may attempt to use patent litigation as a means to obtain a competitive advantage or to extract
licensing revenue. In addition to patent infringement claims, we may also be subject to other claims relating to the violation of intellectual
property rights, such as claims that we have misappropriated trade secrets or infringed third party trademarks. The risks of being involved
in such litigation may also increase as we gain greater visibility as a public company and as we gain commercial acceptance of our diagnostic
tests and move into new markets and applications for our assays.</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"></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">Regardless of merit or outcome, our involvement
in any litigation, interference or other administrative proceedings could cause us to incur substantial expense and could significantly
divert the efforts of our technical and management personnel. Any public announcements related to litigation or interference proceedings
initiated or threatened against us could cause our share price to decline. An adverse determination, or any actions we take or agreements
we enter into in order to resolve or avoid disputes, may subject us to the loss of our proprietary position or to significant liabilities,
or require us to seek licenses that may include substantial cost and ongoing royalties. Licenses may not be available from third parties
or may not be obtainable on satisfactory terms. An adverse determination or a failure to obtain necessary licenses may restrict or prevent
us from manufacturing and selling our diagnostic tests and offering our services. These outcomes could materially harm 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 not be able to adequately protect
our intellectual property outside of the United States.</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 laws of some foreign countries do not protect
intellectual property rights to the same extent as the laws of the United States, and many companies have encountered significant problems
in protecting and defending such rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing
countries, do not favor the enforcement of patents and other intellectual property protection, particularly those relating to medical
devices, diagnostic testing and biotechnology, which could make it difficult for us to stop the infringement of our patents and for licensors,
if they were to seek to do so, to stop infringement of patents that are licensed to us. Proceedings to enforce our patent rights in foreign
jurisdictions could result in substantial cost and divert our efforts and attention from other aspects of our business. Additionally,
prosecuting and maintaining intellectual property (particularly patent) rights are very costly endeavors, and for these and other reasons
we may not pursue or obtain patent protection in all major markets. We do not know whether legal and government fees will increase substantially
and therefore are unable to predict whether cost may factor into our global intellectual property 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">In addition to the risks associated with patent
rights, the laws in some foreign jurisdictions may not provide protection for our trade secrets and other intellectual property. If our
trade secrets or other intellectual property are misappropriated in foreign jurisdictions, we may be without adequate remedies to address
these issues. Additionally, we also rely on confidentiality and assignment of invention agreements to protect our intellectual property
in foreign jurisdictions. These agreements may provide for contractual remedies in the event of misappropriation, but we do not know to
what extent, if any, these agreements, and any remedies for their breach, will be enforced by a foreign court. If our intellectual property
is misappropriated or infringed upon and an adequate remedy is not available, our future prospects will likely diminish. The sale of diagnostic
tests that infringe our intellectual property rights, particularly if such diagnostic tests are offered at a lower cost, could negatively
impact our ability to achieve commercial success and may materially and adversely 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"><B><I>Our failure to secure trademark registrations
could adversely affect our business and our ability to market our assays and product candidates.</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">Our trademark applications in the United States
and any other jurisdictions where we may file may not be allowed for registration, and our registered trademarks may not be maintained
or enforced. During trademark registration proceedings, we may receive rejections. Although we are given an opportunity to respond to
those rejections, we may be unable to overcome such rejections. In addition, in the USPTO and in corresponding foreign agencies, third
parties are given an opportunity to oppose pending trademark applications and to seek to cancel registered trademarks. Opposition or cancellation
proceedings may be filed against our applications and/or registrations, and our applications and/or registrations may not survive such
proceedings. Failure to secure such trademark registrations in the United States and in foreign jurisdictions could adversely affect our
business and our ability to market our diagnostic tests and product 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"></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 be unable to adequately prevent disclosure
of trade secrets and other proprietary information, or the misappropriation of the intellectual property we regard as our own.</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">We rely on trade secrets to protect our proprietary
know how and technological advances, particularly where we do not believe patent protection is appropriate or obtainable. Nevertheless,
trade secrets are difficult to protect. We rely in part on confidentiality agreements with our employees, consultants, third party contractors,
third party collaborators and other advisors to protect our trade secrets and other proprietary information. These agreements generally
require that the other party to the agreement keep confidential and not disclose to third parties all confidential information developed
by us or made known to the other party by us during the course of the other party&rsquo;s relationship with us. These agreements may not
effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure
of confidential information. Monitoring unauthorized disclosure is difficult, and we do not know whether the steps we have taken to prevent
such disclosure are, or will be, adequate. If we were to seek to pursue a claim that a third party had illegally obtained and was using
our trade secrets, it would be expensive and time consuming, and the outcome would be unpredictable. Further, courts outside the United
States may be less willing to protect trade secrets. In addition, others may independently discover our trade secrets and proprietary
information and therefore be free to use such trade secrets and proprietary information. Costly and time consuming litigation could be
necessary to enforce and determine the scope of our proprietary rights. In addition, our trade secrets and proprietary information may
be misappropriated as a result of breaches of our electronic or physical security systems in which case we may have no legal recourse.
Failure to obtain, or maintain, trade secret protection could enable competitors to use our proprietary information to develop assays
that compete with our assays or cause additional, material adverse effects upon our competitive business position.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 claims that our employees
have wrongfully used or disclosed alleged trade secrets of their former employers.</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">As is common in our industry, we employ individuals
who were previously employed at other companies in our industry or in related industries, including our competitors or potential competitors.
We may be subject to claims that we or these employees have inadvertently or otherwise used or disclosed trade secrets or other proprietary
information of their former employers. Litigation may be necessary to defend against these claims. Even if we are successful in defending
against these claims, litigation could result in substantial costs and be a distraction to management.</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"><B><I>Third parties may initiate legal proceedings
alleging that we are infringing their intellectual property rights, the outcome of which would be uncertain.</I></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; text-align: justify">Our commercial success depends upon our ability
to develop, manufacture, market and sell our product candidates without infringing the proprietary rights of third parties. There is considerable
intellectual property litigation in the life sciences industry. We cannot guarantee that our product candidates will not infringe third-party
patents or other proprietary rights. We may become party to, or threatened with, future adversarial proceedings or litigation regarding
intellectual property rights with respect to our products and technology, including&nbsp;<I>inter partes&nbsp;</I>review, interference,
or derivation proceedings before the USPTO and similar bodies in other countries. Third parties may assert infringement claims against
us based on existing intellectual property rights and intellectual property rights that may be granted in the future.</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">If we are found to infringe a third party&rsquo;s
intellectual property rights, we could be required to obtain a license from such third party to continue developing and marketing our
products. However, we may not be able to obtain any required license on commercially reasonable terms or at all. Even if we were able
to obtain a license, it could be non-exclusive, thereby giving our competitors access to the same technologies licensed to us. We could
be forced, including by court order, to cease commercializing the infringing technology or product. In addition, we could be found liable
for monetary damages, including treble damages and attorneys&rsquo; fees if we are found to have willfully infringed a patent. A finding
of infringement could prevent us from commercializing our product candidates or force us to cease some of our business operations, which
could materially harm our business. Claims that we have misappropriated the confidential information or trade secrets of third parties
could have a similar negative impact on our business.</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">Obtaining and maintaining our patent protection
depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent
agencies, and our own patent protection could be reduced or eliminated for noncompliance with these requirements.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Periodic maintenance fees and annuities on any
issued patent are due to be paid to the USPTO and foreign patent agencies in several stages over the lifetime of the patent. The USPTO
and various foreign governmental patent agencies require compliance with a number of procedural, documentary, fee payment and other similar
provisions during the patent application process. While an inadvertent lapse can in many cases be cured by payment of a late fee or by
other means in accordance with the applicable rules, there are situations in which noncompliance can result in abandonment or lapse of
the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Noncompliance events
that could result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond to official
actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. In such an event,
our competitors might be able to enter our markets, which could have a material adverse effect on our business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Intellectual property litigation could cause
us to spend substantial resources and distract our personnel from their normal responsibilities.</I></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; text-align: justify">Even if resolved in our favor, litigation or other
legal proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our technical
and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings,
motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it
could have an adverse effect on the price of our common stock. Such litigation or proceedings could increase our operating losses and
reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient
financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the
costs of such litigation or proceedings more effectively than we can because of their greater financial resources. Uncertainties resulting
from the initiation and continuation of patent litigation or other proceedings could compromise our ability to compete in the marketplace.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We may spend considerable resources developing
and maintaining patents, licensing agreements and other intellectual property that may later be abandoned or may otherwise never result
in products brought to market.</I></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; text-align: justify">Not all technologies and candidate products that
initially show potential as the basis for future products ultimately meet the rigors of our development process and as a result may be
abandoned and/or never otherwise result in products brought to market.&nbsp;In some cases, prior to abandonment we may be required to
incur significant costs developing and maintaining intellectual property and/or maintaining license agreements and our business could
be harmed by such costs.</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"><B><I>We rely on information technology, and if
we are unable to protect against service interruptions, data corruption, cyber-based attacks or network security breaches, our operations
could be disrupted, and our business could be negatively affected.</I></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; text-align: justify">We rely on information technology networks and
systems to process, transmit and store electronic and financial information; to coordinate our business; and to communicate within our
Company and with customers, suppliers, partners and other third parties. These information technology systems may be susceptible to damage,
disruptions or shutdowns, hardware or software failures, power outages, computer viruses, cyber-attacks, telecommunication failures, user
errors or catastrophic events. If our information technology systems suffer severe damage, disruption or shutdown, and our business continuity
plans do not effectively resolve the issues in a timely manner, our operations could be disrupted, and our business could be negatively
affected. In addition, cyber-attacks could lead to potential unauthorized access and disclosure of confidential information, and data
loss and corruption. There is no assurance that we will not experience these service interruptions or cyber-attacks 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>Risks Related to the Company and our Business</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>We have a limited operating history and may
face difficulties encountered by companies early in their commercialization in competitive and rapidly evolving 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 received CE-Mark for our eLab instrument and
S1 Assay panel in November of 2019 and began commercializing these products in the fourth quarter of 2020. We have also developed products
for COVID-19 with the intent to file for FDA EUA. The application for our COVID-19 antibody test was not reviewed by the FDA due to the
volume of EUA requests the Agency has received for similar tests. The EUA application for our COVID-19 antigen test was reviewed by the
FDA and additional clinical and analytical information was requested. The Company conducted additional work and refiled the EUA in November
2021. The FDA has requested additional information primarily from clinical testing sites prior to initiating their formal review.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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">Accordingly, we have a relatively limited operating
history upon which to evaluate our business and forecast our future sales and operating results. In assessing our business prospects,
you should consider the various risks and difficulties frequently encountered by companies early in their commercialization in competitive
and rapidly evolving markets, particularly companies that develop and sell medical devices. These risks include our ability to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-indent: -24pt">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">implement and execute our business strategy;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">establish a sales and marketing infrastructure to grow sales of our products and product candidates;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">implement computer based systems for the management of orders, production, inventory, invoicing, and receivable collections;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increase awareness of our brand;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">manage expanding operations</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">expand our manufacturing capabilities, including increasing production of current products efficiently while maintaining quality standards and adapting our manufacturing facilities to the production of new product candidates;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">respond effectively to competitive pressures and developments;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">enhance our existing product and develop new products;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">obtain and maintain regulatory clearance or approval to commercialize product candidates and enhance our existing products;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">effectively perform clinical trials with respect to our proposed products;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">attract, retain and motivate qualified personnel in various areas of our business: and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">implement and maintain systems and processes that are compliant with applicable regulatory standards.</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 have the institutional knowledge or
experience to be able to effectively address these and other risks that may face our business. In addition, we may not be able to develop
insights into trends that could emerge and negatively affect our business and may fail to respond effectively to those trends. As a result
of these or other risks, we may not be able to execute key components of our business strategy, and our business, financial condition
and operating results may suffer.</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>Sales cycles for our products may be lengthy,
which can cause variability and unpredictability in 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">Some of our products may require lengthy and unpredictable
sales cycles, which makes it more difficult to accurately forecast revenues and may cause revenues and operating results to vary from
period to period. Our products may involve sales to large public and private institutions which may require many levels of approval and
may be dependent on economic or political conditions and the availability of funding from government or public health agencies which can
vary from period to period. There can be no assurance that purchases or funding from these agencies will occur or continue. As a result,
we may expend considerable resources on unsuccessful sales efforts or we may not be able to complete transactions at all or on a schedule
and in an amount consistent with our objectives.</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"></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 have limited commercial scale capabilities.
If we are unable to successfully implement commercial capabilities and manage our growth, our business will be harmed.</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 been a development stage company and we
will need to establish and significantly expand our operations and capabilities. We expect this expansion to occur rapidly and continue
to an even greater degree in the future as we continue to commercialize our products, build a sales and marketing organization, and seek
marketing clearance from the FDA and international regulatory bodies for our future product candidates. Our growth will place a significant
strain on our management, operating and financial systems and our sales, marketing, manufacturing, engineering, product development, and
administrative resources. As a result of our growth, operating costs may escalate even faster than planned, and some of our internal systems
and processes, including those relating to manufacturing our products, will need to be established and may need to be enhanced, updated
or replaced. Additionally, our anticipated growth will increase demands placed on our suppliers, resulting in an increased need for us
to manage our suppliers and monitor for quality assurance. If we cannot effectively manage our expanding operations, manufacturing capacity
and costs, including scaling to meet increased demand and properly managing suppliers, we may not be able to grow or we may grow at a
slower pace than expected and our business could be adversely affected.</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 face substantial competition, which may
result in others discovering, developing or commercializing products before or more successfully than we do.</I></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; text-align: justify">The development and commercialization of medical
devices is highly competitive. We compete with a variety of multinational pharmaceutical companies and specialized biotechnology companies,
as well as products and processes being developed at universities and other research institutions. Our competitors have developed, are
developing or will develop product candidates and processes competitive with our product candidates. Competitive therapeutic treatments
include those that have already been approved and accepted by the medical community and any new treatments that may enter the market.
We believe that a significant number of products are currently available, under development, and may become commercially available in
the future, for the treatment of indications for which we may try to develop product candidates.&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">More established companies may have a competitive
advantage over us due to their greater size, cash flows and institutional experience. Compared to us, many of our competitors may have
significantly greater financial, technical and human resources. As a result of these factors, our competitors may have an advantage in
marketing their approved products and may obtain regulatory approval of their product candidates before we are able to, which may limit
our ability to develop or commercialize our product candidates. Our competitors may also develop drugs that are safer, more effective,
more widely used and less expensive than ours, and may also be more successful than us in manufacturing and marketing their products.</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">Mergers and acquisitions in the pharmaceutical
and biotechnology industries may result in even more resources being concentrated among a smaller number of our competitors. Smaller and
other early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and
established companies. These companies compete with us in recruiting and retaining qualified scientific, management and commercial personnel,
establishing clinical trial sites and subject registration for clinical trials, as well as in acquiring technologies complementary to,
or necessary for, our programs.</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"><B><I>Our technologies and products under development,
and our business, may fail if we are not able to successfully commercialize them and ultimately generate significant revenues as a result.</I></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; text-align: justify">Successful development of technologies and our
product candidates will require significant additional investment, including costs associated with additional development, completing
trials and obtaining regulatory approval, as well as the ability to manufacture or have others manufacture our products in sufficient
quantities at acceptable costs while also preserving product quality. Difficulties often encountered in scaling up production include
problems involving production yields, quality control and assurance, shortage of qualified personnel, production costs and process controls.
In addition, we are subject to inherent risks associated with new technologies and products. These risks include the possibility that
any of our technologies or future products may:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be found unsafe;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be ineffective or less effective than anticipated;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">fail to receive necessary regulatory approvals;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be difficult to competitively price relative to alternative solutions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be harmful to consumers or the environment;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be difficult to manufacture on an economically viable scale;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be subject to supply chain constraints for raw materials;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">fail to be developed and accepted by the market prior to the successful marketing of alternative products by competitors;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be difficult to market because of infringement on the proprietary rights of third parties; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">be too expensive for commercial use.</FONT></TD></TR>
  </TABLE>
<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">Furthermore, we may be faced with lengthy market
partner or distributor evaluation and approval processes. Consequently, we may incur substantial expenses and devote significant management
effort in order to customize products for market partner or distributor acceptance, though there can be no assurance of such acceptance.
As a result, we cannot accurately predict the volume or timing of any future sales.</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"><B><I>Customers may not adopt our products quickly,
or at all.</I></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; text-align: justify">Customers in the sector in which we operate can
be generally cautious in their adoption of new products and technologies. In addition, given the relative novelty of our future planned
products, customers of those products may require education regarding their utility and use, which may delay their adoption. There can
be no assurance that customers will adopt our products quickly, or at all.</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"><B><I>The significant level of competition in
the markets for our products developed in the future may result in pricing pressure, reduced margins or the inability of our future products
to achieve market acceptance.</I></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; text-align: justify">The markets for our future products are intensely
competitive and rapidly changing. We may be unable to compete successfully, which may result in price reductions, reduced margins and
the inability to achieve market acceptance 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">Our competitors may have longer operating histories,
significantly greater resources, greater brand recognition and large customer bases than we do. As a result, they may be able to devote
greater resources to the manufacture, promotion or sale of their products, receive greater resources and support from market partners
and independent distributors, initiate or withstand substantial price competition or more readily take advantage of acquisition or other
opportunities.</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"><B><I>We may rely on third parties for the production
of our future products. If these parties do not produce our products at a satisfactory quality, in a timely manner, in sufficient quantities
or at an acceptable cost, our sales and development efforts could be delayed or otherwise negatively affected.</I></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; text-align: justify">We may rely on third parties for the manufacture
of our future products. Our reliance on third parties to manufacture our future products may present significant risks to us, including
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reduced control over delivery schedules, yields and product reliability;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">price increases;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">manufacturing deviations from internal and regulatory specifications;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the failure of a key manufacturer to perform as we require for technical, market or other reasons;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<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; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">difficulties in establishing additional manufacturer relationships if we are presented with the need to transfer our manufacturing process technologies to them;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">misappropriation of our intellectual property; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">other risks in potentially meeting our product development schedule or satisfying the requirements of our market partners, distributors, direct customers and end users.</FONT></TD></TR>
  </TABLE>
<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">If we need to enter into agreements for the manufacturing
of our future products, there can be no assurance we will be able to do so on favorable terms, if at all.</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"><B><I>If we are unable to establish successful
relations with third-party market partners or distributors, or these market partners or distributors do not focus adequate resources on
selling our products or are otherwise unsuccessful in selling them, sales of our products may not develop.</I></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; text-align: justify">We anticipate relying on independent market partners
and distributors to distribute and assist us with the marketing and sale of our products. Our future revenue generation and growth will
depend in large part on our success in establishing and maintaining this sales and distribution channel. If our market partners and distributors
are unable to sell our products, or receive negative feedback from end users, they may not continue to purchase or market our products.
In addition, there can be no assurance that our market partners and distributors will focus adequate resources on selling our products
to end users or will be successful in selling them. Many of our potential market partners and distributors are in the business of distributing
and sometimes manufacturing other, possibly competing, products.&nbsp;As a result, these market partners and distributors may perceive
our products as a threat to various product lines currently being distributed or manufactured by them. In addition, these market partners
and distributors may earn higher margins by selling competing products or combinations of competing products. If we are unable to establish
successful relationships with independent market partners and distributors, we will need to further develop our own sales and distribution
capabilities, which would be expensive and time-consuming and might not be successful.</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"><B><I>The use of our products may be limited by
regulations, and we may be exposed to product liability and remediation claims.</I></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; text-align: justify">The use of our planned products may be regulated
by various local, state, federal and foreign regulators.&nbsp;Even if we are able to comply with all such regulations and obtain all necessary
registrations, we cannot provide assurance that our future products will not cause injury to the environment, people, or animals and/or
otherwise have unintended adverse consequences, under all circumstances. For example, our products may be improperly combined with other
chemicals or, even when properly combined, our products may be blamed for damage caused by those other chemicals. The costs of remediation
or products liability could materially adversely affect our results, financial condition and operations.</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 held liable for, or incur costs
to settle, liability and remediation claims if any products we develop, or any products that use or incorporate any of our technologies,
cause injury or are found unsuitable during product testing, manufacturing, marketing, sale or use. These risks exist even with respect
to products that have received, or may in the future receive, regulatory approval, registration or clearance for commercial use. We cannot
guarantee that we will be able to avoid product liability exposure.</I></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; text-align: justify">At the stage customary to do so, we expect to
maintain product liability insurance at levels we believe are sufficient and consistent with industry standards for like companies and
products. However, we cannot guarantee that our product liability insurance will be sufficient to help us avoid product liability-related
losses. In the future, it is possible that meaningful insurance coverage may not be available on commercially reasonable terms or at all.
In addition, a product liability claim could result in liability to us greater than our assets or insurance coverage. Moreover, even if
we have adequate insurance coverage, product liability claims or recalls could result in negative publicity or force us to devote significant
time and attention to these matters, which could harm our business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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"><B><I>There may be limitations on the effectiveness
of our internal controls, and a failure of our control systems to prevent error or fraud may materially harm our Company.</I></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; text-align: justify">We do not expect that internal control over financial
accounting and disclosure, even if timely and well established, will prevent all error and all fraud. A control system, no matter how
well designed and operated, can provide only reasonable, not absolute, assurance that the control system&rsquo;s objectives will be met.
Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be
considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any, have been detected. Failure of our control systems to prevent
error or fraud could materially adversely affect our business.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>There has been a limited public market for
our common stock, and we do not know whether one will develop to provide you adequate liquidity. Furthermore, the trading price for our
common stock, should an active trading market develop, may be volatile and could be subject to wide fluctuations in per-share price.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our common stock is quoted on the Pink Open Market
under the trading symbol &ldquo;NNMX&rdquo;; historically, however, there has been a limited public market for our common stock. Although
we have applied to list our Common Stock on the Nasdaq Stock Market, we cannot assure you that an active trading market for our common
stock will develop or be sustained. The liquidity of any market for the shares of our common stock will depend on a number of factors,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the number of stockholders;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our operating performance and financial condition;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the market for similar securities;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the extent of coverage of us by securities or industry analysts; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the interest of securities dealers in making a market in the shares of our common stock.</FONT></TD></TR>
  </TABLE>
<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">Even if an active trading market develops, the
market price for our common stock may be highly volatile and could be subject to wide fluctuations. In addition, the price of shares of
our common stock could decline significantly if our future operating results fail to meet or exceed the expectations of market analysts
and investors and actual or anticipated variations in our quarterly operating results could negatively affect our share 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">The volatility of the price of our common stock
may also be impacted by the risks discussed under this &ldquo;Risk Factors&rdquo; section, in addition to other factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">developments in the financial markets and worldwide or regional economies;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">announcements of innovations or new products or services by us or our competitors;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">announcements by the government relating to regulations that govern our industry;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">significant sales of our common stock or other securities in the open market;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">variations in interest rates;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in the market valuations of other comparable companies; and</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes in accounting principles.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our outstanding warrants and preferred stock
may affect the market price and liquidity of the common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of May 1, 2022, we had approximately 6,827,956
shares of common stock warrants for the purchase of up to approximately an additional 6,827,956 shares of common stock outstanding. There
are 500 shares of series D preferred outstanding that are convertible into approximately 243,000 shares of common stock. In February 2022,
963,964 shares of our series B preferred stock outstanding, were converted into approximately 5.6 million shares of common stock, as well
as 1,000,000 shares of our series C preferred stock which were converted into approximately 35.6 million shares of common stock. The amount
of common stock reserved for issuance may have an adverse impact on our ability to raise capital and may affect the price and liquidity
of our common stock in the public market. In addition, the issuance of these shares of&nbsp;common stock will have a dilutive effect on
current stockholders&rsquo; ownership.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The conversion of outstanding convertible
notes into shares of common stock could materially dilute our current stockholders.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of the date of this prospectus, we had approximately
$9.1 million aggregate principal amount of convertible notes outstanding, convertible into shares of our common stock at a fixed price
of $1.1717 per share. The conversion prices of these notes may be less than the market price of our common stock at the time of conversion,
and which may be subject to future adjustment due to certain events, including our issuance of common stock or common stock equivalents
at an effective price per share lower than the conversion rate then in effect. If the entire principal amount of all the outstanding convertible
notes is converted into shares of common stock, we would be required to issue an aggregate of no less than approximately 7.7 million shares
of common stock. If we issue all of these shares, the ownership of our current stockholders will be diluted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Because our common stock may be deemed a
low-priced &ldquo;penny&rdquo; stock, an investment in our common stock should be considered high-risk and subject to marketability restrictions.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Historically, the trading price of our common
stock has been $5.00 per share or lower, and deemed a penny stock, as defined in Rule 3a51-1 under the Exchange Act, and subject to the
penny stock rules of the Exchange Act specified in rules 15g-1 through 15g-100. Those rules require broker&ndash;dealers, before effecting
transactions in any penny stock, to:</P>

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

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    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">deliver to the customer, and obtain a written receipt for, a disclosure document;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">disclose certain price information about the stock;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">disclose the amount of compensation received by the broker-dealer or any associated person of the broker-dealer;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">send monthly statements to customers with market and price information about the penny stock; and</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in some circumstances, approve the purchaser&rsquo;s account under certain standards and deliver written statements to the customer with information specified in the rules.</FONT></TD></TR>
  </TABLE>
<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">Consequently, the penny stock rules may restrict
the ability or willingness of broker-dealers to sell the common stock and may affect the ability of holders to sell their common stock
in the secondary market and the price at which such holders can sell any such securities. These additional procedures could also limit
our ability to raise additional capital in the future.</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"><B><I>Financial Industry Regulatory Authority
(&ldquo;FINRA&rdquo;) sales practice requirements may also limit a stockholder&rsquo;s ability to buy and sell our common stock, which
could depress the price of our common stock.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition to the &ldquo;penny stock&rdquo; rules
described above, FINRA has adopted rules that require a broker-dealer to have reasonable grounds for believing that the investment is
suitable for that customer before recommending an investment to a customer. Prior to recommending speculative low-priced securities to
their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer&rsquo;s financial
status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a
high probability that speculative low-priced securities will not be suitable for at least some customers. Thus, the FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy
and sell our shares of common stock, have an adverse effect on the market for our shares of common stock, and thereby depress our price
per share of common stock.</P>

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

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

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<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"><B><I>If securities or industry analysts do not
publish research or reports about our business, or if they issue an adverse or misleading opinion regarding our stock, our stock price
and trading volume could decline.</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 trading market for our common stock may be
influenced by the research and reports that industry or securities analysts publish about us or our business. We do not currently have,
and may never obtain, research coverage by securities and industry analysts. If no or few securities or industry analysts commence coverage
of us, the trading price for our common stock may be negatively affected. In the event that we receive securities or industry analyst
coverage, if any of the analysts who cover us issue an adverse or misleading opinion regarding us, our business model, our intellectual
property or our stock performance, or if our operating results fail to meet the expectations of analysts, our stock price would likely
decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in
the financial markets, which in turn could cause our stock price or trading volume to decline.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Certain provisions of our certificate of
incorporation and Delaware law make it more difficult for a third party to acquire us and make a takeover more difficult to complete,
even if such a transaction were in stockholders&rsquo; interest.</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">Our certificate of incorporation and the Delaware
General Corporation Law contain certain provisions that may have the effect of making it more difficult or delaying attempts by others
to obtain control of our Company, even when these attempts may be in the best interests of our stockholders. We also are subject to the
anti-takeover provisions of the Delaware General Corporation Law, which prohibits us from engaging in a &ldquo;business combination&rdquo;
with an &ldquo;interested stockholder&rdquo; unless the business combination is approved in a prescribed manner and prohibits the voting
of shares held by persons acquiring certain numbers of shares without obtaining requisite approval. The statutes and our certificate of
incorporation have the effect of making it more difficult to effect a change in control of our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><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 currently or for the foreseeable
future intend to pay dividends on our common stock.</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">We have never declared or paid any cash dividends
on our common stock. We currently anticipate that we will retain future earnings for the development, operation and expansion of our business
and do not anticipate declaring or paying any cash dividends for the foreseeable future. As a result, any return on your investment in
our common stock will be limited to the appreciation in the price of our common stock, if any.</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><A NAME="a_003"></A>INDUSTRY AND MARKET DATA</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; text-align: justify">This prospectus contains estimates and other statistical
data made by independent parties and by us relating to market size and growth and other data about our industry. We obtained the industry
and market data in this prospectus from our own research as well as from industry and general publications, surveys and studies conducted
by third parties. These data involve a number of assumptions and limitations and contain projections and estimates of the future performance
of the industries in which we operate that are subject to a high degree of uncertainty, including those discussed in &ldquo;Risk Factors.&rdquo;
We caution you not to give undue weight to such projections, assumptions and estimates. Further, industry and general publications, studies
and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy
or completeness of such information. While we believe that these publications, studies and surveys are reliable, we have not independently
verified the data contained in them. In addition, while we believe that the results and estimates from our internal research are reliable,
such results and estimates have not been verified by any independent source.&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: 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The net proceeds from any disposition of the shares
of common stock covered hereby will be received by the selling stockholders. We will not receive any of the proceeds from any such shares
of common stock offered by this prospectus. We will, however, receive the net proceeds of any Warrants exercised for cash. We expect to
use the proceeds received from the exercise of the Warrants, if any, for general working capital purposes.</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; text-indent: 0.5in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to retain any earnings for the foreseeable
future for our operations. We have never paid any dividends on our common stock and do not anticipate paying any cash dividends in the
foreseeable future. Any future determination to pay cash dividends will be at the sole discretion of our Board and will depend on our
financial condition, operating results, capital requirements and such other factors as our Board deems relevant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MARKET FOR REGISTRANT&rsquo;S COMMON EQUITY
AND RELATED STOCKHOLDER MATTERS</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; text-align: justify">Our common stock is quoted to trade in the over-the-counter
securities market through the OTCQB under the symbol &ldquo;NNMX&rdquo;. We have been eligible to participate in on the over-the-counter
markets since February 28, 2012. Any over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark-down
or commission and may not necessarily represent actual transactions.</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"><B>Stockholders</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; text-align: justify">As of&nbsp;June 16, 2022, there were 1,947 holders
of record of our common stock. This number does not include &ldquo;street name,&rdquo; or beneficial holders, whose shares are held of
record by banks, brokers, financial institutions and other nominees. The transfer agent for Madison&rsquo;s Common Stock is Worldwide
Stock Transfer, LLC, One University Plaza, Suite 505, Hackensack, NJ 07601 and their telephone number is&nbsp;<FONT STYLE="background-color: white">(201)
820-2008</FONT>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Dividends</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; text-align: justify">We have not paid any dividends on our common stock
to date and do not anticipate that we will pay dividends in the foreseeable future. Any payment of cash dividends on our common stock
in the future will be dependent upon the amount of funds legally available, our earnings, if any, our financial condition, our anticipated
capital requirements and other factors that the Board may think are relevant. However, we currently intend for the foreseeable future
to follow a policy of retaining all of our earnings, if any, to finance the development and expansion of our business and, therefore,
do not expect to pay any dividends on our common stock during such time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_006"></A>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND PLAN OF OPERATIONS </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; text-align: justify"><I>You should read the following discussion and
analysis of our financial condition and plan of operations together with &ldquo;Selected Financial Data&rdquo; and our financial statements
and the related notes appearing elsewhere in this prospectus. In addition to historical information, this discussion and analysis contains
forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those discussed
below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed
in the section titled &ldquo;Risk Factors&rdquo; included elsewhere in this prospectus. All amounts in this report are in U.S. dollars,
unless otherwise noted.</I></P>

<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; text-align: justify; background-color: white"><I>FORWARD-LOOKING STATEMENTS</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>This report, including
exhibits that are being filed as part of this report, as well as other statements made by Nanomix Corporation (the &ldquo;Company&rdquo;,
&ldquo;we&rdquo;, &ldquo;us&rdquo;, and &ldquo;our&rdquo;), contain &ldquo;forward-looking statements&rdquo; that include information
relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such
as &ldquo;may,&rdquo; &ldquo;should,&rdquo; &ldquo;could,&rdquo; &ldquo;would,&rdquo; &ldquo;predicts,&rdquo; &ldquo;potential,&rdquo;
&ldquo;continue,&rdquo; &ldquo;expects,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;future,&rdquo; &ldquo;intends,&rdquo; &ldquo;plans,&rdquo;
&ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; and similar expressions, as well as statements in future tense, identify forward-looking
statements.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>These forward-looking
statements include such things as: investment objectives and the Company&rsquo;s ability to make investments in a timely manner on acceptable
terms; references to future success of the Company&rsquo;s products; the Company&rsquo;s business strategy; estimated future capital expenditures;
sales of the Company&rsquo;s products; competitive strengths and goals; and, other similar matters.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>These forward-looking
statements reflect the Company&rsquo;s current beliefs and expectations with respect to future events and are based on assumptions and
are subject to risks and uncertainties and other factors outside the Company&rsquo;s control that may cause actual results to differ materially
from those projected. Such factors include, but are not limited to, the following: ability to develop, commercialize and market new products;
ability to market and sell products, whether through an internal, direct sales force or third parties; ability to manufacture products
in accordance with applicable specifications, performance standards and quality requirements; ability to obtain, and timing and cost of
obtaining, necessary regulatory approvals for new products or new indications or applications for existing products; ability to comply
with applicable regulatory requirements; ability to effectively resolve warning letters, audit observations and other findings or comments
from the FDA or other regulatory entities; changes in relationships, including disputes or disagreements, with strategic partners or other
parties and reliance on strategic partners for the performance of critical activities under collaborative arrangements; competing products
and technology changes; reduction or deferral of public funding available to customers; competition from new or better technology or lower
cost products; market acceptance of our products; changes in market acceptance of products based on product performance or other factors,
including changes in testing guidelines, algorithms or other recommendations by the Centers for Disease Control and Prevention and other
agencies; ability to fund research and development and other products and operations; ability to obtain and maintain new or existing product
distribution channels; reliance on sole supply sources for critical products and components; ability to reach and maintain sustained profitability;
uncertainty relating to patent protection and potential patent infringement claims; uncertainty and costs of litigation relating to patents
and other intellectual property; availability of licenses to patents or other technology; obstacles to international marketing and manufacturing
of products; ability to sell products internationally, including the impact of changes in international funding sources and testing algorithms;
adverse movements in foreign currency exchange rates; loss or impairment of sources of capital; ability to attract and retain qualified
personnel; exposure to product liability and other types of litigation; changes in international, federal or state laws and regulations;
customer consolidations and inventory practices; equipment failures and ability to obtain needed raw materials and components; the impact
of terrorist attacks and civil unrest; changes in laws or regulations; global and regional economic conditions; and general political,
business and market conditions.</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"><I></I></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; text-align: justify; background-color: white"><I>Although the Company
believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, these are only assumptions,
and forward-looking statements should not be read as a guarantee of future performance or results and will probably not be accurate indications
of when such performance or results will be achieved. Investors are cautioned that forward-looking statements may not be reliable and
speak only as of the date they are made and that, except as required by law, the Company undertakes no obligation to update these forward-looking
statements to reflect any future events or circumstances. All subsequent written or oral forward-looking statements attributable to the
Company or to individuals acting on its behalf are expressly qualified in their entirety by this section.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Investors should also
be aware that while we do, from time to time, communicate with securities analysts, it is against our policy to disclose any material
non-public information or other confidential commercial information to securities analysts unless and until we have made it publicly available.
Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content
of the statement or report. Furthermore, we have a policy against issuing or confirming financial forecasts or projections issued by others.
Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the
responsibility of the Company.</I></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This discussion and analysis
should be read in conjunction with the accompanying Consolidated Financial Statements and related notes. The discussion and analysis of
our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance
with generally accepted accounting principles in the United States (&ldquo;U.S. GAAP&rdquo;). The preparation of financial statements
in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of any contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting
period. On an ongoing basis, we review our estimates and assumptions. Our estimates are based on our historical experience and other assumptions
that we believe to be reasonable under the circumstances. Actual results are likely to differ from those estimates under different assumptions
or conditions, but we do not believe such differences will materially affect our financial position or results of operations. Our critical
accounting policies, the policies we believe are most important to the presentation of our financial statements and require the most difficult,
subjective and complex judgments, are outlined below in &ldquo;Critical Accounting Policies,&rsquo;&rsquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This management&rsquo;s
discussion and analysis of financial condition and results of operations (&ldquo;MD&amp;A&rdquo;) is intended to help you understand the
business operations and financial condition of the Company as of December 31, 2021 and March 31, 2022<I>.</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our MD&amp;A is presented
in six sections:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive Overview</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Results of Operations</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Liquidity and Capital Resources</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recent Developments</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Significant Accounting Policies and Critical Accounting Estimates</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recently Issued Accounting Pronouncements</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On June 6, 2021, Boston
Therapeutics and Nanomix, Inc., or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation
(the &ldquo;Company&rdquo;). The Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible
Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). Upon the effectiveness of the amendment to our Certificate of Incorporation
to effectuate the reverse stock split of one-for-173, all such shares of Preferred Stock issued to Nanomix shareholders automatically
converted into approximately 35,644,997 shares of common stock of the Company, the warrants to be assumed at closing may be exercisable
into approximately 2,124,687 shares of common stock of the Company and the options and restricted stock units assumed at closing may be
exercisable into approximately 5,718,838 shares of common stock of the Company. The shares of common stock issuable upon conversion of
the Preferred Stock together with warrants, restricted stock units and options to be assumed on the closing date represented approximately
80% of the outstanding shares of Common Stock of the Company upon closing of the Merger.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Closing of the merger
effectuated a change in control of the Company. As a result of the Closing, the Nanomix shareholders own approximately 80.0% of the Company&rsquo;s
issued and outstanding common stock on a fully diluted basis assuming full conversion of the Series C Preferred Stock. As Nanomix is now
the controlling management party, financial statements are consolidated based on the historical results of operations for Nanomix and
the combined balance sheets of the entities. The Company&rsquo;s name change to &ldquo;Nanomix Corporation&rdquo; and the symbol change
to &ldquo;NNMX&rdquo; were effective November 15, 2021. The previously approved 173:1 reverse stock split was effective on March 3, 2022.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Nanomix, Inc, is a development
stage company that seeks to develop, manufacture, and commercialize point-of-care diagnostic tests that are used to detect or monitor
diseases. The Company&rsquo;s product development efforts are focused on our proprietary technology, a novel point-of-care diagnostic
platform that offers certain customer advantages as compared to other point-of-care diagnostic technologies. Nanomix, Inc. was originally
formed in 2001 as a nanotechnology sensor company. In 2009, ownership changed and the business was redirected to development and commercialization
of a mobile point-of-care diagnostic platform.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The healthcare market
is rapidly evolving to incorporate a decentralized system of care delivery within a broad spectrum of environments: the emergency department,
skilled nursing facilities, elderly homes, urgent care centers, ambulances, and remote locations. While hospital central laboratories
currently are the gold standard of clinical testing, a mobile diagnostic platform offering high-quality testing results at affordable
prices is needed to serve the decentralized testing requirements. The Nanomix eLab System is specifically designed to meet this evolving
market need. The system includes a durable, handheld, rechargeable battery powered instrument and a disposable multiplex, microfluidic
test cartridge. Proprietary biosensors deliver laboratory-quality performance wherever the patient or healthcare provider needs it, including
a wide range of testing environments outside the hospital. The Nanomix eLab System is well suited for markets that include pre-hospital
assessment, chronic medical care, and post-hospital disease management, as well as use in remote locations far from traditional centers
of health care delivery. Whether in an Emergency Department, an Urgent Care facility, a skilled nursing facility or on an ambulance, the
Nanomix eLab System is designed to help mobile health providers to quickly assess a patient&rsquo;s condition and intervene with a higher
level of care when necessary.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our initial product development
focus is on testing for critical medical conditions where rapidly available information is needed to help inform clinical decision making.
The Nanomix S1 Assay Panel is designed to provide information about critical infections, including sepsis, in approximately 11 minutes.
The S1 Assay Panel has received CE marking. Future product development efforts for other critical conditions are planned for development.</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; text-indent: 0.5in"></P>

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<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"><B>Results of Operations</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; text-align: justify"><B><I>Results of operations for the year ended
December 31, 2021 and 2020</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; background-color: white">The results of operations
for the years ended December 31, 2021 and 2020 were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</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">2020</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-bottom: 1.5pt">Revenues</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">141,778</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">513,244</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating costs and expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,017,263</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,184,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Selling, 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">2,849,666</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">1,234,784</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: 0.25in; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,866,929</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">5,419,604</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">Loss from operations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,725,151</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">(4,906,360</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other income (expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest income</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</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">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,644,829</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(209,538</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">Interest expense, related, party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(572,347</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,076,478</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,282</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; text-align: left">Change in fair value of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">438,972</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: 0.125in; text-align: left">Forgiveness of PPP loan and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408,242</TD><TD STYLE="text-align: left">&nbsp;</TD><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; padding-bottom: 1.5pt">Loss on debt modification</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,385,204</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-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Total income (expense)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,739,882</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">(1,286,010</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,465,033</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,192,370</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">Provision for income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(9,465,033</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(6,192,370</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; text-align: justify; background-color: white">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Total net revenues during
the year ended December 31, 2021 were $142 thousand, a decrease of $371 thousand compared to the same period in 2020. The decrease in
total net revenues was attributable to a reduction of COVID-19 development funding received from BARDA. The BARDA funding began in 2020
and the project funding was completed earlier in 2021. There was no appreciable product related revenue in either period.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Research and Development</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This category includes
costs incurred for product and process development, and clinical &amp; regulatory affairs. Costs for the year ended December 31, 2021
were largely related to the development and clinical trials of two assays for COVID-19. Costs in the year ended December 31, 2020 were
related to the development of the S1 Assay Panel and development work on the COVID-19 program. All development efforts were for development
of the eLab platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Selling, General and
Administrative Expense</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Selling, general and
administrative expense (&ldquo;SG&amp;A&rdquo;) for the year ended December 31, 2021 increased by $1,615 thousand from the same period
in 2020. The increase was due to establishment of a sales and marketing function in 2021 and increased general and administrative costs
in 2021 mainly from legal and accounting costs related to the merger and subsequent regulatory filings.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Other Income (Expense)</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Other Income (Expense)
in 2021 was $3,740 thousand, an increase in expense of $2,454 compared to 2020. Other expense in 2021 was primarily composed of loss on
debt modification of $2,385 thousand and interest expense of $2,217 thousand for the year ended December 31, 2021. Interest expense of
$2,217 thousand in 2021 and $1,286 thousand in 2020 are primarily related to issued Secured Notes and Unsecured Convertible Notes used
to fund the Company&rsquo;s operations. The Secured Notes and accrued interest were exchanged into senior secured convertible notes and
the unsecured Notes and Accrued interest were converted to Preferred Series C stock in 2021 as part of the merger. Boston Therapeutics
notes and related accrued interest, predating the merger, were converted into common stock or remain on the balance sheet.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Other expense in 2021
was reduced by $408 thousand in forgiveness of the PPP loan received in 2020 and by a gain in the fair value of derivative and warrant
liabilities in the amount of $454 thousand.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Net Loss for the
year ended December 31, 2021 was $9.465 million versus $6.192 million for the same period in 2020. The increased loss of $3.273 million
was largely due to the loss on debt modification, an increase in interest expense, offset by the PPP loan forgiveness and the change in
the fair value of warrant and derivative liabilities.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Results of operations
for the three months ended March 31, 2022 and 2021</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The results of operations
for the three months ended March 31, 2022 and 2021 were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,</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="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">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-bottom: 1.5pt">Revenues</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">141,778</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating costs and expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">861,353</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">608,771</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Selling, 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">1,136,381</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">388,871</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; padding-left: 0.25in">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,997,734</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">997,642</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">Loss from operations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,997,734</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">(855,864</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other income (expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Interest income</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: 9pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(847,299</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(28,643</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: 9pt">Interest expense, 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">-</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">(327,943</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.25in">Total&nbsp;income (expense)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(847,299</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">(356,586</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,845,033</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,212,450</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">Provision for income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,845,033</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,212,450</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; text-align: justify; background-color: white"><I>&nbsp;</I></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">There were no net revenues
during the three months ended March 31, 2022. Revenues of $142 thousand in in the first three months of 2021 were related to completion
of a BARDA product development contract.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">This category includes
costs incurred for product and process development, and clinical &amp; regulatory affairs. Costs for the three months ended March 31,
2022 were largely related to further development of the Company&rsquo;s S-1 Assay Panel for critical infections and for regulatory filing
and related activities for an assay for the detection of COVID-19. Costs in the three months ended March 31, 2021 were related to the
development of the S1 Assay Panel and development work on the COVID-19 program. All development efforts were for development of the eLab
platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Selling, General and
Administrative Expense</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Selling, general and
administrative expense (&ldquo;SG&amp;A&rdquo;) for the three months ended March 31, 2022 increased by $748 thousand from the same period
in 2021. The increase was due to establishment of a sales and marketing function in 2021 and increased general and administrative costs
in 2022 mainly from legal and accounting costs related to the merger and subsequent regulatory filings, insurance, and warrant expense
recorded in the first quarter of 2022.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Other Income (Expense)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Other Income (Expense)
in 2022 was $847 thousand, an increase in expense of $491 compared to 2021. Other expense in 2022 was primarily composed of amortization
of debt discount for the three months ended March 31, 2022. Interest expense of $352 thousand in 2021 is related to issued Secured Notes
and Unsecured Convertible Notes used to fund the Company&rsquo;s operations. These Notes and accrued interest were converted to Preferred
Series C stock in 2021 as part of the merger.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 2in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Net Loss for the
three months ended March 31, 2022 was $2.8 million versus $1.2 million for the same period in 2021. The increased loss of $1.6 million
was largely due to the increase in operating expenses, debt discount amortization and the decrease in revenue.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Liquidity and Capital
Resources</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our liquidity requirements
are primarily to fund our business operations, including capital expenditures and working capital requirements. Our primary sources of
liquidity are additional capital investment and debt.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On June 25, 2021, the
Company entered into a securities purchase agreement with accredited investors pursuant to which the Company issued senior secured convertible
notes in an aggregate principal amount of approximately $8.4 million for an aggregate purchase price of approximately $7.9 million. Immediately
prior to the execution of the agreement described above, we entered into exchange agreements with the holders of outstanding promissory
notes with an aggregate principal amount, together with accrued but unpaid interest, of approximately $2.1 million. The holders of the
outstanding promissory notes were issued senior secured notes in the financing described above for an aggregate principal amount of $2.1
million. In connection with the issuance of the Notes, we issued to the Investors warrants to purchase an aggregate of approximately 4.1
million shares of Common Stock (collectively, the &ldquo;Warrants&rdquo;). The Company received approximately $5.8 million in funding
from the transaction.&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="background-color: white">In
March of 2022, the Company entered into a Convertible Preferred stock arrangement and issued 500 shares of Preferred D stock for $500
thousand. The Preferred D investment agreement is expected to provide an additional $2.5 million in funding over the next 6 months.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">As of December 31, 2021,
the Company had cash and equivalents of $297 thousand compared to $15 thousand as of December 31, 2020 and outstanding debt of $8.4 million
compared to $9.3 million as of the end of 2020. <FONT STYLE="background-color: white">As of March 31, 2022, the Company had cash and equivalents
of $10 thousand compared to $66 thousand as of March 31, 2021 and outstanding debt of $9.1 million compared to $9.5 million in the same
quarter of 2021.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Cash used in operating
activities during the year ended December 31, 2021 was $6.318 million. The net loss of $9.465 million for 2021 was increased by non-cash
gains of $408 thousand in forgiveness of the PPP loan and accrued interest received in 2020 and a change of $454 thousand in the fair
value of derivative and warrant liabilities, offset by a loss on debt modification of $2,385 thousand, and amortization of the discount
from the issue of promissory notes of $1,478 thousand, which were the significant non-cash expense items.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="background-color: white">Cash
used in operating activities during the three months ended March 31, 2022 was $1.364 million. The net loss of $2.845 million for the three
months of 2022 was increased by amortization of the discount from the issue of promissory notes of $815 thousand, which were the significant
non-cash expense items.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Cash used by investing
activities during 2021 of $273 thousand was primarily for investing in of manufacturing equipment offset by cash received in the merger.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="background-color: white">Cash
used by investing activities during 2021 of $23 thousand was primarily for investing in manufacturing equipment and leasehold improvements.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Cash provided by financing
activities during 2021 of $6.9 million was primarily related to proceeds from the sale of Senior Secured Convertible notes and convertible
debt issuances used to fund company operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="background-color: white">Cash
provided by financing activities during three months of 2022 of $1.1 million was primarily related to proceeds from the sale of convertible
debt issuances and proceeds of issuance Preferred D stock used to fund company operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Off-Balance Sheet
Arrangements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Company does not
have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K under the Securities Exchange Act of 1934,
as amended.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In June 2021, the Company
completed a merger with Boston Therapeutics, a publicly held entity. The Company is the majority shareholder of the resulting entity.
As part of the merger agreement, substantially all of the Company&rsquo;s debt has been converted to equity in the merged entity. In addition,
and in conjunction with the merger, Boston Therapeutics entered into a Convertible Equity arrangement, issuing $8.3 million in secured
Notes and a related cash investment of $5.8 million.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Significant Accounting
Policies and Critical Accounting Estimates</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Significant accounting
policies are described in Note 3 &ndash; Significant Accounting Policies to the audited consolidated financial statements included herein.
Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions
for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments
are based on our historical experience, terms of existing contracts, our evaluation of trends in the industry, information provided by
our customers and information available from other outside sources, as appropriate. We consider an accounting estimate to be critical
if:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">It requires us to make assumptions about matters that were uncertain at the time we were making the estimate, and</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes in the estimate or different estimates that we could have selected would have had a material impact on our financial condition or results of operations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The following listing
is not intended to be a comprehensive list of all of our accounting policies. In many cases, the accounting treatment of a particular
transaction is specifically dictated by accounting principles generally accepted in the United States of America, with no need for management&rsquo;s
judgment in their application. There are also areas in which management&rsquo;s judgment in selecting any viable alternative would not
produce a materially different result. There have been no significant changes in our critical accounting estimates during the year ended
December 31, 2021.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">For certain contracts,
we recognize revenue from R&amp;D, milestone and grant revenues when earned. Grants are invoiced after expenses are incurred, as that
is the depiction of the timing of the transfer of services. Performance obligations generally follow the major phases of product development
processes: design feasibility &amp; planning, product development &amp; design optimization, design verification, design validation &amp;
process validation, and pivotal studies. Further details regarding revenue recognition are document at Note 3(b) &ndash; Summary of Significant
Accounting Policies: Revenue Recognition to the Unaudited Condensed Consolidated Financial Statements.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Stock-Based Compensation</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We recognize the fair
value of equity-based awards as compensation expense in our statement of operations. The fair value of our stock option awards was estimated
using a Black-Scholes option valuation model. This valuation model&rsquo;s computations incorporate highly subjective assumptions, such
as the expected stock price volatility and the estimated life of each award. The fair value of the options, after considering the effect
of expected forfeitures, is then amortized, generally on a straight-line basis, over the related vesting period of the option.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Research &amp; Development
Costs</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Research and development
activities consist primarily of new product development, continuing engineering for existing products, and regulatory and clinical trial
costs. Costs related to research and development efforts on existing or potential products are expensed as incurred.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">No allowance has been
provided for uncollectible accounts. As of December 31, 2021 and 2020, the Company has $0 and $821 accounts receivable balance, respectively.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Income taxes are accounted
for under ASC 740 authoritative guidance (&ldquo;Guidance&rdquo;), which requires the asset and liability method of accounting for deferred
income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases
of assets and liabilities. Deferred tax assets or liabilities at the end of each period are determined using the tax rate expected to
be in effect when taxes are actually paid or recovered.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Guidance also requires
that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized.
A review of all available positive and negative evidence needs to be considered, including a company&rsquo;s current and past performance,
the market environment in which the company operates, length of carryback and carryforward periods and existing contracts that will result
in future profits. The Company believes that it is more likely than not that it will not be able to utilize its net operating loss carryforwards
and maintains a full valuation allowance. The Company maintains a full valuation allowance on research and development tax credits.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Guidance also prescribes
a comprehensive model for recognizing, measuring, presenting and disclosing in the consolidated financial statements tax positions taken
or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_007"></A>BUSINESS</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; text-align: justify"><B>Overview</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; background-color: white">On June 6, 2021, Boston
Therapeutics and Nanomix, Inc., or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation
(the &ldquo;Company&rdquo;).. As consideration for the Merger, The Company issued to the shareholders of Nanomix 1,000,000 shares of a
newly created Series C Convertible Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). On March 2, 2022, all such shares
of Preferred Stock issued to Nanomix shareholders automatically converted into approximately 35,644,997 shares of common stock of the
Company, the warrants assumed at closing may be exercisable into approximately 2,124,687 shares of common stock of the Company and the
options and restricted stock units assumed at closing may be exercisable into approximately 5,718,838 shares of common stock of the Company.
The shares of common stock issued upon conversion of the Preferred Stock together with warrants, restricted stock units and options assumed
on the closing date represent approximately 80% of the outstanding shares of Common Stock of the Company upon closing of the Merger. After
the merger, the Company changed its name to Nanomix Corporation and its ticker symbol to NNMX. A previously approved 173:1 reverse stock
split was effective on March 2, 2022.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">After the Merger, our
primary focus is on the development and commercialization of Nanomix&rsquo;s advanced mobile Point-of-Care, or POC, diagnostic system
that can be used in performing a wide range of in vitro diagnostic tests in many environments. Nanomix&rsquo;s goal is to provide laboratory
quality testing for time sensitive medical conditions, at the first point of contact that a patient has with the healthcare system, no
matter where that occurs. <FONT STYLE="background-color: white">The Nanomix eLab&reg; system is CE Marked, a 510(k) application is currently
in development, and Emergency Use Application (EUA) for COVID antigen testing has been submitted to the FDA. Nanomix intends to market
and sell this system for the detection and diagnosis of a variety of time sensitive medical conditions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Prior to the Merger,
we were a pre-clinical and clinical-stage pharmaceutical development company focused on the clinical development, outsourced contract
manufacture and test marketing for commercialization of carbohydrate-based patented formulation of investigative materials as medical
food, supplements, drug and drug combination, and other clinical exploratory outsourced exploratory peptide therapeutic options. Due to
limited funding and the merger, our activity including any drug development during year ended December 31, 2021 was severely limited.
Following the closing of the Merger, the Company intends to conduct a comprehensive review of strategic alternatives for our legacy products
and product candidates pertaining to the commercialization of our therapeutic drugs including SUGARDOWN&reg;, BTI-320 and IPOXYN. The
Company does not expect to receive any form of material consideration in connection with such alternatives. In the event it is not able
to dispose of these assets, the Company expects to cease all operations in connection therewith in order to avoid incurring any further
associated expense.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Nanomix eLab System</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">Nanomix believes that quality healthcare should
be available to consumers anywhere and anytime. The foundation of quality healthcare is timely information supporting a proper diagnosis
and associated treatment. Our vision is to make healthcare accessible to patients without compromise, by delivering the highest quality,
fastest, most cost-effective and portable detection systems that bring the patient and caregiver closer together.</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">The Nanomix eLab System is a proprietary diagnostic
platform developed by Nanomix to meet the growing need for decentralized medical diagnostic solutions. The platform is designed to provide
rapid test results in a handheld device at the first point of patient contact in locations that range from Emergency Departments, to long
term and assisted care facilities, to urgent care and emergency medical response settings.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Nanomix eLab system is a rapid, easy-to-use,
quantitative detection platform that performs a range of in vitro diagnostic assays, such as electrochemical immunoassay and enzymatic
assays. The platform consists of a hand-held analyzer and a disposable cartridge. The eLab System utilizes a proprietary nano-biosensor
with multiple detection electrodes to generate multiple electrochemical assay results from a single patient sample. Specificity is generated
by functionalizing each of the electrodes on the sensor for particular biomarkers. The sensor is incorporated into a single-use consumable
microfluidics cartridge that processes the biological sample and reports its results through the handheld eLab System.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The eLab system is designed to be operated by
medical and non-medically trained persons. An assay is run by inserting the cartridge into the eLab Analyzer. Following the prompts on
the Analyzer interface, the user identifies the subject, scans a barcode on the consumable package, loads the test sample into the cartridge,
and presses start. Assay results generally take between 10 and 15 minutes, from sample collection to answer. A wide variety of biomolecules
with varying chemistries can be tested on a single device in one operation. The electrochemical detection system eliminates the need for
ongoing instrument calibration and maintenance commonly associated with optical systems. Wireless connectivity provides for transmission
of patient results to other devices for data sharing, management, and EMR integration.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Compared with other POC testing systems, the Nanomix
eLab system provides testing in traditional laboratories as well as non-traditional decentralized environments with enhanced sensitivity
and specificity, advanced multiplexing and multimodal capabilities, quantitative results, Bluetooth communication of results and an on
board electronic data base of testing activities. The Nanomix eLab&reg; system is CE Marked, a 510(k) is currently in development, and
a COVID-19 Antigen test has been submitted to the FDA for Emergency Use Authorization.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 strategy is to develop a menu of diagnostic
tests for the detection and diagnosis of time sensitive medical conditions on the Nanomix eLab Analyzer and to sell, market and distribute
the eLab Analyzer and associated tests on a worldwide basis.</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>Products</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 Nanomix
eLab is an in vitro diagnostic test platform for the quantitative determination of analytes in biological samples that include plasma,
whole blood, and nasal swab specimens. The eLab system consists of a handheld analyzer, a sample transfer device and a disposable cartridge.
</FONT>The Nanomix eLab is a platform technology and <FONT STYLE="background-color: white">Nanomix intends to develop a range of test
cartridges compatible with Nanomix eLab analyzer.</FONT> The key advantages of our approach are:</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Laboratory quality results;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Multiplexing and multimodal testing;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Quantitative determination of test results;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operates in distributed environments; and</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Electronic record storage with Bluetooth communication of results.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 33pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The eLab has been shown to be easily operated
by non-medically trained personnel. The platform performs immunoassays and enzymatic assays. All tests run on the eLab Analyzer utilize
the same disposable cartridge format.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nanomix&rsquo;s first product, the S1 Panel Assay
for use in aiding the diagnosis of critical infections, received CE marking for the assay and the eLab Analyzer in November of 2019. Filing
of a 510(k) was started in 2020 through a third-party reviewer for the CRP assay. With the advent of the Coronavirus pandemic, Nanomix
shifted to developing COVID-19 testing products in April of 2020. Preparation of a 510(k) for the S1 Panel using plasma samples is currently
in process.</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>eLab Analyzer</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="background-color: white">The eLab
Analyzer is a handheld portable instrument that operates via a touch screen using a simple instruction menu. The analyzer works from a
rechargeable battery or wall power and can be operated during recharging. The eLab Analyzer contains electronics, a pneumatic system,
a barcode scanner, data storage, USB connections, and Bluetooth communications. To use the eLab system, an operator signs into the system
and then follows the prompts on the eLab screen to run an assay, run controls, or review past test results. To run a test, the operator
scans or enters a patient ID and scans the consumable test package using the built-in bar code scanner. The barcode contains information
about the test including manufacturing lot codes and expiration dating for the consumable. The operator loads the patient sample into
the disposable cartridge and inserts the cartridge into the eLab analyzer. The operator is then prompted on the screen to activate the
assay. The eLab automatically runs through to completion using the programmed test protocol specific for that assay. At conclusion of
the test protocol, results are displayed on the screen and can be sent electronically via Bluetooth as selected by the operator. All test
information is recorded in the onboard database. The instrument includes a robust control system and, if there are errors in processing,
the eLab displays an error code on the screen.</FONT></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></I></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>COVID-19 Rapid IgG/IgM Test Panel</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 Nanomix eLab COVID-19 Rapid IgG/IgM Panel
is an electrochemical immunoassay test intended for qualitative detection of IgG and IgM antibodies (without differentiation) to SARS-CoV-2
in human venous whole blood and plasma (K2EDTA, lithium-heparin, sodium-heparin, sodium citrate).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Venous whole blood or plasma samples are collected
and using a provided transfer device the sample is transferred to the single-use, microfluidic cartridge. The cartridge is then run on
Nanomix eLab Analyzer, which will display results after about 10 minutes. The presence of SARS-CoV-2 antibodies is determined using a
quantitative electrochemical reading which is then compared to a cutoff level to report a qualitative result of positive or negative.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">An EUA for the COVID-19 Rapid IgG/IgM Test Panel
was filed with the FDA in July 2020. In April of 2021, the FDA notified us that given the volume of EUA requests the Agency had received,
FDA is having to prioritize EUA requests and they will not be reviewing our product as filed.&nbsp; Nanomix is currently tracking use
cases and reviewing alternative approaches to market the COVID antibody test but at this time does not expect to actively market the COVID-19
Rapid IgG/IgM Test Panel</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>COVID-19 Rapid Antigen Test Panel</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 Nanomix eLab COVID-19 Rapid Antigen Panel
is an electrochemical immunoassay test intended for the qualitative detection of nucleocapsid antigens from SARS-CoV-2 in nasal (anterior
nares) swabs from individuals who are suspected of COVID-19.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nasal swab samples are collected using a provided
swab and sample collection tube, then transferred to the single-use, microfluidic cartridge. The cartridge is then run on Nanomix eLab
Analyzer, which will display results after about 15 minutes. The presence of SARS-CoV-2 antigen is determined using a quantitative electrochemical
reading which is then compared to a cutoff level to report a qualitative result of positive or negative.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 COVID-19 Rapid Antigen Test Panel is CE marked.
An EUA for the COVID-19 Antigen Test panel was submitted to the FDA in February of 2021. The Company received comments from the FDA in
May and conducted further clinical and analytical work identified by the FDA. The EUA for the COVID-19 Antigen Test panel was resubmitted
to the FDA in November. The FDA has requested additional data primarily from clinical testing sites prior to beginning their formal review.
Given reductions in COVID-19 infection rates, the timing of any potential EUA, and the current pricing of COVID-19 tests, the Company
doesn&rsquo;t expect significant revenue to be produced by the COVID-19 Antigen Test panel.</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>S1 Assay Panel</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 S1 Assay panel was developed as an aid in
rapidly diagnosing critical infections including sepsis. The panel provides quantitative tests results for Lactate (LAC), C-Reactive Protein
(CRP) and Procalcitonin (PCT) from a single patient sample. A venous whole blood sample type is expected to be added to the S1 Assay in
2022. The assay runs on the eLab Analyzer with results available in approximately 11 minutes, providing information rapidly versus the
current diagnostic solutions which can take hours to provide a test result.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Nanomix S1 Panel Cartridge quantitatively
measures two biomarkers, CRP, and PCT and the metabolite Lactate (LAC) in lithium heparinized (Li-heparinized) plasma specimens.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CRP test results can be used to evaluate infection,
tissue injury, and inflammatory disorders.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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">PCT test results can be used:</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in decision making on antibiotic therapy for patient with suspected or confirmed lower respiratory tract infections (LRTI) defined as community acquired pneumonia (CAP) acute bronchitis, and acute exacerbation of chronic obstructive pulmonary disease (AECOPD) in an inpatient setting or Emergency Department.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in antibiotic decision making from therapy to discontinuation of treatment for patients with suspected or confirmed sepsis.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; 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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in the risk assessment of critically ill patients on their first day of ICU admission for progression of severe sepsis and septic shock.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To aid in assessing the cumulative 28-day risk of all-cause mortality for patients diagnosed with sever sepsis or septic shock in the ICU or when obtained in the emergency department of other medical wards prior to ICU admission, using a change in PCT level over time.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LAC test results can be used in the diagnosis
and treatment of lactic acidosis, monitoring tissue hypoxia, and diagnosis of hyperlactatemia and septicemia.</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">Each of the three tests provides important information
about a patient&rsquo;s condition. Having all three of these answers in a short time period provides a healthcare provider with important
information about the patient&rsquo;s status within the clinical window for infection diagnosis. All of the test results are used in the
context of other information about the patient.</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>S1 Assay Panel use in Sepsis</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">One potential use of the S1 Assay panel is in
the diagnosis of Sepsis. Sepsis has been highlighted as a global health crisis and there is intense pressure to improve management of
sepsis from early identification to administration of antimicrobial therapy, monitoring and de-escalation of therapy.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sepsis is the body&rsquo;s overwhelming and life-threatening
response to infection that can lead to tissue damage, organ failure, and death.&nbsp;There are more than 49 million cases of Sepsis annually
with more the 6 million associated deaths. Sepsis is the #1 cost of hospitalization in the U.S with costs for acute sepsis hospitalization
and skilled nursing estimated to be $62 billion annually. As many as 87% of sepsis cases start in the community. According to the Sepsis
Alliance, Mortality from sepsis increases 8% every hour that treatment is delayed. As many as 80% of sepsis deaths could be prevented
with rapid diagnosis and treatment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sepsis testing and diagnosis can be viewed as
a 2-stage process:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediate patient testing and assessment focused on emergency treatment decisions, and</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Specific diagnosis of bacterial or fungal pathogen</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 Nanomix S1 test panel focuses on the first
phase, the need for rapid screening or patients suspected of sepsis. The S1 test panel provides an easy to use, rapid test at the first
point of patient contact to deliver important information about the patient&rsquo;s condition. The panel includes Lactate, the current
tool most used in sepsis screening, and adds two other tests (CRP and PCT) that are currently used to confirm a diagnosis. By using our
multiplexing and multimodal technology, we are able to bring all three of these test results from a single sample to healthcare providers
in an 11-minute test providing clinicians with host response diagnostics at the time of initial evaluation, in any care setting, may help
assess the following questions and advance standards of care: 1) is there an infection or not? 2) is the infection viral or bacterial?
3) what is the severity and deficit of tissue perfusion?</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once hospitalized, a sepsis patient spends on
average 8 days in an ICU. The S1 panel can also be used to monitor the progress of a patient and to support modification or discontinuation
of antibiotic therapy.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Partnerships and Licensees</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">RedPharm (Beijing) Biotechnology Co., Ltd. (RedPharm)
has the right to produce eLab cartridges for the S1 Assay panel in the PRC and has the right to sell and distribute the S1 Assay panel
in the PRC, Japan, Korea, and other countries in Southeast Asia.</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"><B>Sales Channels</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 recently established our sales and marketing
function. We intend our products to be sold globally, both directly and through distributors, to hospitals and clinics, clinical laboratories,
and other healthcare entities such as assisted living, extended care, and other non-hospital based care facilities. We have limited product
distribution and our new sales and marketing team is working to build our product distribution capabilities in key markets such as North
America, Europe, and Southeast Asia.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 RedPharm has rights to distribute our
products in PRC, Japan, Korea, and countries in Southeast Asia. We are also actively developing distribution partners in the United Kingdom
and European Union. To support our distributor&rsquo;s efforts, we plan to build a distribution sales and technical support capability
within the company.</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"><B>Manufacturing</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 limited manufacturing capacity
for our consumable test cartridges and plan to implement automated production processes in the U.S. and bring on additional manufacturing
resources to expand consumable test cartridge manufacturing capacity. We depend on several single source vendors to supply components
for our disposable test cartridge and a US-based contract manufacturer for our eLab analyzer. We plan to bring on additional component
suppliers to add supply chain capacity as well as backup. We have completed the purchase of a significant supply of printed electrodes
from a former vendor and plan to qualify a new vendor of electrodes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sensor functionalization (converting raw electrodes
into a biosensor) is currently done by Nanomix using a robotic system and final cartridge assembly is done by Nanomix manually. We plan
to invest significantly in increasing capacity of sensor manufacturing processes and to automate portions of the cartridge assembly processes.
The costs of our products are expected to decline significantly with volume growth as well as process automation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">RedPharm has the right to produce eLab cartridges
in the PRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Nanomix eLab analyzer is produced by a contract
manufacturer located in the United States. While this is not an exclusive supply arrangement, it would be difficult to transfer production
or add an additional supplier. The production of instruments is done on a purchase order basis. Nanomix purchases and consigns the materials
for the quantity of instruments on the purchase order. The contract manufacturer builds, tests, and ships the units and invoices Nanomix
based on the units shipped less the cost of the consigned materials. Some of the components used in the eLab analyzer have long lead times
and Nanomix will purchase many of those components in quantities beyond the current purchase order.</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; background-color: white"><B>Collaboration, License
and Quality Agreements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">To support the development
and commercialization of our eLab system and products, in September 2017 we entered into a development and license agreement with RedPharm
(Beijing) Biotechnology Co., Ltd., or the RedPharm License. Pursuant to the RedPharm License, we granted an exclusive license to the technology
know-how, data and regulatory documents for our eLab technology to RedPharm that will support the development of our eLab analyzer in
both humans and animals.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Under the agreement,
RedPharm has the rights to produce the eLab cartridges in China for specific assays that are transferred by Nanomix to RedPharm. RedPharm
is responsible for any clinical and regulatory activities necessary to register the products for sale in their territories. To date, Nanomix
has transferred the S1 Critical Infections test to RedPharm and RedPharm has paid Nanomix $200 thousand in license fees related to the
transfer of that specific assay. RedPharm is obligated to pay a royalty on the sales of S1 test cartridges. There are limited activities
in China on registration of the S1 Assay panel, no current regulatory approvals, and no commercial sales activity.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">RedPharm also has the
rights to produce the eLab Analyzer in China for sale in the RedPharm territories upon the payment of an up front license fee. Each eLab
analyzer placed by RedPharm with a customer carries a per unit royalty in the range of a low hundred dollars.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We retain exclusive rights
to commercialize our products throughout the world, except in Australia, New Zealand, Singapore, China, Japan, Korea, Vietnam, Indonesia,
Malaysia and the Philippines, where RedPharm will have exclusive rights to commercialize our elab technology. We retain rights to participate
in the RedPharm markets depending on their progress in each of the countries. With RedPharm, we have established a collaboration for the
management of the development of any product that utilizes our technology, including any joint, cross-territory studies that may be undertaken
by the parties, if any.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Under the RedPharm License,
RedPharm are obligated to pay us future milestone payments up to an aggregate of $6.4&nbsp;million. Further, sales of test cartridges
bear royalties of a low single-digit percentage based on net sales and sales of eLab Analyzers carry a per unit royalty in the low hundreds
of dollars.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The RedPharm License
continues in effect until the expiration of all payment obligations thereunder (including royalty payments and licensee revenue) on a
product-by-product and country-by-country basis, unless earlier terminated by the parties. Pursuant to the terms of the RedPharm License,
in addition to each party&rsquo;s right to terminate the agreement upon the other party&rsquo;s material breach (if not cured within a
specified period after receipt of notice) or insolvency, (i) we also have unilateral termination rights in the event RedPharm commences
any court action to invalidate any our intellectual property., and (ii) RedPharm has unilateral termination rights to cancel this agreement
upon six (6) months prior written notice.</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>Technology &amp; Development</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our products are based on the Nanomix eLab electrochemical
detection technology. Current and planned products will operate on the eLab Analyzer using the current microfluidic disposable test cartridge
form. New product development will be largely focused on expanding the menu of tests that operate on the eLab Analyzer. Our initial focus
will be on testing for medical conditions that require rapid results for patient management and benefit from the mobile capabilities of
our system. Future developments will expand the menu to tests that support other decentralized healthcare needs.</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"><B>Competition</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">Many of our competitors are significantly larger
and have greater financial, research, manufacturing, and marketing resources. Important competitive factors include product quality, performance,
ease of use, price, customer service and reputation. Industry competition is based on these and the following additional factors:</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">patent protection;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">technology expertise;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ability to develop and market products and processes;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ability to obtain required regulatory approvals;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ability to manufacture cost-effective products that meet applicable regulatory requirements;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">access to adequate capital; and,</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ability to attract and retain qualified personnel.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe our technical capabilities and proprietary
know-how relating to our eLab system are strong, particularly for the development of tests for critical care conditions in decentralized
care environments. However, there are a number of competitive technologies used and/or seeking to be used by others in point-of-care settings.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 have no specific knowledge of any
other competitors&rsquo; products that could render our products obsolete, if we fail to maintain and enhance our competitive position
or fail to introduce new products and product features, our customers may decide to use the products developed by our competitors, which
could result in a loss of revenues and cash flow.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>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 June 1, 2022, we had 27 full-time equivalent
employees, of whom 3 were in administration, 10 in research and development and engineering, 11 in manufacturing and quality, and 3 in
sales and marketing. The majority of our employees are located in San Leandro, California.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 had a work stoppage, and none of
our employees are represented by a labor organization or subject to any collective bargaining arrangements. We consider our employee relations
to be good.</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"><B>Governmental Regulation</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; text-align: justify">Certain of our activities are subject to regulatory
oversight by the FDA under provisions of the Federal Food, Drug, and Cosmetic Act and regulations thereunder, including regulations governing
the development, marketing, labeling, promotion, manufacturing, and export of diagnostic products. Our clinical laboratory customers are
subject to oversight by Centers for Medicare and Medicaid Services, or CMS, pursuant to CLIA, as well as agencies in various states. Failure
to comply with applicable requirements can lead to sanctions, including withdrawal of products from the market, recalls, refusal to authorize
government contracts, product seizures, civil money penalties, injunctions, and criminal prosecution.</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"><I>FDA Approval/Clearance Requirements</I></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">Unless an exemption applies, each medical device
that we wish to market in the United States must receive 510(k) clearance or Premarket Approval (PMA). Medical devices that receive 510(k)
clearance are &ldquo;cleared&rdquo; by the FDA to market, distribute, and sell in the United States. Medical devices that obtain a PMA
by the FDA are &ldquo;approved&rdquo; to market, distribute and sell in the United States. We cannot be certain that 510(k) clearance
or PMA approval will ever be obtained for any products that we develop. Descriptions of the PMA and 510(k) clearance processes are provided
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">The FDA decides whether a device must undergo
either the 510(k) clearance or PMA based on statutory criteria that utilize a risk-based classification system. PMA is the FDA process
of scientific and regulatory review to evaluate the safety and effectiveness of Class III medical devices and, in many cases, Class II
medical devices. Class III devices are those that support or sustain human life, are of substantial importance in preventing impairment
of human health, or which present a potential, unreasonable risk of illness or injury. The FDA uses these criteria to decide whether a
PMA or a 510(k) is appropriate, including the level of risk that the agency perceives is associated with the device and a determination
by the agency of whether the product is a type of device that is similar to devices that are already legally marketed. Devices deemed
to pose relatively less risk are placed in either Class I or II. In many cases, the FDA requires the manufacturer to submit a 510(k) requesting
clearance (also referred to as a premarket notification), unless an exemption applies. The 510(k) must demonstrate that the manufacturer&rsquo;s
proposed device is &ldquo;substantially equivalent&rdquo; in intended use and in safety and effectiveness to a legally marketed predicate
device. A &ldquo;predicate device&rdquo; is a pre-existing medical device to which equivalence can be drawn, that is either in Class I
or Class II or is a Class III device that was in commercial distribution before May 28, 1976, for which the FDA has not yet called for
submission of a PMA application.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Device classification depends on the device&rsquo;s
intended use and its indications for use. In addition, classification is risk-based, that is, the risk the device poses to the patient
and/or the user is a major factor in determining the class to which it is assigned. Class I includes devices with the lowest risk and
Class III includes those with the greatest 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"><I>Class I </I>devices are those for which safety
and effectiveness can be assured by adherence to the FDA&rsquo;s general regulatory controls for medical devices, or the General Controls,
which include compliance with the applicable portions of the FDA&rsquo;s quality system regulations, facility registration and product
listing, reporting of adverse medical events, and appropriate, truthful and non-misleading labeling, advertising, and promotional materials.
Some Class I devices also require premarket clearance by the FDA through the 510(k) process.</P>

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

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

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<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"><I>Class II </I>devices are subject to the FDA&rsquo;s
General Controls, and any other special controls as deemed necessary by the FDA to ensure the safety and effectiveness of the device.
Premarket review and clearance by the FDA for Class II devices is accomplished through the 510(k) process. Pursuant to the Medical Device
User Fee and Modernization Act of 2002, unless a specific exemption applies, 510(k) submissions are subject to user fees. Certain Class
II devices are exempt from this premarket review process.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Class III </I>includes devices with the greatest
risk. Devices in this class must meet all of the requirements in Classes I and II. In addition, Class III devices cannot be marketed until
they receive Premarket Approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 safety and effectiveness of Class III devices
cannot be assured solely by the General Controls and the other requirements described above. These devices require formal clinical studies
to demonstrate safety and effectiveness. Under Medical Device User Fee and Modernization Act of 2002, PMA applications (and supplemental
premarket approval applications) are subject to significantly higher user fees than 510(k) applications, and they also require considerably
more time and resources.</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"><I>510(k) Clearance Pathway</I></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">We are currently developing products that either
will or are likely to require an FDA 510(k) clearance. We anticipate submitting a 510(k) for each such product to demonstrate that such
proposed device is substantially equivalent to a previously cleared 510(k) device or a device that was in commercial distribution before
May 28, 1976, for which the FDA has not yet called for the submission of a 510(k). The FDA&rsquo;s 510(k) clearance pathway usually takes
from three to twelve months but could take longer. In some cases, the FDA may require additional information, including clinical data,
to make a determination regarding substantial equivalence.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 device receives 510(k) clearance, any modification
that could significantly affect its safety or effectiveness, or that would constitute a new or major change in its intended use, will
require a new 510(k) clearance or, depending on the modification, a PMA. The FDA requires each device manufacturer to determine whether
the proposed change requires submission of a new 510(k) or a PMA, but the FDA can review any such decision and, if it disagrees with the
manufacturer&rsquo;s determination, can require the manufacturer to cease marketing and/or recall the modified device until 510(k) clearance
or PMA of the modified device is obtained.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Clinical Laboratory Improvement Amendments
of 1988</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A manufacturer of a test categorized as moderately
complex may request that categorization of the test be waived through a CLIA Waiver (CW) by Application submission to the FDA. When a
test is categorized as waived, it may be performed by laboratories with a Certificate of Waiver, such as a physician&rsquo;s office or
other outreach setting. In a CW submission, the manufacturer provides evidence to the FDA that a test meets the CLIA statutory criteria
for waiver CLIA, a walk-in clinic or an emergency room provides CMS authority over all laboratory testing, except research that is performed
on humans in the United States. The Division of Laboratory Services, within the Survey and Certification Group under the CMS, has the
responsibility for implementing the CLIA program.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 CLIA program is designed to establish quality
laboratory testing by ensuring the accuracy, reliability and timeliness of patient test results. Under CLIA, a laboratory is a facility
that does laboratory testing on specimens derived from humans and used to provide information for the diagnosis, prevention or treatment
of disease, or impairment of, or assessment of health. Under the CLIA program, unless waived, laboratories must be certified by the government,
satisfy governmental quality and personnel standards, undergo proficiency testing, be subject to inspections and pay fees. We anticipate
requesting CLIA Waiver for the tests we develop.</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"><I>Pervasive and Continuing FDA Regulation</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">A host of regulatory requirements apply to our
approved devices, including: the quality system regulation, which requires manufacturers to follow elaborate design, testing, control,
documentation and other quality assurance procedures; the Medical Reporting Regulations, which require manufacturers to report to the
FDA specified types of adverse events involving their products; labeling regulations; and the FDA&rsquo;s general prohibition against
promoting products for unapproved or &ldquo;off-label&rdquo; uses. Some Class II devices are subject to special controls-such as performance
standards, post-market surveillance, patient registries, and FDA guidelines-that do not apply to Class I devices.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 regulatory requirements that apply to our
approved products classified as medical devices include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">product listing and establishment registration, which helps facilitate FDA inspections and other regulatory action;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">QSR, which require manufacturers, including third-party manufacturers, to follow stringent design, testing, control, documentation and other quality assurance procedures during all aspects of the development and manufacturing process;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">labeling regulations and FDA prohibitions against the promotion of products for uncleared, unapproved or off-label use or indication;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">clearance of product modifications that could significantly affect safety or efficacy or that would constitute a major change in intended use of one of our cleared devices;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">approval of product modifications that affect the safety or effectiveness of one of our cleared devices;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">medical device reporting regulations, which require that manufacturers comply with FDA requirements to report if their device may have caused or contributed to a death or serious injury, or has malfunctioned in a way that would likely cause or contribute to a death or serious injury if the malfunction of the device or a similar device were to recur;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">post-approval restrictions or conditions, including post-approval study commitments;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">post-market surveillance regulations, which apply when necessary to protect the public health or to provide additional safety and effectiveness data for the device;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the FDA&rsquo;s recall authority, whereby it can ask, or under certain conditions order, device manufacturers to recall from the market a product that is in violation of governing laws and regulations;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">regulations pertaining to voluntary recalls; and,</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">notices of corrections or removals.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Emeryville, CA facility was licensed by the
State of California. We have moved to a new facility and will need to transfer or obtain a State of California license for the new facility.
We and any third-party manufacturers are subject to announced and unannounced inspections by the State or the FDA to determine our compliance
with QSR and other regulations.</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"><I>21st Century Cures Act</I></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 21st Century Cures Act, enacted in December
2016, contains several sections specific to medical device innovations. We believe that implementation of the 21st Century Cures Act may
have a positive impact on its businesses by facilitating innovation and/or reducing the regulatory burden imposed on medical device manufacturers.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Environmental Laws</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; text-align: justify">We believe that we are in compliance in all material
respects with all foreign, federal, state, and local environmental regulations applicable to our manufacturing facilities. The cost of
ongoing compliance with such regulations does not have a material effect on our operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&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"><B>Intellectual Property</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"><I>Intellectual Property Strategy</I></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">Our intellectual property strategy is to: (1)
build our own intellectual property portfolio around our eLab and electrochemical detection system; (2) pursue licenses, trade secrets
and know-how within the area of rapid point-of-care testing; and, (3) develop and acquire proprietary positions to certain biomarkers.</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"><I>eLab and Electrochemical Detection System Intellectual
Property</I></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">We have obtained patent coverage on eLab and Electrochemical
detection technology, including numerous patents in the United States, China, Japan, and the European Union. Additional patent applications
are pending in the United States, as well as in the European Union.</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"><I>Trademarks</I></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">We have filed and obtained trademarks for our
products, including the Nanomix eLab System. Our trademarks have been obtained in the United States and certain other countries around
the world.</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"><I>Trade Secrets and Know-How</I></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">We have developed a substantial body of trade
secrets and know-how relating to the development and manufacture of our eLab and electrochemical test system, including the production
of sensors, the design and production of microfluidics contained in the disposable test cartridge, the sourcing and optimization of materials
for such tests, and methods to maximize sensitivity, speed-to-result, specificity, stability and reproducibility of our tests. These trade
secrets and know-how provide us with an important competitive advantage.&nbsp;</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"><B>Properties </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 do not own real properties. Our principal executive
offices recently relocated to 2121 Williams Street, San Leandro, CA, 94577. We lease our office pursuant to a 5-year lease which terminates
on March 31, 2027. We believe that our existing facilities are suitable and adequate to meet our current needs. However, we may need to
add or expand as we increase production levels or add employees. We believe that suitable additional or substitute space will be available
as needed to accommodate any such expansion of our 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>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">The Company is subject to claims and legal proceedings
that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of
any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect
upon the Company&rsquo;s Consolidated Financial Statements. The Company does not believe that any of such pending claims and legal proceedings
will have a material adverse effect on its Consolidated Financial Statements. The Company records a liability in its Consolidated Financial
Statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews
these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter
is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the
possible loss or range of loss to the extent necessary for its Consolidated Financial Statements not to be misleading. If the loss is
not probable or cannot be reasonably estimated, a liability is not recorded in its Consolidated 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">Set forth below is a description of the Company&rsquo;s
Legal Proceedings.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 March 2019, we were served with notification
of complaint filed by CureDM Inc. as agent for the members of CureDM Group Holdings, LLC filed with the Supreme Court of the State of
New York County of New York regarding breach of contract and other matters relating to their desire to unwind the acquisition of CureDM
Group Holdings LLC according to the original Contribution Agreement. The complaint was withdrawn by CureDM, Inc. in December 2019. The
Company is continuing to work with the representatives from CureDM Inc. to settle this claim and unwind the Contribution Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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">In addition to the above matter, we are also in
a dispute with Level Brands, Inc. regarding a License Agreement dated June 21, 2018 (JAMS Ref. No.: 1220061261). The Company filed an
Answer to Complaint and Counter-complaint on June 25, 2019. Both parties are claiming non-performance under the License Agreement. The
matter was scheduled for arbitration in October 2019. In October 2019, the arbitration was dismissed without prejudice.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 October 16, 2019 the Company received a Summons
and Complaint filed by Microcap Headlines Inc. against the Company in the Supreme Court of the United States of New York County of Suffolk
claiming damages of $18,000 and the costs and disbursements of the action. During January 2021, the Company settled this claim with Microcap
Headlines, Inc. for $10,000.</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><A NAME="a_008"></A>MANAGEMENT</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"><B>Executive Officers and Directors</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; text-align: justify">The following table sets forth the name, age and
position of each of our executive officers, key employees and directors as of the date of this prospectus.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position(s)
    with the Company</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 21%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David Ludvigson</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">71</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 68%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer, Chief Financial
    Officer, Secretary and Director</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vidur Sahney</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">48</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Operating Officer</FONT></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">John Hardesky</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Commercial Officer</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Garrett Gruener</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">67</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></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">Jerry Fiddler</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">69</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gregory Schiffman</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">64</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD></TR>
  </TABLE>
<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"><B><I>David Ludvigson</I></B>&nbsp;has served
as the President and Chief Executive Officer of Nanomix, Inc. since June 2013. From October 2009 through present day, Mr. Ludvigson has
served as President of Knight Ludvigson Advisors&nbsp;p<FONT STYLE="background-color: white">roviding advisory and business consulting
services to Life Science and Technology companies including M&amp;A, financing, business strategy, go to market planning and sales channel
strategy and implementation. Mr. Ludvigson serves on the board of directors of Imagion Biosystems, Inc. (IBX), One BioMed PTE LTD (privately
held), and China Stem Cells Ltd. (privately held). Mr. Ludvigson received his BS and MAS in Accounting from Gies College of Business &ndash;
University of Illinois Urbana-Champaign.&nbsp;</FONT>Mr. Ludvigson is not related to any Officers or Directors of the Company. There are
no related party transactions reportable under Item 5.02 of Form 8-K and Item 404(a) of Regulation S-K.&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>Vidur Sahney</I></B> has served as Chief
Operating Officer of the Company since March 2022. From May 2019 through March 2022, Mr. Sahney served as chief operating officer of ExThera
Medical, a medical device company. From November 2019 through May 2021, Mr. Sahney was a senior partner at MKA Insights, a consulting
company focused on the life science industry. From September 2018 through May 2019, Mr. Sahney was the Operations Lead (Medical Devices),
Global Operations and Supply Chain for JUUL Labs, an electronic cigarette manufacturer. From February 2017 through August 2018, Mr. Sahney
was the Vice President, Global Operations &amp; Supply Chain for Sientra, Inc (NASDAQ: SIEN), a medical aesthetics company. Mr. Sahney
received his B.S, Mechanical Engineering from San Francisco State University.</P>

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

<P STYLE="text-align: justify; font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>John Hardesky</I> <FONT STYLE="font-weight: normal">has
served as Chief Commercial Officer of the Company since March 2021. From July 2020 to March 2021, Mr. Hardesky was head of commercial
activities for LIQUIDsmarts, a consulting organization. From 2016 to 2020, he served as VP, Laboratory Solutions for McKesson, from 2014
to 2106 he was Vice President of Marketing for LABSCO (acquired by McKesson), and from 2005 to 2014, he was Chief Operating Officer of
Vital Diagnostics, Inc, a manufacturer of laboratory diagnostic testing devices. Mr. Hardesky receive a B.S. degree from Lenoir-Rhyne
University.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-weight: normal"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><B><I>Garrett
Gruener</I></B>&nbsp;is a co-founder of Alta Partners, and was also a Partner at Burr, Egan, Deleage &amp; Co. He served as the Chief
Executive Officer at Nanomix from 2008 to 2013 and has more than two decades of experience in the fields of software development, systems
engineering and corporate development. In 1982, he founded Virtual Microsystems, a successful communications software company that was
later merged with a larger corporation. Mr. Gruener then founded Ask Jeeves, now&nbsp;Ask.Com, a leading Internet search engine which
is now part of IAC. Mr. Gruener is now Chairman of Nanomix, a point-of-care diagnostics company. He earned a Masters Degree from the University
of California, Berkeley and a Bachelor of Science from the University of California, San Diego, both in Political Science with a focus
on technology policy.</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><I>Gregory Schiffman</I></B>&nbsp;has served
as the Chief Financial Officer of privately-held AbSci, LLC since April 2020. He previously served as the Chief Financial&nbsp;<FONT STYLE="background-color: white">Officer
of Vineti, Inc. from October 2017 through April 2018. He also previously served as the Chief Financial Officer of each of Iovance Biotherapeutics
(formerly Lion Biotechnologies), from October 2016 through June 2017, Stem Cells, Inc., from January 2014 through September 2016, Dendreon
Corporation, from December 2006 through December 2013 and Affymetrix from August 2001 through December 2006. He currently serves on the
boards of directors of BioEclipse, a private company, as well as on the board of Ayro, Inc. (Nasdaq: Ayro). Mr. Schiffman holds a B.S.
in Accounting from DePaul University and an MM (MBA) from Northwestern University Kellogg Graduate School of Management. Mr. Schiffman&rsquo;s
qualifications to sit on the Board include his financial background, business experience and education.</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><I>Jerry Fiddler</I></B>&nbsp;is the principal
of Zygote Ventures and has helped create and grow numerous companies, as CEO, chairman, director, investor and advisor. Mr. Fiddler is
the founder of Wind River Systems and was for 23 years its CEO and Chairman and was Chairman of Solazyme (Nasdaq: SZYM).&nbsp; Mr. Fiddler
graduated from the University of Illinois at Urbana-Champaign with a MS Computer Science and BA in Music and Photography. He currently
serves on several private company and non-profit boards.</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>Family Relationships</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No family relationships exist between any of our
current or former directors or executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Involvement in Certain Legal Proceedings</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There are no material proceedings to which any
director or executive officer or any associate of any such director or officer is a party adverse to our company or has a material interest
adverse to our company.</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>Section 16(a) Beneficial Ownership Reporting
Compliance</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section 16(a) of the Securities Exchange Act of
1934, as amended, requires our directors and executive officers and persons who own more than 10% of the issued and outstanding shares
of our common stock to file reports of initial ownership of common stock and other equity securities and subsequent changes in that ownership
with the SEC. Officers, directors and greater than ten percent stockholders are required by SEC regulation to furnish us with copies of
all Section 16(a) forms they file. To our knowledge, based solely on a review of the copies of such reports furnished to us and written
representations no other reports were required, during the fiscal year ended December 31, 2020 all Section 16(a) filing requirements applicable
to our officers, directors and greater than 10% beneficial owners were not complied with.</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>Code of Ethics</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have not adopted a code of ethics because our
Board of Directors believes that our small size does not merit the expense of preparing, adopting and administering a code of ethics.
Our Board of Directors intends to adopt a code of ethics during the fiscal year ended December 31, 2022.</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"><B>Corporate Governance</B>&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">Our Directors are elected annually and each holds
office until the annual meeting of our stockholders and until their respective successors are elected and qualified. Our officers, including
any officers we may elect moving forward, will hold their positions at the pleasure of the Board of Directors, absent any employment agreement.
In the event we employ any additional officers or directors, they may receive compensation as determined by our Board of Directors from
time to time. Vacancies in the Board of Directors will be filled by majority vote of the remaining directors. Our Directors may be reimbursed
by us for expenses incurred in attending meetings of the 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"></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><U>Board of Directors Independence</U></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 not currently subject to any law, rule
or regulation requiring that all or any portion of our Board of Directors include &ldquo;independent&rdquo; 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"><B>Board Committees, Compensation Committee Interlocks and Insider
Participation</B>&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">The Company has two Board Committees, an Audit
Committee and a Compensation Committee. The Audit Committee is composed of Greg Schiffman (Committee Chair) and Jerry Fiddler. The Compensation
Committee is composed of Garret Gruener and Jerry Fiddler.</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><U>Director Nominations</U></B></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 do not have any defined policy or procedure
requirements for shareholders to submit recommendations or nominations for directors. We do not currently have any specific or minimum
criteria for the election of nominees to our board of directors and we do not have any specific process or procedure for evaluating such
nominees. Our Board of Directors assesses all candidates, whether submitted by management or shareholders, and makes recommendations for
election or appointment.</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">A shareholder who wishes to communicate with our
Board of Directors may do so by directing a written request to the address appearing on the first page of this annual 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">Your letter should indicate that you are a stockholder of our Company.
&nbsp;Depending on the subject matter, management will:</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forward the communication to the Director or Directors to whom it is addressed;</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Attempt to handle the inquiry directly; or</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not forward the communication if it is primarily commercial in nature or if it relates to an improper or irrelevant topic.</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">At each Board of Directors meeting or through
the course of other communication, a member of management presents a summary of all communications received since the last meeting that
were not forwarded and makes those communications available to the Directors on request.</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"><B><I>Audit Committee and Audit Committee Financial
Expert</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our Board of Directors has determined that prior
to the closing of the Merger, we did not have a board member that qualifies as an &ldquo;audit committee financial expert&rdquo; as defined
in Item 407(d)(5)(ii) of Regulation S-K. Subsequent to the merger upon installation of a new board of directors, Greg Schiffman qualifies
as an &ldquo;audit committee financial expert&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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"><B><A NAME="a_009"></A>EXECUTIVE AND DIRECTOR COMPENSATION</B></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: justify"><B>Summary Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.2in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Set forth below is certain information regarding
the historical compensation of our named executive officers during the year ended December&nbsp;31, 2021. The named executive officers
for the year ended December&nbsp;31, 2021 consisted of the principal executive officer and our two most highly compensated executive officers
other than our principal executive officer of Nanomix who were serving as executive officers as of December&nbsp;31, 2021 (our &ldquo;named
executive officers&rdquo;).&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"></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>Summary Compensation Table </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 following table shows information regarding
the compensation of the named executive officers during the fiscal years ended December&nbsp;31, 2021, 2020 and 2019.</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="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Name and Principal Position</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">Year</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">Bonus</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">Salary</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">Stock<BR>
 Awards<BR>
 (2)</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">Option<BR>
 Awards(3)</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">Nonqualified<BR>
 Deferred<BR>
 Compensation<BR>
 Earnings</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">All&nbsp;Other<BR>
 Compensation</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">Total</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; text-align: left">David Ludvigson,</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: center">2021</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: 6%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">237,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">7,051</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">7,651</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 6%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 6%; text-align: right">252,202</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-indent: -0.125in; padding-left: 0.25in; text-align: left">Chief Executive Officer &amp; Director (1)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">137,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">12,040</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">149,540</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2019</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">237,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,364</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">244,864</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: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Sherill Lavagnino</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">211,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,489</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,227</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">218,977</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Vice President of Engineering (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">11,071</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">223,709</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: center">2019</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,063</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">200,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">John Hardesky (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">197,917</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13,132</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">198,417</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Chief Commercial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: center">2020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</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: center">2019</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.&nbsp;Ludvigson joined Nanomix effective June, 2013. Mr.&nbsp;Ludvigson was appointed our Chief Executive Officer and a member of our Board of Directors in connection with the Merger.&nbsp;&nbsp;In 2020, Mr. Ludvigson received convertible notes in the amount of $150,000 in lieu of a portion of his cash compensation. These notes and accrued interest were converted to Preferred Series C stock as part of the merger.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents the aggregate grant date fair value of the stock awards granted during the relevant fiscal year computed in accordance with FASB ASC Topic 718. The assumptions used in the valuation of these awards are consistent with the valuation methodologies specified in Note 12 to Nanomix&rsquo;s financial statements included in this prospectus.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents the aggregate grant date fair value of the option awards granted during the relevant fiscal year computed in accordance with FASB Topic ASC 718.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms. Lavagnino joined Nanomix in 2013.&nbsp;&nbsp;Ms. Lavagnino receives an annual salary of $235,000.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Hardesky joined Nanomix in March of 2021.&nbsp;&nbsp;Mr. Hardesky receives an annual salary of $250,000 plus a target 30% of salary based on a combination of company performance and personal objectives.</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: center"><B>Narrative Disclosure to Summary Compensation
Table</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"><FONT STYLE="background-color: white">We do not
have employment arrangements with our named executive officers.</FONT></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>Outstanding Equity Awards at December&nbsp;31,
2021</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 table sets forth specified information
concerning outstanding equity incentive plan awards for each of the named executive officers outstanding as of December&nbsp;31, 2021.</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">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Option&nbsp;Awards</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Name</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">Grant Date</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>Number
of<BR>
Securities<BR>
Underlying<BR>
Unexercised<BR>
Options<BR>
Exercisable<BR>
(#)</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>Number
of<BR>
Securities<BR>
Underlying<BR>
Unexercised<BR>
Options<BR>
Non-<BR>
Exercisable<BR>
(#)</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>Option<BR>
Exercise<BR>
Price</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 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>Option<BR>
Expiration<BR>
Date</B></P></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left; text-indent: -9pt; padding-left: 9pt">David Ludvigson, Chief Executive Officer&nbsp;&amp; Director</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center; padding-left: 5.4pt">11/30/2012</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">41,723</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><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.059</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center; padding-left: 5.4pt">11/30/2022</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">3/31/2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">559,206</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">3/31/2024</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">10/4/2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,220</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">10/4/2026</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/31/2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,142</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/31/2027</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/11/2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,522</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,201</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.294</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/11/2030</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/01/2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,062,665</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/01/2031</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&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">Sherrill Lavagnino, Vice President of Engineering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">6/25/2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,277</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.059</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">6/25/2022</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">11/30/2012</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,248</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.059</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">11/30/2022</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">3/31/2014</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,950</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">3/31/2024</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">9/30/2015</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,030</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">9/30/2025</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">10/4/2016</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67,267</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">10/4/2026</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/31/2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/31/2027</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/11/2020</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,087</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">57,121</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.294</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/11/2030</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/01/2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">375,058</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">2/01/2031</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">John Hardesky, Chief Commercial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/19/2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,575</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">193,725</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/19/2031</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/19/2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">258,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">5/19/2031</TD></TR>
  </TABLE>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Compensation of Directors</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; background-color: white">The following table shows
the total compensation paid or accrued during the fiscal year ended December&nbsp;31, 2021 to each of Nanomix&rsquo;s current and former&nbsp;non-employee&nbsp;directors.
Directors who are employed by us are not compensated for their service on our Board of Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fees&nbsp;Earned<BR> or&nbsp;Paid in<BR> Cash ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Option<BR> Awards*<BR> ($)(6)</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">Total($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; text-indent: -12pt; padding-left: 12pt">Garrett Gruener (7)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">24,000</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">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">24,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Jerry Fiddler</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,048</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,048</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Greg Schiffman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,048</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,048</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These amounts represent the aggregate grant date fair value of options granted to each director in the fiscal year ended December&nbsp;31, 2020, computed in accordance with FASB ASC Topic 718.</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Garrett Gruener receives a payment of $2,000 per month to serve as our Executive Chairman.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_010"></A>CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS</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">Except as otherwise set forth herein, during the
last two fiscal years, we have not entered into any material transactions or series of transactions that would be considered material
in which any officer, director or beneficial owner of 5% or more of any class of our capital stock, or any immediate family member of
any of the preceding persons, had a direct or indirect material interest. There are no transactions presently proposed, except as follows:</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%">
  <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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company had a secured note payable to Mr. Garrett Gruener, its investor, with a balance $1,000,000 and accrued interest of $510,444 at December 31, 2020.</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"></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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company had convertible notes payable to: Mr. Gruener, its investor, with a total balance of $6,182,000 as of December 31, 2020, and accrued interest of $1,156,759; Mr. Fiddler, its investor, with a total balance of $950,000 and accrued interest of $127,788 as of December 31,2020; and Mr. Ludvigson, its Chief Executive Officer, with a total balance of $175,000 and accrued interest of $15,241 as of December 31,2020.</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; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company had senior secured convertible note to Mr. Gruener, its investor, with a total balance of $1,603,778 as of December 31, 2021.</FONT></TD></TR>
  </TABLE>
<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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company had accrued salary payable to Mr.
    Ludvigson, its Chief Executive Officer, with a total balance of $50,000 as of December 31,2021 and 2020, respectively.</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></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>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company had accrued salary, bonus and vacation
    payable to Ms. Upham, Boston Therapeutics, Inc ex Chief Operating Officer, with a total balance of $226,824 as of December 31,2021.</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></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>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company had accounts payable to Mr. Neill,
    Boston Therapeutics, Inc ex Director, with a total balance of $73,750 as of December 31,2021</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></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>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company had accrued payable to Dr. Platt,
    Boston Therapeutics, Inc significant shareholder, with a total balance of $4,399 as of December 31,2021.</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P></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 STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Garrett Gruener is paid a salary of $24,000 per year plus benefits in the role of Executive Chairman.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_011"></A>SECURITY OWNERSHIP OF BENEFICIAL OWNERS AND
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">The following table sets forth certain information
regarding beneficial ownership of our common stock as of June 21, 2022 by (i) each person (or group of affiliated persons) who is
known by us to own more than five percent (5%) of the outstanding shares of our common stock, (ii) each director and executive officer,
and (iii) all of our directors and executive officers as a group. As of April 12, 2022, there were 46,203,866 shares of our common stock
issued and outstanding.</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">Except as otherwise indicated, the persons listed
below have sole voting and investment power with respect to all shares of our common stock owned by them, except to the extent that power
may be shared with a spouse.</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">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 currently owns or has the
right to acquire within 60 days of the date of this prospectus.&nbsp;With respect to options and warrants, this would include options
and warrants that are currently exercisable within 60 days. With respect to convertible securities, this would include securities that
are currently convertible within 60 days.</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">Except as indicated in footnotes to this table,
we believe that the stockholders named in this table have sole voting and investment power with respect to all shares of common stock
shown to be beneficially owned by them, based on information provided to us by such stockholders. Unless otherwise indicated, the address
for each director and executive officer listed is: c/o Nanomix Corp., 2121 Williams St, San Leandro, CA 94577.</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 following table sets forth certain information
regarding beneficial ownership of our common stock and preferred stock as of May 1, 2022, after the Transaction was consummated on such
date by (i) each person known by us to be the beneficial owner of more than 5% of our outstanding common stock, (ii) each director and
each of our Named Executive Officers and (iii) all executive officers and directors as a group.</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 number of shares of common stock beneficially
owned by each person is determined under the rules of the SEC and the information is not necessarily indicative of beneficial ownership
for any other purpose. Under such rules, beneficial ownership includes any shares as to which such person has sole or shared voting power
or investment power and also any shares which the individual has the right to acquire within 60 days after the date hereof, through the
exercise of any stock option, warrant or other right. Unless otherwise indicated, each person has sole investment and voting power (or
shares such power with his or her spouse) with respect to the shares set forth in the following table. The inclusion herein of any shares
deemed beneficially owned does not constitute an admission of beneficial ownership of those 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"></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name and Address of Beneficial Owner</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">Shares of<BR> Common<BR> Stock<BR> Beneficially<BR> Owned</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage of <BR> Class<BR> Outstanding&nbsp;(1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Security Ownership of Certain Beneficial Owners:</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">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify">HT Investments MA LLC (7)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">9,230,000</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">&nbsp;&nbsp;&nbsp;&nbsp;9.99</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Security Ownership of Management and Directors:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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: justify">David Ludvigson (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,662,884</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">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Vidur Sahney</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">John Hardesky (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">166,842</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Garrett Gruener (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,162,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60.95</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Jerry Fidler (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,746,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.95</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">Greg Schiffman (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">135,541</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Executive officers and directors as a group &mdash; 4 persons</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&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>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The number and percentage of shares beneficially owned are determined in accordance with Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rule, beneficial ownership includes any shares over which the individual or entity has voting power or investment power and any shares of common stock that the individual has the right to acquire within 60 days of May 1, 2022, through the exercise of any stock option or other right. As of June 16, 2022, 46,203,866 shares of the Company&rsquo;s common stock were outstanding.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&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="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 38,019 shares of common stock issuable upon exercise of the warrants assumed by the Company as a result of the Merger, 845,621 common stock subject to options and 354,271 shares of common stock subject to Restricted Stock Units (&ldquo;RSU&rdquo;). </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes (i) 1,368,762 shares of common stock issuable upon conversion of the senior secured promissory notes issued in the June 2021 and February 2022 private placements, (ii) 1,368,762 shares of common stock issuable upon exercise of the warrants issued in the June 2021 and February 2022 private placements and (iii) 1,012,022 shares of common stock issuable upon exercise of the warrants assumed by the Company as a result of the Merger.&nbsp;&nbsp;Mr. Gruener has agreed to restrict the aggregate maximum number and percentage of shares (and therefore, offer for resale at any one time) as he has agreed to voluntarily restrict his ability to convert his notes and/or exercise his warrants and receive shares of our common stock such that the number of shares of common stock held by him and his affiliates in the aggregate after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes (i) 64,712 shares of common stock issuable upon conversion of the senior secured promissory notes issued in the February 2022 private placements, (ii) 64,712 shares of common stock issuable upon exercise of the warrants issued in the February 2022 private placements, (iii) 51,667 shares of common stock subject to options, (iv) 2,411,175 shares of common stock held by Zygote Ventures and (iv) 176,087 shares of common stock issuable upon exercise of the warrants assumed by the Company as a result of the Merger.&nbsp;&nbsp;Mr. Fiddler has voting and dispositive shares held by Zygote Ventures. Mr. Fidler has agreed to restrict the aggregate maximum number and percentage of shares (and therefore, offer for resale at any one time) as he has agreed to voluntarily restrict his ability to convert his notes and/or exercise his warrants from the February 2022 private placement and receive shares of our common stock such that the number of shares of common stock held by him and his affiliates in the aggregate after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock.</FONT></TD></TR>
</TABLE>

<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="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><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">Includes
    (i) 41,679 shares of common stock subject to RSUs, (i) 36,167 shares of common stock and (iii) 57,695 shares of common stock subject
    to options.</FONT></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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
    (i) 86,112 shares of common stock subject to RSUs and (ii) 80,730 shares of common stock subject to options.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
    the aggregate maximum number and percentage of shares that High Trail Investments MA LLC can own at one time (and therefore, offer
    for resale at any one time) as it has agreed to voluntarily restrict its ability to convert its note and/or exercise its warrant
    and receive shares of our common stock such that the number of shares of common stock held by them and their affiliates in the aggregate
    after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. Hudson Bay Capital
    Management LP, the investment manager of High Trail Investments MA LLC, has voting and investment power over these securities. Sander
    Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital Management LP. Each
    of High Trail Investments MA LLC and Sander Gerber disclaims beneficial ownership over these securities. The address for the selling
    shareholder is c/o High Trail Capital LP, 221 River Street, 9th Floor, Hoboken, NJ 07030.</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; text-align: center"><A NAME="a_012"></A><B>DESCRIPTION OF CAPITAL STOCK</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>General</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; text-align: justify">The following description of the Company&rsquo;s
capital stock and provisions of its Certificate of Incorporation, as amended and Bylaws are summaries and are qualified by reference to
the full text of the Company&rsquo;s Certificate of Incorporation and&nbsp; <FONT STYLE="background-color: white">Bylaws</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">The Company is authorized to issue 2,005,000,000
shares of capital stock, par value $0.001 per share, of which 2,000,000,000 are shares of common stock and 5,000,000 are shares of &ldquo;blank
check&rdquo; 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">As of the date of this prospectus, the Company
had outstanding 46,203,866 shares of common stock held by 1,752 shareholders of record. The actual number of holders of our common stock
is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street
name by brokers or held by other nominees. This number of holders of record also does not include stockholders whose shares may be held
in trust by other entities.</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"><B><I>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"><FONT STYLE="background-color: white">Each share
of our common stock entitles the holder to receive notice of and to attend all meetings of our stockholders with the entitlement to one
vote. Holders of common stock are entitled, subject to the rights, privileges, restrictions and conditions attaching to any other class
of shares ranking in priority to the common stock, to receive any dividend declared by the Board of Directors. If we are voluntarily or
involuntarily liquidated, dissolved or wound-up, the holders of common stock will be entitled to receive, after distribution in full of
the preferential amounts, if any, all of the remaining assets available for distribution ratably in proportion to the number of shares
of common stock held by them. Holders of common stock have no redemption or conversion rights. The rights, preferences and privileges
of holders of shares 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 issued and outstanding or that we may designate and issue in the future.</FONT>&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>Preferred Stock</I></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; text-align: justify; background-color: white">We are authorized to
issue up to 5,000,000 shares of preferred stock. This preferred stock may be issued in one or more series, the terms of which may be determined
at the time of issuance by our board of directors without further action by stockholders. The terms of any series of preferred stock may
include voting rights (including the right to vote as a series on particular matters), preferences as to dividend, liquidation, conversion
and redemption rights and sinking fund provisions. The issuance of any preferred stock could materially adversely affect the rights of
the holders of our common stock, and therefore, reduce the value of our common stock and the Notes. In particular, specific rights granted
to future holders of preferred stock could be used to restrict our ability to merge with, or sell our assets to, a third party and thereby
preserve control by the present management.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Transfer Agent</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; text-align: justify">The transfer agent and registrar for our common
stock is Worldwide Stock Transfer, LLC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Delaware Anti-Takeover Law and Provisions
of Certificate of Incorporation and By-Laws</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Delaware Anti-Takeover Law</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We are subject to Section&nbsp;203
of the Delaware General Corporation Law. Section&nbsp;203 generally prohibits a public Delaware corporation from engaging in a &ldquo;business
combination&rdquo; with an &ldquo;interested stockholder&rdquo; for a period of three years after the date of the transaction in which
the person became an interested stockholder, unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prior to the date of the transaction, the Board of Directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding specified shares; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">at or subsequent to the date of the transaction, the business combination is approved by the Board of Directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66&nbsp;2/3 % 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; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Section&nbsp;203 defines a &ldquo;business
combination&rdquo; to include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any merger or consolidation involving the corporation and the interested stockholder;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any sale, lease, exchange, mortgage, pledge, transfer or other disposition of 10% or more of the assets of the corporation to or with the interested stockholder;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In general, Section&nbsp;203 defines an &ldquo;interested
stockholder&rdquo; as any person that is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the owner of 15% or more of the outstanding voting stock of the corporation;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an affiliate or associate of the corporation who was the owner of 15% or more of the outstanding voting stock of the corporation at any time within three years immediately prior to the relevant date; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 0.25in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the affiliates and associates of the above.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Under specific circumstances,
Section&nbsp;203 makes it more difficult for an &ldquo;interested stockholder&rdquo; to effect various business combinations with a corporation
for a three-year period, although the&nbsp;stockholders may, by adopting an amendment to the corporation&rsquo;s certificate of incorporation
or bylaws, elect not to be governed by this section, effective 12&nbsp;months after adoption.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our certificate of incorporation
and bylaws do not exclude us from the restrictions of Section&nbsp;203. We anticipate that the provisions of Section&nbsp;203 might encourage
companies interested in acquiring us to negotiate in advance with our Board of Directors since the stockholder approval requirement would
be avoided if a majority of the directors then in office approve either the business combination or the transaction that resulted in the
stockholder becoming an interested stockholder.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Certificate of Incorporation and Bylaws</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Provisions of our certificate
of incorporation and bylaws to be in effect upon the consummation of this offering may delay or discourage transactions involving an
actual or potential change of control or change in our management, including transactions in which stockholders might otherwise receive
a premium for their shares, or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these
provisions could adversely affect the price of our common stock. Among other things, our certificate of incorporation and bylaws will:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 24px; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">permit
    our Board of Directors to issue up to shares of preferred stock, with any rights, preferences and privileges as they may designate;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that all vacancies
    on our Board of Directors, including as a result of newly created directorships, may, except as otherwise required by law, be filled
    by the affirmative vote of a majority of directors then in office, even if less than a quorum;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">require that any action
    to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written
    consent;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that stockholders
    seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of
    stockholders must provide advance notice in writing, and also specify requirements as to the form and content of a stockholder&rsquo;s
    notice;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">not provide for cumulative
    voting rights, thereby allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors
    to elect all of the directors standing for election; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">provide that special meetings
    of our stockholders may be called only by the Board of Directors or by such person or persons requested by a majority of the Board
    of Directors to call such meetings.</FONT></TD></TR>
  </TABLE>
<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"><B>Equity Incentive Plan</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; text-align: justify"><I>2021 Equity Incentive Plan</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>Introduction</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">On January&nbsp;25, 2021, our board of directors
adopted our 2021 Omnibus Equity Incentive Plan (the &ldquo;2021 Plan&rdquo;). The 2021 Plan became effective on the date that it was
approved by our stockholders (the &ldquo;Effective Date&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">Under the 2021 Plan, 5,497,977&nbsp;shares&nbsp;
of Company common stock are initially available for grant.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 administrator may grant incentive stock options,
non-statutory&nbsp;stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based&nbsp;awards
to participants to acquire shares of Company common stock under the 2021 Plan. It is anticipated that the Plan will be administered by
our Board of Directors or the Compensation Committee. The following table sets forth, as of May 1, 2022, the approximate number of each
class of participants eligible to participate in the 2021 Stock Incentive Plan and the basis of such participation.</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Class and Basis of Participation</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">Approximate<BR> Number of<BR> Class</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-indent: -10pt; padding-left: 10pt">Employees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">27</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Directors<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -10pt; padding-left: 10pt">Consultants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </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: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">One of the four directors
    is an employee of the Company.</FONT></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"><B>Rationale for Adoption of the 2021 Plan</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">Grants of options, stock appreciation rights,
restricted shares of common stock, restricted stock units, and other stock-based&nbsp;awards to our employees, directors, and independent
contractors are an important part of our long-term&nbsp;incentive compensation program, which we use in order to strengthen the commitment
of such individuals to us, motivate them to faithfully and diligently perform their responsibilities, and attract and retain competent
and dedicated individuals whose efforts are expected to result in our long-term&nbsp;growth and profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 number of shares proposed to be available
for grant under the 2021 Plan is designed to enable the Company to properly incentivize its employees and management teams over a number
of years on a going-forward&nbsp;basis.</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>Shares Available; Certain Limitations.
</I></B>The maximum number of shares of common stock reserved and available for issuance under the 2021 Plan will be equal to 11,568,437
shares of common stock provided that shares of common stock issued under the 2021 Plan with respect to an Exempt Award will not count
against the share limit. We use the term &ldquo;Exempt Award&rdquo; to mean (i) an award granted in the assumption of, or in substitution
for, outstanding awards previously granted by another business entity acquired by us or any of our subsidiaries or with which we or any
of our subsidiaries merge, or (ii) an award that a participant purchases at fair market 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">New shares reserved for issuance under the 2021
Plan may be authorized but unissued shares of Company&rsquo;s common stock or shares of Company&rsquo;s common stock that will have been
or may be reacquired by us in the open market, in private transaction or otherwise. If any shares of Company&rsquo;s common stock subject
to an award are forfeited, cancelled, exchanged or surrendered or if an award terminates or expires without a distribution of shares
to the participant, the shares of Company common stock with respect to such award will, to the extent of any such forfeiture, cancellation,
exchange, surrender, termination or expiration, again be available for awards under the Plan except that any shares of Company common
stock surrendered or withheld as payment of either the exercise price of an award and/or withholding taxes in respect of an award will
not again be available for awards under the Plan. If an award is denominated in shares of Company&rsquo;s common stock, but settled in
cash, the number of shares of common stock previously subject to the award will again be available for grants under the 2021 Plan. If
an award can only be settled in cash, it will not be counted against the total number of shares of common stock available for grant under
the 2021 Plan. However, upon the exercise of any award granted in tandem with any other awards, such related awards will be cancelled
as to the number of shares as to which the award is exercised and such number of shares of Company&rsquo;s common stock will no longer
be available for grant under the 2021 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 stock reserved under the 2021 Plan will provide
us with the platform needed for our continued growth, while managing program costs and share utilization levels within acceptable industry
standards.</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"><B>Description of 2021 Plan</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 features
of the 2021 Plan. This summary is qualified in its entirety by the full text of the 2021 Plan.</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>Types of Awards. </I></B>The 2021 Plan
provides for the issuance of incentive stock options, non-statutory&nbsp;stock options, stock appreciation rights (&ldquo;SARs&rdquo;),
restricted stock, restricted stock units (&ldquo;RSUs&rdquo;), and other stock-based&nbsp;awards. Items described above in the Section
called &ldquo;Shares Available&rdquo; are incorporated herein by reference.</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>Administration. </I></B>The 2021 Plan will
be administered by our board of directors, or if our board of directors does not administer the 2021 Plan, a committee or subcommittee
of our board of directors that complies with the applicable requirements of Section 16 of the Exchange Act and any other applicable legal
or stock exchange listing requirements (each of our board of directors or such committee or subcommittee, the &ldquo;plan administrator&rdquo;).
The plan administrator may interpret the 2021 Plan and may prescribe, amend and rescind rules and make all other determinations necessary
or desirable for the administration of the 2021 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 2021 Plan permits the plan administrator
to select the eligible recipients who will receive awards, to determine the terms and conditions of those awards, including but not limited
to the exercise price or other purchase price of an award, the number of shares of common stock or cash or other property subject to
an award, the term of an award and the vesting schedule applicable to an award, and to amend the terms and conditions of outstanding
awards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Restricted Stock and Restricted Stock Units.
</I></B>Restricted stock and RSUs may be granted under the 2021 Plan. The plan administrator will determine the purchase price, vesting
schedule and performance goals, if any, and any other conditions that apply to a grant of restricted stock and RSUs. If the restrictions,
performance goals or other conditions determined by the plan administrator are not satisfied, the restricted stock and RSUs will be forfeited.
Subject to the provisions of the 2021 Plan and the applicable award agreement, the plan administrator has the sole discretion to provide
for the lapse of restrictions in installments.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Unless the applicable award agreement provides
otherwise, participants with restricted stock will generally have all of the rights of a stockholder; provided that dividends will only
be paid if and when the underlying restricted stock vests. RSUs will not be entitled to dividends prior to vesting, but may be entitled
to receive dividend equivalents if the award agreement provides for them. The rights of participants granted restricted stock or RSUs
upon the termination of employment or service to us will be set forth in the award agreement.</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>Options. </I></B>Incentive stock options
and non-statutory&nbsp;stock options may be granted under the 2021 Plan. An &ldquo;incentive stock option&rdquo; means an option intended
to qualify for tax treatment applicable to incentive stock options under Section 422 of the Internal Revenue Code. A &ldquo;non-statutory&nbsp;stock
option&rdquo; is an option that is not subject to statutory requirements and limitations required for certain tax advantages that are
allowed under specific provisions of the Internal Revenue Code. A non-statutory&nbsp;stock option under the 2021 Plan is referred to
for federal income tax purposes as a &ldquo;non-qualified&rdquo; stock option. Each option granted under the Plan will be designated
as a non-qualified&nbsp;stock option or an incentive stock option. At the discretion of the administrator, incentive stock options may
be granted only to our employees, employees of our &ldquo;parent corporation&rdquo; (as such term is defined in Section 424(e) of the
Code) or employees of our subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 exercise period of an option may not exceed
ten years from the date of grant and the exercise price may not be less than 100% of the fair market value of a share of common stock
on the date the option is granted (110% of fair market value in the case of incentive stock options granted to ten percent stockholders).
The exercise price for shares of common stock subject to an option may be paid in cash, or as determined by the administrator in its
sole discretion, (i) through any cashless exercise procedure approved by the administrator (including the withholding of shares of common
stock otherwise issuable upon exercise), (ii) by tendering unrestricted shares of common stock owned by the participant, (iii) with any
other form of consideration approved by the administrator and permitted by applicable law or (iv) by any combination of these methods.
The option holder will have no rights to dividends or distributions or other rights of a stockholder with respect to the shares of Common
Stock subject to an option until the option holder has given written notice of exercise and paid the exercise price and applicable withholding
taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 participant&rsquo;s termination
of employment or service, the participant may exercise his or her option (to&nbsp;the extent vested as of such date of termination) for
such period of time as specified in his or her option agreement.</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>Stock Appreciation Rights. </I></B>SARs
may be granted either alone (a &ldquo;free-standing&nbsp;SAR&rdquo;) or in conjunction with all or part of any option granted under the
2021 Plan (a &ldquo;tandem SAR&rdquo;). A free-standing&nbsp;SAR will entitle its holder to receive, at the time of exercise, an amount
per share up to the excess of the fair market value (at the date of exercise) of a share of common stock over the base price of the free-standing&nbsp;SAR
(which shall be no less than 100% of the fair market value of the related shares of common stock on the date of grant) multiplied by
the number of shares in respect of which the SAR is being exercised. A tandem SAR will entitle its holder to receive, at the time of
exercise of the SAR and surrender of the applicable portion of the related option, an amount per share up to the excess of the fair market
value (at the date of exercise) of a share of common stock over the exercise price of the related option multiplied by the number of
shares in respect of which the SAR is being exercised. The exercise period of a free-standing&nbsp;SAR may not exceed ten years from
the date of grant. The exercise period of a tandem SAR will also expire upon the expiration of its related 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"></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 holder of a SAR will have no rights to dividends
or any other rights of a stockholder with respect to the shares of Common Stock subject to the SAR until the holder has given written
notice of exercise and paid the exercise price and applicable withholding taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 participant&rsquo;s termination
of employment or service, the holder of a SAR may exercise his or her SAR (to the extent vested as of such date of termination) for such
period of time as specified in his or her SAR agreement.</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>Other Stock-Based&nbsp;Awards. </I></B>The
administrator may grant other stock-based&nbsp;awards under the 2021 Plan, valued in whole or in part by reference to, or otherwise based
on, shares of common stock. The administrator will determine the terms and conditions of these awards, including the number of shares
of common stock to be granted pursuant to each award, the manner in which the award will be settled, and the conditions to the vesting
and payment of the award (including the achievement of performance goals). The rights of participants granted other stock-based&nbsp;awards
upon the termination of employment or service to us will be set forth in the applicable award agreement. In the event that a bonus is
granted in the form of shares of common stock, the shares of common stock constituting such bonus shall, as determined by the administrator,
be evidenced in uncertificated form or by a book entry record in the name of the participant to whom such grant was made and delivered
to such participant as soon as practicable after the date on which such bonus is payable. Any dividend or dividend equivalent award issued
hereunder shall be subject to the same restrictions, conditions and risks of forfeiture as apply to the underlying award.</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>Equitable Adjustment and Treatment of Outstanding
Awards Upon a Change in Control</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"><B><I>Equitable Adjustments. </I></B>In the event
of a merger, consolidation, reclassification, recapitalization, spin-off, spin-out,<I>&nbsp;</I>repurchase, reorganization, special or
extraordinary dividend or other extraordinary distribution (whether in the form of common shares, cash or other property), combination,
exchange of shares, or other change in corporate structure affecting our common stock, an equitable substitution or proportionate adjustment
shall be made in (i) the aggregate number and kind of securities reserved for issuance under the 2021 Plan, (ii) the kind and number
of securities subject to, and the exercise price of, any outstanding options and SARs granted under the 2021 Plan, (iii) the kind, number
and purchase price of shares of common stock, or the amount of cash or amount or type of property, subject to outstanding restricted
stock, RSUs and other stock-based&nbsp;awards granted under the 2021 Plan and (iv) the terms and conditions of any outstanding awards
(including any applicable performance targets). Equitable substitutions or adjustments other than those listed above may also be made
as determined by the plan administrator. In addition, the plan administrator may terminate all outstanding awards for the payment of
cash or in-kind&nbsp;consideration having an aggregate fair market value equal to the excess of the fair market value of the shares of
common stock, cash or other property covered by such awards over the aggregate exercise price, if any, of such awards, but if the exercise
price of any outstanding award is equal to or greater than the fair market value of the shares of common stock, cash or other property
covered by such award, the plan administrator may cancel the award without the payment of any consideration to the participant. With
respect to awards subject to foreign laws, adjustments will be made in compliance with applicable requirements. Except to the extent
determined by the plan administrator, adjustments to incentive stock options will be made only to the extent not constituting a &ldquo;modification&rdquo;
within the meaning of Section 424(h)(3) of the Code.</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>Change in Control. </I></B>The 2021 Plan
provides that, unless otherwise determined by the plan administrator and evidenced in an award agreement, if a &ldquo;change in control&rdquo;
(as defined below) occurs and a participant is employed by us or any of our affiliates immediately prior to the consummation of the change
in control, then the plan administrator, in its sole and absolute discretion, may (i) provide that any unvested or unexercisable portion
of an award carrying a right to exercise will become fully vested and exercisable; and (ii) cause the restrictions, deferral limitations,
payment conditions and forfeiture conditions applicable to any award granted under the 2021 Plan to lapse, and the awards will be deemed
fully vested and any performance conditions imposed with respect to such awards will be deemed to be fully achieved at target performance
levels. The administrator shall have discretion in connection with such change in control to provide that all outstanding and unexercised
options and SARs shall expire upon the consummation of such change in control.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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">For purposes of the 2021 Plan, a &ldquo;change
in control&rdquo; means, in summary, the first to occur of the following events: (i) a person or entity becomes the beneficial owner
of more than 50% of our voting power; (ii) an unapproved change in the majority membership of our board of directors; (iii) a merger
or consolidation of us or any of our subsidiaries, other than (A) a merger or consolidation that results in our voting securities continuing
to represent 50% or more of the combined voting power of the surviving entity or its parent and our board of directors immediately prior
to the merger or consolidation continuing to represent at least a majority of the board of directors of the surviving entity or its parent
or (B) a merger or consolidation effected to implement a recapitalization in which no person is or becomes the beneficial owner of our
voting securities representing more than 50% of our combined voting power; or (iv)&nbsp;stockholder approval of a plan of our complete
liquidation or dissolution or the consummation of an agreement for the sale or disposition of substantially all of our assets, other
than (A) a sale or disposition to an entity, more than 50% of the combined voting power of which is owned by our stockholders in substantially
the same proportions as their ownership of us immediately prior to such sale or (B) a sale or disposition to an entity controlled by
our board of directors. However, a change in control will not be deemed to have occurred as a result of any transactions or series of
integrated transaction following which our stockholders, immediately prior thereto, hold immediately afterward the same proportionate
equity interests in the entity that owns all or substantially all of our assets.</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>Tax 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">Each participant will be required to make arrangements
satisfactory to the plan administrator regarding payment of up to the maximum statutory tax rates in the participant&rsquo;s applicable
jurisdiction with respect to any award granted under the 2021 Plan, as determined by us. We have the right, to the extent permitted by
applicable law, to deduct any such taxes from any payment of any kind otherwise due to the participant. With the approval of the plan
administrator, the participant may satisfy the foregoing requirement by either electing to have us withhold from delivery of shares of
common stock, cash or other property, as applicable, or by delivering already owned unrestricted shares of common stock, in each case,
having a value not exceeding the applicable taxes to be withheld and applied to the tax obligations. We may also use any other method
of obtaining the necessary payment or proceeds, as permitted by applicable law, to satisfy our withholding obligation with respect to
any award.</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>Amendment and Termination of the 2021 Plan</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 2021 Plan provides our board of directors
with authority to amend, alter or terminate the 2021 Plan, but no such actions may impair the rights of any participant with respect
to outstanding awards without the participant&rsquo;s consent. The plan administrator may amend an award, prospectively or retroactively,
but no such amendment may materially impair the rights of any participant without the participant&rsquo;s consent. Stockholder approval
of any such Actions will be obtained if required to comply with applicable law.<I>&nbsp;</I>The 2021 Plan will terminate on the tenth
anniversary of the Effective Date (although awards granted before that time will remain outstanding in accordance with their terms).</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>Clawback</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 we are required to prepare a financial restatement
due to material non-compliance&nbsp;with any financial reporting requirement, then the plan administrator may require any Section 16
officer to repay or forfeit to us that part of the cash or equity incentive compensation received by that Section 16 officer during the
preceding three years that the plan administrator determines was in excess of the amount that such Section 16 officer would have received
had such cash or equity incentive compensation been calculated based on the financial results reported in the restated financial statement.
The plan administrator may take into account any factors it deems reasonable in determining whether to seek recoupment of previously
paid cash or equity incentive compensation and how much of such compensation to recoup from each Section 16 officer (which need not be
the same amount or proportion for each Section 16 officer). The amount and form of the incentive compensation to be recouped shall be
determined by the administrator in its sole and absolute discretion.</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>US Federal Income Tax Consequences</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 certain United
States federal income tax consequences of awards under the 2021 Plan. It does not purport to be a complete description of all applicable
rules, and those rules (including those summarized here) are subject to change.</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"></P>

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<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>Non-Qualified&nbsp;Stock Options. </I></B>A
participant who has been granted a non-qualified&nbsp;stock option will not recognize taxable income upon the grant of a non-qualified&nbsp;stock
option. Rather, at the time of exercise of such non-qualified&nbsp;stock option, the participant will recognize ordinary income for income
tax purposes in an amount equal to the excess of the fair market value of the shares of common stock purchased over the exercise price.
We generally will be entitled to a tax deduction at such time and in the same amount that the participant recognizes ordinary income.
If shares of common stock acquired upon exercise of a non-qualified&nbsp;stock option are later sold or exchanged, then the difference
between the amount received upon such sale or exchange and the fair market value of such shares on the date of such exercise will generally
be taxable as long-term&nbsp;or short-term&nbsp;capital gain or loss (if the shares are a capital asset of the participant) depending
upon the length of time such shares were held by the participant.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Incentive Stock Options. </I></B>In general,
no taxable income is realized by a participant upon the grant of an ISO. If shares of common stock are purchased by a participant, or
option shares, pursuant to the exercise of an ISO granted under the 2021 Plan and the participant does not dispose of the option shares
within the two-year&nbsp;period after the date of grant or within one year after the receipt of such option shares by the participant,
such disposition a disqualifying disposition, then, generally (1) the participant will not realize ordinary income upon exercise and
(2) upon sale of such option shares, any amount realized in excess of the exercise price paid for the option shares will be taxed to
such participant as capital gain (or loss). The amount by which the fair market value of the common stock on the exercise date of an
ISO exceeds the purchase price generally will constitute an item which increases the participant&rsquo;s &ldquo;alternative minimum taxable
income.&rdquo; If option shares acquired upon the exercise of an ISO are disposed of in a disqualifying disposition, the participant
generally would include in ordinary income in the year of disposition an amount equal to the excess of the fair market value of the option
shares at the time of exercise (or, if less, the amount realized on the disposition of the option shares), over the exercise price paid
for the option shares. Subject to certain exceptions, an option generally will not be treated as an ISO if it is exercised more than
three months following<I>&nbsp;</I>termination of employment. If an ISO is exercised at a time when it no longer qualifies as an ISO,
such option will be treated as a nonqualified stock option as discussed above. In general, we will receive an income tax deduction at
the same time and in the same amount as the participant recognizes ordinary income.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Stock Appreciation Rights. </I></B>A participant
who is granted an SAR generally will not recognize ordinary income upon receipt of the SAR. Rather, at the time of exercise of such SAR,
the participant will recognize ordinary income for income tax purposes in an amount equal to the value of any cash received and the fair
market value on the date of exercise of any shares of common stock received. We generally will be entitled to a tax deduction at such
time and in the same amount, if any, that the participant recognizes as ordinary income. The participant&rsquo;s tax basis in any shares
of common stock received upon exercise of an SAR will be the fair market value of the shares of common stock on the date of exercise,
and if the shares are later sold or exchanged, then the difference between the amount received upon such sale or exchange and the fair
market value of such shares on the date of exercise will generally be taxable as long-term&nbsp;or short-term&nbsp;capital gain or loss
(if the shares are a capital asset of the participant) depending upon the length of time such shares were held by the participant.</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>Restricted Stock. </I></B>A participant
generally will not be taxed upon the grant of restricted stock, but rather will recognize ordinary income in an amount equal to the fair
market value of the shares of common stock at the earlier of the time the shares become transferable or are no longer subject to a substantial
risk of forfeiture (within the meaning of the Code). We generally will be entitled to a deduction at the time when, and in the amount
that, the participant recognizes ordinary income on account of the lapse of the restrictions. A participant&rsquo;s tax basis in the
shares of common stock will equal their fair market value at the time the restrictions lapse, and the participant&rsquo;s holding period
for capital gains purposes will begin at that time. Any cash dividends paid on the shares of common stock before the restrictions lapse
will be taxable to the participant as additional compensation and not as dividend income, unless the individual has made an election
under Section 83(b) of the Code. Under Section 83(b) of the Code, a participant may elect to recognize ordinary income at the time the
restricted shares are awarded in an amount equal to their fair market value at that time, notwithstanding the fact that such stock is
subject to restrictions or transfer and a substantial risk of forfeiture. If such an election is made, no additional taxable income will
be recognized by such participant at the time the restrictions lapse, the participant will have a tax basis in the shares of common stock
equal to their fair market value on the date of their award, and the participant&rsquo;s holding period for capital gains purposes will
begin at that time. We generally will be entitled to a tax deduction at the time when, and to the extent that, ordinary income is recognized
by such participant.</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>Restricted Stock Units. </I></B>In general,
the grant of RSUs will not result in income for the participant or in a tax deduction for us. Upon the settlement of such an award in
cash or shares of common stock, the participant will recognize ordinary income equal to the aggregate value of the payment received,
and we generally will be entitled to a tax deduction at the same time and in the same amount.</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"></P>

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<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>Other Awards. </I></B>With respect to other
stock-based&nbsp;awards, generally when the participant receives payment in respect of the award, the amount of cash and/or the fair
market value of any shares of common stock or other property received will be ordinary income to the participant, and we generally will
be entitled to a tax deduction at the same time and in the same amount.</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>New Plan Benefits</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 grants under the 2021 Plan will be made
at the discretion of the plan administrator and, accordingly, are not yet determinable. In addition, benefits under the 2021 Plan will
depend on a number of factors, including the fair market value of our common stock on future dates and the exercise decisions made by
participants. Consequently, at this time, it is not possible to determine the future benefits that might be received by participants
receiving discretionary grants under the 2021 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Penny Stock Regulation</B>.&nbsp;</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 SEC has adopted regulations which generally
define &ldquo;<I>penny stock</I>&rdquo; to be any equity security that has a market price of less than $5.00 per share or an exercise
price of less than $5.00 per share. Such securities are subject to rules that impose additional sales practice requirements on broker-dealers
who sell them. For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchaser
of such securities and have received the purchaser&rsquo;s written consent to the transaction prior to the purchase. Additionally, for
any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the transaction, of a disclosure schedule
prepared by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer
and the registered representative, current quotations for the securities and, if the broker-dealer is the sole market-maker, the broker-dealer
must disclose this fact and the broker-dealer&rsquo;s presumed control over the market. Finally, among other requirements, monthly statements
must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stocks. As our common stock immediately following this offering may be subject to such penny stock rules, purchasers in this offering
may find it more difficult to sell their common stock shares in the secondary market.</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: center"><B><A NAME="a_013"></A>SELLING STOCKHOLDERS </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 Common Stock being offered by the selling
stockholders are those previously issued to the selling stockholders, and those issuable to the selling stockholders, upon exercise of
the GHS Warrants and the Merger Warrants. For additional information regarding the issuances of those shares of Common Stock and warrants,
see &ldquo;Offering - The Transactions&rdquo; above. We are registering the shares of Common Stock in order to permit the selling stockholders
to offer the shares for resale from time to time. No selling shareholder other than David Ludvigson, Garrett Gruener, Greg Schiffman
and Jerry Fiddler, the trustee of Zygote Ventures LLC, each of whom are directors of the Company, had any material relationship with
us within the past 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">The table below lists the selling stockholders
and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder) of the shares of common stock held by each of the selling stockholders. The second
column lists the number of shares of common stock beneficially owned by the selling stockholders, based on their respective ownership
of shares of common stock, preferred stock and warrants, as of June 16, 2022, assuming conversion of the Series D Preferred Stock and
exercise of the GHS Warrants and Merger Warrants held by each such selling stockholder on that date but taking account of any limitations
on conversion and exercise set forth therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 third column lists the shares of common stock
being offered by this prospectus by the selling stockholders and does not take in account any limitations on (i) conversion of the preferred
stock set forth therein or (ii) exercise of the warrants set forth therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 the conversion price of the Series D
Preferred Stock and the exercise price of the GHS Warrants may be adjusted, the number of shares that will actually be issued may be
more or less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered
by the selling stockholders 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">Under the terms of the Series D Preferred Stock
and the GHS Warrants, a selling stockholder may not convert the Series D Preferred Stock or exercise the GHS Warrants to the extent (but
only to the extent) such selling stockholder or any of its affiliates would beneficially own a number of shares of our common stock which
would exceed 9.99% of the outstanding shares of the Company (the &ldquo;Maximum Percentage&rdquo;). The number of shares in the second
column reflects these limitations. The selling stockholders may sell all, some or none of their shares in this offering. See &ldquo;Plan
of Distribution.&rdquo;&nbsp;</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; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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 of Selling Stockholder</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 of<BR> Common<BR>
    Stock<BR> Beneficially<BR> Owned<BR> Prior to<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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Maximum<BR> Number of<BR> Shares<BR>
    of<BR> Common<BR> Stock to be<BR> Sold<BR> Pursuant<BR> to this Prospectus</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">Number of<BR> Shares of<BR> Common<BR>
    Stock <BR> Owned<BR> After<BR> 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="width: 64%; text-align: left; text-indent: -9pt; padding-left: 9pt">GHS Investments LLC (1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">560,000</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">9,750,000</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">--</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">Simon Rosenberg</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,501</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,501</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; text-indent: -9pt; padding-left: 9pt">Warren Bock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">227</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">227</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; text-indent: -9pt; padding-left: 9pt">Daniel Miller (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,308</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,308</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; text-indent: -9pt; padding-left: 9pt">Susan Rapp</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">226</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">226</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; text-indent: -9pt; padding-left: 9pt">Stephen Spanos</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">543,249</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">543,249</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Zygote Ventures LLC (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,746,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">517,452</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,229,422</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">Karen Buitano</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,070</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,070</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; text-indent: -9pt; padding-left: 9pt">Future King, Inc. (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,801,391</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">667,057</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,134,334</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">Calvert Research</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,469</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,469</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; text-indent: -9pt; padding-left: 9pt">Robert Frankel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">91</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; text-indent: -9pt; padding-left: 9pt">Alexander K. Zettl</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,227</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,227</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; text-indent: -9pt; padding-left: 9pt">J. Leon &amp; Company Limited (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">316,180</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">316,180</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; text-indent: -9pt; padding-left: 9pt">Edward Penhoet</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,319</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">115,319</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; text-indent: -9pt; padding-left: 9pt">Samnaun LLC (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,061</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,061</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; text-indent: -9pt; padding-left: 9pt">Garrett Gruener (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,162,182</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,234,472</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,927,710</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">Greg Schiffman</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,168</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,168</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; text-indent: -9pt; padding-left: 9pt">Jui-Ming Yang</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,827</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,827</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; text-indent: -9pt; padding-left: 9pt">Donna Morrow</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106</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; text-indent: -9pt; padding-left: 9pt">Steven Barrer &amp; Mitchell Barrer Ten Com</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198</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; text-indent: -9pt; padding-left: 9pt">H. Joseph Reiser</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,001</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,001</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; text-indent: -9pt; padding-left: 9pt">Eustace Mita</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">332</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">332</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; text-indent: -9pt; padding-left: 9pt">David Ludvigson (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,662,884</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,595</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,570,289</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">Cure DM, Inc. (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,130</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,130</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; text-indent: -9pt; padding-left: 9pt">Lorraine Upham</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,494</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,494</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; text-indent: -9pt; padding-left: 9pt">Claresa Levetan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,574</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,574</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; text-indent: -9pt; padding-left: 9pt">Marvin Cohen</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31</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; text-indent: -9pt; padding-left: 9pt">Jeremy Rosenblatt (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,572</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,572</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; text-indent: -9pt; padding-left: 9pt">Deborah Novak</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31</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; text-indent: -9pt; padding-left: 9pt">Deborah Novak &amp; Timothy Maroney JT TEN</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">829</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">829</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; text-indent: -9pt; padding-left: 9pt">Jane Frankel Rittenhouse</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">235</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">235</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; text-indent: -9pt; padding-left: 9pt">Engel Fischer Revocable Inter Vivos Family Trust DTD 7/14/1992
    (11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,417</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,417</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; text-indent: -9pt; padding-left: 9pt">Benno Friedman (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539,611</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539,611</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; text-indent: -9pt; padding-left: 9pt">Pomona Capital VIII (13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,620</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,620</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; text-indent: -9pt; padding-left: 9pt">John &amp; Katherine Steuart Joint Revocable Trust Dated 12/2/21
    (14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,841</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,841</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">--</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Lindal Frankel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">361</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">361</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; text-indent: -9pt; padding-left: 9pt">Jennifer Frankel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42</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; text-indent: -9pt; padding-left: 9pt">Rita El-Hajj</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,787</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,787</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; text-indent: -9pt; padding-left: 9pt">William Frankel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,125</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; text-indent: -9pt; padding-left: 9pt">William Frankel Enterprises (15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,275</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,275</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; text-indent: -9pt; padding-left: 9pt">Gerry Frankel</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42</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; text-indent: -9pt; padding-left: 9pt">E.C. Coppola Family Limited Partnership (16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">176</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; text-indent: -9pt; padding-left: 9pt">Edward C. Coppola, Jr.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">702</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">702</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; text-indent: -9pt; padding-left: 9pt">Physio-Control, Inc. (17)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,973,752</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">394,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,579,002</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">CJY Holdings Limited (18)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,794,367</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">758,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,035,493</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">Sarah B Holbrooke &amp; David D Holbrooke JT TEN (19)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,979</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,979</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; text-indent: -9pt; padding-left: 9pt">Joseph Duggan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,195</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,195</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; text-indent: -9pt; padding-left: 9pt">Kim Pickett</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">199</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">199</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; text-indent: -9pt; padding-left: 9pt">Dakota Gruener</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,601</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,601</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>
  </TABLE>

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

<P STYLE="margin-top: 0; margin-bottom: 0"></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">1)</TD><TD STYLE="text-align: justify">Includes 7,500,000 shares of common stock
                                            issuable upon conversion of the Series D Preferred Stock and (ii) 2,250,000 shares of common
                                            stock issuable upon exercise of warrants. Mark Grober has voting and investment power over
                                            these securities.&nbsp;</TD></TR></TABLE>
<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" 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">2)</TD><TD STYLE="text-align: justify">Includes 4,002 shares of common stock issuable
                                            upon exercise of warrants.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                </TABLE>

<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">3)</TD><TD STYLE="text-align: justify">Includes 35,217 shares of common stock
                                            issuable upon exercise of warrants. Jerry Fiddler has voting and investment power over these
                                            securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                       </TABLE>

<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">4)</TD><TD STYLE="text-align: justify">Includes 106,779 shares of common stock
                                            issuable upon exercise of warrants. Wu An Ming has voting and investment power over these
                                            securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                       </TABLE>

<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">5)</TD><TD STYLE="text-align: justify"> Alexander Church has voting and investment power
                                            over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                  </TABLE>

<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">6)</TD><TD STYLE="text-align: justify">Includes 4,002 shares of common stock issuable upon exercise of warrants. John van Merkensteijn has
                                 voting and investment power over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                              </TABLE>

<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">7)</TD><TD STYLE="text-align: justify">Includes 202,404 shares of common stock
                                            issuable upon exercise of warrants.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                         </TABLE>

<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">8)</TD><TD STYLE="text-align: justify">Includes 7,600 shares of common stock issuable
                                            upon exercise of warrants.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                </TABLE>

<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">9)</TD><TD STYLE="text-align: justify">Lorraine Upham has voting and investment
                                            power over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                        </TABLE>

<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">10)</TD><TD STYLE="text-align: justify">Includes 2,401 shares of common stock
                                            issuable upon exercise of warrants.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                         </TABLE>

<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">11)</TD><TD STYLE="text-align: justify">Includes 8,004 shares of common stock
                                            issuable upon exercise of warrants. Jerome Engel has voting and investment power over these
                                            securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                       </TABLE>

<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">12)</TD><TD STYLE="text-align: justify">Includes 40,020 shares of common stock
                                            issuable upon exercise of warrants.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                         </TABLE>

<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"><FONT STYLE="font-family: Times New Roman, Times, Serif">13)</FONT></TD><TD STYLE="text-align: justify">Pomoma
                                            Management LLC, the investment manager of Pomona Capital VIII, L.P., <FONT STYLE="font-family: Times New Roman, Times, Serif">has
                                            voting and investment power over these securities.&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                     </TABLE>

<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">14)</TD><TD STYLE="text-align: justify">John Steuart has voting and investment
                                            power over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                        </TABLE>

<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">15)</TD><TD STYLE="text-align: justify">William Frankel has voting and investment
                                            power over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                        </TABLE>

<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">16)</TD><TD STYLE="text-align: justify">Edward C. Coppola Jr. has voting and investment
                                            power over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                        </TABLE>

<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"><FONT STYLE="font-family: Times New Roman, Times, Serif">17)</FONT></TD><TD STYLE="text-align: justify">J.
                                            Andrew Pierce, President of Physio-Control, Inc., <FONT STYLE="font-family: Times New Roman, Times, Serif">has
                                            voting and investment power over these securities.&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                     </TABLE>

<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">18)</TD><TD STYLE="text-align: justify">Conroy Chi-Heng Cheng has voting and investment
                                            power over these securities.&nbsp;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                        </TABLE>

<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">19)</TD><TD STYLE="text-align: justify">Includes 4,002 shares of common stock
                                            issuable upon exercise of warrants.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_014"></A>PLAN OF DISTRIBUTION</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">We are registering the shares of common stock
issuable upon conversion of the notes and exercise of the warrants to permit the resale of these shares of common stock by the holders
of the notes and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale
by the selling stockholders of the shares of common stock, although we will receive the exercise price of any Warrants not exercised
by the selling stockholders on a cashless exercise basis. We will bear all fees and expenses incident to our obligation to register the
shares of common stock.</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 selling stockholders may sell all or a portion
of the shares of common stock held by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers
or agents. If the shares of common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible
for underwriting discounts or commissions or agent&rsquo;s commissions. The shares of common stock may be sold in one or more transactions
at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale or at negotiated
prices. These sales may be effected in transactions, which may involve crosses or block transactions, pursuant to one or more of the
following methods:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">on any national securities
    exchange or quotation service on which the securities may be listed or quoted at the time of sale;</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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    <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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in the over-the-counter
    market;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">in transactions otherwise
    than on these exchanges or systems or in the over-the-counter market;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">through the writing or
    settlement of options, whether such options are listed on an options exchange or otherwise;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ordinary brokerage transactions
    and transactions in which the broker-dealer solicits purchasers;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">block trades in which the
    broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate
    the transaction;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">purchases by a broker-dealer
    as principal and resale by the broker-dealer for its account;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an exchange distribution
    in accordance with the rules of the applicable exchange;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&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: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">privately negotiated transactions;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">short sales made after
    the date the Registration Statement is declared effective by the SEC;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">broker-dealers may agree
    with a selling security holder to sell a specified number of such shares at a stipulated price per share;</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a combination of any such
    methods of sale; and</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px">&nbsp;</TD>
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any other method permitted
    pursuant to applicable law.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders may also sell shares
of common stock under Rule&nbsp;144 promulgated under the Securities Act of 1933, as amended, if available, rather than under this prospectus.
In addition, the selling stockholders may transfer the shares of common stock by other means not described in this prospectus. If the
selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents,
such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling
stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as
principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling stockholders
may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the
course of hedging in positions they assume. The selling stockholders may also sell shares of common stock short and deliver shares of
common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales.
The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.</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 selling stockholders may pledge or grant
a security interest in some or all of the notes, warrants or shares of common stock owned by them and, if they default in the performance
of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending,
if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders
under this prospectus. The selling stockholders also may transfer and donate the shares of common stock in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.</P>

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

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

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<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">To the extent required by the Securities Act
and the rules and regulations thereunder, the selling stockholders and any broker-dealer participating in the distribution of the shares
of common stock may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act, and any commission paid, or
any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities
Act. At the time a particular offering of the shares of common stock is made, a prospectus supplement, if required, will be distributed,
which will set forth the aggregate amount of shares of common stock being offered and the terms of the offering, including the name or
names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling stockholders
and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.</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">Under the securities laws of some states, the
shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states
the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or an exemption
from registration or qualification is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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">There can be no assurance that any selling stockholder
will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this prospectus forms
a part.</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 selling stockholders and any other person
participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation&nbsp;M of the Exchange Act, which
may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders and any other participating
person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares
of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the
marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect
to the shares of common stock.</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">We will pay all expenses of the registration
of the shares of common stock pursuant to the registration rights agreement, estimated to be $75,000 in total, including, without limitation,
Securities and Exchange Commission filing fees and expenses of compliance with state securities or &ldquo;blue sky&rdquo; laws; provided,
however, a selling stockholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling stockholders
against liabilities, including some liabilities under the Securities Act in accordance with the registration rights agreements or the
selling stockholders will be entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities, including
liabilities under the Securities Act that may arise from any written information furnished to us by the selling stockholder specifically
for use in this prospectus, in accordance with the related registration rights agreements or we may be entitled to contribution.</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">Once sold under the registration statement, of
which this prospectus forms a part, the shares of common stock will be freely tradable in the hands of persons other than our affiliates.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_015"></A>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 issuance of the securities
offered hereby will be passed upon for us by Sheppard, Mullin, Richter &amp; Hampton LLP, New York, New York.</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: center"><B><A NAME="a_016"></A>EXPERTS</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">M&amp;K CPAs PLLC, an independent registered
public accounting firm, has audited our financial statements as of and for the years ended December 31, 2020 and 2019, as set forth in
their report which includes an unqualified opinion on the financial statements and an explanatory paragraph about the existence of substantial
doubt concerning the Company&rsquo;s ability to continue as a going concern. Such financial statements are included in reliance upon
the report of such firm given upon their authority as experts in accounting and auditing.</P>

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

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

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<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: center"><B><A NAME="a_017"></A>WHERE YOU CAN FIND MORE 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">We have filed with the Securities and Exchange
Commission a Registration Statement on Form&nbsp;S-1 under the Securities Act with respect to the common stock offered by this prospectus.
This prospectus, which is part of the registration statement, omits certain information, exhibits, schedules and undertakings set forth
in the registration statement. For further information pertaining to us and our common stock, reference is made to the registration statement
and the exhibits and schedules to the registration statement. Statements contained in this prospectus as to the contents or provisions
of any documents referred to in this prospectus are not necessarily complete, and in each instance where a copy of the document has been
filed as an exhibit to the registration statement, reference is made to the exhibit for a more complete description of the matters involved.</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">Registration statements and certain other filings
made with the Securities and Exchange Commission electronically are publicly available through the Securities and Exchange Commission&rsquo;s
website at&nbsp;<I>http://www.sec.gov</I>. The registration statement, including all exhibits and amendments to the registration statement,
has been filed electronically with the Securities and Exchange Commission.</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">We are subject to the information and periodic
reporting requirements of the Securities Exchange Act of 1934, as amended, and, accordingly, are required to file annual reports containing
financial statements audited by an independent public accounting firm, quarterly reports containing unaudited financial data, current
reports, proxy statements and other information with the Securities and Exchange Commission. You may inspect and copy such periodic reports,
proxy statements and other information at the Securities and Exchange Commission&rsquo;s public reference room, and the website of the
Securities and Exchange Commission referred to above.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NANOMIX CORPORATION</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><A NAME="a_018"></A>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS</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: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%"><A HREF="#f_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Report of Independent Registered
    Public Accounting Firm (PCAOB ID 2738)</FONT></A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-2</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#f_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Balance Sheets as of December, 31 2021
    and 2020</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-3</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#f_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Operations for the Years
    Ended December 31, 2021 and 2020</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-4</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#f_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Changes in Stockholders&rsquo;
    Deficit for Years Ended December 31, 2021 and 2020</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-5</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#f_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of Cash Flows for Years Ended
    December 31, 2021 and 2020</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-6</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#f_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to the Consolidated Financial Statements</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-7</FONT></TD></TR>

<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%"><A HREF="#t_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated
    Balance Sheets as of March 31, 2022 (unaudited) and December, 31 2021</FONT></A></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 9%">F-29</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#t_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of
    Operations for the three months ended March 31, 2022 and 2021 (unaudited)</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">F-30</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#t_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of
    Changes in Stockholders&rsquo; Deficit for the three months ended March 31, 2022 and 2021 (unaudited)</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">F-31</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#t_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consolidated Statements of
    Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">F-32</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#t_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes to the Consolidated
    Financial Statements</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">F-33</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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    <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"></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: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_001"></A>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Board of Directors and Stockholders</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Opinion on the Consolidated Financial Statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.75pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&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 Nanomix Corporation (the Company) as of December 31, 2021 and 2020, and the related consolidated statements of operations,
changes in stockholders&rsquo; deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the
&ldquo;consolidated financial statements&rdquo;). In our opinion, the consolidated financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows
for the years then ended 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 45.75pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.75pt 0pt 0; text-align: justify"><B>Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.75pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying consolidated financial
statements have been prepared assuming the company will continue as a going concern. As discussed in Note 2 to the consolidated financial
statements, the company has not yet realized any significant revenues from its planned operations and has had net losses of approximately
$9.5 million and $6.2 million for the years ended December 31, 2021 and 2020, respectively, which raises substantial doubt about its ability
to continue as a going concern. Management&rsquo;s plans regarding these matters are also described in Note 2. The Consolidated financial
statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.9pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></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 consolidated
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 45.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></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 audits to obtain reasonable assurance about whether
the consolidated 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 45.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></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 consolidated 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
consolidated financial statements. Our audits also included evaluating the accounting principles used and the significant estimates made
by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe our audits provide
a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.5pt 0pt 0; text-align: justify"><B>Critical Audit Matter</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The critical audit matter communicated
below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to
be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the
critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45.5pt 0pt 0; text-align: justify"><I>Capital Stock and Other Equity Accounts
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As discussed in Note 3, the Company issues
stock options and warrants as stock-based compensation to employees and non-employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 45pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Auditing management&rsquo;s calculation
of the fair value of the options and warrants issued can be a significant judgment given the fact that the Company uses management estimates
on various inputs to the calculations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 40.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To test the valuation of the warrants
and options, we evaluated management&rsquo;s significant judgments and estimates. Significant judgements and estimates related to the
valuation of the warrants and options include fair valuing of warrants and options which involve significant estimates of volatility,
grant terms, risk-free rates and the use of historical trading data. We evaluated management&rsquo;s conclusions regarding their fair
values and reviewed support for the significant inputs used in the valuation model, as well as assessing the model for reasonableness.
In addition, we evaluated the Company&rsquo;s disclosure in relation to this matter included in Notes 3 to the consolidated financial
statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 40.5pt 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">s/ M&amp;K CPAS, PLLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">M&amp;K CPAS, PLLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&rsquo;s auditor since 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">April 12, 2022&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_002"></A>NANOMIX CORPORATION</B></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>CONSOLIDATED BALANCE SHEETS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&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: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December, 31</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&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">2021</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">2020</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; font-weight: bold; text-indent: -0.125in">ASSETS</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-indent: -0.125in; padding-left: 0.25in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">297,351</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">15,098</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">821</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">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">171,488</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">156,875</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; text-indent: -0.125in; padding-left: 0.375in">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">468,839</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">172,794</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">Deposit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97,555</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">339,318</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,612</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; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Other long-term 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">-</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">232,065</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; font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total 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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">905,712</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">530,471</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; font-weight: bold; text-align: left; padding-left: 0.125in">LIABILITIES, PREFERRED STOCK SUBJECT TO REDEMPTION AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">407,943</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">898,463</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">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">726,148</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">344,065</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">Accounts payable and accrued expenses, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">354,973</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">332,561</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">132,175</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">Accrued interest, related party</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">1,810,232</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Convertible note payable, net of discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,000</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-align: left; text-indent: -0.125in; padding-left: 0.25in">Notes payable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,821</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; text-indent: -0.125in; padding-left: 0.25in">Notes payable marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">450,000</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-align: left; text-indent: -0.125in; padding-left: 0.25in">Deferred Revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">293,523</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">188,741</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">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">12,129</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">313,146</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; text-indent: -0.125in; padding-left: 0.375in">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,325,098</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,736,822</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; text-align: left; padding-left: 0.125in">Notes payable &ndash; net of current portion</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">610,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Notes payable, related party &ndash; net of current portion</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">8,307,000</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; text-align: left; padding-left: 0.125in">Secured Promissory Note, net of discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,012,287</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-indent: -0.125in; text-align: left; padding-left: 0.125in">Secured Promissory Note, net of discount, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,603,778</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Other long-term 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">0</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">402,154</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; font-weight: bold; text-align: left; padding-left: 0.125in">Total Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,941,163</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,055,976</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; font-weight: bold; text-align: left; padding-left: 0.125in">Commitments and Contingencies (Note 7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Preferred stock; $0.00001 par value, 120,467,864 shares authorized, 0 and 101,015,049 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively</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">40,070,108</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">Preferred stock B; 1,000,000 shares designated, 963,964 and 0 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">963,964</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; text-indent: -0.125in; padding-left: 0.25in">Preferred stock C; 1,000,000 and 0 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,670,633</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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; font-weight: bold; text-align: left; padding-left: 0.125in">Stockholders&rsquo; deficit:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Common stock; $0.001 par value, 2,000,000,000 shares authorized, 5,300,084 and 4,298 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,300</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-null-</FONT></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">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">85,092,094</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,727,171</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">Stock payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,375</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; text-indent: -0.125in; padding-left: 0.25in">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">(106,787,817</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">(97,322,784</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: 0.375in">Total stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(21,670,048</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">(52,595,613</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total Liabilities, Preferred Stock Subject to Redemption and Stockholders&rsquo; Deficit</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">905,712</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">530,471</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_003"></A>NANOMIX CORPORATION</B></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>CONSOLIDATED STATEMENTS OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</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">2020</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Revenues</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">141,778</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">513,244</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-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-align: left; text-indent: -0.125in; padding-left: 0.125in">Operating costs and expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.375in">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,017,263</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,184,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.375in">Selling, 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">2,849,666</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">1,234,784</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.5in">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,866,929</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">5,419,604</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; text-indent: -0.125in; padding-left: 0.125in">Loss from operations</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(5,725,151</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">(4,906,360</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: 0.125in">&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-align: left; text-indent: -0.125in; padding-left: 0.125in">Other income (expense):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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: 0.375in">Interest income</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</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: 0.375in">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,644,829</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(209,538</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.375in">Interest expense, related, party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(572,347</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,076,478</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.375in">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,282</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; text-indent: -0.125in; padding-left: 0.375in">Change in fair value of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">438,972</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; text-indent: -0.125in; padding-left: 0.375in">Forgiveness of PPP loan and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">408,242</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.375in">Loss on debt modification</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,385,204</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="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.5in">Total income (expense)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,739,882</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">(1,286,010</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: 0.125in">&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-align: left; text-indent: -0.125in; padding-left: 0.125in">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,465,033</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,192,370</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; text-indent: -0.125in; padding-left: 0.125in">Provision for income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Net loss</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(9,465,033</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(6,192,370</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="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-align: left; text-indent: -0.125in; padding-left: 0.125in">Weighted average number of common shares&nbsp;&nbsp;outstanding &ndash; basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,300,084</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,298</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-align: left; text-indent: -0.125in; padding-left: 0.125in">Net loss per common share &ndash; basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.79</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,440.76</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>

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

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



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_004"></A>NANOMIX CORPORATION</B></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>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo; DEFICIT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Years Ended December&nbsp;31, 2021 and 2020</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&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: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Stockholders&rsquo; 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"></TD><TD STYLE="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <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="6" STYLE="font-weight: bold; text-align: center">&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="text-align: center; font-weight: bold">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">Additional</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">Total</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">&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="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Common 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="text-align: center; font-weight: bold">payable</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">Paid-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="font-weight: bold; text-align: center">Accumulated</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">Stockholders&rsquo;</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">Mezzanine</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&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">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="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><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><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"> 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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Equity</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; width: 37%; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0.125in">Balance, December 31, 2019</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">4,298</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="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;-null- </B></FONT></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="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">44,465,702</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="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">(91,130,414</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">(46,664,712</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 6%; font-weight: bold; text-align: right">40,070,108</TD><TD STYLE="width: 1%; 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; text-align: left; padding-left: 0.125in">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">-</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">261,469</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">261,469</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,192,370</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,192,370</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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0.125in">Balance, December 31, 2020</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">4,298</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>-null- </B></FONT></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><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">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">44,727,171</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(97,322,784</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(52,595,613</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">40,070,108</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; text-align: left; padding-left: 0.125in">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">-</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">193,747</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">193,747</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-left: 0.125in">Warrants issued with notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,796,609</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,796,609</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Issuance of Common Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,700</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-null-</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">23,450</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">23,450</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-left: 0.125in">Preferred Stock conversion into common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">618,687</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">40,070,102</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">40,070,108</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(40,070,108</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Notes payable and accrued interest conversion into common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">571,621</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">10,639,610</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">10,639,616</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-left: 0.125in">Preferred Stock C exchange for Nanomix Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,199,306</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(14,670,621</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,670,633</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,670,633</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; text-align: left; padding-left: 0.125in">Merge with Boston Therapeutics</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,300,084</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,300</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">(3,870,990</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,865,690</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">963,964</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Loss on debt modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">2,385,204</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,385,204</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-left: 0.125in">Nanomix common stock purchase</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(202,188</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(202,188</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: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Nanomix options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,375</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,375</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(9,465,033</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">(9,465,033</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">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; font-weight: bold; padding-bottom: 1.5pt; padding-left: 0.125in">Balance, December 31, 2021</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">5,300,084</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,300</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">20,375</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">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">85,092,094</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(106,787,817</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(21,670,048</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">15,634,597</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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



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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_005"></A>NANOMIX CORPORATION</B></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>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&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: 0.375in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Years</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.375in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.375in; text-indent: -0.125in">&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">2021</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">2020</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; text-indent: -0.125in; padding-left: 0.25in">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="width: 76%; text-align: left; text-indent: -0.125in; padding-left: 0.375in">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(9,465,033</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,192,370</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.375in">Adjustments to reconcile net loss to net cash used 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="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Depreciation and amortization expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,597</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,331</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: 0.5in">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,593</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82,238</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: 0.5in">Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,154</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">179,231</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: 0.5in">Amortization of debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,477,895</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; text-indent: -0.125in; padding-left: 0.5in">Loss on debt modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,385,204</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; text-indent: -0.125in; padding-left: 0.5in">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,282</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: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Change in fair value of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(438,972</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="text-indent: -0.125in; padding-left: 0.5in">Leasing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,885</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,050</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: 0.5in">Forgiveness of PPP loan and accrued interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(408,242</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="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Increase (decrease) in cash attributable to 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="text-align: left; text-indent: -0.125in; padding-left: 0.625in">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">821</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(821</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.625in">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,613</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(152,429</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.625in">Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(37,555</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(40,000</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.625in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(754,509</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">764,322</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: 0.625in">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(292,400</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">192,779</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: 0.625in">Accounts payable and accrued expenses, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">367,473</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</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: 0.625in">Accrued Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">127,991</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82,983</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: 0.625in">Accrued Interest, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">572,346</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,076,478</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: 0.625in">Other 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">(83,942</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,639</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; text-indent: -0.125in; padding-left: 0.375in">Net cash used by 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">(6,317,589</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">(3,916,069</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-indent: -0.125in; padding-left: 0.375in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.25in">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="text-align: left; text-indent: -0.125in; padding-left: 0.625in">Purchase of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(336,157</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(43,421</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; text-indent: -0.125in; padding-left: 0.625in">Cash received with merge with Boston Therapeutics</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">63,362</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="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.375in">Net cash used by 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">(272,795</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">(43,421</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.375in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.25in">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; text-indent: -0.125in; padding-left: 0.5in">Proceeds from notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">410,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">250,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Proceeds from notes payable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">290,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,732,000</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: 0.5in">Net proceeds from notes payable - related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</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="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Repayments of notes payable - related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,000</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="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Proceeds from Secured Promissory Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,331,000</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="text-align: left; text-indent: -0.125in; padding-left: 0.5in">Proceeds from borrowing PPP 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">402,154</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: 0.5in">Proceeds from issuance of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,450</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; text-indent: -0.125in; padding-left: 0.5in">Proceeds from options exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,375</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-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.5in">Re-purchase of Nanomix common shares</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(202,188</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; text-indent: -0.125in; padding-left: 0.375in">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">6,872,637</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">3,384,154</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: 0.375in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.25in">Net increase (decrease) in cash</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">282,253</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">(575,336</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.375in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Cash at the beginning of 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">15,098</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">590,434</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; font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Cash at the end of 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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">297,351</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">15,098</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: 0.375in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Non-cash investing and financing transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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; text-align: left; padding-left: 0.125in">Right-of-use asset obtained in exchange for lease obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(232,065</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(192,788</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Lease liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">229,180</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">154,738</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; text-align: left; padding-left: 0.125in">Convertible notes payable for accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Preferred stock conversion into common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,070,108</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Secured promissory note for related party for related party note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,603,778</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; text-align: left; padding-left: 0.125in">Common stock for convertible note payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,639,616</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; text-align: left; padding-left: 0.125in">Discount for beneficial conversion feature and warrants issued with notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,796,609</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>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are an integral part of the consolidated financial statements</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; 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="f_006"></A>NANOMIX CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: center; text-indent: -0.75in"><B>Years ended
December 31, 2021 and 2020</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.75in"><B>NOTE 1 &ndash; THE COMPANY AND
NATURE OF BUSINESS</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"><B><I>Nature of Operations</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Boston Therapeutics, Inc.
(the &ldquo;Company&rdquo;) was formed as a Delaware corporation on August 24, 2009 under the name Avanyx Therapeutics, Inc. On November
10, 2010, the Company entered into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;) with Boston Therapeutics, Inc.,
a New Hampshire corporation (&ldquo;BTI&rdquo;) providing for the merger of BTI into the Company with the Company being the surviving
entity (the &ldquo;Merger&rdquo;), the issuance by the Company of 4,000,000 shares of common stock to the stockholders of BTI in exchange
for 100% of the outstanding common stock of BTI, and the change of the Company&rsquo;s name to Boston Therapeutics, Inc. On February 12,
2018, the Company acquired CureDM Group Holdings LLC (&ldquo;CureDM&rdquo;), for 47,741,140 shares of common stock of which 25,000,000
were delivered at closing and 22,741,140 were to be delivered in four equal tranches of 5,685,285 each upon the achievement of specific
milestones. <FONT STYLE="background-color: white">On January&nbsp;26, 2021, Boston Therapeutics, Inc., a Delaware corporation (the &ldquo;Company&rdquo;),
BTHE Acquisition Inc., a California corporation and wholly-owned subsidiary of the Company (&ldquo;Merger Sub&rdquo;), and Nanomix, Inc.,
a California corporation (&ldquo;Nanomix&rdquo;), entered into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;), pursuant
to which, Merger Sub merged with and into Nanomix, with Nanomix continuing as a wholly-owned subsidiary of the Company and the surviving
corporation of the merger (the &ldquo;Merger&rdquo;). As consideration for the Merger, the Company issued to the shareholders of Nanomix
1,000,000 shares of a newly created Series C Convertible Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). Upon the
effectiveness of the amendment to our Certificate of Incorporation to effectuate the reverse stock split of&nbsp;one-for-173, all such
shares of Preferred Stock issued to Nanomix shareholders shall automatically convert into approximately </FONT>35,644,997 <FONT STYLE="background-color: white">shares
of common stock of the Company, the warrants to be assumed at closing may be exercisable into approximately 2,124,687 shares of common
stock of the Company and the options and restricted stock units to be assumed at closing may be exercisable into approximately 5,718,838
shares of common stock of the Company. The shares of common stock issuable upon conversion of the Preferred Stock together with warrants,
restricted stock units and options to be assumed on the closing date shall represent approximately 80% of the outstanding shares of Common
Stock of the Company upon closing of the Merger. The merger closed on June 4, 2021.</FONT>See Note 9</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></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; text-indent: 0.5in"><FONT STYLE="background-color: white">Nanomix
has developed an advanced mobile Point-of-Care (POC) diagnostic system that can be used in performing a wide range of in vitro diagnostic
tests in many environments. Our goal is to provide laboratory quality testing for time sensitive medical conditions, at the first point
of contact that a patient has with the healthcare system, no matter where that occurs. The Nanomix eLab&reg; system is CE Marked, a 510(k)
is currently in development, and Emergency Use Application (EUA) for COVID testing has been submitted to the FDA. Nanomix intends to market
and sell the Nanomix eLab system for the detection and diagnosis of a variety of time sensitive medical conditions.</FONT></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"><B>NOTE 2 &ndash; BASIS OF PRESENTATION</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; text-align: justify; text-indent: 0.5in">The accompanying financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;)
and include all adjustments necessary for the fair presentation of the Company&rsquo;s financial position for the periods presented.</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; text-indent: 0.5in">The Company currently operates
in one business segment focusing on the development of mobile diagnostic tests. The Company is not organized by market and is managed
and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer, who
comprehensively manages the entire business. The Company does not currently operate any separate lines of business or separate business
entities.</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; text-indent: 0.5in"></P>

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<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"><B><I>Going Concern</I></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; text-align: justify; text-indent: 0.5in">The accompanying financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization
of assets and satisfaction of liabilities in the normal course of business. The Company has not yet realized any significant revenues
from its planned operations. The Company had net losses of approximately $9.5 million and $6.2 million for the years ended December 31,
2021 and 2020, respectively. These matters, among others, 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; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since inception, the operations
of the Company have been funded through the sale of common stock, preferred stock subject to redemption, debt and convertible debt, and
derived revenue from contract research and development services. Management believes that its existing working capital is insufficient
to fund the Company&rsquo;s operations for the next twelve months. As a result, the Company will need to raise additional capital to fund
its operations and continue to conduct activities that support the development and commercialization of its products. Management intends
to raise additional funds by way of public or private offering and continued contract research and development services. Management cannot
be certain that additional funding will be available on acceptable terms, or at all to the extent that the Company raises additional funds
by issuing equity securities, the Company&rsquo;s stockholders may experience significant dilution. Any debt financing, if available,
may involve restrictive covenants that impact the Company&rsquo;s ability to conduct business. If the Company is not able to raise additional
capital when required or an acceptable terms, the Company may have to (i) significantly delay, scale back or discontinue the development
and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidates at an earlier stage than otherwise
would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of
rights to technologies, product candidates or products that the Company would otherwise seek to develop or commercialize.</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; text-indent: 0.5in">The consolidated financial
statements do not include any adjustments that might be necessary if Company is unable to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Principles of Consolidation </I></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; text-align: justify; text-indent: 0.5in">The consolidated financial
statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and
transactions have been eliminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></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>NOTE 3 &ndash; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</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"><B><I>Use of Estimates</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; text-indent: 0.5in">The preparation of the consolidated
financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (&ldquo;U.S. GAAP&rdquo;)
requires the Company&rsquo;s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated
financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions
it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values
of assets and liabilities. Actual results may differ from these estimates and these differences may be material. The more significant
estimates and assumptions by management include among others: recoverability of long-lived assets, accrued liabilities, the valuation
allowance of deferred tax assets resulting from net operating losses and the valuation of the Company&rsquo;s common stock, preferred
stock, warrants and options on the Company&rsquo;s common stock.</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; text-align: justify; background-color: white"><B><I>Revenue Recognition</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenues are derived from
two sources:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Net product sales,</TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
<TD>&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">R&amp;D revenue.</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; text-indent: 0.5in">The Company recognizes
revenue when the customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects
to receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under Accounting
Standards Update (&ldquo;ASU&rdquo;) 2014-09 ASC 606 &ndash; Revenue from Contracts with customers: (i) identify contract(s) with a customer;
(ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price
to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: 13.5pt"><I>Product Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenue from product
sales are recognized when the customer obtains control of the Company&rsquo;s product, which occurs at a point in time, typically upon
tendering the product to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred because the
expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Freight and distribution
activities on products are performed when the customer obtains control of the goods. The Company has made an accounting policy election
to account for shipping and handling activities that occur either when or after goods are tendered to the customer as a fulfillment activity,
and therefore recognizes freight and distribution expenses in cost of product sales. The Company excludes certain taxes from the transaction
price (e.g., sales, value added and some excise taxes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company&rsquo;s
contracts with customers may include promises to transfer products or services to a customer. Determining whether products and services
are considered distinct performance obligations that should be accounted for separately versus together may require judgment to determine
the stand-alone selling price (&ldquo;SSP&rdquo;) for each distinct performance obligation. SSP is directly observable, and the Company
can use a range of amounts to estimate SSP, as it sells products and services separately, and can determine whether there is a discount
to be allocated based on the relative SSP of the various products and services, for the various geographies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company&rsquo;s
payment terms vary by the type and location of the Company&rsquo;s customer and products or services offered. Payment terms differ by
jurisdiction and customer, but payment is generally required in a term ranging from 30 to 60 days from date of shipment or satisfaction
of the performance obligation. From time to time the Company may receive prepayment from customers for products to be manufactured or
component materials to be procured and shipped in future dates. Customer payments in advance of the applicable performance obligation
are deferred and recognized when the product has been tendered to the customer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All contracts
with customers are evaluated under the five-step model described above. The company recognizes income from R&amp;D milestone-based contracts
when those milestones are reached and non-milestone contracts and grants when earned. These projects are invoiced after expenses are incurred.
Any projects or grants funded in advance are deferred until earned.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 22.5pt; text-align: justify; text-indent: 13.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash and Cash Equivalents</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; text-indent: 0.5in">For purposes of the Consolidated
Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.
As of December 31, 2021, the Company places all of its cash and with one financial institution. Such funds are insured by The Federal
Deposit Insurance Corporation (&ldquo;FDIC&rdquo;) up to $250,000. Cash balances could exceed insured amounts at any given time; however,
the Company has not experienced any such losses. At December 31, 2021 and 2020 there were no cash equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Allowances for Sales Returns and Doubtful
Accounts</I></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; text-align: justify; text-indent: 0.5in">The allowance for sales returns
is based on the Company&rsquo;s estimates of potential future product returns and other allowances related to current period product revenue.
The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of&nbsp;the Company&rsquo;s&nbsp;products.
The allowance for doubtful accounts is based on the Company&rsquo;s assessment of the collectability of customer accounts and the aging
of the related invoices, and represents the Company&rsquo;s best estimate of probable credit losses in its existing trade accounts receivable.
The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts
receivable balances, and current economic conditions that&nbsp;may&nbsp;affect a customer&rsquo;s ability to pay. We determined that no
allowances for sales returns and doubtful accounts were required at December 31, 2021 and 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></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>Property and Equipment</I></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; text-align: justify; text-indent: 0.5in">Property and equipment are
carried at cost and depreciated or amortized using a straight-line basis over the estimated useful lives of assets, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Computer equipment</FONT></TD>
    <TD STYLE="text-align: center; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3 years</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; font-size: 10pt">Office furniture and equipment</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5 years</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; font-size: 10pt">Laboratory equipment</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4 years</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Manufacturing equipment</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5 years</FONT></TD></TR>
  </TABLE>

<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; text-indent: 0.5in">Leasehold improvements are
depreciated over the shorter of their estimated useful lives or the term of the respective lease on a straight line basis.</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; text-indent: 0.5in">The cost of repairs and maintenance
is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated
depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.&nbsp;</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; text-indent: 0.5in">The Company will assess the
recoverability of property and equipment by determining whether the depreciation and amortization of these assets over their remaining
life can be recovered through projected undiscounted future cash flows. The amount of equipment impairment, if any, will be measured based
on fair value and is charged to operations in the period in which such impairment is determined by 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"><B><I>Income Taxes</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; text-indent: 0.5in">The Company accounts for income
taxes under an asset and liability approach that recognizes deferred tax assets and liabilities based on the difference between the financial
statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences
are expected to reverse.</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; text-indent: 0.5in">The Company follows a more-likely
than -not threshold for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return.</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; text-indent: 0.5in">The company assesses the realizability
of its net deferred tax assets on an annual basis. If, after considering all relevant positive and negative evidence, it is more likely
than not that some portion or all of the net deferred tax assets will not be realized, the Company will reduce the net deferred tax assets
by a valuation allowance. The realization of the net deferred tax assets is dependent on several factors, including the generation of
sufficient taxable income prior to the expiration of the net operating loss carryforwards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has no uncertain
tax positions at any of the dates presented.</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>Foreign Currency Translation</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; text-indent: 0.5in">The Company derives a portion
of its revenue from foreign countries, but customers pay in U.S. Dollars. Therefore, no adjustments are required in the accompanying consolidated
financial statements for foreign currency transactions.</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"><B><I>Research and Development 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; text-indent: 0.5in">The Company expenses the cost
of research and development as incurred. Research and development expenses comprise costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other externa costs. Nonrefundable advance payments for goods and services that will be used in future research
and development activities are expensed when the activity is performed or when the goods have been received, rather when payment is made,
in accordance with ASC 730, <I>Research and Development</I>.</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; text-indent: 0.5in"></P>

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<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"><B><I>Fair Value Measurements</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; text-indent: 0.5in">Fair value is defined as the
price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs ( Level 3 measurements). These tiers include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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">Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;</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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly
observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets
that are not active; 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: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring
an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs
or significant value drivers are unobservable.</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; text-indent: 0.5in">The Company had no assets or liabilities which
were measured at fair value on a nonrecurring basis during the reporting periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Fair Value of Financial Instruments</I></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; text-align: justify; text-indent: 0.5in">In accordance with current
accounting standards, certain assets and liabilities must be measured at fair value. ASC 820 defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency
and comparability of fair value measurements and the related disclosures. ASC 820 requires that certain assets and liabilities must be
measured at fair value, and the standard details the disclosures that are required for items measured at fair value. The Company had no
assets and liabilities required to be measured on a recurring basis at December 31, 2021 and 2020.</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; text-indent: 0.5in">The current assets and current
liabilities reported on the Company&rsquo;s balance sheets are estimated by management to approximate fair market value due to their short-term
nature.</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"><B><I>Employee Stock-based Compensation</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; text-indent: 0.5in">Stock-based compensation issued
to employees and members of the Company&rsquo;s Board of Directors is measured at the date of grant based on the estimated fair value
of the award, net of estimated forfeitures. The grant date fair value of a stock-based award is recognized as an expense over the requisite
service period of the award on a straight-line basis.</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; text-indent: 0.5in">For purposes of determining
the variables used in the calculation of stock-based compensation issued to employees, the Company performs an analysis of current market
data and historical data to calculate an estimate of implied volatility, the expected term of the option and the expected forfeiture rate.
With the exception of the expected forfeiture rate, which is not an input, the Company uses these estimates as variables in the Black-choles
option pricing model. Depending upon the number of stock options granted, any fluctuations in these calculations could have a material
effect on the results presented in the Company&rsquo;s Statements of Operations. In addition, any differences between estimated forfeitures
and actual forfeitures could also have a material impact on the Company&rsquo;s 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"><B><I>Stock-Based Compensation Issued to Non-employees</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-indent: 0.5in; text-align: justify">Common stock issued to non-employees for acquiring
goods or providing services is recognized at fair value when the goods are obtained or over the service period, which is generally the
vesting period. If the award contains performance conditions, the measurement date of the award is the earlier of the date at which a
commitment for performance by the non-employee is reached or the date at which performance is reached. A performance commitment is reached
when performance by the non-employee is probable because of sufficiently large disincentives for nonperformance.</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></I></B></P>

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<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>Earnings per Share</I></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; text-align: justify; text-indent: 0.5in">The computation of basic earnings
per common share is based on the weighted average number of shares outstanding during the period. The computation of diluted earnings
per common share is based on the weighted average number of shares outstanding during the period plus the weighted average common stock
equivalents which would arise from the exercise of stock options, warrants, convertible preferred stock and other rights 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; text-indent: 0.5in">For the years ended December
31, 2021 and 2020, the diluted weighted average number of shares is the same as the basic weighted average number of shares as the inclusion
of any common stock equivalents would be anti-dilutive.</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>Recent Accounting Pronouncements Affecting
the Company: </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"><B><I>Recently Adopted</I></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; text-indent: 0.5in">In December 2019, the FASB
issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects
related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies
and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2020, with early adoption permitted. This guidance had no effect on the Company&rsquo;s
consolidated financial statements upon adoption in 2021.</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>NOTE 4 &ndash; REVENUE </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; text-indent: 0.5in"><I>Deferred Revenue</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The company recognizes income
from R&amp;D milestone-based contracts when those milestones are reached and non-milestone contracts and grants when earned. These projects
are invoiced after expenses are incurred. Any projects or grants funded in advance are deferred until earned.</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; text-indent: 0.5in">From time to time the Company
may receive prepayment from customers for products to be manufactured or component materials to be procured and shipped in future dates.
Customer payments in advance of the applicable performance obligation are deferred and recognized in accordance with ASC 606.</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; text-indent: 0.5in">As of December 31, 2021 and
2020, there were $293,523 and $188,741 unearned advanced revenues, 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; text-align: justify; text-indent: 0.5in"><I>Disaggregation of Revenue</I></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; text-indent: 0.5in">The following table disaggregates
total revenues for the periods ending December 31, 2021 and 2020:</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">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">Years Ended</TD><TD STYLE="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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31,</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</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">2020</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 Product sales</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">60,375</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">Government grant 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">141,778</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">452,869</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">141,778</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">513,244</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"></P>

<P STYLE="font: 10pt Times New Roman, Times, 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"><B>NOTE 5 &ndash; PROPERTY AND EQUIPMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Property and equipment consisted of the following
at December 31, 2021 and 2020:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of December 31,</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</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">2020</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">Computer Equipment &amp;Office Equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,453</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">16,511</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lab Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300,112</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">294,578</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">Manufacturing Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">435,220</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">113,393</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,370</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,370</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Leasehold Improvements</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,232</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">20,232</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</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">797,387</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">459,084</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(458,069</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">(393,472</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">Total property and equipment, net of accumulated depreciation</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">339,318</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">65,612</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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Depreciation expense was $64,597 and $28,331 for
the years ended December 31, 2021 and 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 6 &ndash; NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Convertible Note payable, net of discount</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In August and September 2016,
the Company issued senior convertible debentures for an aggregate of $1,600,000 (the &ldquo;Convertible Debentures&rdquo;) in exchange
for an aggregate net cash proceeds of $1,327,300, net of financing costs. The Convertible Debentures have a stated interest rate of 6%
per annum payable quarterly beginning June 30, 2017 and were due two years from the date of issuance, the latest due September 15, 2018
and are convertible into shares of the Company&rsquo;s common stock at the option of the holder at a conversion price of $12.975 with
certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price
for each of any 10 consecutive trading days equals or exceeds $86.50, or (ii) the Company&rsquo;s elects to lists a class of securities
on a national securities exchange.</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; text-indent: 0.5in">As long as the convertible
notes remain outstanding, the Company is restricted from incurring any indebtedness or liens, except as permitted (as defined), amend
its charter in any matter that materially effects rights of noteholders, repay or repurchase more than de minimis number of shares of
common stock other than conversion or warrant shares, repay or repurchase all or any portion of any indebtedness or pay cash dividends.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Convertible Notes and
accrued interest were exchanged into common stock prior to the merger leaving a remaining Convertible notes payable balance of $200,000
as of December 31, 2021. Accrued interest $55,008 and $0 was included in accrued interest balance as of December 31, 2021 and 2020, respectively.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through December 31, 2011,
a founder of the company and significant shareholder, Dr. David Platt advanced $257,820 to the Company to fund start-up costs and operations.
Advances by Dr. Platt carry an interest rate of 6.5% and were due on June 29, 2013. On May 7, 2012, Dr. Platt and the Company&rsquo;s
former President and also a significant shareholder entered into promissory notes to advance to the Company $20,000 each for an aggregate
of $40,000. The notes accrue interest at 6.5% per year and were due June 30, 2013. The outstanding notes of $297,820 were amended each
year to extend the maturity dates. Effective June 30, 2015, the outstanding notes for Dr. Platt were amended to extend the maturity dates
to June 30, 2017. During 2017, the Company made fully paid the note and all accrued interest to the former President of the Company. Dr.
Platt&rsquo;s notes and accrued interest remain outstanding and are classified as current liabilities.</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; text-indent: 0.5in"></P>

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<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; text-indent: 0.5in">In December 2013, the Board
of Directors agreed to indemnify Dr. Platt for legal costs incurred in connection with an arbitration (now concluded) initiated before
the American Arbitration Association by Galectin Therapeutics, Inc. (formerly named Pro-Pharmaceuticals, Inc.) for which Dr. Platt previously
served as CEO and Chairman. Galectin sought to rescind or reform the Separation Agreement entered into with Dr. Platt upon his resignation
from Galectin to remove a $1.0 million milestone payment which Dr. Platt asserted he was entitled to receive and to be repaid all separation
benefits paid to Dr. Platt. The Company initially capped the amount for which it would indemnify Dr. Platt at $150,000 in December 2013
and Dr. Platt agreed to reimburse the indemnification amounts paid by the Company should he prevail in the arbitration. The Board decided
to indemnify Dr. Platt after considering a number of factors, including the scope of the Company&rsquo;s existing indemnification obligations
to officers and directors and the potential impact of the arbitration on the Company. In May 2014, the Board approved a $50,000 increase
in indemnification support, solely for the payment of outside legal expenses. The Company recorded a total of $182,697 in costs associated
with Dr. Platt&rsquo;s indemnification, of which $119,401 was expensed in the year ended December 31, 2013 and of which $63,296 was expensed
in the year ended December 31, 2014. In July 2014, the arbitration was concluded in favor of Dr. Platt, confirming the effectiveness of
the separation agreement and payment was made to Dr. Platt in July 2014.</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; text-indent: 0.5in">On March 2, 2015, the Board
of Directors voted to reduce the amount that Dr. Platt was required to reimburse the Company to $82,355 and to offset this amount against
interest accrued in respect of the outstanding note payable to Dr. Platt. In addition, the Board determined that Dr. Platt would be charged
interest related to the $182,697 indemnification payment since funds were received by Dr. Platt in July 2014. The Board of Directors concluded
the foregoing constituted complete satisfaction of Dr. Platt&rsquo;s indemnification by the Company. Accordingly, the Company recorded
the reduction in accrued interest through equity during the year ended December 31, 2015. As of December 31, 2021 and 2020, the balance
of the notes payable to Dr. Platt totaled $277,821 and are included in notes payable. Accrued interest $127,575 and $0 was included into
accrued interest balance as of December 31, 2021 and 2020, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During 2021 the company issued
notes payable for a total amount of $270,000 to CJY Holdings, Ltd (&ldquo;CJY&rdquo;). CJY is a Hong Kong company owned by Conroy Chi-Heng
Cheng, a former director of Boston Therapeutics. The CJY Note is an unsecured obligation of the Company. Principal and interest under
the CJY Note is due and payable after one year. Interest accrues on the CJY Note at the rate of 10% per annum. As of December 31, 2021
and 2020, the balance of the notes payable to CJY totaled $270,000 and $0 and are included notes payable. Accrued interest $23,485 and
$0 was included into accrued interest balance as of December 31, 2021 and 2020, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Note Payable 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; text-indent: 0.5in">On June 26, 2018, the Company entered into a License Agreement with
Level Brands, Inc. (NYSE: LEVB), an innovative licensing, marketing and brand management company with a focus on lifestyle-based products
which includes an exclusive license to the Kathy Ireland&reg; Health &amp; Wellness&trade; brand. Under the terms of the License Agreement,
the Company received a non-exclusive, non-transferrable license to use the Kathy Ireland Health&amp; Wellness&trade; trademark in the
marketing, development, manufacture, sale and distribution of the Sugardown&reg; product domestically and internationally. The initial
term of the License Agreement is seven years, with an automatic two-year extension unless either party notifies the other of non-renewal
at least 90 days prior to the end of the then current term. Level Brands has agreed to use its commercially reasonable efforts to perform
certain promotional obligations, including: (i) producing four branded videos to promote the licensed product and/or the Company; (ii)
creation of an electronic press kit; (iii) making their media and marketing teams available for use in creating the video content for
which the Company will separately compensate; and (iv) curate social media posts in multiple social media channels.</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; text-indent: 0.5in"></P>

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<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; text-indent: 0.5in">As compensation, the Company
will provide Level Brands with the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">A marketing fee of $850,000, for development of video content
and an electronic press kit which will be used ongoing to support product marketing. This fee is paid with a promissory note of $450,000
and a number of shares of stock of the Company valued at $400,000 in accrued expenses, based on the closing price on the day prior to
the effective date;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Quarterly fees for the first two years of up to $100,000 and
issuance of 100,000 shares each quarter, based on sales volumes. The Company has the right to make all the stock payments in cash; and</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">a royalty of 5% of the gross licensed marks sales up to $10,000,000,
7.5% royalty on sales from $10,000,000 to $50,000,0000 and 10% on sales over $50,000,000,payable monthly as well as a 1% of all revenue
for all Company products as of the date hereof.</TD>
</TR></TABLE>

<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; text-indent: 0.5in">The note payable of $450,000
bears interest at 8% and matures December 31, 2019, unless the Company raises $750,000 through Level Brands prior to that date in which
case the Note is to be repaid in full including accrued interest. Accrued interest at December 31, 2021 and 2020 totaled $126,493 and
$0, respectively. As of December 31, 2021 and 2020 the principal balance of the marketing note was $450,000.</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; text-indent: 0.5in">As of December 31, 2021, the
Company has not issued the $400,000 of common stock which was due upon execution of the agreement or any of the shares pursuant to the
quarterly fee. The $400,000 is included in accrued expenses at December 31, 2021. Due to the Company&rsquo;s low sales volume, no accrual
for royalties is included in the financial statements as the amounts would not be material.</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; text-indent: 0.5in">Level Brands sued the Company
for non-performance under the contract. The matter was taken to arbitration with both parties claiming nonperformance under the contract.
In October 2019, the arbitration was dismissed without prejudice.</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-indent: 0.5in"><B>Convertible Note Payable</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">From 2018 to June 3, 2021, the
Company issued a total of $8.7 million of unsecured notes payable to investors including $7.7 million to related parties. These notes
bear interest at a rate of 15% per annum and include a common stock warrant equal to 30% of the face value of the note. The outstanding
principal, and accrued but unpaid interest on the notes converts into fully paid and non-assessable shares of Special Preferred Stock
at a price of $0.32276 per share in a Qualified Investment. In the event of conversion not in conjunction with a Qualified Investment,
the notes are convertible into Common Stock at a price of $18.613. As of June 3, 2021 and December 31, 2020, the Company had $1,960,116
and $1,429,327 interest accrued, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 4,2021 as a part of merger, the principal amount and accrued
interest were converted into 571,621 shares of Common Stock, fully converting the notes and accrued interest as of December 31, 2021.
The principal and accrued interest were converted per the terms of the agreement as such no gain or loss was recognized. The merger did
not meet the Qualified Investment criteria.</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-indent: 0.5in"><B>Note Payable and Senior Secured Convertible
Notes</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; text-indent: 0.5in">In May 2018, the Company issued
a secured note payable to a related party for a total amount of $1.0 million with a 90-day maturity. The maturity date of this note was
extended by mutual agreement with the note holder and the note was outstanding until June 25, 2021. As of June 25,2021, and December 31,
2020, the Company has $603,778 and $510,444 interest accrued respectively.</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; text-indent: 0.5in">On June 25, 2021, the Company
and the $1.0 secured million note payable Holder entered into exchange agreement, whereby the company issued the Holder a Senior Secured
Convertible Note in the principal amount of $1,603,778 with a maturity date of June 18, 2023. On the maturity date, the Company shall
pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall accrue thereunder unless and until
an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible into validly, fully paid and non-assessable
shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also granted 779,025 2-year warrants exercisable
at $2.0587. The issuance of the note and warrants resulted in a loss on modification of debt of $2,385,204. As of December 31, 2021, the
note balance was $1,603,778.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 25, 2021, the Company
and Gold Blaze Limited Vistra Corporate Services entered into exchange agreement, where the company issued the Gold Blaze Limited Vistra
Corporate Services Senior Secured Convertible Note in the principal amount of $500,000 with a maturity date of June 25, 2023. On the maturity
date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall accrue thereunder
unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible into validly, fully
paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also granted 242,872 2-year
warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount from the beneficial conversion feature totaling
$500,000. As of December 31, 2021, the note was shown net of unamortized discount of $375,000. Discount amortization for the year ended
December 31, 2021 was $125,000.</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; text-indent: 0.5in">In June 25, 2021, the Company
issued a Senior Secured Convertible Note to HT Investment MA LLC for a principal amount $5.0 million and maturity date of June 25, 2023.
On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 2,428,717 2-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount from the beneficial
conversion feature totaling $4,500,000. Funds received were $4,500,000 net of an original issue discount of $500,000. As of December 31,
2021, the note was shown net of unamortized discount of $3,750,000. Discount amortization for the year ended December 31, 2021 was $1,250,000.</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; text-indent: 0.5in">In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Dr. Harold Parnes for a principal amount $1.2 million and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 582,892 2-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $222,534 and a discount from the relative fair value of warrants issued of $494,802. As
of December 31, 2021, the note was shown net of unamortized discount of $624,680. Discount amortization for the year ended December 31,
2021 was $92,656.</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; text-indent: 0.5in">In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Steve Schrader for a principal amount $131 thousand and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 64,604 2-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $24,775 and a discount from the relative fair value of warrants issued of $54,598. As
of December 31, 2021, the note was shown net of unamortized discount of $69,033. Discount amortization for the year ended December 31,
2021 was $10,239.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Paycheck Protection Program (PPP Loan)</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-indent: 0.5in; text-align: justify">On May 5, 2020, the Company received a U.S. Small Business Administration
Loan under the Paycheck Protection Program (PPP Loan) primarily for payroll costs related to the COVID-19 crisis in the amount of $402,154.
Under the Paycheck Protection Program, the PPP Loan has a fixed interest rate of 1%, a maturity date is twenty-four (24) months from the
date of the funding of the loan. Pursuant to the terms of the PPP Loan, the Company may apply for forgiveness of the amount due on the
PPP Loan in an amount equal to the sum of the following costs incurred by the Company during the 8-week period (or any other period that
may be authorized by the U.S. Small Business Association) beginning on the date of first disbursement of the loan: payroll costs, any
payment of interest on a covered mortgage obligation, payment on a covered rent obligation, and any covered utility payment. The amount
of PPP Loan forgiveness shall be calculated in accordance with the requirements of the Paycheck Protection Program, including the provisions
of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), although no more than 25% of the amount forgiven
can be attributable to non-payroll costs. The Company has applied for forgiveness of the full loan amount, and at November 1 , 2021 received
loan forgiveness $402,154 in principal and $6,088 in interest, which was recorded as a gain on forgiveness of debt to the consolidated
statement of operations. As of December 31, 2021 and 2020, the Company has $0 and $2,636 interest accrued, respectively.</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>NOTE 7 &ndash; COMMITMENTS AND CONTINGENCIES</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-indent: 0.5in"><B>Preferred Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>Preferred Stock</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table represents a Preferred Stock by Series as of December
31, 2020:</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="border-bottom: Black 1.5pt solid; text-decoration: none; font-weight: bold; text-align: left">Convertible Preferred Stock</TD><TD STYLE="text-decoration: none; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-decoration: none; font-weight: bold; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">Issued and</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">outstanding<BR>
 shares</P></TD><TD STYLE="text-decoration: none; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-decoration: none; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-decoration: none; font-weight: bold; text-align: center">Issue<BR>
price</TD><TD STYLE="text-decoration: none; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-decoration: none; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-decoration: none; font-weight: bold; text-align: center">Outstanding<BR>
 value</TD><TD STYLE="text-decoration: none; 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">Series AA (Authorized: 1,045,650):</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,045,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1.15</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,202,498</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Series BB (Authorized: 22,120,639):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,120,639</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08111</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,794,205</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">Series CC (Authorized: 13,761,489):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,761,489</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.46175</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,354,368</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Series DD (Authorized: 45,000,000):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,790,975</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.61971</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,940,605</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">Series EE-1 (Authorized: 17,000,000):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,030,343</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.32276</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,528,434</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">Series EE-2 (Authorized: 18,000,000):</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,265,953</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">0.32276</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">5,249,999</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">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">101,015,049</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="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; 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">40,070,108</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">On June 4, 2021, as consideration for the Merger, the Company converted
101,015,049 shares of preferred stock into 618,687 shares of common stock:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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">Convertible Preferred Stock</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>Preferred</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>stock shares<BR> Outstanding</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">Conversion<BR> Ratio</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">Common<BR> Stock<BR> Shares<BR> Outstanding</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">Series AA:</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,045,650</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">0.007064</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">7,386</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Series BB:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,120,639</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.005780</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">127,865</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">Series CC:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,761,489</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.006256</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">86,093</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Series DD:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,790,975</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.006576</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">222,220</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">Series EE-1:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,030,343</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.005780</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">81,100</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">Series EE-2:</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,265,953</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">0.005780</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">94,023</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 Preferred Stock:</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">101,015,049</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="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; 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">618,687</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-indent: 0.5in">&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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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: 0.25in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has designated
1,000,000 shares of its preferred stock as Series B Preferred Stock. Each share of Series B Preferred Stock has a stated value of $1.
Each share of the Series B Preferred Stock is convertible into 1,000 shares of the Company&rsquo;s common stock. The Series B Preferred
Stock shall have no voting rights until January 1, 2022 when it will be on an as converted basis (subject to limitations) and liquidation
preference for each share of Series B Preferred Stock at an amount equal to the stated value per share.</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; text-indent: 0.5in">As of December 31, 2021, the
Company has 963,964 shares of Series B Preferred Stock outstanding. The Series B Preferred Stock has been classified outside of permanent
equity and liabilities since it embodies a conditional obligation that the Company may settle by paying the monetary value in cash upon
a liquidation event due to the liquidation preferences of the Series B Preferred Stock based upon its designation.</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; text-indent: 0.5in">The Series B preferred stock shares are accounted
for outside of permanent equity due to the terms of cash-redemption features.</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-indent: 0.25in"><I>Series C</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">As
consideration for the Merger, the Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible
Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). Upon the effectiveness of the amendment to our Certificate of Incorporation
to effectuate the reverse stock split of&nbsp;one-for-173, all such shares of Preferred Stock issued to Nanomix shareholders shall automatically
convert into approximately </FONT>35,644,997 <FONT STYLE="background-color: white">shares of common stock of the Company. </FONT>Shares
of the Series C Preferred Stock shall be entitled to vote on any matter and shall each collectively represent 80% of the votes eligible
to be cast in any manner. The Series C Preferred Stock are not entitled to any dividends (unless specifically declared by our Board),
but will participate on an as-converted-to-common-stock basis in any dividends to the holders of our common stock. The Series C Preferred
Stock has been classified outside of permanent equity and liabilities since it embodies a conditional obligation that the Company may
settle by paying the monetary value in cash upon a liquidation event due to the liquidation preferences of the Series C Preferred Stock
based upon its designation.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Series C preferred stock shares are accounted for outside of permanent equity due to the terms of cash-redemption features.</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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Research
and Development Arrangement</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
April of 2020, the Company received a BARDA fixed price, cost sharing contract for development and EUA filing of COVID-19 Antibody and
Antigen tests on the Nanomix eLab platform. The total amount of the milestone-based contract was $569,647. As of December 31, 2021, the
full amount of $569,467 had been received under the contract.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company does not have Employment Agreements with any employees. All employees are employed under &ldquo;at will&rdquo; arrangements without
guarantees or separation arrangements.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company leased its facility under sublease agreement. The Sublease term is from November 19, 2019 to December 15, 2021. The sublease
agreement was extended till December 31, 2021. Rent expense is recognized on a straight-line basis over the lease term. The company incurred
rent expense, which is included as part of selling, general and administrative expenses, of $361,035 and $231,914 for the years ended
December 31, 2021 and 2020, respectively. See details at Note 8.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 6, 2021 the Company signed the short-term lease agreement with term from January 1, 2022 to March 31, 2022. See details at Note
8. See Note 17 for facility lease agreement signed in February, 2022<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>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is not currently involved in any legal matters in the normal course of business. From time to time, the Company could become
involved in disputes and various litigation matters that arise in the normal course of business. These may include disputes and lawsuits
related to intellectual property, licensing, contract law and employee relations matters. Periodically, the Company reviews the status
of significant matters, if any exist, and assesses its potential financial exposure. If the potential loss from any claim and legal claim
is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings are
subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information
available at the time. As additional information becomes available, the Company reassesses the potential liability related to pending
claims and litigations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
8 &ndash; LEASES</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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases
on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed
below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application.
Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for
prior periods. We elected the &lsquo;package of practical expedients,&rsquo; which permitted us to not reassess our prior conclusions
related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lease
ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease
term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use
the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental
borrowing rate based on the information available at the lease commencement date, including the lease term.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Short-term
leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized
on a straight-line basis over the lease term. As of December 31, 2021 the Company had three-months lease which will be recognized over
the period January 1, 2022 to March 31,2022. There were no short-term leases as of December 31, 2020.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
tables below present financial information associated with our lease.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Balance
    Sheet</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December&nbsp;31,</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December&nbsp;31,</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD 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>Classification</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2021</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2020</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 53%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Right-of-use assets</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
                                            long-term assets </FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">232,065</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Current lease liabilities</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
                                            current liabilities</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">313,146</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-current lease liabilities</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
                                            long-term liabilities </FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2021, our maturities of our lease liability are as follows:</FONT></P>



<P STYLE="margin: 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; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; width: 88%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2022</FONT></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less:
    Imputed interest</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Present value of lease
    liabilities</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    </TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
9 &ndash; BUSINESS COMBINATION</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 4, 2021, the Company consummated the Business Combination with Nanomix, Inc pursuant to the agreement between Nanomix, Inc and Boston
Therapeutics, Inc (the Merger Agreement&rdquo;). Pursuant to ASC 805, for financial accounting and reporting purposes, Nanomix, Inc was
deemed the accounting acquirer and the Company was treated as the accounting acquiree, and the Business Combination was accounted for
as a reverse recapitalization. Accordingly, the Business Combination was treated as the equivalent of the Nanomix, Inc issuing stock
for the net assets of Boston Therapeutics, Inc, accompanied by a recapitalization. The net assets of Boston Therapeutics, Inc were stated
at historic costs, with no goodwill or other intangible assets recorded, and are consolidated with Nanomix, Inc&rsquo;s financial statements
on the Closing date. The shares and net income (loss) per share available to holders of the Company&rsquo;s common stock, prior to the
Business Combination, have been adjusted as shares reflecting the exchange ratio established in the Merger Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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>NOTE
10 &ndash; STOCKHOLDERS&rsquo; DEFICIT </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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common
Stock</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2020, the Company was authorized
to issue 137,000,000 shares of common stock with a par value of $0.00001 per share, and 4,298 common shares were issued and outstanding.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in">On January 25, 2021, the Company
issued 1,214 common shares for option exercise with exercise price $1.73 per share</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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On February 11, 2021, the Company issued 3,486 common shares for option
exercise with average exercise price $6.12 per share.</FONT></P>

<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-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 4, 2021, as consideration for the Merger, the Company:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">converted 101,015,049 shares of preferred stock into 618,687 shares of common stock;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">converted $10,639,615.96 of notes payable and accrued interest into 571,621 shares of common stock with conversion rate 18.613 $/shares;</FONT></TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></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: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">exchanged all outstanding 1,199,306 shares of common stock for newly created 1,000,000 shares Series C Convertible Preferred Stock;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On September 2021, the Company
re-purchased 5,435 of Nanomix, Inc. pre-merger common shares from unaccredited investors for the amount $202,188.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 8, 2021, a Nanomix, Inc stock option was exercised for 506
shares of Nanomix, Inc. pre-merger common stock with an exercise price of $8.65 per share for a total amount of $4,375. The shares weren&rsquo;t
issued pending effectiveness of the reverse stock split and the exercise was recorded in Stock payable. Shares of Nanomix Corporation
common stock were subsequently issued in 2022 after effectiveness of the reverse stock split.</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; text-indent: 0.5in">On November 15, 2021, a Nanomix,
Inc stock option exercised for 2,312 shares of Nanomix, Inc. pre-merger common stock with an exercise price $6.92 per share for the amount
$16,000. The shares weren&rsquo;t issued pending effectiveness of the reverse stock split and the exercise was recorded in Stock payable.
Shares of Nanomix Corporation common stock were subsequently issued in 2022 after effectiveness of the reverse stock split.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 11, 2022, Nanomix Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware
Secretary of State to effect a reverse split of the Company&rsquo;s outstanding shares of common stock, par value $0.0001 per share (the
&ldquo;Common Stock&rdquo;), at a ratio of 1-for-173. The reverse split was recorded retrospectively in 2021 financial statements converted
916,914,554 common shares of Boston Therapeutics stock into 5,300,084 common shares of Nanomix Corporation with par value $0.001.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2021, the Company has a total of 5,300,084 common shares issued and outstanding with a par value of $0.001. The Company
has 2,000,000,000 authorized shares of common stock as of the same period and after the reverse stock split.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
described in Note 6, pursuant to issuance convertible notes payable to investors, the Company issued warrants to purchase an aggregate
of 1,373,861 shares of the Company&rsquo;s Common Stock at an exercise price $0.058 per share during 2018 - 2021. The Company has recognized
an expense for these services within general and administrative expense in the accompanying Statements of Operations in the years of
warrants issuance of approximately $33,154 and $126,555 for the years ended December 31, 2021 and 2020, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 1, 2018, the Company issued warrant to investor to purchase an aggregate of 527,921 shares of the Company&rsquo;s Common Stock
at an exercise price of $0.058 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 3, 2020, the Company issued warrants to Fastnet Advisors, LLC. to purchase an aggregate of 96,951 shares of the Company&rsquo;s
Common Stock at an exercise price of $0.058 per share. On December 14, 2020, the Company issued warrants outside consultant to purchase
an aggregate of 102,178 shares of the Company&rsquo;s Common Stock at an exercise price of $0.058 per share. The Company has recognized
an expense for these services within general and administrative expense in the accompanying Statements of Operations in the year of warrants
issuance of approximately $24,733 for the year ended December 31, 2020.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 25, 2021, the Company issued warrants to related party to purchase an aggregate of 779,025 shares of the Company&rsquo;s Common
Stock at an exercise price of $2.0587 per share. The issuance of warrants resulted in a loss on modification of debt of $2,385,204. (refer
to Note 6). On June 25, 2021, the Company issued warrants to Gold Blaze Limited Vista Corporate Services to purchase an aggregate of
242,872 shares of the Company&rsquo;s Common Stock at an exercise price of $2.0587 per share. On June 25, 2021, the Company issued warrants
to HT Investments MA LLC to purchase an aggregate of 2,428,717 shares of the Company&rsquo;s Common Stock at an exercise price of $2.0587
per share. On September 27, 2021, the Company issued warrants to Dr. Harold Parnes to purchase an aggregate of 582,892 shares of the
Company&rsquo;s Common Stock at an exercise price of $2.0587 per share. On September 27, 2021, the Company issued warrants to Steve Schrader
to purchase an aggregate of 64,604 shares of the Company&rsquo;s Common Stock at an exercise price of $2.0587 per share. The Company
recognized $5,247,308 for the beneficial conversion feature as a debt discount at issuance of the notes in addition to an original issue
discount of $500,000 and a discount from the relative fair value of warrants issued of $549,300. For the year ended December 31, 2021,
the Company recorded amortization of $1,477,895 for the &nbsp;debt discounts as interest expense in the accompanying consolidated statements
of operations.</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"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of December 31, 2021 all warrants remain outstanding.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-indent: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following represents a summary of the Warrants outstanding at December 31, 2021, and changes during the period then ended:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></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>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Weighted <BR>
Average</TD><TD STYLE="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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Warrants</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">Exercise <BR>
Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Outstanding at December 31, 2020</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,002,622</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">0.058</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Granted with exercise price $0.058</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,065</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.058</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">Exercised/Expired/Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</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">Outstanding at June 4, 2021</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,124,687</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.058</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">BTHE warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">222,302</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Granted after merge</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,098,109</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.059</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Exercised/Expired/Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Outstanding at December 31, 2021</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,445,098</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1.393</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-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><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>NOTE
12 &ndash; STOCK-BASED COMPENSATION</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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Terms
of the Company&rsquo;s share-based on compensation are governed by the Company&rsquo;s 2010 Equity Incentive Plan (&ldquo;the 2010 Plan&rdquo;).
The 2010 Plan permits the Company to grant non-statutory stock options, incentive stock options, restricted stocks, and stock purchase
rights to the Company&rsquo;s employees, outside directors and consultants; however incentive stock options may only be granted to the
Company&rsquo;s employees. As of June 30, 2021, the maximum aggregate number of shares of common stock that may be issued is 3,342,869
shares under the 2010 Plan, subject to adjustment due the effect of any stock split, stock dividend, combination, recapitalization or
similar transaction. The exercise price for each option is determined by the Board of Directors, but will be (i) in the case of an incentive
stock option, (A) granted to an employee who, at the time of grant of such option, is a 10% Holder, no less than 110% of the fair market
value per share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the
date of grant; and (ii) in the case of a nonstatutory stock option, no less than 100% of the fair market value per share on the date
of grant. The options awarded under the 2010 Plan shall vest as determined by the Board of Directors but shall not exceed a ten-year
period.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">During
year ended December 31, 2021, the company granted 3,407,206 restricted stock units (RSU) to its employees. Of these, 265,703 were forfeited
due to employee resignations. </FONT>Restricted stock is valued at the fair market value on the date of grant with expense recognized
over the vesting period from June 4, 2021 till February 20, 2023. The Company has recognized an expense for vested RSU within general
and administrative expense in the accompanying Statements of Operations of approximately $21,077 for year ended December 31, 2021.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Options
Issued to Directors and Employees as Compensation and to Nonemployees for Services Received</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the
2010 Plan, from 2010 to 2020, the Company has granted an aggregate of 5,077,341 options to its executive officers and employees of the
Company and to Nonemployees for Services Received. Of these, 2,608,508 options were exercised or forfeited and 2,468,834 remain outstanding
as of December 31, 2020. The exercise prices of these grants, as determined by the Company&rsquo;s Board of Directors, were $0.058 to
$0.46 per share.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in">During year ended December
31, 2021, the Company granted an aggregate of 263,503 options to purchase the Company&rsquo;s common stock to its executive officers
and employees of the Company and to Nonemployees for Services Received. During year ended December 31, 2021, 155,002 options were exercised
or forfeited, and 2,577,355 options remain outstanding. The exercise prices of these option grants, as determined by the Company&rsquo;s
Board of Directors, was $0.29 per share. The Company has recognized an expense for these services within general and administrative expense
in the accompanying Statements of Operations of approximately $139,515 and $82,238 for years ended December 31, 2021 and 2020, respectively.
As of December 31, 2021, there was approximately $167,731 of total unrecognized compensation cost related to non-vested share-based compensation
arrangements. This cost is expected to be recognized over a weighted average period of 2.81 years.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock-based
Compensation Summary Tables</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table represents a summary of the options granted to employees and non-employees outstanding at December 31, 2021 and changes
during the period then ended:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></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>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Weighted Average</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">Total<BR>
Weighted <BR>
Average</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Options</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">Exercise <BR>
Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Intrinsic <BR>
Value</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">Remaining <BR>
Life</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Outstanding at December 31, 2020</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,468,834</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.23</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.06</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">6.56</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 9pt">Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">263,503</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.29</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">9.28</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: 9pt">Exercised/Expired/Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(155,002</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">-0.29</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Outstanding at December 31, 2021</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,577,335</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.23</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.06</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">5.92</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">Exercisable at December, 2021</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,299,318</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.23</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.06</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">5.03</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">Expected to be vested</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">278,017</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.29</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.00</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8.89</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-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>NOTE
13 &ndash; WARRANTS AND OPTIONS VALUATION</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company calculates the fair value of warrant and stock-based compensation awards granted to employees and nonemployees using the Black-Scholes
option-pricing method. If the company determinates that other methods are more reasonable, or other methods for calculating these assumptions
are prescribed by regulators, the fair value calculated for the Company&rsquo;s stock options could change significantly. Higher volatility
and longer expected lives would result in an increase to stock-based compensation expense to non-employees determined at the date of
grant. Stock-based compensation expense to non-employees affects the Company&rsquo;s selling, general and administrative expenses and
research and development expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based
awards. The assumptions used in the Black-Scholes option-pricing method for the periods ended December 31, 2021 and 2020 are set forth
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>

<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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
    the period ended</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December&nbsp;31,<BR>

    2021</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December&nbsp;31,<BR>

    2020</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 68%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected dividend
    yield</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 13%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.00</FONT>%</TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 13%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.00</FONT>%</TD><TD STYLE="width: 1%; text-align: left"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Expected stock-price volatility</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">54.97% - 127.15%</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">54.97% - 121.02%</FONT></TD><TD STYLE="text-align: left"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk-free rate</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.70%
                                            - 2.82%</FONT></TD><TD STYLE="text-align: left"></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.61%
                                            - 2.82%</FONT></TD><TD STYLE="text-align: left"></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Term of options</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5-10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5-10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock price</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.29</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.29</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  </TABLE>

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

<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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Expected
                                            term</I>. The expected term represents the period that the stock-based awards are expected
                                            to be outstanding. The Company&rsquo;s historical share option exercise experience does not
                                            provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient
                                            data. Therefore, the Company estimates term by using the simplified method provided by the
                                            SEC. The simplified method calculates the expected term as the average of the time-to-vesting
                                            and the contractual life of the options.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></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="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Expected
                                            volatility.</I> As the Company&rsquo;s common stock has never been publicly traded, the expected
                                            volatility is derived from the average historical volatilities of publicly traded companies
                                            within the Company&rsquo;s industry that the Company considers to be comparable to the Company&rsquo;s
                                            business over a period approximately equal to the expected term.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></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="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Risk-free
                                            interest rate</I>. The risk-free interest rate is based on the U.S. Treasury yield in
effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></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="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Expected
                                            dividend</I>. The expected dividend is assumed to be zero as the Company has never paid dividends
                                            and have no current plans to pay any dividends on the Company&rsquo;s common stock.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; 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 0pt 0pt 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition to the assumptions used in the Black-Scholes option-pricing model, the Company also estimates a forfeiture rate to calculate
the stock-based compensation for the Company&rsquo;s equity awards. The Company will continue to use judgement in evaluating the expected
volatility, expected terms and forfeiture rates utilized for the Company&rsquo;s stock-based compensation calculations on a prospective
basis.</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>NOTE
14 &ndash; RELATED PARTY TRANSACTIONS</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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company had a secured note payable to Mr. Garrett Gruener, its investor, with a balance of $1,000,000 at June 25, 2021 and December 31,
2020. The note and related accrued interest of $603,778 were exchanged for an equal amount of Convertible Equity in the June 25, 2021
financing. As a result of the exchange as part of the merger, the Company issued a senior secured convertible note to Mr. Garrett Gruener,
its investor, with a principal amount of $1,603,778 and 779,025 5-year warrants exercisable at $2.0587. The issuance of the note and
warrants resulted in a loss on modification of debt of $2,385,204. As of December 31, 2021, the note balance was $1,603,778.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company had convertible notes payable to: Mr. Gruener, its investor, with a total balance of $6,182,000 as of December 31, 2020; Mr.
Fiddler, its investor, with a total balance of $950,000 as of December 31, 2020; and Mr. Ludvigson, its Chief Executive Officer, with
a total balance of $175,000 as of December 31, 2020. See Note 6 for detailed disclosure of this related party debt, including interest
rates, terms of conversion and other repayment terms. The notes and accrued interest were exchanged for Preferred Series C shares as
part of the merger.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company had accrued salary payable to Mr. Ludvigson, its Chief Executive Officer, with a total balance of $50,000 and $50,000 as of December
31, 2021 and 2020, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Included
in the account payable and accrued expenses at December 31, 2021 and 2020 are amounts due shareholders, officers and directors of Boston
Therapeutics in the amounts of $304,973 and $0, respectively.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
summary of related party balances as of December 31, 2021 and 2020 :</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><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; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31-Dec-21</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">31-Dec-20</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Account payable
    and accrued expenses, related party:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 76%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Ludvigson</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loraine
    Upham</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,995</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loraine
    Upham accrued compensation</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">188,716</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David
    Platt</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,399</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">S.
    Colin Neill</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">73,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upham
    Bioconsulting, LLC</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,113</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Uphambc
    Consulting</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20,000</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">354,973</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accrued
    interest, related party:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Gruener</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,667,203</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Fiddler</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">127,788</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Ludvigson</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,241</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,810,232</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes payable,
    related party &ndash; net of current portion:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Gruener</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,182,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Fiddler</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">950,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Ludvigson</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">175,000</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,307,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Senior
    Secured Convertible note, related party:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
    Gruener</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,603,778</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,603,778</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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>NOTE
15 &ndash; INCOME TAXES</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for income taxes in accordance with standards of disclosure propounded by the FASB, and any related interpretations
of those standards sanctioned by the FASB. Accordingly, deferred tax assets and liabilities are determined based on differences between
the consolidated financial statement and tax bases of assets and liabilities, as well as a consideration of net operating loss and credit
carry forwards, using enacted tax rates in effect for the period in which the differences are expected to impact taxable income. A valuation
allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Due
to the uncertainty as to the utilization of net operating loss carry forwards, a valuation allowance has been made to the extent of any
tax benefit that net operating losses may generate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the date the financial statements were available to be issued, the federal and state income tax returns for the year ended December 31,
2021 have not been filed by the company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 31, 2020, the Company has federal and state net operating loss carryforward of approximately 93.0 million and $57,8 million
available to reduce future taxable income, if any, for Federal and state income tax purposes. The Company experienced a Section 382 change
of ownership in connection with the merger in 2021, thereby subjecting net operating loss carryovers generated previously to limitations
on utilization. To-date, these limitations have not had an impact on the Company&rsquo;s reported income tax.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s deferred tax asset and valuation allowance at December 31, 2021:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Schedule of Deferred Tax Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">As of December 31, 2021</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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: 88%; text-align: left">NOL at 12/31/20</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(93,056,108</TD><TD STYLE="width: 1%; 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>Net income year ended December 31, 2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,465,033</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss on debt modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,385,204</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest Expense - Debt Discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,511,049</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">Interest Expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">706,126</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other accrued expenses - CY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,642</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 Compensation - Options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">139,515</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued Vacation - CY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,152</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">Compensation - RSU</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,077</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,282</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in fair value of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(438,972</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">NOL at 12/31/21</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(97,629,630</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Effective rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Deferred tax asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,502,222</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">Valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,502,222</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax asset at 12/31/21</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
ultimate realization of our deferred tax asset is dependent, in part, upon the tax laws in effect, our future earnings, and other events.&nbsp;
As of and December 31, 2021 and 2020, we recorded a 100% allowance against our deferred tax asset since we were unable to conclude that
it is more likely than not that our deferred tax asset will be realized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
company&rsquo;s major tax jurisdictions are the United States and California. All of the Company&rsquo;s tax years will remain open three
and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating
loss. As of December 31, 2021, the tax years beginning after 2018 and 2017 remain subject to examination by US Federal and Californian
authorities. However, net operating losses carried forward are subject to examination in the tax year utilized.</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>NOTE
16 &ndash; EMPLOYEE BENEFIT PLAN</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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
company established a 401(k) tax deferred saving plan, which permits participants to make contributions by salary deduction pursuant
to Section401(k) of the Internal Revenue Code. The Company may, at its discretion, make matching contributions to the plan. The Company
is responsible for administrative cost of the Plan. As of December 31, 2021, the Company has made no contributions to the plan since
its inception.</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>NOTE
17 &ndash; SUBSEQUENT EVENTS</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>New
lease agreement</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 4, 2022 the Company signed a new facility lease agreement moving all departments to a new location. The Lease term is from April
1, 2022 to March 31, 2027. Rent expense will be recognized on a straight-line basis over the lease term.</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"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Reverse
Stock Split</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 11, 2022, Nanomix Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware
Secretary of State to effect a reverse split of the Company&rsquo;s outstanding shares of common stock, par value $0.0001 per share (the
&ldquo;Common Stock&rdquo;), at a ratio of 1-for-173. Pursuant to the Amendment, every one-hundred and seventy three (173) shares of
the Company&rsquo;s Common Stock issued and outstanding or held in treasury (if any) immediately prior to the effectiveness of Amendment
shall be automatically reclassified as and combined, without further action, into one (1) validly issued, fully paid and nonassessable
share of Common Stock. No fractional shares will be issued in connection with the Reverse Stock Split; but rather, the Company will issue
one whole share of the post-Reverse Stock Split Common Stock to any stockholder who otherwise would have received a fractional share
as a result of the Reverse Stock Split. On March 1, 2022, FINRA notified the Company that the Company&rsquo;s common stock would open
for trading on Tuesday, March 2, 2022 on a post-split basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>February
2022 Private Placement</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 28, 2022, Nanomix Corporation entered into a securities purchase agreement with accredited investors pursuant to which the Company
issued senior secured convertible notes in an principal amount of approximately $666,667 for an aggregate purchase price of $600,000.
Garrett Gruener, a director of the Company, purchased a Note in an aggregate principal amount of $444,444 for an aggregate purchase price
of $400,000 and Jerry Fiddler, a director of the Company purchased a Note in an aggregate amount of $111,111 for an aggregate purchase
price of $100,000. The Notes each have a term of twenty-four months and mature on February 28, 2024, unless earlier converted or extended
under certain conditions as set forth in the Note (the &ldquo;Maturity Date&rdquo;). On the Maturity Date, the Company shall pay to the
Investors an amount in cash representing 115% of all outstanding principal amount and any other amounts which may be due under the Notes.
Upon an Event of Default (as defined in the Notes), the Notes accrue interest at a rate of 14% per annum.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>March
2022 Private Placement</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 23, 2022, Nanomix Corporation entered into a Securities Purchase Agreement with a Purchaser pursuant to which the Purchaser purchased
five hundred (500) shares of the Company&rsquo;s Series D Convertible Preferred Stock for an aggregate purchase price of $500,000. In
addition, in connection with the issuance of the Series D Preferred Stock, the Purchaser received a five year warrant to purchase 60,000
shares of the Company&rsquo;s common stock. The Warrant is exercisable at an exercise price of $2.0587 per share of Common Stock, subject
to certain beneficial ownership limitations&nbsp;(with a maximum ownership limit of 9.99%). The exercise price is also subject to adjustment
due to certain events, including stock dividends, stock splits and fundamental transactions and in connection with the issuance by the
Company of&nbsp;our Common Stock or&nbsp;Common Stock equivalents at an effective price per share lower than the exercise price then
in effect. The holders may exercise the Warrants on a cashless basis if the shares of our Common Stock underlying the Warrants are not
then registered pursuant to an effective registration statement.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, upon the terms and subject to the conditions set forth in the Purchase Agreement, fifteen (15) calendar days following the
effective date of a registration statement registering the resale of the maximum aggregate number of (i) shares of Common Stock issuable
pursuant to the conversion of the Preferred Stock and (ii) Warrant Shares issuable upon exercise of the Warrants issuable pursuant to
the Purchase Agreement, and on each of the 30<SUP>th</SUP>, 60<SUP>th</SUP>, 90<SUP>th</SUP> and 120<SUP>th</SUP> calendar day anniversaries
of the Effective Date, assuming no Event of Default (as defined in the Purchase Agreement) has taken or is taking place, the Company
agrees to sell, and the Purchaser agrees to purchase, an additional five hundred (500) shares of Preferred Stock at price of $1,000 per
share of Series D Preferred Stock. Concurrently with the issuance of any Series D Preferred Stock, the Company shall issue to Purchaser
a warrant to purchase up to a number of Warrant Shares equal to 30% of the quotient of (a) the Purchase Price due at the relevant closing)
and the Closing Price of the Company&rsquo;s Common Stock for the Trading Day preceding such additional closing date.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the entry into the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations
of Series D Convertible Preferred Stock with the Delaware Secretary of State to create a new class of preferred stock designated Series
D Preferred Stock and authorized the issuance of up to ten thousand (10,000) shares of Series D Preferred Stock. The Series D Preferred
Stock has a stated value of $1,200 per share and the holder of the Series D Preferred Stock has the right to receive a dividend equal
to eight percent (8%) per annum, payable quarterly, beginning on the issuance date of the Series D Preferred Stock and ending on the
date that the Series D Preferred Stock has been converted or redeemed. Dividends may be paid in cash or in shares of Series D Preferred
Stock at the discretion of the Company. At closing, the Company prepaid one year&rsquo;s worth of interest in shares of Series D Preferred
Stock. The Series D Preferred Stock will vote together with the common stock on an as-converted basis subject to the Beneficial Ownership
Limitations. Further, the holders of the Series D Preferred Stock have the right to receive assets in the event of liquidation, dissolution
or winding up before any distribution or payment shall be made to the holders of any securities junior to the Series D Preferred Stock.
The Company is required to reserve and keep available out of our authorized and unissued shares of Common Stock three times the number
of Common Stock needed to convert or exercise all Series D Preferred Stock and Warrants issued pursuant to the Purchase Agreement.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
conversion price for the Series D Preferred Stock shall be the amount equal to the lower of (1) $2.08, a fixed price equaling the closing
bid price of the Common Stock on the trading day immediately preceding the date of the Purchase Agreement and (2) one hundred percent
(100%) of the quotient of (A) the sum of the VWAP of the Common Stock for each of the three (3) trading days with the lowest VWAP during
the twenty (20) consecutive trading day period ending on the trading day immediately preceding the date of delivery of a conversion notice
and (B) three, subject to the Beneficial Ownership Limitations. Following an &ldquo;Event of Default,&rdquo; as defined in the Purchase
Agreement, the Conversion price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price per share equaling
eighty percent (80%) of the lowest traded price for the Company&rsquo;s common stock during the fifteen (15) Trading Days immediately
preceding, but not including, the Conversion Date. The Conversion Price is also subject to adjustment due to certain events, including
stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of&nbsp;our Common Stock
or&nbsp;Common Stock equivalents at an effective price per share lower than the Conversion Price then in effect.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 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; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
has evaluated subsequent events according to the requirements of ASC TOPIC 855 as of the date of the report, and believes there are no
additional subsequent events to report.</FONT></P>

<P STYLE="font: 10pt/107% 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: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="t_001"></A>NANOMIX CORPORATION</B></P>

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

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">(unaudited)</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">As of <BR>
March 31,</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center">As of <BR>
December&nbsp;31,</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">2022</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">2021</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD COLSPAN="9" STYLE="font-size: 10pt; font-weight: bold">ASSETS</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">Current assets:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; width: 76%">Cash</TD><TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; width: 1%; text-align: left">$</TD><TD STYLE="font-size: 10pt; width: 9%; text-align: right">10,961</TD><TD STYLE="font-size: 10pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; width: 1%; text-align: left">$</TD><TD STYLE="font-size: 10pt; width: 9%; text-align: right">297,351</TD><TD STYLE="font-size: 10pt; width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Prepaid expenses and other current assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">110,323</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">171,488</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.375in; text-align: left">Total current assets</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">121,284</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">468,839</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">Deposit</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">57,555</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">97,555</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Property and equipment, net</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">340,027</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">339,318</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Operating lease right-of-use assets</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">639,335</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">1,158,201</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">905,712</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">LIABILITIES, PREFERRED STOCK SUBJECT TO REDEMPTION AND STOCKHOLDERS&rsquo; DEFICIT</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Current liabilities:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accounts payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">812,082</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">407,943</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accrued expenses</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">665,723</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">726,148</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accounts payable and accrued expenses, related party</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">369,973</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">354,973</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Accrued interest</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">359,586</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">332,561</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Convertible note payable, net of discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">200,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">200,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Notes payable, related party</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">547,821</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">547,821</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Notes payable marketing</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">450,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">450,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Deferred Revenues</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">293,523</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">293,523</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Other current liabilities</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">86,737</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">12,129</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.375in; text-align: left">Total current liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,785,445</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3,325,098</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Secured Promissory Note, net of discount</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,808,621</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,012,287</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Secured Promissory Note, net of discount, related party</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,622,297</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,603,778</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Operating lease liabilities, net of current portion</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">556,278</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total Liabilities</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">8,772,641</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">6,941,163</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Commitments and Contingencies (Note 7)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Preferred stock B; 1,000,000 shares designated, 963,964 shares issued, 0 and 963,964 shares outstanding at March 31, 2022 and December 31, 2021, respectively</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">963,964</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Preferred stock C; 1,000,000 shares designated, 1,000,000 shares issued, 8,867 and 1,000,000 shares outstanding at March 31, 2022 and December 31, 2021, respectively</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">130,085</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14,670,633</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Preferred stock D; 10,000 shares designated, 500 shares issued, 500 and 0 shares outstanding at March 31, 2022 and December 31, 2021, respectively</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">500,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Stockholders&rsquo; deficit:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in">Common stock; $0.001 par value, 2,000,000,000 shares authorized, 46,203,866 and 5,300,084 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">46,204</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,300</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Additional paid-in capital</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">101,405,293</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">85,092,094</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left">Stock payable</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">20,375</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(109,696,022</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(106,787,817</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.375in; text-align: left; padding-bottom: 1.5pt">Total stockholders&rsquo; deficit</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(8,244,525</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(21,670,048</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Liabilities, Preferred Stock Subject to Redemption and Stockholders&rsquo; Deficit</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">1,158,201</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">905,712</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="t_002"></A>NANOMIX CORPORATION</B></P>

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

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

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">March 31,</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">2022</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">2021</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; width: 76%; padding-bottom: 1.5pt">Revenues</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 9%; text-align: right">-</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 9%; text-align: right">141,778</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Operating costs and expenses:</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in; text-align: left">Research and development</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">861,353</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">608,771</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Selling, general and administrative expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,136,381</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">388,871</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Total operating expenses</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">1,997,734</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">997,642</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">Loss from operations</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(1,997,734</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(855,864</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Other income (expense):</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in; text-align: left">Interest income</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in; text-align: left">Interest expense</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(847,299</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(28,643</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Interest expense, related, party</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(327,943</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt">Total&nbsp;&nbsp;income (expense)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(847,299</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(356,586</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Loss before income taxes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(2,845,033</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(1,212,450</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1.5pt">Provision for income taxes</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,845,033</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(1,212,450</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; padding-left: 0.125in; text-align: left">Common stock warrant deemed dividends</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(63,172</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1.5pt">Net loss attributable to common sharehoders</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(2,908,205</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(1,212,450</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Weighted average number of common shares&nbsp;&nbsp;outstanding &ndash; basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18,936,485</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1,225,881</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left">Net loss per common share &ndash; basic and diluted</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(0.15</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(0.99</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
  </TABLE>


<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-size: 10pt">The accompanying notes are an integral
    part of the consolidated interim financial statements</FONT></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"><B><A NAME="t_003"></A>NANOMIX CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo;
DEFICIT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the Three Month Ended March&nbsp;31, 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(unaudited)</B></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="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">Stockholders&rsquo; Deficit</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">Common Stock</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-size: 10pt; text-align: center; font-weight: bold">Stock<BR>
payable</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Additional<BR>
Paid-in</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Total<BR>
Accumulated</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Stockholders&rsquo;</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Mezzanine</TD><TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-left: 0.125in">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Shares</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Capital</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; 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; font-size: 10pt; font-weight: bold; text-align: center">Equity</TD><TD STYLE="white-space: nowrap; font-size: 10pt; text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; width: 23%; font-weight: bold; padding-bottom: 1.5pt">Balance, December 31, 2021</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">5,300,084</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">5,300</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">20,375</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">85,092,094</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">(106,787,817</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">(21,670,048</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">15,634,597</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">Fractional shares rounding</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2,757</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(3</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Stock based compensation</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,550</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">29,550</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Warrants issued with notes</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">736,494</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">736,494</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">Issuance of Series D Shares</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">500,000</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Change in number of warrants pursuant by antidilution issuance</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">63,172</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(63,172</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Preferred Stock B conversion into common stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,572,045</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">5,572</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">958,392</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">963,964</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(963,964</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Preferred Stock C conversion into common stock</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">35,328,980</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">35,329</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(20,375</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14,525,594</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14,540,548</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">(14,540,548</TD><TD STYLE="font-size: 10pt; text-align: left">)</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(2,845,033</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(2,845,033</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; padding-bottom: 1.5pt">Balance, March 31, 2022</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">46,203,866</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">46,204</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">101,405,293</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(109,696,022</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(8,244,525</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">630,085</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS&rsquo;
DEFICIT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the Three Month Ended March&nbsp;31, 2021</B></P>

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

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">Stockholders&rsquo; Deficit</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: center">Common Stock</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; text-align: center; font-size: 10pt; font-weight: bold">Stock<BR>
payable</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Additional<BR>
Paid-in</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Total<BR>
Accumulated</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Stockholders&rsquo;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: center">Mezzanine</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom">
    <TD STYLE="white-space: nowrap; font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Shares</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Amount</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Capital</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Deficit</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center">Equity</TD><TD STYLE="white-space: nowrap; font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; width: 23%; font-weight: bold; padding-bottom: 1.5pt">Balance, December 31, 2020</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">4,298</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt"><B>&nbsp;-null- </B></FONT></TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">44,727,171</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">(97,322,784</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">(52,595,613</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; width: 1%; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; width: 8%; font-weight: bold; text-align: right">40,070,108</TD><TD STYLE="font-size: 10pt; width: 1%; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Stock based compensation</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">28,405</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">28,405</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in">Issuance of Common Shares</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4,700</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23,450</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23,451</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(1,212,450</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">(1,212,450</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="font-size: 10pt; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; padding-bottom: 1.5pt">Balance, March 31, 2021</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">8,998</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">1</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">-</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">44,779,026</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(98,535,234</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">(53,756,207</TD><TD STYLE="font-size: 10pt; padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-size: 10pt; font-weight: bold; text-align: right">40,070,108</TD><TD STYLE="font-size: 10pt; 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; text-align: center; margin-top: 0pt; margin-bottom: 0pt">The accompanying notes are an integral part of the consolidated interim
financial statements</P>

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="t_004"></A>NANOMIX CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></P>

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

<P STYLE="margin: 0; font-size: 10pt">&nbsp;&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="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">For Three Months Ended</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,</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="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">2021</TD><TD STYLE="padding-bottom: 1.5pt; 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" 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; padding-left: 0.125in">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,845,033</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,212,450</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: 0.125in">Adjustments to reconcile net loss to net cash used 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="text-align: left; padding-left: 0.25in">Depreciation and amortization expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,443</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,165</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Loss from asset disposal</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">485</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: 0.25in">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,550</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,405</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in">Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">136,493</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: 0.25in">Amortization of debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">814,853</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: 0.25in">Leasing</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">811</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: 0.25in">Increase (decrease) in cash attributable to 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: 0.375in">Accounts receivable</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">821</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: 0.375in">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,165</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,686</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.375in">Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</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="text-align: left; padding-left: 0.375in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">404,139</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">341,515</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.375in">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(60,425</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(111,742</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: 0.375in">Accounts payable and accrued expenses, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.375in">Accrued Interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,025</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,379</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.375in">Accrued Interest, related party</TD><TD STYLE="padding-bottom: 1.5pt">&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 STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">327,943</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; padding-left: 0.375in">Other 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">(8,448</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">Net cash used by 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">(1,363,753</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">(547,839</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 investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.375in">Purchase 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">(22,637</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">(4,219</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">Net cash used by 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">(22,637</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">(4,219</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: 0.25in">Proceeds from notes 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">290,000</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: 0.25in">Proceeds from notes payable, related party</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">290,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.25in">Proceeds from Secured Promissory Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">600,000</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="text-align: left; padding-left: 0.25in">Proceeds from issuance of common stock</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">23,450</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: 0.25in">Proceeds from issuance of Preferred stock D</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">500,000</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">-</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 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">1,100,000</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">603,450</TD><TD STYLE="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><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">Net increase (decrease) in cash</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">(286,390</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">51,392</TD><TD STYLE="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><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">Cash at the beginning of 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">297,351</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">15,098</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">Cash at the end of 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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">10,961</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">66,490</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>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Non-cash investing and financing transactions:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Right-of-use asset obtained in exchange for lease obligations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">639,335</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(53,717</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lease liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(639,335</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,905</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">Convertible notes payable for accrued expenses</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">37,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Preferred stock conversion into common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,504,512</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">Dividend pursuant to warrant number change</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">63,172</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">Warrant issued with debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">600,000</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>
  </TABLE>




<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>


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

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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="t_005"></A>NANOMIX CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: center; text-indent: -0.75in"><B>(Information
as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 is unaudited. <BR>
Information as of December 31, 2021 is derived
from audited financial statements)</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-indent: -0.75in"><B>NOTE 1 &ndash; THE COMPANY AND
NATURE OF BUSINESS</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"><B><I>Nature of Operations</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Boston Therapeutics, Inc. (the &ldquo;Company&rdquo;) was formed as
a Delaware corporation on August 24, 2009 under the name Avanyx Therapeutics, Inc. On November 10, 2010, the Company entered into an Agreement
and Plan of Merger (the &ldquo;Merger Agreement&rdquo;) with Boston Therapeutics, Inc., a New Hampshire corporation (&ldquo;BTI&rdquo;)
providing for the merger of BTI into the Company with the Company being the surviving entity (the &ldquo;Merger&rdquo;), the issuance
by the Company of 4,000,000 shares of common stock to the stockholders of BTI in exchange for 100% of the outstanding common stock of
BTI, and the change of the Company&rsquo;s name to Boston Therapeutics, Inc. On February 12, 2018, the Company acquired CureDM Group Holdings
LLC (&ldquo;CureDM&rdquo;), for 47,741,140 shares of common stock of which 25,000,000 were delivered at closing and 22,741,140 were to
be delivered in four equal tranches of 5,685,285 each upon the achievement of specific milestones. On January&nbsp;26, 2021, Boston Therapeutics,
Inc., a Delaware corporation (the &ldquo;Company&rdquo;), BTHE Acquisition Inc., a California corporation and wholly-owned subsidiary
of the Company (&ldquo;Merger Sub&rdquo;), and Nanomix, Inc., a California corporation (&ldquo;Nanomix&rdquo;), entered into an Agreement
and Plan of Merger (the &ldquo;Merger Agreement&rdquo;), pursuant to which, Merger Sub merged with and into Nanomix, with Nanomix continuing
as a wholly-owned subsidiary of the Company and the surviving corporation of the merger (the &ldquo;Merger&rdquo;). On November 12, 2021,
FINRA notified the Company that the name change to &ldquo;Nanomix Corporation&rdquo; and the symbol change to &ldquo;NNMX&rdquo; would
be effective November 15, 2021. As consideration for the Merger, the Company issued to the shareholders of Nanomix 1,000,000 shares of
a newly created Series C Convertible Preferred Stock of the Company (the &ldquo;Preferred Stock&rdquo;). On March 22, 2022, 991,133 of
such shares of Preferred Stock issued to Nanomix shareholders automatically converted into 35,328,980 shares of common stock of the Company,
3,281 shares of Preferred Stock C were converted into 116,939 of common stock in April 2022 and 5,586 of Preferred Stock C are still outstanding
and will be converted into 199,131 of common stock of the Company; the warrants assumed at closing may be exercisable into approximately
2,124,687 shares of common stock of the Company and the options and restricted stock units assumed at closing may be exercisable into
approximately 5,718,838 shares of common stock of the Company. The shares of common stock issuable upon conversion of the Preferred Stock
together with warrants, restricted stock units and options assumed on the closing date represent approximately 80% of the outstanding
shares of Common Stock of the Company upon closing of the Merger. The merger closed on June 4, 2021. See Note 9</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; text-indent: 0.5in">Nanomix has developed an
advanced mobile Point-of-Care (POC) diagnostic system that can be used in performing a wide range of in vitro diagnostic tests in many
environments. Our goal is to provide laboratory quality testing for time sensitive medical conditions, at the first point of contact
that a patient has with the healthcare system, no matter where that occurs. The Nanomix eLab&reg; system is CE Marked, a 510(k) is currently
in development, and Emergency Use Application (EUA) for COVID testing has been submitted to the FDA. Nanomix intends to market and sell
the Nanomix eLab system for the detection and diagnosis of a variety of time sensitive medical conditions.</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"><B>NOTE 2 &ndash; BASIS OF PRESENTATION</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; text-align: justify; text-indent: 0.5in">The accompanying financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;)
and include all adjustments necessary for the fair presentation of the Company&rsquo;s financial position for the periods
presented.</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; text-indent: 0.5in">The Company currently operates
in one business segment focusing on the development of mobile diagnostic tests. The Company is not organized by market and is managed
and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer, who
comprehensively manages the entire business. The Company does not currently operate any separate lines of business or separate business
entities.</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; text-indent: 0.5in"></P>

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<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"><B><I>Going Concern</I></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; text-align: justify; text-indent: 0.5in">The accompanying financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization
of assets and satisfaction of liabilities in the normal course of business. The Company has not yet realized any significant revenues
from its planned operations. The Company had net losses of approximately $2.8 million and $1.2 million for the three months ended March
31, 2022 and 2021, respectively. These matters, among others, 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; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since inception, the operations
of the Company have been funded through the sale of common stock, preferred stock subject to redemption, debt and convertible debt, and
derived revenue from contract research and development services. Management believes that its existing working capital is insufficient
to fund the Company&rsquo;s operations for the next twelve months. As a result, the Company will need to raise additional capital to
fund its operations and continue to conduct activities that support the development and commercialization of its products. Management
intends to raise additional funds by way of public or private offering and continued contract research and development services. Management
cannot be certain that additional funding will be available on acceptable terms, or at all to the extent that the Company raises additional
funds by issuing equity securities, the Company&rsquo;s stockholders may experience significant dilution. Any debt financing, if available,
may involve restrictive covenants that impact the Company&rsquo;s ability to conduct business. If the Company is not able to raise additional
capital when required or an acceptable terms, the Company may have to (i) significantly delay, scale back or discontinue the development
and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidates at an earlier stage than otherwise
would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of
rights to technologies, product candidates or products that the Company would otherwise seek to develop or commercialize.</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; text-indent: 0.5in">The consolidated financial
statements do not include any adjustments that might be necessary if Company is unable to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Principles of Consolidation </I></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; text-align: justify; text-indent: 0.5in">The consolidated financial
statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and
transactions have been eliminated.</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>NOTE 3 &ndash; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</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"><B><I>Use of Estimates</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; text-indent: 0.5in">The preparation of the consolidated
financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (&ldquo;U.S. GAAP&rdquo;)
requires the Company&rsquo;s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated
financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions
it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values
of assets and liabilities. Actual results may differ from these estimates and these differences may be material. The more significant
estimates and assumptions by management include among others: recoverability of long-lived assets, accrued liabilities, the valuation
allowance of deferred tax assets resulting from net operating losses and the valuation of the Company&rsquo;s common stock, preferred
stock, warrants and options on the Company&rsquo;s common stock.</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; text-align: justify; background-color: white"><B><I></I></B></P>

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<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; text-align: justify; background-color: white"><B><I>Revenue Recognition</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company recognizes revenue
when the customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to
receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under Accounting
Standards Update (&ldquo;ASU&rdquo;) 2014-09 ASC 606 &ndash; Revenue from Contracts with customers: (i) identify contract(s) with a customer;
(ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price
to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All contracts with customers
are evaluated under the five-step model described above. The company recognizes income from R&amp;D milestone-based contracts when those
milestones are reached and non-milestone contracts and grants when earned. These projects are invoiced after expenses are incurred. Any
projects or grants funded in advance are deferred until earned.</P>

<P STYLE="font: 10pt Times 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>Cash and Cash Equivalents</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; text-indent: 0.5in">For purposes of the Consolidated
Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.
As of March 31, 2022, the Company places all of its cash and with one financial institution. Such funds are insured by The Federal Deposit
Insurance Corporation (&ldquo;FDIC&rdquo;) up to $250,000. Cash balances could exceed insured amounts at any given time; however, the
Company has not experienced any such losses. At March 31, 2022 and December 31, 2021 there were no cash equivalents.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Allowances for Sales Returns and Doubtful
Accounts</I></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; text-align: justify; text-indent: 0.5in">The allowance for sales returns
is based on the Company&rsquo;s estimates of potential future product returns and other allowances related to current period product
revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of&nbsp;the Company&rsquo;s&nbsp;products.
The allowance for doubtful accounts is based on the Company&rsquo;s assessment of the collectability of customer accounts and the aging
of the related invoices, and represents the Company&rsquo;s best estimate of probable credit losses in its existing trade accounts receivable.
The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts
receivable balances, and current economic conditions that&nbsp;may&nbsp;affect a customer&rsquo;s ability to pay. We determined that
no allowances for sales returns and doubtful accounts were required at March 31, 2022 and December 31, 2021.</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>Property and Equipment</I></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; text-align: justify; text-indent: 0.5in">Property and equipment are
carried at cost and depreciated or amortized using a straight-line basis over the estimated useful lives of assets, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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: 90%; text-align: justify">Computer equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center">3 years</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Office furniture and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5 years</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Laboratory equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">4 years</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Manufacturing equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">5 years</TD></TR>
  </TABLE>


<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; text-indent: 0.5in">Leasehold improvements are
depreciated over the shorter of their estimated useful lives or the term of the respective lease on a straight line basis.</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; text-indent: 0.5in">The cost of repairs and maintenance
is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated
depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.&nbsp;</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; text-indent: 0.5in">The Company will assess the
recoverability of property and equipment by determining whether the depreciation and amortization of these assets over their remaining
life can be recovered through projected undiscounted future cash flows. The amount of equipment impairment, if any, will be measured
based on fair value and is charged to operations in the period in which such impairment is determined by 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"></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>Income Taxes</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; text-indent: 0.5in">The Company accounts for
income taxes under an asset and liability approach that recognizes deferred tax assets and liabilities based on the difference between
the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in
which the differences are expected to reverse.</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; text-indent: 0.5in">The Company follows a more-likely
than -not threshold for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return.</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; text-indent: 0.5in">The company assesses the
realizability of its net deferred tax assets on an annual basis. If, after considering all relevant positive and negative evidence, it
is more likely than not that some portion or all of the net deferred tax assets will not be realized, the Company will reduce the net
deferred tax assets by a valuation allowance. The realization of the net deferred tax assets is dependent on several factors, including
the generation of sufficient taxable income prior to the expiration of the net operating loss carryforwards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has no uncertain
tax positions at any of the dates presented.</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>Foreign Currency Translation</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; text-indent: 0.5in">The Company derives a portion
of its revenue from foreign countries, but customers pay in U.S. Dollars. Therefore, no adjustments are required in the accompanying
consolidated financial statements for foreign currency transactions.</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"><B><I>Research and Development 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; text-indent: 0.5in">The Company expenses the
cost of research and development as incurred. Research and development expenses comprise costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other externa costs. Nonrefundable advance payments for goods and services that will be used in future research
and development activities are expensed when the activity is performed or when the goods have been received, rather when payment is made,
in accordance with ASC 730, <I>Research and Development</I>.</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"><B><I>Fair Value Measurements</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; text-indent: 0.5in">Fair value is defined as
the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs ( Level 3 measurements). These tiers include:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; 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">Level 1, defined as observable inputs such as quoted prices
for identical instruments in active markets;</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: 0; margin-bottom: 0; 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">Level 2, defined as inputs other than quoted prices in active
markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in markets that are not active; 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; margin-top: 0; margin-bottom: 0; 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">Level 3, defined as unobservable inputs in which little or
no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques
in which one or more significant inputs or significant value drivers are unobservable.</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; text-indent: 0.5in">The Company had no assets or liabilities which
were measured at fair value on a nonrecurring basis during the reporting periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Fair Value of Financial Instruments</I></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; text-align: justify; text-indent: 0.5in">In accordance with current
accounting standards, certain assets and liabilities must be measured at fair value. ASC 820 defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency
and comparability of fair value measurements and the related disclosures. ASC 820 requires that certain assets and liabilities must be
measured at fair value, and the standard details the disclosures that are required for items measured at fair value. The Company had
no assets and liabilities required to be measured on a recurring basis at December 31, 2021 and 2020.</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; text-indent: 0.5in">The current assets and current
liabilities reported on the Company&rsquo;s balance sheets are estimated by management to approximate fair market value due to their
short-term nature.</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"><B><I>Employee Stock-based Compensation</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; text-indent: 0.5in">Stock-based compensation
issued to employees and members of the Company&rsquo;s Board of Directors is measured at the date of grant based on the estimated fair
value of the award, net of estimated forfeitures. The grant date fair value of a stock-based award is recognized as an expense over the
requisite service period of the award on a straight-line basis.</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; text-indent: 0.5in">For purposes of determining
the variables used in the calculation of stock-based compensation issued to employees, the Company performs an analysis of current market
data and historical data to calculate an estimate of implied volatility, the expected term of the option and the expected forfeiture
rate. With the exception of the expected forfeiture rate, which is not an input, the Company uses these estimates as variables in the
Black-choles option pricing model. Depending upon the number of stock options granted, any fluctuations in these calculations could have
a material effect on the results presented in the Company&rsquo;s Statements of Operations. In addition, any differences between estimated
forfeitures and actual forfeitures could also have a material impact on the Company&rsquo;s 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"><B><I>Stock-Based Compensation Issued to Non-employees</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; text-indent: 0.5in">Common stock issued to non-employees
for acquiring goods or providing services is recognized at fair value when the goods are obtained or over the service period, which is
generally the vesting period. If the award contains performance conditions, the measurement date of the award is the earlier of the date
at which a commitment for performance by the non-employee is reached or the date at which performance is reached. A performance commitment
is reached when performance by the non-employee is probable because of sufficiently large disincentives for nonperformance.</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>Earnings per Share</I></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; text-align: justify; text-indent: 0.5in">The computation of basic
earnings per common share is based on the weighted average number of shares outstanding during the period. The computation of diluted
earnings per common share is based on the weighted average number of shares outstanding during the period plus the weighted average common
stock equivalents which would arise from the exercise of stock options, warrants, convertible preferred stock and other rights 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; text-indent: 0.5in">For the period ended March
31, 2022, the diluted weighted average number of shares is the same as the basic weighted average number of shares as the inclusion of
any common stock equivalents would be anti-dilutive.</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></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"><B>NOTE 4 &ndash; REVENUE </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; text-indent: 0.5in"><I>Deferred Revenue</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The company recognizes income
from R&amp;D milestone-based contracts when those milestones are reached and non-milestone contracts and grants when earned. These projects
are invoiced after expenses are incurred. Any projects or grants funded in advance are deferred until earned.</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; text-indent: 0.5in">From time to time the Company
may receive prepayment from customers for products to be manufactured or component materials to be procured and shipped in future dates.
Customer payments in advance of the applicable performance obligation are deferred and recognized in accordance with ASC 606.</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; text-indent: 0.5in">As of March 31, 2022 and
December 31, 2021, there were $293,523 unearned advanced revenues.</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; text-indent: 0.5in"><I>Disaggregation of Revenue</I></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; text-indent: 0.5in">The following table disaggregates
total revenues for the periods ending March 31, 2022 and 2021:</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>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three months Ended<BR>
March 31,</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="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">2021</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; padding-bottom: 1.5pt">Government grant income</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">141,778</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="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">0</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">141,778</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"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 5 &ndash; PROPERTY AND EQUIPMENT</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Property and equipment consisted of the following
at March 31, 2022 and December 31, 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">As of <BR>
March 31,</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 of<BR>
 December&nbsp;31,</TD><TD STYLE="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="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">2021</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">Computer Equipment &amp;Office Equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,502</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,453</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Lab Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300,112</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300,112</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">Manufacturing Equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">445,280</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">435,220</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,370</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,370</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Leasehold Improvements</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">11,550</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">20,232</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-align: left">Total property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">798,814</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">797,387</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(458,787</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">(458,069</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">Total property and equipment, net of accumulated depreciation</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">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">340,027</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">339,318</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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Depreciation expense was $21,443 and $8,165 for
the three months ended March 31, 2022 and 2021, respectively.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 6 &ndash; NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Convertible Note payable, net of discount</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In August and September 2016,
the Company issued senior convertible debentures for an aggregate of $1,600,000 (the &ldquo;Convertible Debentures&rdquo;) in exchange
for an aggregate net cash proceeds of $1,327,300, net of financing costs. The Convertible Debentures have a stated interest rate of 6%
per annum payable quarterly beginning June 30, 2017 and were due two years from the date of issuance, the latest due September 15, 2018
and are convertible into shares of the Company&rsquo;s common stock at the option of the holder at a conversion price of $0.075 with
certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price
for each of any 10 consecutive trading days equals or exceeds $0.50, or (ii) the Company&rsquo;s elects to lists a class of securities
on a national securities exchange.</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; text-indent: 0.5in">As long as the convertible
notes remain outstanding, the Company is restricted from incurring any indebtedness or liens, except as permitted (as defined), amend
its charter in any matter that materially effects rights of noteholders, repay or repurchase more than de minimis number of shares of
common stock other than conversion or warrant shares, repay or repurchase all or any portion of any indebtedness or pay cash dividends.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Convertible Notes and
accrued interest were exchanged into common stock prior to the merger leaving a remaining Convertible notes payable balance of $200,000
as of March 31, 2022 and December 31, 2021. Accrued interest $58,008 and $55,008 was included in accrued interest balance as of March
31, 2022 and December 31, 2021, respectively.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through December 31, 2011,
a founder of the company and significant shareholder, Dr. David Platt advanced $257,820 to the Company to fund start-up costs and operations.
Advances by Dr. Platt carry an interest rate of 6.5% and were due on June 29, 2013. On May 7, 2012, Dr. Platt and the Company&rsquo;s
former President and also a significant shareholder entered into promissory notes to advance to the Company $20,000 each for an aggregate
of $40,000. The notes accrue interest at 6.5% per year and were due June 30, 2013. The outstanding notes of $297,820 were amended each
year to extend the maturity dates. Effective June 30, 2015, the outstanding notes for Dr. Platt were amended to extend the maturity dates
to June 30, 2017. During 2017, the Company made fully paid the note and all accrued interest to the former President of the Company.
Dr. Platt&rsquo;s notes and accrued interest remain outstanding and are classified as current liabilities.</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; text-indent: 0.5in">In December 2013, the Board
of Directors agreed to indemnify Dr. Platt for legal costs incurred in connection with an arbitration (now concluded) initiated before
the American Arbitration Association by Galectin Therapeutics, Inc. (formerly named Pro-Pharmaceuticals, Inc.) for which Dr. Platt previously
served as CEO and Chairman. Galectin sought to rescind or reform the Separation Agreement entered into with Dr. Platt upon his resignation
from Galectin to remove a $1.0 million milestone payment which Dr. Platt asserted he was entitled to receive and to be repaid all separation
benefits paid to Dr. Platt. The Company initially capped the amount for which it would indemnify Dr. Platt at $150,000 in December 2013
and Dr. Platt agreed to reimburse the indemnification amounts paid by the Company should he prevail in the arbitration. The Board decided
to indemnify Dr. Platt after considering a number of factors, including the scope of the Company&rsquo;s existing indemnification obligations
to officers and directors and the potential impact of the arbitration on the Company. In May 2014, the Board approved a $50,000 increase
in indemnification support, solely for the payment of outside legal expenses. The Company recorded a total of $182,697 in costs associated
with Dr. Platt&rsquo;s indemnification, of which $119,401 was expensed in the year ended December 31, 2013 and of which $63,296 was expensed
in the year ended December 31, 2014. In July 2014, the arbitration was concluded in favor of Dr. Platt, confirming the effectiveness
of the separation agreement and payment was made to Dr. Platt in July 2014.</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; text-indent: 0.5in"></P>

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<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; text-indent: 0.5in">On March 2, 2015, the Board
of Directors voted to reduce the amount that Dr. Platt was required to reimburse the Company to $82,355 and to offset this amount against
interest accrued in respect of the outstanding note payable to Dr. Platt. In addition, the Board determined that Dr. Platt would be charged
interest related to the $182,697 indemnification payment since funds were received by Dr. Platt in July 2014. The Board of Directors
concluded the foregoing constituted complete satisfaction of Dr. Platt&rsquo;s indemnification by the Company. Accordingly, the Company
recorded the reduction in accrued interest through equity during the year ended December 31, 2015. As of March 31, 2022 and December
31, 2021, the balance of the notes payable to Dr. Platt totaled $277,821 and are included in notes payable. Accrued interest $135,942
and $127,575 was included into accrued interest balance as of March 31, 2022 and December 31, 2021, respectively.</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; text-indent: 0.5in">During 2021 the company issued
notes payable for a total amount of $270,000 to CJY Holdings, Ltd (&ldquo;CJY&rdquo;). CJY is a Hong Kong company owned by Conroy Chi-Heng
Cheng, a former director of Boston Therapeutics. The CJY Note is an unsecured obligation of the Company. Principal and interest under
the CJY Note is due and payable after one year. Interest accrues on the CJY Note at the rate of 10% per annum. As of March 31, 2022 and
December 31, 2021, the balance of the notes payable to CJY totaled $270,000 and are included notes payable. Accrued interest $30,142
and $23,485 was included into accrued interest balance as of March 31, 2022 andDecember 31, 2021, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Note Payable 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; text-indent: 0.5in">On June 26, 2018, the Company
entered into a License Agreement with Level Brands, Inc. (NYSE: LEVB), an innovative licensing, marketing and brand management company
with a focus on lifestyle-based products which includes an exclusive license to the kathy ireland&reg; Health &amp; Wellness&trade; brand.
Under the terms of the License Agreement, the Company received a non-exclusive, non-transferrable license to use the kathy ireland Health
&amp; Wellness&trade; trademark in the marketing, development, manufacture, sale and distribution of the Sugardown&reg; product domestically
and internationally. The initial term of the License Agreement is seven years, with an automatic two-year extension unless either party
notifies the other of non-renewal at least 90 days prior to the end of the then current term. Level Brands has agreed to use its commercially
reasonable efforts to perform certain promotional obligations, including: (i) producing four branded videos to promote the licensed product
and/or the Company; (ii) creation of an electronic press kit; (iii) making their media and marketing teams available for use in creating
the video content for which the Company will separately compensate; and (iv) curate social media posts in multiple social media channels.</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; text-indent: 0.5in">As compensation, the Company
will provide Level Brands with the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; 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">A marketing fee of $850,000, for development of video content
and an electronic press kit which will be used ongoing to support product marketing. This fee is paid with a promissory note of $450,000
and a number of shares of stock of the Company valued at $400,000 in accrued expenses, based on the closing price on the day prior to
the effective date;</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; 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">Quarterly fees for the first two years of up to $100,000 and
issuance of 100,000 shares each quarter, based on sales volumes. The Company has the right to make all the stock payments in cash; and</TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; 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">a royalty of 5% of the gross licensed marks sales up to $10,000,000,
7.5% royalty on sales from $10,000,000 to $50,000,0000 and 10% on sales over $50,000,000,payable monthly as well as a 1% of all revenue
for all Company products as of the date hereof.</TD>
</TR></TABLE>

<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; text-indent: 0.5in">The note payable of $450,000
bears interest at 8% and matures December 31, 2019, unless the Company raises $750,000 through Level Brands prior to that date in which
case the Note is to be repaid in full including accrued interest. As of March 31, 2022 and December 31, 2021 the principal balance of
the marketing note was $450,000. Accrued interest at March 31, 2022 and December 31, 2021 totaled $135,493 and $126,493, respectively.</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; text-indent: 0.5in">As of March 31 2022, the
Company has not issued the $400,000 of common stock which was due upon execution of the agreement or any of the shares pursuant to the
quarterly fee. The $400,000 is included in accrued expenses at March 31, 2022 and December 31, 2021. Due to the Company&rsquo;s low sales
volume, no accrual for royalties is included in the financial statements as the amounts would not be material.</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; text-indent: 0.5in">Level Brands sued the Company
for non-performance under the contract. The matter was taken to arbitration with both parties claiming nonperformance under the contract.
In October 2019, the arbitration was dismissed without prejudice.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Convertible Note Payable</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From 2018 to June 3, 2021,
the Company issued a total of $8.7 million of unsecured notes payable to investors including $7.7 million to related parties. These notes
bear interest at a rate of 15% per annum and include a common stock warrant equal to 30% of the face value of the note. The outstanding
principal, and accrued but unpaid interest on the notes converts into fully paid and non-assessable shares of Special Preferred Stock
at a price of $0.32276 per share in a Qualified Investment. In the event of conversion not in conjunction with a Qualified Investment,
the notes are convertible into Common Stock at a price of $0.10759. As of June 3, 2021, the Company had $1,960,116 interest accrued.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 4,2021 as a part of merger, the principal
amount and accrued interest were converted into 571,621 shares of Common Stock, fully converting the notes and accrued interest as of
March 31, 2022 and December 31, 2021. The principal and accrued interest were converted per the terms of the agreement as such no gain
or loss was recognized. The merger did not meet the Qualified Investment criteria.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>Note Payable and Senior Secured Convertible
Notes</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; text-indent: 0.5in">In May 2018, the Company
issued a secured note payable to a related party for a total amount of $1.0 million with a 90-day maturity. The maturity date of this
note was extended by mutual agreement with the note holder and the note was outstanding until June 25, 2021. As of June 25,2021, the
Company has $603,778 interest accrued.</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; text-indent: 0.5in">On June 25, 2021, the Company
and the $1.0 secured million note payable Holder entered into exchange agreement, whereby the company issued the Holder a Senior Secured
Convertible Note in the principal amount of $1,603,778 with a maturity date of June 18, 2023. On the maturity date, the Company shall
pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall accrue thereunder unless and until
an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible into validly, fully paid and non-assessable
shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also granted 1,368,762 2-year warrants exercisable
at $1.1717. The issuance of the note and warrants resulted in a loss on modification of debt of $2,385,204 for the year ended December
31, 2021. As of March 31, 2022 and December 31, 2021, the note balance was $1,603,778.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 25, 2021, the Company
and Gold Blaze Limited Vistra Corporate Services entered into exchange agreement, where the company issued the Gold Blaze Limited Vistra
Corporate Services Senior Secured Convertible Note in the principal amount of $500,000 with a maturity date of June 25, 2023. On the
maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall
accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 426,730 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount from the beneficial
conversion feature totaling $500,000. As of March 31, 2022 and December 31, 2021, the note was shown net of unamortized discount of $312,500
and $375,000, respectively. Discount amortization for the three months ended March 31, 2022 and March 31, 2021 was $62,500 and $0, respectively.</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; text-indent: 0.5in">In June 25, 2021, the Company
issued a Senior Secured Convertible Note to HT Investment MA LLC for a principal amount $5.0 million and maturity date of June 25, 2023.
On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 4,267,304 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount from the beneficial
conversion feature totaling $4,500,000. Funds received were $4,500,000 net of an original issue discount of $500,000. As of March 31,
2022 and December 31, 2021, the note was shown net of unamortized discount of $3,125,000 and $3,750,000, respectively. Discount amortization
for the three months ended March 31, 2022 and March 31, 2021 was $625,000 and $0, respectively.</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; text-indent: 0.5in"></P>

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<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; text-indent: 0.5in">In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Dr. Harold Parnes for a principal amount $1.2 million and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 1,024,153 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $222,534 and a discount from the relative fair value of warrants issued of $494,802.
As of March 31, 2022 and December 31, 2021, the note was shown net of unamortized discount of $535,013 and $624,680, respectively. Discount
amortization for the three months ended March 31, 2022 and March 31, 2021 was $89,667 and $0, respectively.</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; text-indent: 0.5in">In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Steve Schrader for a principal amount $131 thousand and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 113,510 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $24,672 and a discount from the relative fair value of warrants issued of $54,598. As
of March 31, 2022 and December 31, 2021, the note was shown net of unamortized discount of $59,124 and $69,033, respectively. Discount
amortization for the three months ended March 31, 2022 and March 31, 2021 was $9,909 and $0, respectively.</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; text-indent: 0.5in">In February 28, 2022, the
Company issued a Senior Secured Convertible Note to Zygote Ventures for a principal amount $111,111 and maturity date of February 28,
2024. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 94,829 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount totaling $100,000.
Funds received were $100,000 net of an original issue discount of $11,111. As of March 31, 2022 and December 31, 2021, the note was shown
net of unamortized discount of $106,481 and $0, respectively. Discount amortization for the three months ended March 31, 2022 and March
31, 2021 was $4,630 and $0, respectively.</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; text-indent: 0.5in">In February 28, 2022, the
Company issued a Senior Secured Convertible Note to Gold Blaze Limited Vistra Corporate Services for a principal amount $111,111 and maturity
date of February 28, 2024. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding
Principal. No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date,
this Note may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement,
the noteholder was also granted 94,829 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount
totaling $100,000. Funds received were $100,000 net of an original issue discount of $11,111. As of March 31, 2022 and December 31, 2021,
the note was shown net of unamortized discount of $106,481 and $0, respectively. Discount amortization for the three months ended March
31, 2022 and March 31, 2021 was $4,630 and $0, respectively.</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; text-indent: 0.5in">In February 28, 2022, the
Company issued a Senior Secured Convertible Note to Garrett Gruener for a principal amount $444,444 and maturity date of February 28,
2024. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 379,316 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount totaling $400,000.
Funds received were $400,000 net of an original issue discount of $44,444. As of March 31, 2022 and December 31, 2021, the note was shown
net of unamortized discount of $425,926 and $0, respectively. Discount amortization for the three months ended March 31, 2022 and March
31, 2021 was $18,519 and $0, respectively.</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; text-indent: 0.5in"></P>

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<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"><B>NOTE 7 &ndash; COMMITMENTS AND CONTINGENCIES</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-indent: 0.5in"><B>Preferred Stock</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 0pt 0.25in; text-indent: 0.25in"><I>Series B</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has designated
1,000,000 shares of its preferred stock as Series B Preferred Stock. Each share of Series B Preferred Stock has a stated value of $1.
Each share of the Series B Preferred Stock is convertible into 1,000 shares of the Company&rsquo;s common stock. The Series B Preferred
Stock shall have no voting rights until January 1, 2022 when it will be on an as converted basis (subject to limitations) and liquidation
preference for each share of Series B Preferred Stock at an amount equal to the stated value per share.</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; text-indent: 0.5in">As of December 31, 2021,
the Company has 963,964 shares of Series B Preferred Stock outstanding. The Series B Preferred Stock has been classified outside of permanent
equity and liabilities since it embodies a conditional obligation that the Company may settle by paying the monetary value in cash upon
a liquidation event due to the liquidation preferences of the Series B Preferred Stock based upon its designation.</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; text-indent: 0.5in">The Series B preferred stock
shares are accounted for outside of permanent equity due to the terms of cash-redemption features.</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; text-indent: 0.5in">In March 2022 as a result
of the Reverse Stock Split, all shares of Preferred Stock B converted into 5,572,045 shares of common stock of the Company. </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; text-indent: 0.5in">As of March 31, 2022, the
Company has 0 shares of Series B Preferred Stock outstanding.</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-indent: 0.25in"><I>Series C</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As consideration for the
Merger, the Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible Preferred Stock of
the Company (the &ldquo;Preferred Stock&rdquo;). Upon the effectiveness of the amendment to our Certificate of Incorporation to effectuate
the reverse stock split of&nbsp;one-for-173, all such shares of Preferred Stock issued to Nanomix shareholders shall automatically convert
into approximately 35,644,997 shares of common stock of the Company. Shares of the Series C Preferred Stock shall be entitled to vote
on any matter and shall each collectively represent 80% of the votes eligible to be cast in any manner. The Series C Preferred Stock
are not entitled to any dividends (unless specifically declared by our Board), but will participate on an as-converted-to-common-stock
basis in any dividends to the holders of our common stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Series C preferred stock
shares are accounted for outside of permanent equity due to the terms of cash-redemption features.</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; text-indent: 0.5in">In March 2022 as a result of the Reverse Stock Split, 991,133 shares
of Preferred Stock C issued to the Nanomix shareholders converted into 35,328,980 shares of common stock of the Company. In April 2022
3,281 shares of preferred Stock C were converted into 116,939 shares of common stock of the Company. The remaining 5,586 shares of Preferred
Stock C are still outstanding.</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-indent: 0.25in"><I>Series D</I></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; text-indent: 0.5in">On March 23, 2022, Nanomix
Corporation entered into a Securities Purchase Agreement with a Purchaser pursuant to which the Purchaser purchased five hundred (500)
shares of the Company&rsquo;s Series D Convertible Preferred Stock for an aggregate purchase price of $500,000. In addition, in connection
with the issuance of the Series D Preferred Stock, the Purchaser received a five year warrant to purchase 60,000 shares of the Company&rsquo;s
common stock. The Warrant is exercisable at an exercise price of $2.0587 per share of Common Stock, subject to certain beneficial ownership
limitations&nbsp;(with a maximum ownership limit of 9.99%). The exercise price is also subject to adjustment due to certain events, including
stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of&nbsp;our Common Stock
or&nbsp;Common Stock equivalents at an effective price per share lower than the exercise price then in effect. The holders may exercise
the Warrants on a cashless basis if the shares of our Common Stock underlying the Warrants are not then registered pursuant to an effective
registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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; text-indent: 0.5in">In addition, upon the terms
and subject to the conditions set forth in the Purchase Agreement, fifteen (15) calendar days following the effective date of a registration
statement registering the resale of the maximum aggregate number of (i) shares of Common Stock issuable pursuant to the conversion of
the Preferred Stock and (ii) Warrant Shares issuable upon exercise of the Warrants issuable pursuant to the Purchase Agreement, and on
each of the 30<SUP>th</SUP>, 60<SUP>th</SUP>, 90<SUP>th</SUP> and 120<SUP>th</SUP> calendar day anniversaries of the Effective Date,
assuming no Event of Default (as defined in the Purchase Agreement) has taken or is taking place, the Company agrees to sell, and the
Purchaser agrees to purchase, an additional five hundred (500) shares of Preferred Stock at price of $1,000 per share of Series D Preferred
Stock. Concurrently with the issuance of any Series D Preferred Stock, the Company shall issue to Purchaser a warrant to purchase up
to a number of Warrant Shares equal to 30% of the quotient of (a) the Purchase Price due at the relevant closing) and the Closing Price
of the Company&rsquo;s Common Stock for the Trading Day preceding such additional 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; text-indent: 0.5in">In connection with the entry
into the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible
Preferred Stock with the Delaware Secretary of State to create a new class of preferred stock designated Series D Preferred Stock and
authorized the issuance of up to ten thousand (10,000) shares of Series D Preferred Stock. The Series D Preferred Stock has a stated
value of $1,200 per share and the holder of the Series D Preferred Stock has the right to receive a dividend equal to eight percent (8%)
per annum, payable quarterly, beginning on the issuance date of the Series D Preferred Stock and ending on the date that the Series D
Preferred Stock has been converted or redeemed. Dividends may be paid in cash or in shares of Series D Preferred Stock at the discretion
of the Company. At closing, the Company prepaid one year&rsquo;s worth of interest in shares of Series D Preferred Stock. The Series
D Preferred Stock will vote together with the common stock on an as-converted basis subject to the Beneficial Ownership Limitations.
Further, the holders of the Series D Preferred Stock have the right to receive assets in the event of liquidation, dissolution or winding
up before any distribution or payment shall be made to the holders of any securities junior to the Series D Preferred Stock. The Company
is required to reserve and keep available out of our authorized and unissued shares of Common Stock three times the number of Common
Stock needed to convert or exercise all Series D Preferred Stock and Warrants issued pursuant to the Purchase Agreement.</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; text-indent: 0.5in">The conversion price for
the Series D Preferred Stock shall be the amount equal to the lower of (1) $2.08, a fixed price equaling the closing bid price of the
Common Stock on the trading day immediately preceding the date of the Purchase Agreement and (2) one hundred percent (100%) of the quotient
of (A) the sum of the VWAP of the Common Stock for each of the three (3) trading days with the lowest VWAP during the twenty (20) consecutive
trading day period ending on the trading day immediately preceding the date of delivery of a conversion notice and (B) three, subject
to the Beneficial Ownership Limitations. Following an &ldquo;Event of Default,&rdquo; as defined in the Purchase Agreement, the Conversion
price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price per share equaling eighty percent (80%) of the
lowest traded price for the Company&rsquo;s common stock during the fifteen (15) Trading Days immediately preceding, but not including,
the Conversion Date. The Conversion Price is also subject to adjustment due to certain events, including stock dividends, stock splits
and fundamental transactions and in connection with the issuance by the Company of&nbsp;our Common Stock or&nbsp;Common Stock equivalents
at an effective price per share lower than the Conversion Price then in effect.</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; text-indent: 0.5in">The Series D preferred stock
shares are accounted for outside of permanent equity due to the terms of cash-redemption features.</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-indent: 0.5in"><B>Research and Development Arrangement</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In April of 2020, the Company
received a BARDA fixed price, cost sharing contract for development and EUA filing of COVID-19 Anitbody and Antigen tests on the Nanomix
eLab platform. The total amount of the milestone-based contract was $569,647. As of December 31, 2021, the full amount of $569,467 had
been received under the contract.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Company does not have Employment Agreements
with any employees. All employees are employed under &ldquo;at will&rdquo; arrangements without guarantees or separation arrangements.</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-indent: 0.5in"><B>Leases</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During 2021 the Company leased
its facility under a sublease agreement. The Sublease term was from November 19, 2019 to December 15, 2021. The sublease agreement was
extended through December 31, 2021. Rent expense was recognized on a straight-line basis over the lease term.</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; text-indent: 0.5in">On December 6, 2021 the Company
signed a short-term lease agreement for the same facility with a term from January 1, 2022 to March 31, 2022.</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; text-indent: 0.5in">On February 4, 2022 the Company
signed a new facility lease agreement moving all operaations to a new location. The Lease term is from April 1, 2022 to March 31, 2027.
Rent expense will be recognized on a straight-line basis over the lease term. See details in Note 8.</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-indent: 0.5in"><B>Legal</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company is not currently
involved in any legal matters in the normal course of business. From time to time, the Company could become involved in disputes and
various litigation matters that arise in the normal course of business. These may include disputes and lawsuits related to intellectual
property, licensing, contract law and employee relations matters. Periodically, the Company reviews the status of significant matters,
if any exist, and assesses its potential financial exposure. If the potential loss from any claim and legal claim is considered probable
and the amount can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties,
and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the
time. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigations.</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>NOTE 8 &ndash; LEASES</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; text-indent: 0.5in">Our adoption of ASU 2016-02,
Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet
as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted
this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application
method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected
the &lsquo;package of practical expedients,&rsquo; which permitted us to not reassess our prior conclusions related to lease identification,
lease classification, and initial direct costs, and we did not elect the use of hindsight.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Lease ROU assets and liabilities
are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset
also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining
the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the
information available at the lease commencement date, including the lease term.</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; text-indent: 0.5in">We recognized a $639,335
right-of-use asset and $639,335 related lease liability as of March 31, 2022 for our operating lease. For our operating lease, the asset
is included in other long-term assets on the balance sheet and is amortized within operating income over the lease term. The long-term
component of the lease liability is included in other long-term liabilities, net, and the current component is included in other current
liabilities.</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; text-indent: 0.5in">Short-term leases with an
initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight-line
basis over the lease term. As of March 31, 2022 the Company had three-months lease which was recognized over the period January 1, 2022
to March 31,2022.</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; text-indent: 0.5in">The company incurred rent
expense, which is included as part of selling, general and administrative expenses, of $81,251 and $69,278 for the three months ended
March 31, 2022 and 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; 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; text-indent: 0.5in">The tables below present
financial information associated with our lease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&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"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: center"><B>Balance Sheet</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>March 31,</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>December&nbsp;31,</B></TD><TD STYLE="text-align: center"><B>&nbsp;</B></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; text-align: center"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Classification</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2022</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>2021</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 55%; text-align: left">Right-of-use assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: center">Other long-term assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">639,335</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Other current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">83,056</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</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-current lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Other long-term liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">556,278</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of March 31, 2022, our maturities of our lease liability are as
    follows:</P>

<P STYLE="margin: 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="padding-bottom: 1.5pt; text-align: left">&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">March 31, <BR>
2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Maturity of lease liabilities</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">Operating <BR>
Leases</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">2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">173,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">178,602</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2025</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">183,960</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2026</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189,479</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">2027</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">195,163</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total lease payments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">920,604</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">Less: Imputed interest</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(281,269</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Present value of lease liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">639,335</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>NOTE 9 &ndash; BUSINESS COMBINATION</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; text-indent: 0.5in">On June 4, 2021, the Company
consummated the Business Combination with Nanomix, Inc pursuant to the agreement between Nanomix, Inc and Boston Therapeutics, Inc (the
Merger Agreement&rdquo;). Pursuant to ASC 805, for financial accounting and reporting purposes, Nanomix, Inc was deemed the accounting
acquirer and the Company was treated as the accounting acquiree, and the Business Combination was accounted for as a reverse recapitalization.
Acordingly, the Business Combination was treated as the equivalent of the Nanomix, Inc issuing stock for the net assets of Boston Therapeutics,
Inc, accompanied by a recapitalization. The net assets of Boston Therapeutics, Inc were stated at historic costs, with no goodwill or
other intangible assets recorded, and are consolidated with Nanomox, Inc&rsquo;s financial statements on the Closing date. The shares
and net income (loss) per share available to holders of the Company&rsquo;s common stock, prior to the Business Combination, have been
adjusted as shares reflecting the exchange ration established in the Merger Agreement.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 10 &ndash; STOCKHOLDERS&rsquo; DEFICIT </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-indent: 0.5in"><B>Common Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2020,
the Company was authorized to issue 137,000,000 shares of common stock with a par value of $0.00001 per share, and 4,298 common shares
were issued and outstanding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 25, 2021, the
Company issued 1,214 common shares for option exercise with exercise price $1.73 per share</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On February 11, 2021, the
Company issued 3,486 common shares for option exercise with average exercise price $6.12 per share.</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-indent: 0.5in">On June 4, 2021, as consideration for the Merger,
the Company:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; 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">converted 101,015,049 shares of preferred stock into 618,687
shares of common stock;</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: 0; margin-bottom: 0; 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">converted $10,639,615.96 of notes payable and accrued interest
into 571,621 shares of common stock with conversion rate 18.613;</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: 0; margin-bottom: 0; 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">exchanged all outstanding 1,199,306 shares of common stock
for newly created 1,000,000 shares Series C Convertible Preferred Stock;</TD>
</TR></TABLE>

<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; text-indent: 0.5in">On September 2021, the Company
re-purchased 5,435 of Nanomix, Inc. pre-merger common shares from unaccredited investors for the amount $202,188.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On October 8, 2021, a Nanomix,
Inc stock option was exercised for 506 shares of Nanomix, Inc. pre-merger common stock with an exercise price of $8.65 per share for
a total amount of $4,375. The shares weren&rsquo;t issued pending effectiveness of the reverse stock split and the exercise was recorded
in Stock payable. Shares of Nanomix Corporation common stock were subsequently issued in 2022 after effectiveness of the reverse stock
split.</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; text-indent: 0.5in"></P>

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<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; text-indent: 0.5in">On November 15, 2021, a Nanomix,
Inc stock option exercised for 2,312 shares of Nanomix, Inc. pre-merger common stock with an exercise price $6.92 per share for the amount
$16,000. The shares weren&rsquo;t issued pending effectiveness of the reverse stock split and the exercise was recorded in Stock payable.
Shares of Nanomix Corporation common stock were subsequently issued in 2022 after effectiveness of the reverse stock split.&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; text-indent: 0.5in">On January 11, 2022, Nanomix
Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware Secretary of State to
effect a reverse split of the Company&rsquo;s outstanding shares of common stock, par value $0.0001 per share (the &ldquo;Common Stock&rdquo;),
at a ratio of 1-for-173. The reverse split was recorded retrospectively in 2021 financial statements converted 916,914,554 common shares
of Boston Therapeutics stock into 5,300,084 common shares of Nanomix Corporation with par value $0.001.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2021,
the Company had a total of 5,300,084 common shares issued and outstanding with a par value of $0.001. The Company has 2,000,000,000 authorized
shares of common stock as of the same period and after the reverse stock split.</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; text-indent: 0.5in">On January 11, 2022, Nanomix
Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware Secretary of State to
effect a reverse split of the Company&rsquo;s outstanding shares of common stock, par value $0.0001 per share (the &ldquo;Common Stock&rdquo;),
at a ratio of 1-for-173. Pursuant to the Amendment, every one-hundred and seventy three (173) shares of the Company&rsquo;s Common Stock
issued and outstanding or held in treasury (if any) immediately prior to the effectiveness of Amendment were automatically reclassified
as and combined, without further action, into one (1) validly issued, fully paid and nonassessable share of Common Stock. No fractional
shares will be issued in connection with the Reverse Stock Split; but rather, the Company issued one whole share of the post-Reverse
Stock Split Common Stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split.
As a result additional 2,757 shares of common stock were issued.</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; text-indent: 0.5in">In March 2022 as a result
of the Reverse Stock Split, all shares of Preferred Stock B converted into 5,572,045 shares of common stock of the Company.</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; text-indent: 0.5in">In March 2022 as a result
of the Reverse Stock Split, 991,133 shares of Preferred Stock C issued to the Nanomix shareholders converted into 35,328,980 shares of
common stock of the Company.</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; text-indent: 0.5in">As of March 31, 2022, the
Company has 2,000,000,000 authorized shares of common stock, 46,203,866 common shares issued and outstanding with a par value of $0.001.</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>NOTE 11 &ndash; WARRANTS</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; text-indent: 0.5in">As described in Note 6, pursuant
to issuance convertible notes payable to investors, the Company issued warrants to purchase an aggregate of 1,373,861 shares of the Company&rsquo;s
Common Stock at an exercise price $0.058 per share during 2018 - 2021. The Company has recognized an expense for these services within
general and administrative expense in the accompanying Statements of Operations in the years of warrants issuance of approximately $0
for the three months ended March 31, 2022 and 2021, respectively.</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; text-indent: 0.5in">On September 1, 2018, the
Company issued warrant to investor to purchase an aggregate of 527,921 shares of the Company&rsquo;s Common Stock at an exercise price
of $0.058 per share.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 3, 2020, the Company
issued warrants to Fastnet Advisors, LLC. to purchase an aggregate of 96,951 shares of the Company&rsquo;s Common Stock at an exercise
price of $0.058 per share. On December 14, 2020, the Company issued warrants outside consultant to purchase an aggregate of 102,178 shares
of the Company&rsquo;s Common Stock at an exercise price of $0.058 per share.</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; text-indent: 0.5in">On June 25, 2021, the Company
issued warrants to related party to purchase an aggregate of 1,368,762 shares of the Company&rsquo;s Common Stock at an exercise price
of $1.1717 per share. The issuance of warrants resulted in a loss on modification of debt of $2,385,204. (refer to Note 6). On June 25,
2021, the Company issued warrants to Gold Blaze Limited Vista Corporate Services to purchase an aggregate of 426,730 shares of the Company&rsquo;s
Common Stock at an exercise price of $1.1717 per share. On June 25, 2021, the Company issued warrants to HT Investments MA LLC to purchase
an aggregate of 4,267,304 shares of the Company&rsquo;s Common Stock at an exercise price of $1.1717 per share. On September 27, 2021,
the Company issued warrants to Dr. Harold Parnes to purchase an aggregate of 1,024,153 shares of the Company&rsquo;s Common Stock at
an exercise price of $1.1717 per share. On September 27, 2021, the Company issued warrants to Steve Schrader to purchase an aggregate
of 113,510 shares of the Company&rsquo;s Common Stock at an exercise price of $1.1717 per share.</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; text-indent: 0.5in"></P>

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<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; text-indent: 0.5in">On February 28, 2022, the
Company issued warrants to Gold Blaze Limited Vista Corporate Services to purchase an aggregate of 94,829 shares of the Company&rsquo;s
Common Stock at an exercise price of $1.1717 per share. On February 28, 2022, the Company issued warrants to Zygote Ventures to purchase
an aggregate of 94,829 shares of the Company&rsquo;s Common Stock at an exercise price of $1.1717 per share. On February 28, 2022, the
Company issued warrants to Garrett Gruener to purchase an aggregate of 379,316 shares of the Company&rsquo;s Common Stock at an exercise
price of $1.1717 per share. On March 23, 2022, the Company issued warrants to GHS Investments LLC to purchase an aggregate of 60,000
shares of the Company&rsquo;s Common Stock at an exercise price of $2.0587 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-indent: 0.5in">As of March 31, 2022 all warrants remain outstanding.</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-indent: 0.5in">The following represents a summary of the Warrants
outstanding at March 31, 2022, and changes during the period then ended:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</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">Weighted <BR> Average</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="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">Warrants</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">Exercise <BR> Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-bottom: 1.5pt">Outstanding at December 31, 2020</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">2,002,622</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">0.0581</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-indent: 8pt">Granted with exercise price $0.058</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">122,065</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0581</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: 8pt">BTHE warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">222,302</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.7300</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 8pt">Granted with exercise price $1.1717</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,200,459</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.1717</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: 8pt">Exercised/Expired/Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Outstanding at December 31, 2021</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">9,547,448</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.9369</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: 8pt">Granted with exercise price $1.1717</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">568,973</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.1717</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 8pt">Granted with exercise price $2.0587</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.0587</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: 8pt">Exercised/Expired/Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Outstanding at March 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">10,176,421</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.9566</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 12 &ndash; STOCK-BASED COMPENSATION</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; text-indent: 0.5in">Terms of the Company&rsquo;s
share-based on compensation are governed by the Company&rsquo;s 2010 Equity Incentive Plan (&ldquo;the 2010 Plan&rdquo;). The 2010 Plan
permits the Company to grant non-statutory stock options, incentive stock options, restricted stocks, and stock purchase rights to the
Company&rsquo;s employees, outside directors and consultants; however incentive stock options may only be granted to the Company&rsquo;s
employees. As of June 30, 2021, the maximum aggregate number of shares of common stock that may be issued is 19,410,000 shares under
the 2010 Plan, subject to adjustment due the effect of any stock split, stock dividend, combination, recapitalization or similar transaction.
The exercise price for each option is determined by the Board of Directors, but will be (i) in the case of an incentive stock option,
(A) granted to an employee who, at the time of grant of such option, is a 10% Holder, no less than 110% of the fair market value per
share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the date of
grant; and (ii) in the case of a nonstatutory stock option, no less than 100% of the fair market value per share on the date of grant.
The options awarded under the 2010 Plan shall vest as determined by the Board of Directors but shall not exceed a ten-year period.</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-indent: 0.5in"><B>Restricted Stock Units</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; text-indent: 0.5in">During year ended December
31, 2021, the company granted 19,783,551 restricted stock units (RSU) to its employees. Of these, 1,542,776 were forfeited due to employee
resignations. Restricted stock is valued at the fair market value on the date of grant with expense recognized over the vesting period
from June 4, 2021 till February 20, 2023. The Company has recognized an expense for vested RSU within general and administrative expense
in the accompanying Statements of Operations of approximately $9,159 and $0 for period ended March 31, 2022 and 2021, respectively.</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>
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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-indent: 0.5in"><B>Options Issued to Directors and Employees as
Compensation and to Nonemployees for Services Received</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; text-indent: 0.5in">Pursuant to the terms of
the 2010 Plan, from 2010 to 2021, the Company has granted an aggregate of 5,340,844 options to its executive officers and employees of
the Company and to Nonemployees for Services Received. Of these, 2,763,489 options were exercised or forfeited and 2,577,355 remain outstanding
as of December 31, 2021. The exercise prices of these grants, as determined by the Company&rsquo;s Board of Directors, were $0.058 to
$0.46 per share. The Company has recognized an expense for these services within general and administrative expense in the accompanying
Statements of Operations of approximately $20,391 and $28,405 for three months ended March 31, 2022 and 2021, respectively. As of March
31, 2022, there was approximately $146,267 of total unrecognized compensation cost related to non-vested share-based compensation arrangements.
This cost is expected to be recognized over a weighted average period of 2.56 years.</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-indent: 0.5in"><B>Stock-based Compensation Summary Tables</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table represents a summary of the
options granted to employees and non-employees outstanding at March 31, 2022 and changes during the period then ended:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&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="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</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">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</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">Weighted <BR>
Average</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">Weighted <BR>
Average</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="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">Options</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">Exercise<BR> Price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Intrinsic<BR> Value</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">Remaining <BR>
Life</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Outstanding at December 31, 2021</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,577,335</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.23</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.06</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">5.67</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: 8pt">Granted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: 8pt">Exercised/Expired/Forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Outstanding at&nbsp;March 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">2,577,335</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.23</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.06</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">5.67</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">Exercisable at March, 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">2,358,804</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.23</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.06</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">4.78</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">Expected to be vested</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">218,531</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.29</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.00</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">8.64</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-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-bottom: 0pt"><B>NOTE 13 &ndash; WARRANTS AND OPTIONS VALUATION</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company calculates the
fair value of warrant and stock-based compensation awards granted to employees and nonemployees using the Black-Scholes option-pricing
method. If the company determinates that other methods are more reasonable, or other methods for calculating these assumptions are prescribed
by regulators, the fair value calculated for the Company&rsquo;s stock options could change significantly. Higher volatility and longer
expected lives would result in an increase to stock-based compensation expense to non-employees determined at the date of grant. Stock-based
compensation expense to non-employees affects the Company&rsquo;s selling, general and administrative expenses and research and development
expenses.</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; text-indent: 0.5in">The Black-Scholes option-pricing model requires
the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards. The assumptions used in the
Black-Scholes option-pricing method for the periods ended March 31, 2022 and 2021 are set forth below:</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="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the period ended</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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">March 31,<BR>
 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">March 31, <BR>
2021</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">Expected dividend yield</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">0.00</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">0.00</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected stock-price volatility</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">54.97%&nbsp;-&nbsp;127.09</FONT></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">54.97%&nbsp;-&nbsp;122.28</FONT></TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Risk-free rate</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">1.09%
- 2.82</FONT></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">0.61%
- 2.82</FONT></TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Term of options</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">5-10</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5-10</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Stock price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.29</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; 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"><I>Expected term</I>. The expected term represents the period
that the stock-based awards are expected to be outstanding. The Company&rsquo;s historical share option exercise experience does not
provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient data. Therefore, the Company estimates
term by using the simplified method provided by the SEC. The simplified method calculates the expected term as the average of the time-to-vesting
and the contractual life of the options.</TD>
</TR></TABLE>

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

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

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<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: 0; margin-bottom: 0; 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"><I>Expected volatility.</I> As the Company&rsquo;s common
stock has never been publicly traded, the expected volatility is derived from the average historical volatilities of publicly traded
companies within the Company&rsquo;s industry that the Company considers to be comparable to the Company&rsquo;s business over a period
approximately equal to the expected term.</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: 0; margin-bottom: 0; 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"><I>Risk-free interest rate</I>. The risk-free interest rate
is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasure notes with maturities approximately
equal to the expected term.</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: 0; margin-bottom: 0; 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"><I>Expected dividend</I>. The expected dividend is assumed
to be zero as the Company has never paid dividends and have no current plans to pay any dividends on the Company&rsquo;s common stock.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the assumptions used in
the Black-Scholes option-pricing model, the Company also estimates a forfeiture rate to calculate the stock-based compensation for the
Company&rsquo;s equity awards. The Company will continue to use judgement in evaluating the expected volatility, expected terms and forfeiture
rates utilized for the Company&rsquo;s stock-based compensation calculations on a prospective basis.</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>NOTE 14 &ndash; RELATED PARTY TRANSACTIONS</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; text-indent: 0.5in">The Company had a secured
note payable to Mr. Garrett Gruener, its investor, with a balance of $1,000,000 at June 25, 2021 and December 31, 2020. The note and
related accrued interest of $603,778 were exchanged for an equal amount of Convertible Equity in the June 25, 2021 financing. As a result
of the exchange as part of the merger, the Company issued a senior secured convertible note to Mr. Garrett Gruener, its investor, with
a principal amount of $1,603,778 and 779,025 5-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in
a loss on modification of debt of $2,385,204. As of March 31, 2022 and December 31, 2021, the note balance was $1,603,778.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company has a Senior
Secured Convertible Note to Garrett Gruener, its investor, for a principal amount $444,444. As of March 31, 2022 and December 31, 2021,
the note net of unamortized discount balance as of March 31, 2022 and December 31, 2021 was $18,519 and $0, respectively.</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-indent: 0.5in">The Company had accrued salary payable and accounts
payable to Mr. Ludvigson, its Chief Executive Officer, with a total balance of $65,000 as of March 31, 2022 and a balance of $50,000
as of December 31, 2021.</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; text-indent: 0.5in">Included in the account payable
and accrued expenses at March 31, 2022 and December 31, 2021 are amounts due shareholders, officers and directors of Boston Therapeutics
in the amounts of $304,973.</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-indent: 0.5in">The summary of related party balances as of March
31, 2022 and December 31, 2021:</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>&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">31-Mar-22</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">31-Dec-21</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-weight: bold">Account payable and accrued expenses, related party:</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: 76%; text-align: left">Mr. Ludvigson</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">65,000</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">50,000</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">Loraine Upham</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,995</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">Loraine Upham accrued compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">188,716</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">188,716</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">David Platt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,399</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,399</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">S. Colin Neill</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,750</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">Upham Bioconsulting, LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,113</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,113</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Uphambc Consulting</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,000</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">20,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">369,973</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">354,973</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-left: 0in; font-weight: bold; text-align: left">Senior Secured Convertible note, related party:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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; padding-bottom: 1.5pt">Mr. Gruener</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,622,297</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">1,603,778</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,622,297</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,603,778</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"></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>NOTE 15 &ndash; INCOME TAXES</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; text-indent: 0.5in">The Company accounts for
income taxes in accordance with standards of disclosure propounded by the FASB, and any related interpretations of those standards sanctioned
by the FASB. Accordingly, deferred tax assets and liabilities are determined based on differences between the consolidated financial
statement and tax bases of assets and liabilities, as well as a consideration of net operating loss and credit carry forwards, using
enacted tax rates in effect for the period in which the differences are expected to impact taxable income. A valuation allowance is established,
when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Due to the uncertainty as to
the utilization of net operating loss carry forwards, a valuation allowance has been made to the extent of any tax benefit that net operating
losses may generate.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the date the financial
statements were available to be issued, the federal and state income tax returns for the year ended December 31, 2021 have not been filed
by the company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2020,
the Company has federal and state net operating loss carryforward of approximately 93.0 million and $57,8 million available to reduce
future taxable income, if any, for Federal and state income tax purposes. The Company experienced a Section 382 change of ownership in
connection with the merger in 2021, thereby subjecting net operating loss carryovers generated previously to limitations on utilization.
To-date, these limitations have not had an impact on the Company&rsquo;s reported income tax.</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; text-indent: 0.5in">The Company&rsquo;s deferred
tax asset and valuation allowance at December 31, 2021:</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="font-weight: bold">Schedule of Deferred Tax Assets</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">As of December 31, 2021</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <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: 88%; text-align: left">NOL at 12/31/20</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(93,056,108</TD><TD STYLE="width: 1%; 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>Net income year ended December 31, 2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,465,033</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss on debt modification</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,385,204</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest Expense - Debt Discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,511,049</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">Interest Expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">706,126</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other accrued expenses - CY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,642</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 Compensation - Options</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">139,515</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued Vacation &ndash; CY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,152</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">Compensation &ndash; RSU</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,077</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Change in fair value of derivative liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,282</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in fair value of warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(438,972</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">NOL at 12/31/21</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(97,629,630</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Effective rate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Deferred tax asset</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(20,502,222</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">Valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,502,222</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax asset at 12/31/21</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<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; text-indent: 0.5in">The ultimate realization
of our deferred tax asset is dependent, in part, upon the tax laws in effect, our future earnings, and other events.&nbsp; As of and
December 31, 2021 and 2020, we recorded a 100% allowance against our deferred tax asset since we were unable to conclude that it is more
likely than not that our deferred tax asset will be realized.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The company&rsquo;s major
tax jurisdictions are the United States and California. All of the Company&rsquo;s tax years will remain open three and four years for
examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. As of December
31, 2021, the tax years beginning after 2018 and 2017 remain subject to examination by US Federal and Californian authorities. However,
net operating losses carried forward are subject to examination in the tax year utilized.</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>NOTE 16 &ndash; EMPLOYEE BENEFIT PLAN</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; text-indent: 0.5in">The company established a
401(k) tax deferred saving plan, which permits participants to make contributions by salary deduction pursuant to Section401(k) of the
Internal Revenue Code. The Company may, at its discretion, make matching contributions to the plan. The Company is responsible for administrative
cost of the Plan. As of March 31, 2022 and December 31, 2021, the Company has made no contributions to the plan since its inception.</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>NOTE 17 &ndash; SUBSEQUENT EVENTS</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; text-indent: 0.5in; background-color: white">In
April 2022 3,281 shares of Preferred Stock C were converted into 116,939 shares of common stock of the Company. 5,586 shares of Preferred
Stock C are still outstanding and will be converted into 199,131 of common stock of the Company later.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Management
has evaluated subsequent events according to the requirements of ASC TOPIC 855 as of the date of the report, and believes there are no
additional subsequent events to report.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</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">&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">NANOMIX CORP.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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>_________ Shares of Common Stock</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>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</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>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>&nbsp;______________________________</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">&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: justify; text-indent: 0.5in">We have not authorized any
dealer, salesperson, or other person to give you written information other than this prospectus or to make representations as to matters
not stated in this prospectus. You must not rely on unauthorized information. This prospectus is not an offer to sell these securities
or our solicitation of your offer to buy these securities in any jurisdiction where that would not be permitted or legal. Neither the
delivery of this prospectus nor any sales made hereunder after the date of this prospectus shall create an implication that the information
contained herein or the affairs of the Company have not changed since the date of this prospectus.</P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II&mdash;INFORMATION NOT REQUIRED IN 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"><B>Item&nbsp;13. Other Expenses of Issuance and Distribution</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; text-align: justify; text-indent: 0.5in">The following table sets forth
an estimate of the fees and expenses relating to the issuance and distribution of the securities being registered hereby, other than underwriting
discounts and commissions, all of which shall be borne by the selling stockholders. All of such fees and expenses, except for the SEC
Registration Fee, are estimated:</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; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left; text-indent: -9pt; padding-left: 9pt">SEC registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right"></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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; text-indent: -9pt; padding-left: 9pt">Printing fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</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; text-indent: -9pt; padding-left: 9pt">Miscellaneous fees and expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"></TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 24px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To be filed by amendment</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"><B>Item&nbsp;14. Indemnification of Directors and Officers</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; background-color: white">Section 145 of the Delaware
General Corporation Law provides that a corporation may indemnify directors and officers as well as other employees and individuals against
expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person
in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason of
such person being or having been a director, officer, employee or agent of the corporation. Section 145 of the Delaware General Corporation
Law also provides that expenses (including attorneys&rsquo; fees) incurred by a director or officer in defending an action may be paid
by a corporation in advance of the final disposition of an action if the director or officer undertakes to repay the advanced amounts
if it is determined such person is not entitled to be indemnified by the corporation. The Delaware General Corporation Law provides that
Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise. Our bylaws provide that, to the fullest extent permitted by law, we shall indemnify
and hold harmless any person who was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person,
or the person for whom he is the legally representative, is or was a director or officer of ours, against all liabilities, losses, expenses
(including attorney&rsquo;s fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in
connection with such proceeding.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Section 102(b)(7) of
the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that a director of the corporation
shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director,
except for liability (i) for any breach of the director&rsquo;s duty of loyalty to the corporation or its stockholders, (ii) for acts
or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) for unlawful payments of dividends
or unlawful stock repurchases, redemptions or other distributions, or (iv) for any transaction from which the director derived an improper
personal benefit.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our certificate of incorporation
provides that&nbsp;<FONT STYLE="background-color: white">we shall, to the maximum extent permitted from time to time under the law of
the State of Delaware, indemnify and upon request shall advance expenses to any person who is or was a party or is threatened to be made
a party to any threatened, pending or completed action, suit, proceeding or claim, whether civil, criminal, administrative or investigative,
by reason of the fact that such person is or was or has agreed to be a director or officer of ours or while a director or officer is or
was serving at our request as a director, officer, partner, trustee, employee or agent of any corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys&rsquo; fees
and expenses), judgments, fines, penalties and amounts paid in settlement incurred in connection with the investigation, preparation to
defend or defense of such action, suit, proceeding or claim;&nbsp;provided,&nbsp;however, that the foregoing shall not require us to indemnify
or advance expenses to any person in connection with any action, suit, proceeding or claim initiated by or on behalf of such person or
any counterclaim against us initiated by or on behalf of such person. Such indemnification shall not be exclusive of other indemnification
rights arising under any by-law, agreement, vote of directors or stockholders or otherwise and shall inure to the benefit of the heirs
and legal representatives of such person. Any person seeking indemnification shall be deemed to have met the standard of conduct required
for such indemnification unless the contrary shall be established. Any repeal or modification of our certificate of incorporation shall
not adversely affect any right or protection of a director or officer of ours with respect to any acts or omissions of such director or
officer occurring prior to such repeal or modification</FONT>.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our bylaws provide we
shall, to the fullest extent permitted under the laws of the State of Delaware, as amended and supplemented from time to time, indemnify
each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that such party is or was, or has agreed to become, a
director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer or trustee of, or in
a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any employee benefit plan,
or by reason of any action alleged to have been taken or omitted in such capacity, against all expenses (including attorneys&rsquo; fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by such party or on such party&rsquo;s behalf in connection
with such action, suit or proceeding and any appeal therefrom.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Expenses incurred by
such a person in defending a civil or criminal action, suit or proceeding by reason of the fact that such person is or was, or has agreed
to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer or trustee
of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any employee
benefit plan, or by reason of any action alleged to have been taken or omitted in such capacity shall be paid by us in advance of the
final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such person to repay such amount
if it shall ultimately be determined that he is not entitled to be indemnified by us as authorized by relevant sections of the Delaware
General Corporation Law. Notwithstanding the foregoing, we shall not be required to advance such expenses to a person who is a party to
an action, suit or proceeding brought by us and approved by a majority of our Board of Directors that alleges willful misappropriation
of corporate assets by such person, disclosure of confidential information in violation of such person&rsquo;s fiduciary or contractual
obligations to us or any other willful and deliberate breach in bad faith of such person&rsquo;s duty to us or our stockholders.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We shall not indemnify
any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person unless the initiation
thereof was approved by our Board of Directors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The indemnification rights
provided in our bylaws shall not be deemed exclusive of any other rights to which those indemnified may be entitled under any by-law,
agreement or vote of stockholders or disinterested directors or otherwise, both as to action in their official capacities and as to action
in another capacity while holding such office, continue as to such person who has ceased to be a director or officer, and inure to the
benefit of the heirs, executors and administrators of such a person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">If the Delaware General
Corporation Law is amended to expand further the indemnification permitted to indemnitees, then we shall indemnify such persons to the
fullest extent permitted by the Delaware General Corporation Law, as so amended.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We may, to the extent
authorized from time to time by our Board of Directors, grant indemnification rights to other employees or agents of ours or other persons
serving us and such rights may be equivalent to, or greater or less than, those set forth in our bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our obligation to provide
indemnification under our bylaws shall be offset to the extent of any other source of indemnification or any otherwise applicable insurance
coverage under a policy maintained by us or any other person.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our bylaws shall be deemed
to be a contract between us and each person who was or is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that person is or was, or
has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer
or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any
employee benefit plan, or by reason of any action alleged to have been taken or omitted in such capacity, at any time while this by-law
is in effect, and any repeal or modification thereof shall not affect any rights or obligations then existing with respect to any state
of facts then or theretofore existing or any action, suit or proceeding theretofore or thereafter brought based in whole or in part upon
any such state of facts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The indemnification provision
of our bylaws does not affect directors&rsquo; responsibilities under any other laws, such as the federal securities laws or state or
federal environmental laws.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We may purchase and maintain
insurance on behalf of any person who is or was a director, officer or employee of ours, or is or was serving at our request as a director,
officer, employee or agent of another company, partnership, joint venture, trust or other enterprise against liability asserted against
him and incurred by him in any such capacity, or arising out of his status as such, whether or not we would have the power to indemnify
him against liability under the provisions of this section. We currently maintain such insurance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The right of any person
to be indemnified is subject to our right, in lieu of such indemnity, to settle any such claim, action, suit or proceeding at our expense
of by the payment of the amount of such settlement and the costs and expenses incurred in connection therewith.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to
the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission, 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; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In the event that a claim
for indemnification against such liabilities (other than the payment of expenses incurred or paid by a director, officer or controlling
person in a successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered herewith, we will, unless in the opinion of our counsel the matter has been settled by controlling
precedent, submit to the court of appropriate jurisdiction the question whether such indemnification by us 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; text-indent: 45pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 45pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item&nbsp;15. Recent Sales of Unregistered Securities</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">Set forth
below is information regarding all unregistered securities sold by us since January&nbsp;1, 2019. Unless otherwise stated, the issuances
of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section&nbsp;4(a)(2) or 3(a)(9)
of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section&nbsp;3(b) of the Securities Act as
transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating to compensation as provided
under Rule 701.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 10, 2019, the Company issued 5,780
shares of its common stock in exchange for consulting services amounting to $22,900 pursuant to a consulting agreement entered into and
approved by the Board of Directors on November 23, 2018.</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"><FONT STYLE="background-color: white">On January
3, 2020, the Company issued warrants to Fastnet Advisors, LLC. to purchase an aggregate of&nbsp;3,291&nbsp;shares of the Company&rsquo;s
Common Stock at an exercise price of $1.73&nbsp;per share. </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">On December
14, 2020, the Company issued warrants outside consultant to purchase an aggregate of&nbsp;3,468&nbsp;shares of the Company&rsquo;s Common
Stock at an exercise price of $1.73&nbsp;per share. </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">&nbsp;</FONT>On
April 30, 2021, the Company received a short-term loan in the aggregate principal amount of $500,000 from Gold Blaze Limited Vistra Corporate
Services (&ldquo;Gold Blaze&rdquo;). To evidence the loan, the Company issued Gold Blaze a promissory note (the &ldquo;Gold Blaze Note&rdquo;)
in the aggregate principal amount of $500,000. The Gold Blaze Note was converted into the same securities as issued in the June 2021 Financing.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">On February
2, 2021,&nbsp;the Company previously entered into service agreements with various consultants and advisors pursuant to which it issued
963,964 shares of Series B preferred stock. The Series B preferred stock automatically convert into an aggregate of approximately 5,572,046
shares of the Company&rsquo;s common stock on March 2, 2022.</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; background-color: white">On January&nbsp;26, 2021,
the Company, NNMX Acquisition Inc., a California corporation and wholly-owned subsidiary of the Company (&ldquo;Merger Sub&rdquo;), and
Nanomix, Inc., a California corporation (&ldquo;Nanomix&rdquo;), entered into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;),
pursuant to which, among other matters, Merger Sub will merge with and into Nanomix, with Nanomix continuing as a wholly-owned subsidiary
of the Company and the surviving corporation of the merger (the &ldquo;Merger&rdquo;). The merger closed on June 4, 2021. As consideration
for the Merger, Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible Preferred Stock
of the Company (the &ldquo;Preferred Stock&rdquo;). On March 2, 2022, in connection with our reverse stock split, , <FONT STYLE="background-color: white">all
such shares of Preferred Stock issued to the Nanomix shareholders were automatically convert into approximately 35,644,997 shares of common
stock of the Company, the warrants assumed at closing of the merger were exercisable into approximately 2,124,687 shares of common stock
of the Company and the options and restricted stock units assumed at closing of the merger may be exercisable into approximately 5,718,838
shares of common stock of the Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">From January 25, 2021
through January 27, 2021, the Company entered into various agreements with certain debt holders, including CJY Holdings Limited, a Hong
Kong company controlled by the Company&rsquo;s former CEO and sole director&rsquo;s cousin (&ldquo;CJY&rdquo;), pursuant to which liabilities
exceeding approximately $4.5 million were converted or exchanged into approximately 4.2 million shares of common stock. Further, the Company
entered into Exchange Agreements with the holders of the Company&rsquo;s Series A Preferred Stock pursuant to which the holders exchanged
all outstanding shares of Series A Preferred Stock for 433,526 shares of common stock. The Company entered into service agreements with
various consultants and advisors pursuant to which it issued 963,964 shares of a newly created Series B Preferred Stock. Each outstanding
share of the Series B Preferred Stock will automatically convert into 1,000 shares of common stock on the date that approval of an amendment
to the Corporation&rsquo;s Certificate of Incorporation, as amended, to implement a one-for-173 reverse stock split of the Corporation&rsquo;s
capital stock by a majority of the votes entitled to be cast thereon, whether presented at a special or annual meeting of shareholders
of the Corporation or by written consent of the shareholders and the subsequent filing of such amendment with the Secretary of State of
the State of Delaware.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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">On
June 25, 2021, the Company and the $1.0 secured million note payable Holder entered into exchange agreement, whereby the company
issued the Holder a Senior Secured Convertible Note in the principal amount of $1,603,778 with a maturity date of June 25, 2023. As
an incentive to enter into the agreement, the noteholder was also granted 1,603,778 5-year warrants exercisable at $1.1717. </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">On June
25, 2021, the Company and Gold Blaze entered into exchange agreement, where the company issued the Gold Blaze Limited Vistra Corporate
Services Senior Secured Convertible Note in the principal amount of $500,000 with a maturity date of June 25, 2023. As an incentive to
enter into the agreement, the noteholder was also granted 426,730 5-year warrants exercisable at $1.1717. </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">On June
25, 2021, the Company issued a Senior Secured Convertible Note to HT Investment MA LLC for a principal amount $5.0 million and maturity
date of June 25, 2023. As an incentive to enter into the agreement, the noteholder was also granted 4,427,3045-year warrants exercisable
at $1.1717. </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">On September
27, 2021, the Company issued a Senior Secured Convertible Note to certain accredited investors for a principal amount $1.333 million and
maturity date of September 27, 2023. As an incentive to enter into the agreement, the noteholders were also granted an aggregate of 1.137.663
5-year warrants exercisable at $1.1717.</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">On February 28, 2022, the Company entered into
a securities purchase agreement with accredited investors pursuant to which the Company issued senior secured convertible notes in an
principal amount of approximately $666,667&nbsp;for an aggregate purchase price of $600,000.&nbsp;Garrett Gruener, a director of the Company,
purchased a Note in an aggregate principal amount of $444,444 for an aggregate purchase price of $400,000 and Jerry Fiddler, a director
of the Company purchased a Note in an aggregate amount of $111,111 for an aggregate purchase price of $100,000. As an incentive to enter
into the agreement, the noteholders were also granted an aggregate of 323,829 5-year warrants exercisable at $1.1717.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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">On March
23, 2022, entered into a Securities Purchase Agreement (the &ldquo;Purchase Agreement&rdquo;) with GHS Investments, LLC (the &ldquo;Purchaser&rdquo;),
pursuant to which the Purchaser purchased five hundred (500) shares of the Company&rsquo;s Series D Convertible Preferred Stock (&ldquo;Series
D Preferred Stock&rdquo;) for an aggregate purchase price of $500,000. In addition, in connection with the issuance of the Series D Preferred
Stock, the Purchaser received a five year warrant to purchase 60,000 shares of the Company&rsquo;s common stock. </FONT></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; text-indent: 0.5in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, 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&nbsp;16. Exhibits and Financial Statement Schedules</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: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EXHIBIT
INDEX</B></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exhibit
    No</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 89%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title
    of Document</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.1&dagger;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021006198/ea134438ex2-1_boston.htm">Agreement and Plan of Merger, dated February 2, 2021, by and between Nanomix Corp.., NNMX Acquisition Inc. and Nanomix, Inc. filed with the SEC on February 2, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262413001418/exh3_1.htm">Certificate of Incorporation, as amended (filed as Exhibit 3.1 to Amendment No. 1 to the Company&rsquo;s Registration Statement on Form S-1 (File No. 333-192344) filed with the SEC on November 14, 2013 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000114420410005975/v173421_ex3-2.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bylaws
    (filed as Exhibit 3.2 to the Company&rsquo;s Registration Statement on Form S-1 (File No. 333-164785) filed with the SEC on February
    8, 2010 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.3</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000147357910000012/ex-3_1.htm">Certificate of Merger (filed as Exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on November 18, 2010 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.4</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021006198/ea134438ex4-1_boston.htm">Certificate of Designation &ndash; Series B Preferred Stock (filed as exhibit 4.1 to the Company&rsquo;s current Report on Form 8-K filed with the SEC on February 2, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.5</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021053079/ea148854ex3-5_boston.htm">Certificate of Designation &ndash; Series C Preferred Stock (filed as exhibit 3.5 to the Company&rsquo;s Registration Statement on Form S-1 filed with the SEC on October 15, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.6</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022010419/ea156333ex3-1_nanomix.htm">Certificate of Amendment to the Certificate of Incorporation, dated January 11, 2022 (filed as exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 3, 2022 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.7</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022014662/ea157327ex3-1_nanomix.htm">Certificate of Designations of the Preferences, Rights and Limitations of the Series D Preferred Stock (filed as exhibit 3.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 24, 2022 and incorporated herein by reference)</A> </FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.8</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262415001510/exh4_1.htm">Form of Securities Purchase Agreement by and between Boston Therapeutics, Inc. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on October 2, 2015 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262415001510/exh4_1.htm">Form of Securities Purchase Agreement by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on October 2, 2015 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262415001510/exh4_2.htm">Form of 10% Convertible Promissory Note issued to CJY Holdings Limited (filed as Exhibit 4.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on October 2, 2015 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000119907315000085/exh4_1.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on October 30, 2015 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.4</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262415001774/exh4_4.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.4 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on December 10, 2015 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416002245/exh4_5.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.5 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 2, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416002359/exh4_6.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.6 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 22, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416002772/exh4_7.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.7 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on May 12, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416003071/exh4_8.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.8 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on July 6, 2016 and incorporated herein by reference)</A></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>

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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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 10%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.10</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 89%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416003289/exh4_1.htm">Form of Securities Purchase Agreement by and between Nanomix Corp. and Investors (filed as Exhibit 4.1 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.11</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416003289/exh4_2.htm">Form of 6% Senior Convertible Debenture Due 2018 issued to Investors (filed as Exhibit 4.2 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.12</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416003289/exh4_3.htm">Form of Stock Purchase Warrant issued to Investors (filed as Exhibit 4.3 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.13</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416003289/exh4_4.htm">Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.4 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.14</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417002027/s106031_ex4-1.htm">Form of Securities Purchase Agreement by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on May 2, 2017 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.15</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417002027/s106031_ex4-2.htm">Form of 6% Subordinated Convertible Debenture Due (filed as Exhibit 4.2 to the Current Report on Form 8-K filed with the SEC on May 2, 2017 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.16
    </FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417002027/s106031_ex4-3.htm">Form of Stock Purchase Warrants (filed as Exhibit 4.3 to the Current Report on Form 8-K filed with the SEC on May 2, 2017 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.17</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417004644/s107284_ex4-1.htm">Form of Securities Purchase Agreement by and between Nanomix Corp. and Investors (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on August 22, 2017 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.18</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417004644/s107284_ex4-2.htm">Form of Certificate of Designation (filed as Exhibit 4.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on August 22, 2017 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.19</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417004644/s107284_ex4-3.htm">Form of Common Stock Purchase Warrants (filed as Exhibit 4.3 to the Current Report on Form 8-K filed with the SEC on August 22, 2017 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.20</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577418005271/s110828_ex4-1.htm">Form of 10% promissory note issued to World Technology East II Limited (filed as exhibit 4.1 to the Company&rsquo;s current Report on Form 8-K filed with the SEC on June 12, 2018 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.21</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021025831/ea140759ex4-1_bostonthera.htm">Form of Promissory Note dated April 30, 2021 (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on May 12, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.22</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021025831/ea140759ex10-1_bostonthera.htm">Form of 10% Promissory Note issued by Nanomix, Inc. to Nanomix Corp. dated April 30, 2021 (filed as Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on May 12, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.23</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex4-1_boston.htm">Form of Senior Secured Convertible Note, dated June 25, 2021 (filed as Exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.24</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex4-2_boston.htm">Form of Warrant, dated June 25, 2021 (filed as Exhibit 4.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.26</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022009939/ea156233ex4-1_nanomix.htm">Form of Senior Secured Convertible Note, dated February 28, 2022 (filed as exhibit 4.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.27</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022009939/ea156233ex4-2_nanomix.htm">Form of Warrant, dated February 28, 2022 (filed as exhibit 4.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.1*</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Opinion
    of Sheppard, Mullin, Richter &amp; Hampton LLP</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000115752310003803/a6324059ex10-1.htm">Technology Assignment Agreement dated as of August 24, 2009 by and between the Company and David Platt (filed as Exhibit 10.1 to Amendment No. 1 to the Company&rsquo;s Registration Statement on Form S-1 (File No. 333-164785) filed with the SEC on June 24, 2010 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262413001389/exh10_1.htm">Amended and Restated Nanomix Corp. 2010 Stock Plan (filed as Exhibit 10.1 to Amendment No. 1 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on November 13, 2013 and incorporated herein by reference)</A></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000115752310003803/a6324059ex10-3.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Promissory
    Note dated as of February 9, 2010 issued by the Company to David Platt (filed as Exhibit 10.3 to Amendment No. 1 to the Company&rsquo;s
    Registration Statement on Form S-1 (File No. 333-164785) filed with the SEC on June 24, 2010 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000147357910000012/ex-2_1.htm">Agreement and Plan of Merger dated November 10, 2010 by and among Avanyx Therapeutics, Inc. and Nanomix Corp. (filed as Exhibit 2.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on November 18, 2010 and incorporated herein by reference)</A></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"></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: 10%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 89%; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000115752311003727/a6769954_ex10-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Subscription Agreement dated June 21, 2011, among Nanomix Corp. and the Investors named therein (filed as Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 22, 2011 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000115752311005060/a6829888_ex10-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">License and Manufacturing Agreement between Nanomix Corp. and Advance Pharmaceutical Company Limited effective as of June 24, 2011 (filed as Exhibit 10.1 to the Company&rsquo;s Quarterly Report on Form 10-Q filed with the SEC on August 15, 2011 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262412000977/exh10_1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amended and Restated Nanomix Corp. 2011 Non-Qualified Stock Plan (filed as Exhibit 10.1 to the Company&rsquo;s Registration Statement on Form S-8 (File No. 333-185355) filed with the SEC on December 7, 2012 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262413001389/exh10_2.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unit Purchase Agreement between Nanomix Corp. and the investors named therein dated as of July 23, 2013, as amended (filed as Exhibit 10.2 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on November 13, 2013 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262413001389/exh10_3.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registration Rights Agreement between Nanomix Corp. and the investors named therein dated as of July 23, 2013, as amended (filed as Exhibit 10.3 to the Company&rsquo;s Quarterly Report on Form 10-Q, filed with the SEC on November 13, 2013 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262415001657/exh10_1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrant
Repricing and Exercise Agreement entered by and between Nanomix Corp. and CJY Holdings Limited dated November 12, 2015, effective June
15, 2015 (filed as Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on November 12, 2015 and incorporated
herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000110262416003289/exh10_1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive
employment Agreement between Nanomix Corp. and Carl W. Rausch dated as of August 12, 2016 (filed as Exhibit 10.1 to the Company&rsquo;s
Current Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.12</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577417001275/s105634_ex10-24.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Letter Agreement dated March 27, 2017 entered between Nanomix Corp. and Carl W. Rausch (filed as exhibit 10.24 to the Company&rsquo;s Annual Report on Form 10-K filed with the SEC on March 28, 2017 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.13</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577418001062/s109010_ex10-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contribution Agreement by and among Nanomix Corp. and CureDM Group Holdings, LLC dated February 12, 2018, effective January 1, 2018, (filed as Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on February 12, 2018 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.14</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577418001062/s109010_ex10-2.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive Retention Agreement by and between Nanomix Corp. and Loraine Upham dated February 12, 2018, effective January 1, 2018, (filed as Exhibit 10.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on February 12, 2018 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.15</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000161577418006080/s111198_ex10-1.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">License agreement between Nanomix Corp. and Level Brands, Inc. (filed as exhibit 10.1 to the Company&rsquo;s current Report on Form 8-K filed with the SEC on July 2, 2018 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021006198/ea134438ex10-1_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Exchange Agreement (filed as exhibit 10.1 to the Company&rsquo;s current Report on Form 8-K filed with the SEC on February 2, 2021 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021006198/ea134438ex10-2_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Debt Settlement and Release Agreement (filed as exhibit 10.2 to the Company&rsquo;s current Report on Form 8-K filed with the SEC on February 2, 2021 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.18&dagger;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex10-1_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities Purchase Agreement, dated June 25, 2021, by and between Nanomix Corp. and the buyers signatory thereto (filed as Exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.19</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex10-2_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registration Rights Agreement, dated June 25, 2021, by and between Nanomix Corp. and the buyers signatory thereto (filed as Exhibit 10.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.20</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex10-3_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Security and Pledge Agreement, dated June 25, 2021, by and between Boston Therapeutics, Inc, each of the Company&rsquo;s subsidiaries and HT Investments MA LLC, in its capacity as collateral agent (filed as Exhibit 10.3 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.21</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex10-4_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Guaranty, dated June 25, 2021, by each of the Company&rsquo;s subsidiaries in favor of HT Investments MA LLC, in its capacity as collateral agent (filed as Exhibit 10.4 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</FONT></A></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.22</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 89%"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390021034574/ea143434ex10-5_boston.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Exchange Agreement, dated June 25, 2021, with existing holders of convertible promissory notes&nbsp;&nbsp;(filed as Exhibit 10.5 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)</FONT></A></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="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center; width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.23&dagger;&dagger;</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 89%"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022019462/f10k2021ex10-23_nanomix.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Development and License Agreement, dated September 26, 2017 by and between RedPharm (Beijing) Biotechnology Co., Ltd. and Medical Technology Associates II, Inc. and Nanomix, Inc. (filed as Exhibit 10.23 to the Company&rsquo;s Annual Report on Form 10-K filed with the SEC on April 12, 2022 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.24&dagger;&dagger;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022019462/f10k2021ex10-24_nanomix.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">First Amendment to Development and License Agreement, dated September 1, 2018 by and between RedPharm (Beijing) Biotechnology Co., Ltd. and Medical Technology Associates II, Inc. and Nanomix, Inc. (filed as Exhibit 10.24 to the Company&rsquo;s Annual Report on Form 10-K filed with the SEC on April 12, 2022 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.25&dagger;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022009939/ea156233ex10-1_nanomix.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities Purchase Agreement, dated February 28, 2022 (filed as exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.26</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022009939/ea156233ex10-2_nanomix.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent, Amendment and Wavier, dated February 24, 2022 (filed as exhibit 10.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.27&dagger;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022014662/ea157327ex10-1_nanomix.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities Purchase Agreement, dated March 23, 2022 (filed as exhibit 10.1 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 24, 2022 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.28</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1473579/000121390022014662/ea157327ex10-2_nanomix.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent, Amendment and Wavier, dated March 22, 2022 (filed as exhibit 10.2 to the Company&rsquo;s Current Report on Form 8-K filed with the SEC on March 24, 2022 and incorporated herein by reference)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea161741ex23-1_nanomix.htm">Consent of M&amp;K CPAs</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.2*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consent of Sheppard, Mullin, Richter &amp; Hampton LLP (included in Exhibit 5.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">24.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="#p_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Power of Attorney (included on the signature page to the Registration Statement)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">107</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea161741ex-fee_nanomix.htm">Filing Fee Table</A></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To be filed by amendment</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&dagger;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The exhibits and schedules to this Exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby agrees to furnish a copy of any omitted schedules to the Commission upon request.</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&dagger;&dagger;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Certain confidential portions of this Exhibit were omitted by means of marking such portions with brackets (&ldquo;[***]&rdquo;) because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed.</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"><B><I>Financial Statement Schedules</I></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; text-align: justify; text-indent: 0.5in">Schedules have been omitted
because the information required to be set forth therein is not applicable or is shown in the financial statements or notes thereto.</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"><B>Item&nbsp;17. Undertakings</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; text-align: justify">The undersigned registrant hereby undertakes:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">1. To file, during any period in which offers
or sales are being made, a post-effective amendment to this registration statement:</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(i)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To include any prospectus required by Section 10(a)(3) of the Securities Act;</FONT></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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(ii)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To reflect in the prospectus any facts or events arising after the effective date of this registration statement ( or most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (Section 230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;<I>Calculation of Registration Fee</I>&rdquo; table in the effective registration statement; and</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%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(iii)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.</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, however, that:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">2. That, for the purpose of determining any liability
under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">3. To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the termination of the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 our directors, officers and controlling persons pursuant to the provisions above, or otherwise,
we have been advised that in the opinion of the Securities and Exchange Commission 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 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"><B>&nbsp;</B></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-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SIGNATURES</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; text-indent: 0.5in"><FONT STYLE="background-color: white">Pursuant
to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this Registration Statement on Form&nbsp;S-1
to be signed on its behalf by the undersigned, thereunto duly authorized in the City of San Leandro, State of California, on the&nbsp;21<SUP>st</SUP>
day of June, 2022.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&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>&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nanomix Corp.</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ David Ludvigson</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="width: 31%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David Ludvigson&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Title: </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="p_001"></A>POWER OF ATTORNEY</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; text-indent: 0.5in">KNOW ALL MEN BY THESE PRESENTS,
that each person whose signature appears below constitutes and appoints David Ludvigson, his or her true and lawful attorney-in-fact and
agent with full power of substitution and re-substitution, for him/her and in his or her name, place and stead, in any and all capacities
to sign any or all amendments (including, without limitation, post-effective amendments) to this Registration Statement, any related Registration
Statement filed pursuant to Rule&nbsp;462(b)&nbsp;under the Securities Act of 1933 and any or all pre- or post-effective amendments thereto,
and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary
to be done in and about the premises, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming that said attorney-in-fact and agent, or any substitute or substitutes for him, 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Act of 1933, the following persons in the capacities and on the dates indicated have signed this Registration Statement
below.</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 38%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 20%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ David Ludvigson</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer, President, and Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 21, 2022</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David Ludvigson</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>(Principal Executive Officer and Principal Financial and Accounting Officer)</I></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Vidur Sahney</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Operating Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 21, 2022</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vidur Sahney</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
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    <TD STYLE="border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ John Hardesky</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Commercial Officer</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 21, 2022</FONT></TD></TR>
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    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John Hardesky</FONT></TD>
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    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Garrett Gruener</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 21, 2022</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Garrett Gruener</FONT></TD>
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    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Jerry Fidler</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 21, 2022</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jerry Fidler</FONT></TD>
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    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Greg Schiffman</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 21, 2022</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Greg Schiffman</FONT></TD>
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{"company-data": {"conformed-name": "NANOMIX Corp", "cik": "0001473579", "assigned-sic": "2834", "irs-number": "270801073", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-265744", "film-number": "221028956"}, "business-address": {"street1": "354 MERRIMACK STREET", "street2": "#4", "city": "LAWRENCE", "state": "MA", "zip": "01843", "phone": "(603) 935-9799"}, "mail-address": {"street1": "354 MERRIMACK STREET", "street2": "#4", "city": "LAWRENCE", "state": "MA", "zip": "01843"}, "former-company": [{"former-conformed-name": "Boston Therapeutics, Inc.", "date-changed": "20101123"}, {"former-conformed-name": "AVANYX Therapeutics, Inc.", "date-changed": "20091001"}]}
As filed with the Securities and Exchange
Commission on June 21, 2022
Registration Statement No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Nanomix Corporation
(Exact name of registrant
as specified in its charter)
Delaware
3841
27-0801073
(State or other jurisdiction of
(Primary Standard Industrial
(I.R.S. Employer
incorporation or organization)
Classification Code Number)
Identification Number)
Nanomix Corp.
2121 Williams St.
San Leandro, CA 94577
(510) 428-5300
(Address and telephone number
of registrant's principal executive offices)
David Ludvigson
Nanomix Corp.
Chief Executive Officer
2121 Williams St.
San Leandro, CA 94577
(510) 428-5300
(Name, address, including
zip code, and telephone number, including area code, of agent for service)
Stephen A. Cohen
Sheppard, Mullin, Richter & Hampton LLP
30 Rockefeller Plaza
New York, NY 10112-0015
Telephone: (212) 653-8700
Facsimile: (212) 653-8701
Approximate date of commencement of proposed sale
to the public:
As soon as practicable after the effective date
of 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 a registration statement 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 registration statement. 
☐
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 registration statement.  ☐
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 registration statement.  ☐
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging
growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting
company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☐
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided to Section 7(a)(2)(B) of the Securities Act. ☐
The registrant hereby
amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant will file
a further amendment which specifically states that this registration statement will thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933, as amended, or until the registration statement will become effective on such date as the Securities and
Exchange Commission, acting pursuant to said Section 8(a), may determine.
The information in
this preliminary 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 preliminary prospectus is not an offer to sell nor does it seek an offer
to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT TO COMPLETION,
DATED JUNE 21, 2022
NANOMIX CORP.
19,507,630 Shares of Common Stock
This prospectus relates to
the sale from time to time of up to 19,507,630 shares of common stock held by the selling stockholders named in this prospectus, including
(i) up to 7,500,000 shares of common stock issuable upon conversion of outstanding series D convertible preferred stock, or the Series
D Preferred Stock, (ii) up to 2,250,000 shares of common stock issuable upon exercise of certain outstanding warrants issued or to be
issued in connection with the issuer of the Series D Preferred Stock, the GHS Warrants, (iii) up to 416,032 shares of common stock issuable
upon exercise of certain outstanding warrants assumed by the Company in connection with the merger with Nanomix, Inc., or the Merger Warrants,
(iv) up to 7,904,822 shares of common stock issued in connection with the merger with Nanomix, Inc., or the Merger Shares, and (v) up
to 1,302,123 shares of common stock that were issued upon the automatic conversion of our Series B convertible preferred Stock, the Conversion
Shares and (vi) up to 134,653 shares of common stock that were issued upon the Company's acquisition of CureDM Group Holdings LLC,
or the CureDM Shares. The Series D Preferred Stock and March 2022 Warrants are subject to a blocker provision, or the Blocker, which restricts
the conversion of the Series D Preferred Stock and exercise of a GHS Warrants if, as a result of such exercise, the holder, together with
its affiliates and any other person whose beneficial ownership of common stock would be aggregated with the holder's for purposes
of Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, would beneficially own in excess of 9.99% of
our then issued and outstanding shares of common stock (including the shares of Common Stock issuable upon such conversion and/or exercise).
We are not selling any common
stock under this prospectus and will not receive any of the proceeds from the sale of shares by the selling stockholders. We will, however,
receive the net proceeds of any GHS Warrants and Merger Warrants exercised for cash.
The selling stockholders identified
in this prospectus may offer the shares from time to time through public or private transactions at fixed prices, at prevailing market
prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at
negotiated prices. The registration of the shares of common stock on behalf of the selling stockholders, however, does not necessarily
mean that any of the selling stockholders will offer or sell their shares under this registration statement or at any time in the near
future. We provide more information about how the selling stockholders may sell their shares of common stock in the section entitled "
Plan
of Distribution
" on page 83.
The selling stockholders will
bear all commissions and discounts, if any, attributable to the sale or disposition of the shares, or interests therein and all costs,
expenses and fees in connection with the registration of the shares. We will not be paying any underwriting discounts or commissions in
this offering or costs, expenses, and fees in connection with the registration of the shares of common stock described in this prospectus.
We will pay the expenses of registering the shares.
Our common stock is traded
on the OTCQB maintained by OTC Markets Group, Inc. under the symbol "NNMX." On June 17, 2022, the last reported sale price
of our common stock was $0.62 per share.
On March 2, 2022, we consummated
a 1-for-173 reverse split of our preferred stock and common stock, which we refer to as the reverse split, and all of the shares of our
outstanding preferred stock converted to common stock. Unless otherwise noted in this registration statement on Form S-1 of which this
prospectus forms a part and except as set forth in the financial statements included in this prospectus, all share numbers and prices
are presented on a reverse stock split basis. No fractional shares of common stock were issued in connection with the reverse split, and
all such fractional interests were rounded up to the nearest whole number. Issued and outstanding stock options and warrants were split
on the same basis and exercise prices will be adjusted accordingly. Unless otherwise noted in this registration statement on Form S-1
of which this prospectus forms a part and except as set forth in the financial statements included in this prospectus, all share numbers
and prices are presented on a reverse split basis.
An investment in our common
stock involves a high degree of risk. See "
Risk Factors
" on page 11 of this prospectus for more information on
these risks.
Neither the U.S. Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities, or passed upon the adequacy
or accuracy of this prospectus. Any representation to the contrary is a criminal offense.
The date of this prospectus is         ,
2022.
TABLE OF CONTENTS
Page
PROSPECTUS SUMMARY
1
RISK FACTORS
11
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
INDUSTRY AND MARKET DATA
46
USE OF PROCEEDS
46
DIVIDEND POLICY
47
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATIONS
48
BUSINESS
56
MANAGEMENT
66
EXECUTIVE AND DIRECTOR COMPENSATION
68
CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
70
SECURITY OWNERSHIP OF BENEFICIAL OWNERS AND MANAGEMENT
71
DESCRIPTION OF CAPITAL STOCK
73
SELLING STOCKHOLDERS
81
PLAN OF DISTRIBUTION
83
LEGAL MATTERS
85
EXPERTS
85
WHERE YOU CAN FIND MORE INFORMATION
86
INDEX TO FINANCIAL STATEMENTS
F-1
We have not authorized anyone to provide any
information or to make any representations other than those contained in this prospectus or in any free writing prospectus prepared by
or on behalf of us or to which we have referred you. We take no responsibility for and can provide no assurance as to the reliability
of, any other information that others may give to you. The information contained in this prospectus is accurate only as of the date of
this prospectus, regardless of the time of delivery of this prospectus or any sale of our common stock.
You should rely only on the information contained
in this prospectus. No dealer, salesperson or other person is authorized to give information that is not contained in this prospectus.
This prospectus is not an offer to sell nor is it seeking an offer to buy these securities in any jurisdiction where the offer or sale
is not permitted. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery
of this prospectus or of any sale of these securities.
i
ABOUT THIS PROSPECTUS
In this prospectus, unless otherwise noted, references
to "the Company," "NNMX," "we," "us," and "our" refer to Nanomix Corp. and
its subsidiaries.
Neither we, nor any of our officers, directors,
agents or representatives or underwriters, make any representation to you about the legality of an investment in our common stock. You
should not interpret the contents of this prospectus or any free writing prospectus to be legal, business, investment or tax advice. You
should consult with your own advisors for that type of advice and consult with them about the legal, tax, business, financial and other
issues that you should consider before investing in our common stock.
You should rely only on the information contained
in this prospectus or in any amended prospectus that we may authorize to be delivered or made available to you. We and the underwriter
have not authorized anyone to provide you with different information.
The information in this prospectus is accurate
only as of the date hereof, regardless of the time of its delivery or any sale of shares of our common stock.
ii
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements.
These forward-looking statements contain information about our expectations, beliefs or intentions regarding our product development and
commercialization efforts, business, financial condition, results of operations, strategies or prospects, and other similar matters. These
forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently
subject to uncertainties, risks and changes in circumstances that are difficult to predict. These statements may be identified by words
such as "expects," "plans," "projects," "will," "may," "anticipates,"
"believes," "should," "intends," "estimates," and other words of similar meaning.
These statements relate to future events or our
future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied
by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among
other things, those listed under the section titled "Risk Factors" and elsewhere in this prospectus, in any related prospectus
supplement and in any related free writing prospectus.
Any forward-looking statement in this prospectus,
in any related prospectus supplement and in any related free writing prospectus reflects our current view with respect to future events
and is subject to these and other risks, uncertainties and assumptions relating to our business, results of operations, industry and future
growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. No forward-looking statement
is a guarantee of future performance. You should read this prospectus, any related prospectus supplement and any related free writing
prospectus and the documents that we reference herein and therein and have filed as exhibits hereto and thereto completely and with the
understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking
statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even
if new information becomes available in the future.
This prospectus, any related prospectus supplement
and any related free writing prospectus also contain or may contain estimates, projections and other information concerning our industry,
our business and the markets for our products, including data regarding the estimated size of those markets and their projected growth
rates. We obtained the industry and market data in this prospectus from our own research as well as from industry and general publications,
surveys and studies conducted by third parties. This data involves a number of assumptions and limitations and contains projections and
estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty, including
those discussed in "Risk Factors." We caution you not to give undue weight to such projections, assumptions and estimates.
Further, industry and general publications, studies and surveys generally state that they have been obtained from sources believed to
be reliable, although they do not guarantee the accuracy or completeness of such information. While we believe that these publications,
studies and surveys are reliable, we have not independently verified the data contained in them. In addition, while we believe that the
results and estimates from our internal research are reliable, such results and estimates have not been verified by any independent source.
iii
PROSPECTUS SUMMARY
The following summary highlights selected information
contained elsewhere in this prospectus and is qualified in its entirety by the more detailed information and financial statements included
elsewhere in this prospectus. It does not contain all the information that may be important to you and your investment decision. You should
carefully read this entire prospectus, including the matters set forth under "Risk Factors," "Management's Discussion
and Analysis of Financial Condition and Results of Operations," and our financial statements and related notes included elsewhere
in this prospectus. In this prospectus, unless context requires otherwise, references to "we," "us," "our,"
"NNMX," "Nanomix-DE," or "the Company" refer to Nanomix Corp. and its subsidiaries.
Overview
On June 6, 2021, the
Company and Nanomix, Inc., or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation (the
"Company"). As consideration for the Merger, The Company issued to the shareholders of Nanomix 1,000,000 shares of a newly
created Series C Convertible Preferred Stock of the Company (the "Preferred Stock"). On March 2, 2022, all such shares of
Preferred Stock issued to Nanomix shareholders automatically converted into approximately 35,644,997 shares of common stock of the Company,
the warrants assumed at closing may be exercisable into approximately 2,124,687 shares of common stock of the Company and the options
and restricted stock units assumed at closing may be exercisable into approximately 5,718,838 shares of common stock of the Company. The
shares of common stock issued upon conversion of the Preferred Stock together with warrants, restricted stock units and options assumed
on the closing date represent approximately 80% of the outstanding shares of Common Stock of the Company upon closing of the Merger. After
the merger, the Company changed its name to Nanomix Corporation and its ticker symbol to NNMX. A previously approved 173:1 reverse stock
split was effective on March 2, 2022.
After the Merger, our
primary focus is on the development and commercialization of Nanomix's advanced mobile Point-of-Care, or POC, diagnostic system
that can be used in performing a wide range of in vitro diagnostic tests in many environments. Nanomix's goal is to provide laboratory
quality testing for time sensitive medical conditions, at the first point of contact that a patient has with the healthcare system, no
matter where that occurs. The Nanomix eLab® system is CE Marked, a 510(k) application is currently in development, and Emergency Use
Application (EUA) for COVID antigen testing has been submitted to the FDA. Nanomix intends to market and sell this system for the detection
and diagnosis of a variety of time sensitive medical conditions.
Prior to the Merger,
we were a pre-clinical and clinical-stage pharmaceutical development company focused on the clinical development, outsourced contract
manufacture and test marketing for commercialization of carbohydrate-based patented formulation of investigative materials as medical
food, supplements, drug and drug combination, and other clinical exploratory outsourced exploratory peptide therapeutic options. Due to
limited funding and the merger, our activity including any drug development during year ended December 31, 2021 was severely limited.
Following the closing of the Merger, the Company intends to conduct a comprehensive review of strategic alternatives for our legacy products
and product candidates pertaining to the commercialization of our therapeutic drugs including SUGARDOWN®, BTI-320 and IPOXYN. The
Company does not expect to receive any form of material consideration in connection with such alternatives. In the event it is not able
to dispose of these assets, the Company expects to cease all operations in connection therewith in order to avoid incurring any further
associated expense.
Nanomix eLab System
Nanomix believes that quality healthcare should
be available to consumers anywhere and anytime. The foundation of quality healthcare is timely information supporting a proper diagnosis
and associated treatment. Our vision is to make healthcare accessible to patients without compromise, by delivering the highest quality,
fastest, most cost-effective and portable detection systems that bring the patient and caregiver closer together.
1
The Nanomix eLab System is a proprietary diagnostic
platform developed by Nanomix to meet the growing need for decentralized medical diagnostic solutions. The platform is designed to provide
rapid test results in a handheld device at the first point of patient contact in locations that range from Emergency Departments, to long
term and assisted care facilities, to urgent care and emergency medical response settings.
The Nanomix eLab system is a rapid, easy-to-use,
quantitative detection platform that performs a range of in vitro diagnostic assays, such as electrochemical immunoassay and enzymatic
assays. The platform consists of a hand-held analyzer and a disposable cartridge. The eLab System utilizes a proprietary nano-biosensor
with multiple detection electrodes to generate multiple electrochemical assay results from a single patient sample. Specificity is generated
by functionalizing each of the electrodes on the sensor for particular biomarkers. The sensor is incorporated into a single-use consumable
microfluidics cartridge that processes the biological sample and reports its results through the handheld eLab System.
The eLab system is designed to be operated by
medical and non-medically trained persons. An assay is run by inserting the cartridge into the eLab Analyzer. Following the prompts on
the Analyzer interface, the user identifies the subject, scans a barcode on the consumable package, loads the test sample into the cartridge,
and presses start. Assay results generally take between 10 and 15 minutes, from sample collection to answer. A wide variety of biomolecules
with varying chemistries can be tested on a single device in one operation. The electrochemical detection system eliminates the need for
ongoing instrument calibration and maintenance commonly associated with optical systems. Wireless connectivity provides for transmission
of patient results to other devices for data sharing, management, and EMR integration.
Compared with other POC testing systems, the Nanomix
eLab system provides testing in traditional laboratories as well as non-traditional decentralized environments with enhanced sensitivity
and specificity, advanced multiplexing and multimodal capabilities, quantitative results, Bluetooth communication of results and an on
board electronic data base of testing activities. The Nanomix eLab® system is CE Marked, a 510(k) is currently in development, and
a COVID-19 Antigen test has been submitted to the FDA for Emergency Use Authorization.
Our strategy is to develop a menu of diagnostic
tests for the detection and diagnosis of time sensitive medical conditions on the Nanomix eLab Analyzer and to sell, market and distribute
the eLab Analyzer and associated tests on a worldwide basis.
Products
The Nanomix eLab is an in vitro diagnostic test
platform for the quantitative determination of analytes in biological samples that include plasma, whole blood, and nasal swab specimens.
The eLab system consists of a handheld analyzer, a sample transfer device and a disposable cartridge. The Nanomix eLab is a platform technology
and Nanomix intends to develop a range of test cartridges compatible with Nanomix eLab analyzer. The key advantages of our approach are:
●
Laboratory quality results;
●
Multiplexing and multimodal testing;
●
Quantitative determination of test results;
●
Operates in distributed environments; and
●
Electronic record storage with Bluetooth communication of results.
The eLab has been shown to be easily operated
by non-medically trained personnel. The platform performs immunoassays and enzymatic assays. All tests run on the eLab Analyzer utilize
the same disposable cartridge format.
Nanomix's first product, the S1 Panel Assay
for use in aiding the diagnosis of critical infections, received CE marking for the assay and the eLab Analyzer in November of 2019. Filing
of a 510(k) was started in 2020 through a third-party reviewer for the CRP assay. With the advent of the Coronavirus pandemic, Nanomix
shifted to developing COVID-19 testing products in April of 2020. Preparation of a 510(k) for the S1 Panel Assay using plasma samples
is currently in process.
2
eLab Analyzer
The eLab Analyzer is a handheld portable instrument
that operates via a touch screen using a simple instruction menu. The analyzer works from a rechargeable battery or wall power and can
be operated during recharging. The eLab Analyzer contains electronics, a pneumatic system, a barcode scanner, data storage, USB connections,
and Bluetooth communications. To use the eLab system, an operator signs into the system and then follows the prompts on the eLab screen
to run an assay, run controls, or review past test results. To run a test, the operator scans or enters a patient ID and scans the consumable
test package using the built-in bar code scanner. The barcode contains information about the test including manufacturing lot codes and
expiration dating for the consumable. The operator loads the patient sample into the disposable cartridge and inserts the cartridge into
the eLab analyzer. The operator is then prompted on the screen to start the assay. The eLab automatically runs through to completion using
the programmed test protocol specific for that assay. At conclusion of the test protocol, results are displayed on the screen and can
be sent electronically via Bluetooth as selected by the operator. All test information is recorded in the onboard database. The instrument
includes a robust control system and, if there are errors in processing, the eLab displays an error code on the screen.
COVID-19 Rapid IgG/IgM Test Panel
The Nanomix eLab COVID-19 Rapid IgG/IgM Panel
is an electrochemical immunoassay test intended for qualitative detection of IgG and IgM antibodies (without differentiation) to SARS-CoV-2
in human venous whole blood and plasma (K2EDTA, lithium-heparin, sodium-heparin, sodium citrate).
Venous whole blood or plasma samples are collected
and using a provided transfer device the sample is transferred to the single-use, microfluidic cartridge. The cartridge is then run on
Nanomix eLab Analyzer, which will display results after about 10 minutes. The presence of SARS-CoV-2 antibodies is determined using a
quantitative electrochemical reading which is then compared to a cutoff level to report a qualitative result of positive or negative.
An EUA for the COVID-19 Rapid IgG/IgM Test Panel
was filed with the FDA in July 2020. In April of 2021, the FDA notified us that given the volume of EUA requests the Agency had received,
FDA is having to prioritize EUA requests and they will not be reviewing our product as filed.  Nanomix is currently tracking use
cases and reviewing alternative approaches to potentially market the COVID antibody test but at this time does not expect to actively
market the COVID-19 Rapid IgG/IgM Test Panel.
COVID-19 Rapid Antigen Test Panel
The Nanomix eLab COVID-19 Rapid Antigen Panel
is an electrochemical immunoassay test intended for the qualitative detection of nucleocapsid antigens from SARS-CoV-2 in nasal (anterior
nares) swabs from individuals who are suspected of COVID-19.
Nasal swab samples are collected using a provided
swab and sample collection tube, then transferred to the single-use, microfluidic cartridge. The cartridge is then run on Nanomix eLab
Analyzer, which will display results after about 15 minutes. The presence of SARS-CoV-2 antigen is determined using a quantitative electrochemical
reading which is then compared to a cutoff level to report a qualitative result of positive or negative.
The COVID-19 Rapid Antigen Test Panel is CE marked.
An EUA for the COVID-19 Antigen Test panel was submitted to the FDA in February of 2021. The Company received comments from the FDA in
May and conducted further clinical and analytical work identified by the FDA. The EUA for the COVID-19 Antigen Test panel was resubmitted
to the FDA in November. The FDA has requested additional data primarily from clinical testing sites prior to beginning their formal review.
Given reductions in COVID-19 infection rates, the timing of any potential EUA, and the current pricing of COVID-19 tests, the Company
doesn't expect significant revenue to be produced by the COVID-19 Antigen Test panel.
3
S1 Assay Panel
The S1 Assay panel was developed as an aid in
rapidly diagnosing critical infections, including sepsis. The panel provides quantitative tests results for Lactate (LAC), C-Reactive
Protein (CRP) and Procalcitonin (PCT) from a single patient sample. The S1 Assay panel is CE marked for both plasma and venous whole blood
sample types. A de novo application for FDA clearance for a plasma sample is in development. The assay runs on the eLab Analyzer with
results available in approximately 11 minutes, providing information rapidly versus the current diagnostic solutions which can take hours
to provide a test result.
The Nanomix S1 Panel Cartridge quantitatively
measures two biomarkers, CRP, and PCT and the metabolite Lactate (LAC) in lithium heparinized (Li-heparinized) plasma specimens.
CRP test results can be used to evaluate infection,
tissue injury, and inflammatory disorders.
PCT test results can be used:
●
To aid in decision making on antibiotic therapy for patient with suspected or confirmed lower respiratory tract infections (LRTI) defined as community acquired pneumonia (CAP) acute bronchitis, and acute exacerbation of chronic obstructive pulmonary disease (AECOPD) in an inpatient setting or Emergency Department.
●
To aid in antibiotic decision making from therapy to discontinuation of treatment for patients with suspected or confirmed sepsis.
●
To aid in the risk assessment of critically ill patients on their first day of ICU admission for progression of severe sepsis and septic shock.
●
To aid in assessing the cumulative 28-day risk of all-cause mortality for patients diagnosed with sever sepsis or septic shock in the ICU or when obtained in the emergency department of other medical wards prior to ICU admission, using a change in PCT level over time.
LAC test results can be used in the diagnosis
and treatment of lactic acidosis, monitoring tissue hypoxia, and diagnosis of hyperlactatemia and septicemia.
Each of the three tests provides important information
about a patient's condition. Having all three of these answers in a short time period provides a healthcare provider with important
information about the patient's status within the clinical window for infection diagnosis. All of the test results are used in the
context of other information about the patient.
S1 Assay Panel use in Sepsis
One potential use of the S1 Assay panel is in
the diagnosis of Sepsis. Sepsis has been highlighted as a global health crisis and there is intense pressure to improve management of
sepsis from early identification to administration of antimicrobial therapy, monitoring and de-escalation of therapy.
Sepsis is the body's overwhelming and life-threatening
response to infection that can lead to tissue damage, organ failure, and death. There are more than 49 million cases of Sepsis annually
with more the 6 million associated deaths. Sepsis is the #1 cost of hospitalization in the U.S with costs for acute sepsis hospitalization
and skilled nursing estimated to be $62 billion annually. As many as 87% of sepsis cases start in the community. According to the Sepsis
Alliance, Mortality from sepsis increases 8% every hour that treatment is delayed. As many as 80% of sepsis deaths could be prevented
with rapid diagnosis and treatment.
Sepsis testing and diagnosis can be viewed as
a 2-stage process:
●
Immediate patient testing and assessment focused on emergency treatment decisions, and
●
Specific diagnosis of bacterial or fungal pathogen
4
The Nanomix S1 test panel focuses on the first
phase, the need for rapid screening or patients suspected of sepsis. The S1 test panel provides an easy to use, rapid test at the first
point of patient contact to deliver important information about the patient's condition. The panel includes Lactate, the current
tool most used in sepsis screening, and adds two other tests (CRP and PCT) that are currently used to confirm a diagnosis. By using our
multiplexing and multimodal technology, we are able to bring all three of these test results from a single sample to healthcare providers
in an 11-minute test providing clinicians with host response diagnostics at the time of initial evaluation, in any care setting, may help
assess the following questions and advance standards of care: 1) is there an infection or not? 2) is the infection viral or bacterial?
3) what is the severity and deficit of tissue perfusion?
Once hospitalized, a sepsis patient spends on
average 8 days in an ICU. The S1 panel can also be used to monitor the progress of a patient and to support modification or discontinuation
of antibiotic therapy.
Approach to Market
Nanomix uses a Distributor centric model for product
sales and support outside the United States. Distributors are engaged to market, sell, and support our products in specific territories.
Often, these distribution arrangements involve exclusive rights to a territory. Distributors purchase product from Nanomix, resell the
products, and provide support to customers in their territory. The Company is primarily focused on the European and Asian markets where
CE marking is sufficient for commercial sales of the S1 Assay Panel. Currently, Nanomix has distribution agreements for the Peoples Republic
of China and certain countries in Asia and the Middle East. Additional arrangements are expected in the future.
Inside the United States and after FDA clearance,
Nanomix expects to primarily utilize a national distributor for the customer interface activities. The Distributor will be supported by
a Nanomix sales force that will coordinate with the Distributor's account teams. Nanomix expects to provide training and initial
implementation support to customers.
Recent Developments
Reverse Stock Split and Name Change
On January 26, 2021,
our board of directors approved, subject to shareholder approval, a reverse stock split of our outstanding common stock in a ratio of
one-for-one hundred and seventy-three (1:173), provided that all fractional shares as a result of the split shall be automatically rounded
up to the next whole share, or the Reverse Split and (ii) to change our corporate name from "Boston Therapeutics"" to
"Nanomix Corporation", or the Name Change. On January 26, 2021, holders of 85.8% of the voting power of our capital stock
acted by written consent in lieu of a meeting to approve the Reverse Split and the Name Change. The Name Change and Reverse Split are
subject to approval by FINRA. The Name Change took effect on November 15, 2021 and Reverse Split took effect on March 2, 2022.
The Transactions
The shares of our Common
Stock being offered for resale by selling stockholders named herein pursuant to this prospectus were issued or are issuable in connection
with the transactions that are described below.
March 2022 Private
Placement
On March 23, 2022, we
entered into a Securities Purchase Agreement (the "Purchase Agreement") with GHS Investments, LLC (the "Purchaser"),
pursuant to which the Purchaser purchased five hundred (500) shares of the Company's Series D Convertible Preferred Stock ("Series
D Preferred Stock") for an aggregate purchase price of $500,000. In addition, in connection with the issuance of the Series D Preferred
Stock, the Purchaser received a five year warrant to purchase 60,000 shares of the Company's common stock (the "March 2022
Warrant"). The March 2022 Warrant is exercisable at an exercise price of $2.0587 per share of Common Stock, subject to certain beneficial
ownership limitations (with a maximum ownership limit of 9.99%). The exercise price is also subject to adjustment due to certain
events, including stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of our
Common Stock or Common Stock equivalents at an effective price per share lower than the exercise price then in effect. The holders
may exercise the Warrants on a cashless basis if the shares of our Common Stock underlying the Warrants are not then registered pursuant
to an effective registration statement.
5
In addition, upon the
terms and subject to the conditions set forth in the Purchase Agreement, fifteen (15) calendar days following the effective date of a
registration statement registering the resale of the maximum aggregate number of (i) shares of Common Stock issuable pursuant to the conversion
of the Preferred Stock and (ii) Warrant Shares issuable upon exercise of the Warrants issuable pursuant to the Purchase Agreement (collectively,
the "Registrable Securities"), and on each of the 30
th
, 60
th
, 90
th
and 120
th
calendar
day anniversaries of the Effective Date, assuming no Event of Default (as defined in the Purchase Agreement) has taken or is taking place,
the Company agrees to sell, and the Purchaser agrees to purchase, an additional five hundred (500) shares of Preferred Stock at price
of $1,000 per share of Series D Preferred Stock. Concurrently with the issuance of any Series D Preferred Stock, the Company shall issue
to Purchaser a warrant to purchase up to a number of warrant shares equal to 30% of the quotient of (a) the Purchase Price due at the
relevant closing) and the Closing Price of the Company's Common Stock for the Trading Day preceding such additional closing date.
In connection with the
entry into the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible
Preferred Stock (the "COD") with the Delaware Secretary of State to create a new class of preferred stock designated Series
D Preferred Stock and authorized the issuance of up to ten thousand (10,000) shares of Series D Preferred Stock. The Series D Preferred
Stock has a stated value of $1,200 per share ("Stated Value") and the holder of the Series D Preferred Stock has the right
to receive a dividend equal to eight percent (8%) per annum, payable quarterly, beginning on the issuance date of the Series D Preferred
Stock and ending on the date that the Series D Preferred Stock has been converted or redeemed. Dividends may be paid in cash or in shares
of Series D Preferred Stock at the discretion of the Company. At closing, the Company prepaid one year's worth of interest in shares
of Series D Preferred Stock. The Series D Preferred Stock will vote together with the common stock on an as-converted basis subject to
the Beneficial Ownership Limitations Further, the holders of the Series D Preferred Stock have the right to receive assets in the event
of liquidation, dissolution or winding up before any distribution or payment shall be made to the holders of any securities junior to
the Series D Preferred Stock. The Company is required to reserve and keep available out of our authorized and unissued shares of Common
Stock three times the number of Common Stock needed to convert or exercise all Series D Preferred Stock and Warrants issued pursuant to
the Purchase Agreement.
The conversion price
(the "Conversion Price") for the Series D Preferred Stock shall be the amount equal to the lower of (1) $2.08, a fixed price
equaling the closing bid price of the Common Stock on the trading day immediately preceding the date of the Purchase Agreement and (2)
one hundred percent (100%) of the quotient of (A) the sum of the VWAP of the Common Stock for each of the three (3) trading days with
the lowest VWAP during the twenty (20) consecutive trading day period ending on the trading day immediately preceding the date of delivery
of a conversion notice and (B) three, subject to the Beneficial Ownership Limitations. Following an "Event of Default," as
defined in the Purchase Agreement, the Conversion price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price
per share equaling eighty percent (80%) of the lowest traded price for the Company's common stock during the fifteen (15) Trading
Days immediately preceding, but not including, the Conversion Date. The Conversion Price is also subject to adjustment due to certain
events, including stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of our
Common Stock or Common Stock equivalents at an effective price per share lower than the Conversion Price then in effect.
The Corporation shall
have the right to redeem, provided the notes issued in the June 2021 financing have been satisfied in full, all (but not less than all),
shares of the Preferred Stock issued and outstanding at any time after the date of issuance, upon five (5) business days' notice,
at a redemption price per Series D Preferred Stock then issued and outstanding, equal to the product of (i) the Premium Rate multiplied
by (ii) the sum of (x) the Stated Value, (y) all accrued but unpaid dividends, and (z) all other amount due to the Holder pursuant to
the COD and/or any document entered into in connection with this financing. "Premium Rate" means (a) 1.15 if all of the Preferred
Stock is redeemed within ninety (90) calendar days from the issuance date thereof; (b) 1.2 if all of the Preferred Stock is redeemed after
ninety (90) calendar days.
At any time on or prior
to the third anniversary of the date of the Purchase Agreement, upon a Subsequent Financing (as defined in the COD), a holder of at least
one hundred (100) shares of Preferred Stock shall have the right to participate in up to an amount of the Subsequent Financing equal to
35% of the Subsequent Financing (or, solely with respect to a Subsequent Financing consisting of only Common Stock and warrants to purchase
Common Stock (with warrant coverage not to exceed 25%) for aggregate gross proceeds to the Company of at least five million dollars ($5,000,000),
10% of the Subsequent Financing) on the same terms, conditions and price provided for in the Subsequent Financing.
6
Until the date when the
Purchaser no longer holds any Series D Preferred Stock, upon any issuance by the Company or any of its subsidiaries of Common Stock or
common stock equivalents (as defined in the COD) for cash consideration, indebtedness or a combination of units thereof (a "Subsequent
Financing"), the holder may elect, in its sole discretion, to exchange (in lieu of conversion), if applicable, all or some of the
shares of Series D Preferred Stock then held for any securities or units issued in a Subsequent Financing on a $1.00 for $1.00 basis.
A Registration Rights
Agreement was executed in connection with the issuance of the Series D Preferred Stock and the March 2022 Warrants and the registration
statement of which this prospectus is a part is being filed to fulfill our obligations under such agreement.  The Company shall use
is best efforts to have the registration statement declared "effective" within sixty (60) calendar days from its filing.
The COD contains limited
negative covenants which restrict the ability of the Company to take certain actions without the consent of the Purchaser. In addition,
following a "Triggering Event" (as defined in the COD), all outstanding shares of Series D Preferred Stock shall come immediately
due for redemption and the redemption amount shall accrue interest at the lesser of: (a) eighteen percent (18%) per annum; or (b) the
maximum legal rate. Redemption following an Event of Default shall occur at an amount equaling: 1.35 multiplied by the sum of the Stated
Value, all accrued but unpaid dividends and all other amounts due pursuant to the Series D COD for all Series D Preferred Stock outstanding.
Additionally, following an Event of Default, the Conversion Price shall equal the lower of: (a) the then applicable conversion price;
or (b) a price per share equaling eighty percent (80%) of the lowest traded price for the Company's Common Stock during the fifteen
(15) trading days preceding the relevant conversion.
Nanomix Merger
On June 6, 2021, the Company and Nanomix, Inc.,
or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation (the "Company").
As consideration for the Merger, The Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible
Preferred Stock of the Company (the "Preferred Stock"). On March 2, 2022, all such shares of Preferred Stock issued to Nanomix
shareholders automatically converted into approximately 35,644,997 shares of common stock of the Company, the warrants assumed at closing
may be exercisable into approximately 2,124,687 shares of common stock of the Company and the options and restricted stock units assumed
at closing may be exercisable into approximately 5,718,838 shares of common stock of the Company. The shares of common stock issued upon
conversion of the Preferred Stock together with warrants, restricted stock units and options assumed on the closing date represent approximately
80% of the outstanding shares of Common Stock of the Company upon closing of the Merger. After the merger, the Company changed its name
to Nanomix Corporation and its ticker symbol to NNMX. A previously approved 173:1 reverse stock split was effective on March 2, 2022.
2021 Restructuring
From January 25, 2021 through January 27, 2021,
the Company entered into various agreements with certain debt holders, including CJY Holdings Limited, a Hong Kong company controlled
by the Company's CEO and sole director's brother ("CJY"), pursuant to which liabilities exceeding approximately
$4.5 million were converted or exchanged into 730,783,181 shares of common stock. The Company granted CJY piggyback registration rights
for a period of one year. Further, the Company entered into Exchange Agreements with the holders of the Company's Series A Preferred
Stock pursuant to which the holders exchanged all outstanding shares of Series A Preferred Stock for 75,000,000 shares of common stock.
The Company entered into service agreements with various consultants and advisors pursuant to which it issued 963,964 shares of Series
B Preferred Stock. The rights, preferences, privileges and limitations of the Series B Preferred Stock are set forth in a certificate
of designation filed by the Company with the Secretary of State of the State of Delaware. The Series B Preferred Stock ranks senior to
the Company's common stock and junior with respect to the Company's Series C Preferred Stock with respect to dividend rights
and rights upon liquidation, winding-up or dissolution. Each Holder of Series B Preferred Stock shall be entitled to receive dividends
or distributions on each share of Series B Preferred Stock on an "as converted" into Common Stock basis when and if dividends
are declared on the Common Stock by the Board of Directors. Each outstanding share of the Series B Preferred Stock will automatically
convert into 1,000 shares of common stock on the date that approval of an amendment to the Corporation's Certificate of Incorporation,
as amended, to implement a one-for-173 reverse stock split of the Corporation's capital stock by a majority of the votes entitled
to be cast thereon, whether presented at a special or annual meeting of shareholders of the Corporation or by written consent of the
shareholders and the subsequent filing of such amendment with the Secretary of State of the State of Delaware. The consultants and advisors
were granted piggyback registration rights.
CureDM Acquisition
On February 12, 2018, the Company acquired CureDM Group Holdings LLC,
or CureDM, for 275,960 shares of common stock of which 144,508 were delivered at closing and 131,452 were to be delivered in four equal
tranches of 32,863 each upon the achievement of specific milestones. Since the milestones were not achieved and the related programs
have been cancelled, the Company does not expect to issue the additional shares.
7
Risks Related to Our Business
Our business and our ability to execute our business
strategy are subject to a number of risks as more fully described in the section titled "Risk Factors" beginning on page 11.
These risks include, among others:
●
The COVID-19 pandemic could materially adversely affect our business, financial condition and results of operations.
●
We have incurred significant losses since inception and expect to incur losses in the future. We cannot be certain that we will achieve or sustain profitability.
●
Our financial situation creates doubt whether we will continue as a going concern.
●
We will need to raise additional funding, which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our product development efforts or other operations.
●
Our obligations to the holders of our Notes are secured by a security interest in substantially all of our assets, so if we default on those obligations, the note holders could foreclose on our assets.
●
Our obligations under the Notes are secured by a security interest in substantially all of our assets. As a result, if we default in our obligations under the Notes, the holders of the notes, acting through their appointed agent, could foreclose on their security interests and liquidate some or all of these assets, which would harm our business, financial condition and results of operations and could require us to curtail or cease operations.
●
If we cannot successfully develop, maintain, commercialize, or obtain regulatory approvals for new and existing diagnostic assays, our financial results will be harmed and our ability to compete will be harmed.
●
We are subject to many laws and governmental regulations and any adverse regulatory action may materially adversely affect our financial condition and business operations.
●
Disruptions at the FDA and other government agencies caused by funding shortages, COVID-19 or other global health concerns could shift their priorities or hinder their ability to hire, retain or deploy key leadership and other personnel.  This could result in delays or may prevent new or modified products from being developed, cleared, approved, authorized, or commercialized in a timely manner or at all, which could negatively impact our business.
●
Our diagnostic products have not been manufactured in significant volume and are subject to unforeseen scale-up risks.
●
We utilize third-party, single-source suppliers for some components and materials used in our products and product candidates, and the loss of any of these suppliers could have an adverse impact on our business.
●
Our products may not be able to compete with new diagnostic products or existing products developed by well-established competitors, which would negatively affect our business.
●
If we are unable to recruit, train and retain key personnel, we may not achieve our goals.
●
New technologies, techniques or assays could emerge that might offer better combinations of price and performance than our current or future assays.
●
We have limited experience in marketing and selling our products, and if we are unable to expand, manage and maintain our direct sales and marketing organizations, or otherwise commercialize our products, our business may be adversely affected.
●
We have a limited operating history and may face difficulties encountered by companies early in their commercialization in competitive and rapidly evolving markets.
●
We have limited commercial scale capabilities. If we are unable to successfully implement commercial capabilities and manage our growth, our business will be harmed.
●
Customers may not adopt our products quickly, or at all.
●
There has been a limited public market for our common stock, and we do not know whether one will develop to provide you adequate liquidity. Furthermore, the trading price for our common stock, should an active trading market develop, may be volatile and could be subject to wide fluctuations in per-share price.
Corporate Information
We were formed as a Delaware corporation on August
24, 2009, under the name Avanyx Therapeutics, Inc. On November 15, 2021, we changed our name to "Nanomix Corporation" In
connection with the acquisition of Nanomix Inc., a California corporation. Our principal executive offices are located at 2121 Williams
Street, San Leandro, CA 94577, and our telephone number is (510) 428-5300. Our website address is nano.com. The information contained
on our website is not incorporated by reference into 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 shares.
8
THE OFFERING
Common stock offered by selling security holders
19,507,630 shares of common stock held by the selling stockholders named in this prospectus, including (i) up to 7,500,000 shares of common stock issuable upon conversion of Series D Preferred Stock, (ii) up to 2,250,000 shares of common stock issuable upon exercise of the GHS Warrants, (iii) up to 416,032 shares of common stock issuable upon exercise of the Merger Warrants, (iv) up to 7,904,822 shares of common stock issued as the Merger Shares, (v) up to 1,302,123 shares of common stock that were issued as the Conversion Shares and (vi) up to 134,653 shares of common stock that were issued as the CureDM Shares.
Offering price
The prevailing market price for the shares or in privately negotiated transactions.
Common stock outstanding before the offering
46,203,866
    shares
(1)
Common stock outstanding after the offering
56,369,898
    shares
(2)
Use of proceeds
All of the shares sold pursuant to this prospectus will be offered and sold by the selling stockholders. We will not receive any proceeds from such sales. We would, however, receive proceeds upon the exercise of the Warrants held by the Selling Stockholders which, if such warrants are exercised in full, would be approximately $4.6 million. Proceeds, if any, received from the exercise of such Warrants will be used for working capital and general corporate purposes. No assurances can be given that any of such Warrants will be exercised.
Risk Factors
Investing in our securities is highly speculative and involves a significant degree of risk. You should carefully consider the information set forth in this prospectus and, in particular, the specific factors set forth in the "
Risk Factors
" section beginning on page 11 before deciding whether or not to invest in our common stock.
(1)
The number of shares of common stock outstanding is based on 46,203,866 shares of common stock issued and outstanding as of March 31, 2022 and excludes the following:
●
8,534,608 shares of common stock issuable upon the conversion of outstanding convertible notes;
●
6,605,658 shares of common stock issuable upon the exercise of outstanding warrants as of that date having a weighted average exercise price of $1.4152 per share;
●
2,701,762 options to purchase shares of our common stock and 3,369,080 restricted stock units granted under our 2021 Equity Incentive Plan, or the 2021 Plan. As of that date, the common options having a weighted average exercise price of $0.254 per share; and
●
5,500,000 shares of our common stock reserved for future issuance under our 2021 Plan.
(2)
Includes (i) up to 7,500,000 shares of common stock issuable upon conversion of Series D Preferred Stock, (ii) up to 2,250,000 shares of common stock issuable upon exercise of the GHS Warrants and (iii) up to 416,032 shares of common stock issuable upon exercise of the Merger Warrants.
9
SUMMARY FINANCIAL DATA
The following table sets forth our selected financial
data as of the dates and for the periods indicated. We have derived the statement of operations data for the years ended December 31,
2021 and 2020 from our audited financial statements included elsewhere in this prospectus. The statements of operations data for the three
months ended March 31, 2022 and the balance sheet data as of March 31, 2022 have been derived from our unaudited financial statements
included elsewhere in this prospectus. Our historical results of operations presented below may not be reflective of our financial position,
results of operations and cash flows had we operated as a combined company during all periods presented given the change to our business
as a result of the merger with Boston Therapeutics (BTHE) on June 4, 2021, respectively. The following summary financial data should be
read with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial
statements and related notes and other information included elsewhere in this prospectus. Our historical results are not necessarily indicative
of the results to be expected in the future and the results for the three months ended March 31, 2022 are not necessarily indicative of
the results that may be expected for the full fiscal year.
Statement of Operations Data:
Years Ended
December 31,
Three Months
Ended
March 31,
(unaudited)
2021
2020
2022
2021
Revenue
141,778
513,244
--
141,778
Total Operating Expenses
5,866,929
5,419,604
1,997,734
997,642
Operating Income/(Loss)
(5,725,151
)
(4,906,360
)
(1,997,734
)
(855,864
)
Total Income/(Loss)
(3,739,882
(1,286,010
(847,299
)
(356,586
)
Net Income/(Loss)
(9,465,033
)
(6,192,370
)
(2,845,033
)
(1,212,450
)
Pro forma basic and diluted net loss per share
1.79
1,440.76
(0.15
)
(0.99
)
Pro forma weighted average of shares outstanding
5,300,084
4,298
18,936,485
1,225,881
Balance Sheet Data:
December 31,
March 31,
2021
2020
2022
(unaudited)
Cash and cash equivalents
297,351
15,098
10,961
Working capital (1)
(2,856,259
)
(3,564,028
)
(3,664,161
)
Total assets
905,712
530,471
1,158,201
Total current liabilities
3,325,098
3,736,822
3,785,445
Total stockholders' equity (deficit)
(21,670,048
)
(52,595,613
)
(8,244,525
)
(1)
Working capital is defined as total current assets minus total
current liability
10
RISK FACTORS
An investment in our securities involves a
high degree of risk. Before making an investment decision, you should give careful consideration to the following risk factors, in addition
to the other information included in this prospectus, including our financial statements and related notes, before deciding whether to
invest in our securities. The occurrence of any of the adverse developments described in the following risk factors could materially and
adversely harm our business, financial condition, results of operations or prospects. In that case, the trading price of our common stock
could decline, and you may lose all or part of your investment.
Risks Related to Our Financial Position and
Need for Additional Capital
The COVID-19 pandemic could materially adversely affect our business,
financial condition and results of operations.
The COVID-19 pandemic, the measures attempted
to contain and mitigate the effects of the virus, including travel bans and restrictions, shelter-in-place, quarantine and other similar
governmental orders and restrictions on trade put in place around the world have caused widespread disruption in global economies, productivity
and financial markets and have materially altered the way in which we conduct our day-to-day business.
The full extent to which the COVID-19 pandemic
and the various responses to it impact our business, operations and financial results will depend on numerous evolving factors that we
may not be able to accurately predict, including: the duration and scope of the pandemic, including any potential future waves of the
pandemic; governmental, business and individuals' actions that have been and continue to be taken in response to the pandemic; disruptions
or restrictions on our employees' ability to work and travel; and potential impact on the timeliness of FDA and other regulatory
bodies review and approval of our products. While some of our business operations can be performed remotely, our product development and
production activities need to be conducted on-site. Additionally, many of our employees are juggling additional work-related and personal
challenges, including adjusting communication and work practices to collaborate remotely with work colleagues and business partners, managing
technical and communication challenges of working from home, balancing the need to be on-site for many activities, , looking after children
as a result of remote-learning and school closures, making plans for childcare and caring for themselves, family members or other dependents
who are or may become ill. We will continue to actively monitor the issues raised by the COVID-19 pandemic and may take further actions
that alter our business operations, including as may be required by federal, state, local or foreign authorities or that we determine
are in the best interests of our employees, potential business partners and stockholders.
The duration and extent of the impact from the
COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the severity and transmission
rate of the virus, the existence of any additional waves of the pandemic, the extent and effectiveness of containment actions, treatment
and prevention measures, including vaccines, and the impact of these and other factors on our employees and potential customers and business
partners. If we are not able to respond to and manage the impact of such events effectively, our business may be harmed.
We have incurred significant losses since
inception and expect to incur losses in the future. We cannot be certain that we will achieve or sustain profitability.
We have incurred significant losses since inception
through March 31, 2022 and expect to incur losses in the future. Our accumulated deficit as of March 31, 2022, December 31, 2021 and December
31, 2020 was approximately $109.7 million, $106.8 million and $97.3 million, respectively, and we incurred net losses each year since
inception. We expect that our losses may continue for at least the next few years as we will be required to invest significant additional
funds toward the continued development and commercialization of our technology. Our ability to achieve or sustain profitability depends
on numerous factors, many of which are beyond our control, including the market acceptance of our products and future product candidates,
future product development, our ability to achieve marketing clearance from the FDA and international regulatory clearance for future
product candidates, our ability to compete effectively against an increasing number of competitors and new products, and our market penetration
and margins. In spite of efforts to ramp sales of our products, we may never be able to generate sufficient revenue to achieve or sustain
profitability.
11
Our financial situation creates doubt whether
we will continue as a going concern.
Our independent registered public accounting firm
has issued a report for our financial statements at December 31, 2021 that includes an explanatory paragraph referring to our recurring
losses from operations, which raises substantial doubt about our ability to continue as a going concern. We have not generated substantial
revenues to date. For the years ended December 31, 2021 and 2020, the Company had losses of $9.5 million and $6.2 million, respectively.
For the three months ended March 31, 2022, the Company had losses of $2.8 million. There can be no assurances that we will be able to
achieve a level of revenues adequate to generate sufficient cash flow from operations or additional financing through private placements,
public offerings and/or bank financing necessary to support our working capital requirements. To the extent that funds generated from
any private placements, public offerings and/or bank financing are insufficient, we will have to raise additional working capital. No
assurance can be given that additional financing will be available, or if available, will be on acceptable terms. These conditions raise
substantial doubt about our ability to continue as a going concern. If adequate working capital is not available, we may be forced to
discontinue operations, which would cause investors to lose their entire investment. Our auditors have indicated that these conditions
raise substantial doubt about the Company's ability to continue as a going concern.
We will need to raise additional funding,
which may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay,
limit or terminate our product development efforts or other operations.
We will need to continue to seek capital from
time to time to continue development of our advanced mobile POC diagnostic system and to acquire and develop other products. Once approved
for commercialization, we cannot provide any assurances that any revenues it may generate in the future will be sufficient to fund our
ongoing operations. We expect that our current cash position is insufficient to fund our operations beyond the current period. However,
our operating plan may change as a result of many factors currently unknown to us, and we may need to seek additional funds sooner than
planned, through public or private equity or debt financings, government or other third-party funding, marketing and distribution arrangements
and other collaborations, strategic alliances and licensing arrangements or a combination of these approaches. In any event, we will require
additional capital to obtain regulatory approval for, and to commercialize, our product candidates. Raising funds in the current economic
environment may present additional challenges. Even if we believe we have sufficient funds for our current or future operating plans,
we may seek additional capital if market conditions are favorable or if we have specific strategic considerations.
Any additional fundraising efforts may divert
our management from their day-to-day activities, which may adversely affect our ability to develop and commercialize our product candidates.
In addition, we cannot guarantee that future financing will be available in sufficient amounts or on terms acceptable to us, if at all.
Moreover, the terms of any financing may adversely affect the holdings or the rights of our stockholders and the issuance of additional
securities, whether equity or debt, by us, or the possibility of such issuance, may cause the market price of our shares to decline. The
sale of additional equity or convertible securities may dilute our existing stockholders. The incurrence of indebtedness would result
in increased fixed payment obligations and we may be required to agree to certain restrictive covenants, such as limitations on our ability
to incur additional debt, limitations on our ability to acquire, sell or license intellectual property rights and other operating restrictions
that could adversely impact our ability to conduct our business. We could also be required to seek funds through arrangements with collaborative
partners or otherwise at an earlier stage than otherwise would be desirable and we may be required to relinquish rights to some of our
technologies or product candidates or otherwise agree to terms unfavorable to us, any of which may have a material adverse effect on our
business, operating results and prospects.
If we are unable to obtain funding on a timely
basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs or the commercialization
of any product candidate or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which
could materially affect our business, financial condition and results of operations.
12
Our inability to raise capital on acceptable
terms in the future may cause us to delay, diminish, or curtail certain operational activities as we have done during the fiscal year
ended December 31, 2021, including research and development activities, sales and marketing, and other operations, in order to reduce
costs and sustain the business, and such inability would have a material adverse effect on our business and financial condition.
We expect capital outlays and operating expenditures
to increase over the next several years as we work to expand our commercial activities, expand our development activities, expand manufacturing
operations and expand our infrastructure. We may need to raise additional capital to, among other things:
●
sustain and expand the commercialization of our commercialized assays and assays under development or review by various regulatory agencies;
●
expand and automate our manufacturing capabilities and reduce our cost of sales;
●
increase our sales and marketing efforts to drive market adoption and address competitive developments;
●
finance capital expenditures and our general and administrative expenses;
●
develop new assays to expand the product offerings on our eLab system;
●
maintain, expand and protect our intellectual property portfolio;
●
add operational, financial and management information systems; and
●
hire additional research and development, quality control, scientific, and general and administrative personnel.
Our present and future funding requirements will
depend on many factors, including but not limited to:
●
the progress and timing of our clinical trials;
●
the level of research and development investment required to maintain and improve our technology position;
●
the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights, if any;
●
our efforts to acquire or license complementary technologies or acquire complementary businesses;
●
changes in product development plans needed to address any difficulties in commercialization or changing market conditions;
●
competing technological and market developments;
●
changes in regulatory policies or laws that may affect our operations; and
●
changes in physician acceptance or medical society recommendations that may affect commercial efforts.
Raising additional capital will cause dilution
to our existing stockholders and may restrict our operations or require us to relinquish certain intellectual property rights.
We will seek additional capital through a combination
of public and private equity offerings, debt financings, strategic partnerships and alliances, licensing arrangements and grants. To the
extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our existing
stockholders may be diluted, and the terms may include liquidation or other preferences that adversely affect the rights of our stockholders.
Debt and receivables financings may be coupled with an equity component, such as warrants to purchase shares, which could also result
in dilution of our existing stockholders' ownership. The incurrence of indebtedness would result in increased fixed payment obligations
and could also result in certain restrictive covenants, such as limitations on our ability to incur additional debt, limitations on our
ability to acquire or license intellectual property rights and other operating restrictions that could adversely impact our ability to
conduct our business. If we raise additional funds through strategic partnerships and alliances and licensing arrangements with third
parties, we may have to relinquish valuable rights to our product candidates, or grant licenses on terms that are not favorable to us.
A failure to obtain adequate funds may cause us to curtail certain operational activities, including research and development, regulatory
trials, sales and marketing, and manufacturing operations, in order to reduce costs and sustain the business, and would have a material
adverse effect on our business and financial condition.
13
We may be at risk of securities class action litigation.
We may be at risk of securities class action litigation.
This risk is especially relevant for us due to our dependence on regulatory approvals of our diagnostic tests. In the past, life science
companies have experienced significant stock price volatility, particularly when associated with binary events such as clinical trials
and product approvals. Additionally, due to our price volatility and our high demand for cash to fund operations, we have had to conduct
a number of reverse stock splits and highly dilutive financings to continue as a going concern which exposes us to additional risk of
securities class action litigation. If we face such litigation, it could result in substantial costs and a diversion of management's
attention and resources, which could harm our business and result in a decline in the market price of our common stock. If such lawsuits
were successful we may not be able to pay awarded damages and we may be forced into bankruptcy which would likely result in the complete
loss of your investment.
Market and economic conditions may negatively
impact our business, financial condition and share price.
In recent years, concerns over inflation, energy
costs, geopolitical issues, the U.S. mortgage market and a declining real estate market, unstable global credit markets and financial
conditions, and volatile oil prices have led to periods of significant economic instability, diminished liquidity and credit availability,
declines in consumer confidence and discretionary spending, diminished expectations for the global economy and expectations of slower
global economic growth going forward, increased unemployment rates, and increased credit defaults. Our general business strategy may be
adversely affected by any such economic downturns, volatile business environments and unstable or unpredictable economic and market conditions.
If these conditions occur, deteriorate or do not improve, it may make any necessary debt or equity financing more difficult to complete,
more costly, and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material
adverse effect on our growth strategy, financial performance, and share price and could require us to delay or abandon development or
commercialization plans. In addition, there is a risk that one or more of our current and future service providers, manufacturers, suppliers,
hospitals and other medical facilities, our third party payors, and other partners could be negatively affected by these difficult economic
times, which could adversely affect our ability to attain our operating goals on schedule and on budget or meet our business and financial
objectives.
The small size of the Company's accounting
staff has limited segregation of financial duties which could result in material misstatements in our financial statements in future periods.
The Company's CEO and Controller have identified
control deficiencies regarding the lack of segregation of duties and the need for a stronger internal control environment. The small size
of the Company's accounting staff may prevent adequate controls in the future, such as segregation of duties, due to the cost/benefit
of such remediation.
Although the Company has hired a Controller to
work on SEC reporting and accounting matters, we expect that the Company will need to hire accounting personnel with the requisite knowledge
to improve the levels of review of accounting and financial reporting matters. The Company may experience delays in doing so and any such
additional employees would require time and training to learn the Company's business and operating processes and procedures. For
the near-term future, until such personnel are in place, this will continue to be a weakness in the Company's internal control over
financial reporting that could result in material misstatements in the Company's financial statements not being prevented or detected.
In addition, other control weaknesses or deficiencies
may be identified in the future. If we are unable to correct such weaknesses or deficiencies in internal controls in a timely manner,
our ability to record, process, summarize and report financial information accurately and within the time periods specified in the rules
and forms of the SEC will be adversely affected, and could result in material misstatements in our financial statements in future periods.
This failure could negatively affect the market price and trading liquidity of our common stock, cause investors to lose confidence in
our reported financial information, subject us to civil and criminal investigations and penalties, and generally materially and adversely
impact our business and financial condition.
14
Risks Related to the March 2022 Private Placement
If the holders of our Series D Preferred
Stock elect to convert into shares of our common stock, our stockholders will experience substantial dilution in their investment.
If the holders of these Notes were to elect to
convert all of the stated value of the Series D Preferred Stock (and assuming no interest has accrued on the principal amount) into shares
of our common stock at the Conversion Price of $2.08, we would be required to issue approximately 1.45 million shares. These conversions
would result in significant dilution to the investments of our existing stockholders.
The holders of our Series D Preferred Stock
have certain rights upon an event of default under the Notes which could harm our business, financial condition and results of operations
and could require us to curtail or cease or operations.
Under the certificate of designations for the
Series D Preferred Stock,
following a "Triggering Event", all outstanding shares of
Series D Preferred Stock shall come immediately due for redemption and the redemption amount shall accrue interest at the lesser of: (a)
eighteen percent (18%) per annum; or (b) the maximum legal rate. Redemption following a Triggering Event shall occur at an amount equaling:
1.35 multiplied by the sum of the stated value of the Series D Preferred Stock, all accrued but unpaid dividends and all other amounts
due. Additionally, following a Triggering Event, the Conversion Price shall equal the lower of: (a) the then applicable conversion price;
or (b) a price per share equaling eighty percent (80%) of the lowest traded price for the Company's Common Stock during the fifteen
(15) trading days preceding the relevant conversion.
If we were unable to come to an agreement with the holders of the Series D
preferred Stock regarding payment, the holders could seek to get a judgment against us, which could harm our business, financial condition
and results of operations and could require use to curtail or cease our operations.
Risks Related to Product Development, Regulatory
Approval, Manufacturing and Commercialization
If we cannot successfully develop, maintain,
commercialize, or obtain regulatory approvals for new and existing diagnostic assays, our financial results will be harmed and our ability
to compete will be harmed.
Our financial performance depends in part upon
our ability to successfully develop and market new assays in a rapidly changing technological and economic environment, and to maintain
and successfully commercialize previously cleared assays. If we fail to successfully introduce new assays or do not maintain approval
for previously FDA-cleared assays, we could lose customers and market share. We could also lose market share if our competitors introduce
new assays or technologies that render our assays less competitive or obsolete. In addition, delays in the introduction of new assays
due to regulatory, developmental or other obstacles could negatively impact our revenue and market share, as well as our earnings. Factors
that can influence our ability to introduce new assays, the timing associated with new product approvals and commercial success of these
assays include:
●
the scope of and progress made in our research and development activities;
●
our ability to successfully initiate and complete clinical trial studies;
●
timely expansion of our menu of assays;
●
the results of clinical trials needed to support any regulatory approvals of our assays;
●
our ability to obtain and maintain requisite FDA or other regulatory clearances or approvals for our assays on a timely basis;
●
demand for the new assays we introduce;
●
product offerings from our competitors; and
●
the functionality of new assays that address market requirements and customer demands.
15
We are subject to many laws and governmental
regulations and any adverse regulatory action may materially adversely affect our financial condition and business operations.
The assays that we develop and commercialize in
the future are subject to regulation by numerous government agencies, including the FDA and comparable foreign agencies. To varying degrees,
each of these agencies requires us to comply with laws and regulations governing the development, testing, manufacturing, labeling, marketing
and distribution of our assays. In particular, FDA regulations govern activities such as product development, product testing, product
labeling, product storage, premarket clearance or approval, manufacturing, advertising, promotion, product sales, reporting of certain
product failures and distribution. Our assays will require 510(k) clearance from the FDA prior to marketing.
We may be unable to obtain marketing clearance
for our assays in development. If such approval is obtained, it may:
●
take a significant amount of time;
●
require the expenditure of substantial resources;
●
involve stringent clinical and pre-clinical testing;
●
involve modifications, repairs, or replacements of our assays; and/or
●
result in limitations on the proposed uses of our assays.
Since 2009, the FDA has significantly increased
its oversight of companies subject to its regulations, including medical device companies, by hiring new investigators and stepping up
inspections of manufacturing facilities. The FDA has recently also significantly increased the number of warning letters issued to companies.
If the FDA were to conclude that we are not in compliance with applicable laws or regulations, or that any of our medical devices are
ineffective or pose an unreasonable health risk, the FDA could ban such medical devices, detain or seize adulterated or misbranded medical
devices, order a recall, repair, replacement, or refund of such devices, refuse to grant pending pre-market approval applications or require
certificates of foreign governments for exports, and/or require us to notify health professionals and others that the devices present
unreasonable risks of substantial harm to the public health. The FDA may also impose operating restrictions on a company-wide basis, enjoin
and restrain certain violations of applicable law pertaining to medical devices and assess civil or criminal penalties against our officers,
employees or us. The FDA may also recommend prosecution to the U.S. Department of Justice. Any adverse regulatory action, depending on
its magnitude, may restrict us from effectively marketing and selling our diagnostic tests.
Foreign governmental regulations have become increasingly
stringent and more common, and we may become subject to more rigorous regulation by foreign governmental authorities in the future. Penalties
for a company's non-compliance with foreign governmental regulation could be severe, including revocation or suspension of a company's
business license and criminal sanctions. Any domestic or foreign governmental law or regulation imposed in the future may have a material
adverse effect on us.
Our current and potential customers in the United
States and elsewhere may also be subject, directly or indirectly, to applicable anti-kickback, fraud and abuse, false claims, transparency,
health information privacy and security and other healthcare laws and regulations, which could expose us to criminal sanctions, civil
penalties, contractual damages, reputational harm, administrative burdens and diminished profits and future earnings.
16
The life sciences industry is highly competitive
and subject to rapid technological change. If our competitors and potential competitors develop superior assays and technologies, our
competitive position and results of operations would suffer.
We face intense competition from a number of companies
that offer assays in our target markets, many of which have substantially greater financial resources and larger, more established marketing,
sales and service operations than we do. The life sciences industry is characterized by rapid and continuous technological innovation.
We may need to develop new technologies for our existing product and our assays to be competitive. One or more of our current or future
competitors could render our existing products or assays under development obsolete or uneconomical by technological advances. We may
also encounter other problems in the process of delivering new assays to the marketplace, such as problems related to FDA clearance or
regulations, design, development or manufacturing of such assays, and as a result we may be unsuccessful in selling such assays. Our future
success depends on our ability to compete effectively against current technologies, as well as to respond effectively to technological
advances by developing and marketing assays that are competitive in the continually changing technological landscape.
If our assays do not perform as expected
or the reliability of the technology on which our assays are based is questioned, we could experience delayed or reduced market acceptance
of our assays, increased costs and damage to our reputation.
Our success depends on the market's confidence
that we can provide reliable, high-quality analyzers and diagnostic program. We believe that customers in our target markets are likely
to be particularly sensitive to product defects and errors. Our reputation and the public image of our assays or technologies may be impaired
if our assays fail to perform as expected or our assays are perceived as difficult to use. Despite quality control testing, defects or
errors could occur in our assays or technologies.
In the future, if our assays experience a material
defect or error, this could result in loss or delay of revenues, delayed market acceptance, product recalls, damaged reputation, diversion
of development resources, legal claims, increased insurance costs or increased service and warranty costs, any of which could harm our
business. Such defects or errors could also prompt us to amend certain warning labels or narrow the scope of the use of our assays, either
of which could hinder our success in the market. Even after any underlying concerns or problems are resolved, any widespread concerns
regarding our technology or any manufacturing defects or performance errors in our assays could result in lost revenue, delayed market
acceptance, damaged reputation, increased service and warranty costs and claims against us.
COVID-19 diagnostic tests are subject to
changes in CLIA, FDA, and other regulatory requirements.
Our COVID-19 tests are subject to regulations
of the FDA, International Organization for Standards and other regulatory requirements. The regulations regarding the manufacture and
sale of COVID-19 tests may be unclear and are subject to change. Newly promulgated regulations could require changes to our COVID-19 diagnostic
tests, necessitate additional procedures, or make it impractical or impossible for us to market our tests for certain uses, in certain
markets, or at all. The FDA and other regulatory authorities also have the ability to impose new or additional requirements relating to
COVID-19 tests. The implementation of such changes or new or additional requirements may result in substantial additional costs and could
delay or make it more difficult or complicated to sell our products. Further, our COVID-19 tests, if approved, will be marketed under
an Emergency Use Authorization (EUA) from the FDA. The FDA may decide to withdraw EUA designation for the SARS CoV-2 pandemic, resulting
in the need for us to apply for clearance to market under a 510(k) or other regulatory process. This could result in substantial additional
costs and time to develop the necessary data and information for such clearance.
17
Disruptions at the FDA and other government
agencies caused by funding shortages, COVID-19 or other global health concerns could shift their priorities or hinder their ability to
hire, retain or deploy key leadership and other personnel. This could result in delays or may delay, or otherwise prevent new or modified
products from being developed, cleared, approved, authorized, or commercialized in a timely manner or at all, which could negatively impact
our business.
The ability of the FDA to review and clear, approve,
or authorize new products can be affected by a variety of factors, including government budget and funding levels, statutory, regulatory,
and policy changes, the FDA's ability to hire and retain key personnel and accept the payment of user fees, and other events that
may otherwise affect the FDA's ability to perform routine functions. Average review times at the agency have fluctuated in recent
years as a result. In addition, government funding of other government agencies that fund research and development activities is subject
to the political process, which is inherently fluid and unpredictable. Disruptions at the FDA and other agencies may also slow the time
necessary for medical devices or modifications to be cleared or approved, medical devices to be reviewed and/or approved by necessary
government agencies, which would adversely affect our business. For example, over the last several years, including for 35 days beginning
on December 22, 2018, the U.S. government has shut down several times and certain regulatory agencies, such as the FDA, have had to furlough
critical FDA employees and stop critical activities. Separately, in response to the global COVID-19 pandemic, on March 10, 2020 the FDA
announced its intention to postpone most foreign inspections of manufacturing facilities and products, and subsequently, on March 18,
2020, the FDA announced its intention to temporarily postpone routine surveillance inspections of domestic manufacturing facilities. Further,
the FDA's response to COID-19 has delayed and may continue to delay reviews of non-COVID products which in turn would impact our
ability to bring products to market. Regulatory authorities outside the United States may adopt similar restrictions or other policy measures
in response to the COVID-19 pandemic. If a prolonged government shutdown occurs, or if global health concerns continue to prevent the
FDA or other regulatory authorities from conducting their regular inspections, reviews, or other regulatory activities, it could significantly
impact the ability of the FDA or other regulatory authorities to timely review and process our regulatory submissions, which could have
a material adverse effect on our business.
If our S1 Assay Panel, COVID-19 Antigen
Panel, our COVID-19 IgG/IgM Antibody panel products or any of our other product candidates fail to achieve and sustain sufficient market
acceptance, we will not generate expected revenue and our growth prospects, operating results and financial condition may be harmed.
The commercialization of our S1 Assay Panel products
and the future commercialization of our other product candidates in the United States and other jurisdictions in which we intend to pursue
marketing clearance are key elements of our strategy. If we are not successful in conveying to hospitals and other customers that our
current products and future product candidates provide equivalent or superior diagnostic information in a shorter period of time compared
to existing technologies, or that these products and future product candidates improve patient outcomes or decrease healthcare costs,
we may experience reluctance, or refusal, on the part of hospitals to order, and third-party payors to pay for performing a test in which
our product is utilized.
These hurdles may make it difficult to demonstrate
to hospitals and other healthcare providers that our current diagnostic products and future product candidates are appropriate options
for testing, may be superior to available tests and may be more cost-effective than alternative technologies.
If we fail to successfully commercialize our products
and product candidates, we may never receive a return on the significant investments in product development, sales and marketing, regulatory,
manufacturing and quality assurance we have made and further investments we intend to make and may fail to generate revenue and gain economies
of scale from such investments.
If any of our products, or the malfunctioning
of our products, causes or contributes to a death or a serious injury, we will be subject to medical device reporting regulations, which
can result in voluntary corrective actions or agency enforcement actions.
Under the FDA medical device reporting regulations,
medical device manufacturers are required to report to the FDA information that a device has or may have caused or contributed to a death
or serious injury or has malfunctioned in a way that would likely cause or contribute to death or serious injury if the malfunction of
the device were to recur. If we fail to report these events to the FDA within the required timeframes, or at all, FDA could take enforcement
action against us. Any such adverse event involving our assays could also result in future voluntary corrective actions, such as recalls
or customer notifications, or agency action, such as inspection or enforcement action. Any corrective action, whether voluntary or involuntary,
as well as defending ourselves in a lawsuit, will require the dedication of our time and capital, distract management from operating our
business, and may harm our reputation and financial results.
18
Our assays may in the future be subject
to product recalls. A recall of our products, either voluntarily or at the direction of the FDA or another governmental authority, including
a third-country authority, or the discovery of serious safety issues with our products, could have a significant adverse impact on us.
The FDA and similar foreign governmental authorities
have the authority to require the recall of commercialized products in the event of material deficiencies or defects in design or manufacture.
In the case of the FDA, the authority to require a recall must be based on an FDA finding that there is reasonable probability that the
device would cause serious injury or death. In addition, foreign governmental bodies have the authority to require the recall of our products
in the event of material deficiencies or defects in design or manufacture. Manufacturers may, under their own initiative, recall a product
if any material deficiency in a device is found. The FDA requires that certain classifications of recalls be reported to the FDA within
ten working days after the recall is initiated. A government-mandated or voluntary recall by us or one of our international distributors
could occur as a result of an unacceptable risk to health, component failures, malfunctions, manufacturing errors, design or labeling
defects or other deficiencies and issues. Recalls of any of our assays would divert managerial and financial resources and have an adverse
effect on our reputation, results of operations and financial condition, which could impair our ability to produce our products in a cost-effective
and timely manner in order to meet our customers' demands. We may also be subject to liability claims, be required to bear other
costs, or take other actions that may have a negative impact on our future sales and our ability to generate profits. Companies are required
to maintain certain records of recalls, even if they are not reportable to the FDA or another third-country competent authority. We may
initiate voluntary recalls involving our products in the future that we determine do not require notification of the FDA or another third-country
competent authority. If the FDA disagrees with our determinations, it could require us to report those actions as recalls. A future recall
announcement could harm our reputation with customers and negatively affect our sales. In addition, the FDA could take enforcement action
for failing to report the recalls when they occur.
We are also required to follow detailed recordkeeping
requirements for all Company-initiated medical device corrections and removals. In addition, in December 2012, the FDA issued a draft
guidance intended to assist the FDA and industry in distinguishing medical device recalls from product enhancements. Per the guidance,
if any change or group of changes to a device that addresses a violation of the FDCA, that change would generally constitute a medical
device recall and require submission of a recall report to the FDA.
If we become subject to claims relating
to improper handling, storage or disposal of hazardous materials, we could incur significant cost and time to comply.
We are subject to foreign, federal, state and
local regulations governing the use, manufacture, storage, handling and disposal of materials and waste products. We may incur significant
costs complying with both existing and future environmental laws and regulations. In particular, we are subject to regulation by the Occupational
Safety and Health Administration, or OSHA, and the Environmental Protection Agency, or EPA, and to regulation under the Toxic Substances
Control Act and the Resource Conservation and Recovery Act in the United States. OSHA or the EPA may adopt additional regulations in the
future that may affect our research and development programs. The risk of accidental contamination or injury from hazardous materials
cannot be eliminated completely. In the event of an accident, we could be held liable for any damages that result, and any liability could
exceed the limits or fall outside the coverage of our workers' compensation insurance. We may not be able to maintain insurance
on acceptable terms, if at all.
Our diagnostic products have not been manufactured
in significant volume and are subject to unforeseen scale-up risks.
Although we have developed a process to manufacture
our diagnostic products, there can be no assurance that we can manufacture our diagnostic products at a scale that is adequate for our
future commercial needs. We may face significant or unforeseen difficulties in manufacturing our diagnostic products, including but not
limited to:
●
technical issues relating to manufacturing components of our diagnostic products on a high volume commercial scale at reasonable cost, and in a reasonable time frame;
●
difficulty meeting demand or timing requirements for orders due to excessive costs or lack of capacity for part or all of an operation or process;
●
lack of skilled labor or unexpected increases in labor costs needed to produce or maintain our analyzers or perform certain required operations;
●
changes in government regulations or in quality or other requirements that lead to additional manufacturing costs or an inability to supply product in a timely manner, if at all; and
●
increases in raw material or component supply cost or an inability to obtain supplies of certain critical components or supplies needed to complete our manufacturing processes.
These and other difficulties may only become apparent
when scaling up to the manufacturing process of our diagnostic products to a more substantive commercial scale. If our diagnostic products
cannot be manufactured in sufficient commercial quantities or manufacturing is delayed, our future prospects could be significantly impacted
and our financial prospects would be materially harmed.
19
We or our suppliers may experience development
or manufacturing problems or delays that could limit the growth of our revenue or increase our losses.
We may encounter unforeseen situations in the
manufacturing of our diagnostic products that could result in delays or shortfalls in our production. Our suppliers may also face similar
delays or shortfalls. In addition, our or our suppliers' production processes may have to change to accommodate any significant
future expansion of our manufacturing capacity, which may increase our or our suppliers' manufacturing costs, delay production of
our diagnostic products, reduce our product gross margin and adversely impact our business. If we are unable to satisfy demand for our
diagnostic products by successfully manufacturing and shipping our diagnostic products in a timely manner, our revenue could be impaired,
market acceptance for our assays could be adversely affected and our customers might instead purchase our competitors' assays. In
addition, developing manufacturing procedures for assays under development may require developing specific production processes for those
assays. Developing such processes could be time consuming and any unexpected difficulty in doing so can delay the introduction of a product.
We utilize third-party, single-source suppliers
for some components and materials used in our products and product candidates, and the loss of any of these suppliers could have an adverse
impact on our business.
We rely on single-source suppliers for some components
and materials used in our products and product candidates. Our ability to supply our products commercially and to develop any future products
depends, in part, on our ability to obtain these components in accordance with regulatory requirements and in sufficient quantities for
clinical testing and commercialization. While our suppliers have generally met our demand for their products on a timely basis in the
past, these were with limited production quantities and we cannot assure that they will in the future be able to meet our demand for their
products, either because we do not have long-term agreements with those suppliers, our relative importance as a customer to those suppliers,
or their ability to produce the components used in our products. For example, our supplier of printed electrodes has exited the printing
business. We purchased safety stock from the supplier prior to their discontinuing production and have begun qualification of a replacement
supplier.
While we believe replacement suppliers exist for
all components and materials we obtain from single sources, establishing additional or replacement suppliers for any of these components
or materials, if required, may not be accomplished quickly. Even if we are able to find a replacement supplier, the replacement supplier
would need to be qualified and may require additional regulatory authority approval, which could result in further delay. While we will
seek to maintain adequate inventory of the single-source components and materials used in our products in the event of disruption, those
inventories may not be sufficient.
If our third-party suppliers fail to deliver the
required commercial quantities of materials on a timely basis and at commercially reasonable prices, and we are unable to find one or
more replacement suppliers capable of production at a substantially equivalent cost in substantially equivalent volumes and quality on
a timely basis, the continued commercialization of our products, the supply of our products to customers and the development of any future
products would be delayed, limited or prevented, which could have an adverse impact on our business.
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Manufacturing risks may adversely affect
our ability to manufacture products and could reduce our gross margins and negatively affect our operating results.
Our business strategy depends on our ability to
manufacture and assemble our current and proposed products in sufficient quantities and on a timely basis to meet consumer demand, while
adhering to product quality standards, complying with regulatory requirements and managing manufacturing costs. We are subject to numerous
risks relating to our manufacturing capabilities, including:
●
quality or reliability defects in or changes in the composition of product components that we source from third party suppliers;
●
our inability to secure product components in a timely manner, in sufficient quantities or on commercially reasonable terms;
●
our failure to increase production of products to meet demand;
●
the challenge of implementing and maintaining acceptable quality systems while experiencing rapid growth;
●
our inability to build production lines to enable us to efficiently produce products; and
●
difficulty identifying and qualifying alternative suppliers for components in a timely manner.
As demand for our products increases, we will
need to invest additional resources to purchase components, hire and train employees, and enhance our manufacturing processes and implement
manufacturing and quality systems. If we fail to increase our production capacity efficiently while also maintaining quality requirements,
our sales may not increase in line with our forecasts and our operating margins could fluctuate or decline. In addition, while we expect
most new products will utilize the eLab instrument system and existing consumable cartridge, manufacturing of future products may require
the modification of our production lines, the hiring of specialized employees, the identification of new suppliers for specific components,
or the development of new manufacturing technologies. It may not be possible for us to manufacture these products at a cost or in quantities
sufficient to make these products commercially viable. Any future interruptions we experience in the manufacturing or shipping of our
products could delay our ability to recognize revenues in a particular quarter and could also adversely affect our relationships with
our customers.
We expect to rely on third parties to conduct
studies of our assays under development that will be required by the FDA or other regulatory authorities and those third parties may not
perform satisfactorily.
We do not have the ability to independently conduct
the field trial studies or other studies that may be required to obtain FDA and other regulatory clearances or approvals for our assays.
Accordingly, we expect to rely on third parties, such as independent testing laboratories and hospitals, to conduct such studies. Our
reliance on these third parties will reduce our control over these activities. These third-party contractors may not complete activities
on schedule or conduct studies in accordance with regulatory requirements or our study design. We cannot control whether they devote sufficient
time, skill and resources to our studies. Our reliance on third parties that we do not control will not relieve us of any applicable requirement
to prepare, and ensure compliance with, various procedures required under good clinical practices. If these third parties do not successfully
carry out their contractual duties or regulatory obligations or meet expected deadlines, if the third parties need to be replaced or if
the quality or accuracy of the data they obtain is compromised due to their failure to adhere to our clinical protocols or regulatory
requirements or for other reasons, our studies may be extended, delayed, suspended or terminated, and we may not be able to obtain regulatory
approval for additional assays.
21
Any clinical trials that we may conduct
may not begin on time, or at all, may not be completed on schedule, or at all, or may be more expensive than we expect, which could prevent
or delay regulatory approval of our assays or impair our financial position.
The commencement or completion of any clinical
trials that we may conduct may be delayed or halted for numerous reasons, including, but not limited to, the following:
●
the FDA or other regulatory authorities suspend or place on hold a clinical trial, or do not approve a clinical trial protocol or a clinical trial;
●
the data and safety monitoring committee or applicable hospital institutional ethics review board recommends that a trial be placed on hold or suspended;
●
fewer patients meet our clinical study criteria and our enrollment rate is lower than we expected;
●
clinical trial sites decide not to participate or cease participation in a clinical trial;
●
third-party clinical investigators do not perform our clinical trials on schedule or consistent with the clinical trial protocol and good clinical practices, or other third-party organizations do not perform data collection and analysis in a timely or accurate manner;
●
we fail regulatory inspections of our manufacturing facilities requiring us to undertake corrective action or suspend or terminate our clinical trials;
●
interim results of the clinical trial are inconclusive or negative;
●
pre-clinical or clinical data are interpreted by third parties in unanticipated ways; or
●
our trial design is inadequate to demonstrate safety and/or efficacy.
Our clinical trial costs will increase if we have
material delays in those trials or if we need to perform more or larger trials than planned. Adverse events during a clinical trial could
cause us to repeat a trial, terminate a trial or cancel an entire program. Should our clinical development plan be delayed, this could
have a material adverse effect on our operations and financial condition.
Product liability claims could adversely
impact our financial condition and our earnings and impair our reputation.
Our business exposes us to potential product liability
risks that are inherent in the design, manufacture and marketing of medical devices. Device failures, manufacturing defects, design flaws,
or inadequate disclosure of product-related risks or product-related information with respect to our assays could result in an unsafe
condition regarding, injury to, or death of, a patient. The occurrence of such a problem could result in product liability claims or a
recall of, or safety alert relating to, one or more of our assays. Product liability claims or product recalls in the future, regardless
of their ultimate outcome, could have a material adverse effect on our business and reputation and on our ability to attract and retain
customers for our assays.
If our diagnostic products do not perform
as expected, our operating results, reputation and business will suffer.
Our future success will depend on the market's
confidence that our technologies can provide reliable, high-quality diagnostic results. We believe that our customers are likely to be
particularly sensitive to any defects or errors in our products. If our technology fails to perform a clinical test, then we could face
claims against us or our reputation could suffer as a result of such failures. The failure of our current products or planned diagnostic
product candidates to perform reliably or as expected could significantly impair our reputation and the public image of our products,
and we may be subject to legal claims arising from any defects or errors.
Our products may not be able to compete
with new diagnostic products or existing products developed by well-established competitors, which would negatively affect our business.
The diagnostic industry is focused on the testing
of biological specimens in a laboratory or at the point-of-care and is highly competitive and rapidly changing. Important competitive
factors for our products include price, quality, performance, ease of use, and customer service.
A few large corporations produce a wide variety
of diagnostic tests and other medical devices and equipment. A larger number of mid-size companies generally compete only in the diagnostic
industry and a significant number of small companies produce only a few diagnostic products. As a result, the diagnostic test industry
is highly fragmented and segmented.
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Some of our principal competitors may have considerably
greater financial, technical and marketing resources than we do. Several companies produce diagnostic tests that compete directly with
our testing product line, including Abbott (Alere), Siemens, Becton Dickinson, and Danaher. Some competitors offer broader product lines
and may have greater name recognition than we have. These and other companies have or may have products incorporating advanced technologies
that over time could directly compete with our testing product line.
As new products incorporating new technologies
enter the market, our products may become obsolete or a competitor's products may be more effective or more effectively marketed
and sold. If our competitors' products take market share from our products through more effective marketing or competitive pricing,
our revenues, margins and operating results could be adversely affected.
Our future revenues and operating results
may be negatively affected by ongoing consolidation in the healthcare industry
.
There has been a significant amount of consolidation
in the healthcare industry. This consolidation has increased the competition to provide goods and services to customers. In addition,
group purchasing organizations and integrated health delivery networks have served to concentrate purchasing decisions for some customers,
which has also placed pricing pressure on medical device suppliers. Due to ongoing consolidation, there could be additional pressure on
the prices of our products.
Undetected errors or defects in our products
or product candidates could harm our reputation, decrease market acceptance of our products or expose us to product liability claims.
Our products or product candidates may contain
undetected errors or defects. Disruptions or other performance problems with our products or product candidates may damage our customers'
businesses and could harm our reputation. If that occurs, we may incur significant costs, the attention of our key personnel could be
diverted or other significant customer relations problems may arise. We may also be subject to warranty and liability claims for damages
related to errors or defects in our products or product candidates. A material liability claim or other occurrence that harms our reputation
or decreases market acceptance of our products or product candidates could harm our business and operating results.
The sale and use of products or product candidates
or services based on our technologies, or activities related to our research and clinical studies, could lead to the filing of product
liability claims if someone were to allege that one of our products contained a design or manufacturing defect. A product liability claim
could result in substantial damages and be costly and time consuming to defend, either of which could materially harm our business or
financial condition. We cannot assure you that our product liability insurance would adequately protect our assets from the financial
impact of defending a product liability claim. Any product liability claim brought against us, with or without merit, could increase our
product liability insurance rates or prevent us from securing insurance coverage in the future.
We currently develop, manufacture and test
our products and product candidates and some of their components in a single facility. If these or any future facility or our equipment
were damaged or destroyed, or if we experience a significant disruption in our operations for any reason, our ability to continue to operate
our business could be materially harmed.
We currently develop, manufacture and test our
products and product candidates exclusively in a facility in Emeryville, California. If this or any future facility were to be damaged,
destroyed or otherwise unable to operate, whether due to fire, floods, hurricanes, storms, tornadoes, other natural disasters, employee
malfeasance, terrorist acts, power outages, or otherwise, or if our business is disrupted for any other reason, we may not be able to
develop or test our products and product candidates as promptly as our potential customers expect, or possibly not at all.
The manufacture of components of our products
and product candidates involves complex processes, sophisticated equipment and strict adherence to specifications and quality systems
procedures. Any unforeseen manufacturing problems, such as contamination of our facility, equipment malfunction, or failure to strictly
follow procedures or meet specifications, could result in delays or shortfalls in production of our products. Identifying and resolving
the cause of any manufacturing issues could require substantial time and resources. If we are unable to keep up with future demand for
our products by successfully manufacturing and shipping our products in a timely manner, our revenue growth could be impaired and market
acceptance of our product candidates could be adversely affected.
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As of March 31, 2022, we have entered into a new
facility lease and have relocated our operations to the new location. Moving our manufacturing and development facility requires revalidation
and startup of our manufacturing equipment and processes and may interrupt our business resulting in higher costs and potentially lost
revenue.
We maintain insurance coverage against damage
to our property and equipment, subject to deductibles and other limitations that we believe is adequate. If we have underestimated our
insurance needs with respect to an interruption, or if an interruption is not subject to coverage under our insurance policies, we may
not be able to cover our losses.
Third-Party reimbursement policies and potential
cost constraints could negatively affect our business.
The list of our product end-users includes hospitals
and other healthcare providers. If these end-users do not receive adequate reimbursement for the cost of our products from their patients'
healthcare insurers or payors, the use of our products could be negatively impacted. Furthermore, the net sales of our products could
also be adversely affected by changes in reimbursement policies of government or private healthcare payors.
Hospitals and other healthcare providers who purchase
diagnostic products in the United States generally rely on third-party payors, such as private health insurance plans, Medicare and Medicaid,
to reimburse all or part of the cost of the product. Due to the overall escalating cost of medical products and services, there is increased
pressures on the healthcare industry, both foreign and domestic, to reduce the cost of products and services. Given the efforts to control
and reduce healthcare costs in the United States, available levels of reimbursement may change for our existing products or products under
development. Third-party reimbursement and coverage may not be available or adequate in either the United States or international markets,
current reimbursement amounts may be decreased in the future and future legislation, and regulation or reimbursement policies of third-party
payors, may reduce the demand for our products or our ability to sell our products on a profitable basis.
Ongoing changes in healthcare regulation
could negatively affect our revenues, business and financial condition.
There have been several proposed changes in the
United States at the federal and state level for comprehensive reforms regarding the payment for, the availability of and reimbursement
for healthcare services. These proposals have ranged from fundamentally changing federal and state healthcare reimbursement programs,
including providing comprehensive healthcare coverage to the public under government-funded programs, to minor modifications to existing
programs. One example is the Patient Protection and Affordable Care or the Affordable Care Act, the Federal healthcare reform law enacted
in 2010.
Healthcare reform initiatives will continue to
be proposed and may reduce healthcare related funding in an effort. It is impossible to predict the ultimate content and timing of any
healthcare reform legislation and its resulting impact on us. If significant reforms are made to the healthcare system in the United States,
or in other jurisdictions, those reforms may increase our costs or otherwise negatively effect on our financial condition and results
of operations.
In April 2017, the European Parliament passed
the Medical Devices Regulation (Regulation 2017/745), which repeals and replaces the European Union Medical Devices Directive and the
Active Implantable Medical Devices Directive. Unlike directives, which must be implemented into the national laws of the European Economic
Area, which we refer to as the EEA, member States, the regulations would be directly applicable, i.e., without the need for adoption of
EEA member State laws implementing them, in all EEA member States and are intended to eliminate current differences in the regulation
of medical devices among EEA member States. The Medical Devices Regulation, among other things, is intended to establish a uniform, transparent,
predictable and sustainable regulatory framework across the EEA for medical devices and ensure a high level of safety and health while
supporting innovation. The Medical Devices Regulation will, however, only become fully applicable three years after publication (in May
2020). Once applicable, the Medical Devices Regulation will, among other things:
●
strengthen the rules on placing devices on the market and reinforce surveillance once they are available;
●
establish explicit provisions on manufacturers' responsibilities for the follow-up of the quality, performance and safety of devices placed on the market;
24
●
improve the traceability of medical devices throughout the supply chain to the end-user or patient through a unique identification number;
●
set up a central database to provide patients, healthcare professionals and the public with comprehensive information on products available in the EU; and
●
strengthen rules for the assessment of certain high-risk devices, such as implants, which may have to undergo an additional check by experts before they are placed on the market.
Expected to be implemented in 2022, the Medical
Devices Regulation may impose increased compliance obligations for us to access the EU market.
Legislative and other regulatory changes
could have an effect on our business.
Changes in regulatory or economic conditions or
in the laws and policies governing foreign trade, taxes, manufacturing, and development in the United States could impact our business.
Economic and regulatory changes could also affect foreign currency exchange rates which, in turn, could affect our reported financial
results and our competitiveness on a worldwide basis.
Consolidation in the healthcare industry
could have an adverse effect on our revenues and results of operations.
Many healthcare companies, including healthcare
systems, are consolidating to create new companies with greater market power. As the healthcare industry consolidates, competition to
provide goods and services to industry participants will become more intense. These industry participants may try to use their market
power to negotiate price concessions or reductions for diagnostic tests. If we are forced to reduce our prices because of consolidation
in the healthcare industry, our projected revenues would decrease and our earnings, financial condition, and/or cash flows would suffer.
If we or our distributors do not comply
with the U.S. federal and state fraud and abuse laws, including anti-kickback laws for any products approved in the U.S., or with similar
foreign laws where we market our products, we could face significant liability.
There are numerous United States federal and state
laws pertaining to healthcare fraud and abuse, including anti-kickback laws, false claims, and physician transparency laws. Our relationships
with physicians and surgeons, hospitals and our independent distributors are subject to scrutiny under these laws. Violations of these
laws are punishable by criminal and civil sanctions, including significant fines, damages and monetary penalties and in some instances,
imprisonment and exclusion from participation in federal and state healthcare programs, including the Medicare, Medicaid and Veterans
Administration health programs.
Healthcare fraud and abuse regulations are complex,
and even minor irregularities can potentially give rise to claims that a statute or prohibition has been violated. The laws that may affect
our ability to operate include:
●
the federal healthcare program Anti-Kickback Statute, which prohibits, among other things, persons from knowingly and willfully soliciting, offering, receiving, or paying remuneration, directly or indirectly, in cash or in kind, to induce or reward the purchasing, leasing, ordering or arranging for or recommending the purchase, lease or order of any good or service for which payment may be made under federal healthcare programs such as Medicare and Medicaid;
●
federal civil False Claims Act prohibits, among other things, knowingly presenting, or causing to be presented, claims for payment of government funds that are false or fraudulent or knowingly making, using or causing to be made or used a false record or statement material to an obligation to pay money to the government or knowingly concealing or knowingly and improperly avoiding, decreasing or concealing an obligation to pay money to the federal government;
25
●
the federal Health Insurance Portability and Accountability Act of 1996, or HIPAA, as amended by the Health Information Technology and Clinical Health Act of 2009, which, among other things, imposes criminal and civil liability for executing a scheme to defraud any healthcare benefit program and also imposes obligations, including mandatory contractual terms, with respect to safeguarding the privacy, security and transmission of individually identifiable health information;
●
HIPAA also created federal criminal laws that prohibit knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent statement or representation, or making or using any false writing or document knowing the same to contain any materially false fictitious or fraudulent statement or entry in connection with the delivery of or payment for healthcare benefits, items or services;
●
the Federal Trade Commission Act and similar laws regulating advertisement and consumer protections;
●
the federal Foreign Corrupt Practices Act of 1997, which makes it illegal to offer or provide money or anything of value to officials of foreign governments, foreign political parties, or international organizations with the intent to obtain or retain business or seek a business advantage; and
●
state law equivalents of each of the above federal laws, such as anti-kickback and false claims laws which may apply to items or services reimbursed by any third-party payor, including commercial insurers, and state laws governing the privacy of health information in certain circumstances, many of which differ from each other in significant ways and often are not preempted by HIPAA, thus complicating compliance efforts. In addition, there has been a recent trend of increased federal and state regulation of payments made to physicians. Some states, such as California, Massachusetts, Nevada, and Vermont mandate implementation of commercial compliance programs and/or impose restrictions on device manufacturer marketing practices and tracking and reporting of gifts, compensation and other remuneration to physicians.
Efforts to ensure that our business arrangements
with third parties will comply with applicable healthcare laws and regulations will involve substantial costs. It is possible that governmental
authorities will conclude that our business practices may not comply with current or future statutes, regulations or case law involving
applicable fraud and abuse or other healthcare laws and regulations. If our operations are found to be in violation of any of these laws
or any other governmental regulations that may apply to us, we may be subject to significant civil, criminal and administrative penalties,
damages, fines, exclusion from federal healthcare programs, such as Medicare and Medicaid, and the curtailment or restructuring of our
operations. To enforce compliance with the federal laws, the U.S. Department of Justice, or DOJ, has recently increased its scrutiny of
interactions between healthcare companies and healthcare providers, which has led to a number of investigations, prosecutions, convictions
and settlements in the healthcare industry. Dealing with investigations can be time and resource consuming and can divert management's
attention from the business. In addition, settlements with the DOJ or other law enforcement agencies have forced healthcare providers
to agree to additional onerous compliance and reporting requirements as part of a consent decree or corporate integrity agreement. Any
violations of these laws, or any action against us for violation of these laws, even if we successfully defend against it, could have
a material adverse effect on our reputation, business and financial condition.
Many foreign countries have enacted similar laws
addressing fraud and abuse in the healthcare sector. The shifting commercial compliance environment and the need to build and maintain
robust and expandable systems to comply with different compliance requirements in multiple jurisdictions increases the possibility that
we may run afoul of one or more of the requirements.
If we are unable to recruit, train and retain
key personnel, we may not achieve our goals.
Our future success depends on our ability to recruit,
develop, retain and motivate key personnel, including individuals for our senior management, research and development, engineering, manufacturing
and sales and marketing teams. Additionally, we will need to hire additional executive personnel including a Chief Financial Officer and
other financial personnel in the future. We do not have employment contracts with management personnel. Competition for qualified personnel
is intense, particularly in the San Francisco Bay area. Our growth depends on attracting, retaining and motivating highly skilled personnel
with the necessary technical or scientific background and ability to understand our products at a technical and clinical level. In addition,
we will need to hire assay developers, automation engineers and other manufacturing employees to build our product offerings and meet
demand for our products as we scale up our sales and marketing operations. Because of the complex and technical nature of our products
and the dynamic market in which we compete, any failure to attract, develop, retain and motivate qualified personnel could materially
harm our operating results and growth prospects.
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Changes in tax laws or exposure to additional
income tax liabilities could have a material impact on our financial condition and results of operations.
We are subject to income taxes as well as non-income
based taxes in both the United States and various foreign jurisdictions. Changes in existing tax laws, treaties, regulations or policies
or the interpretation or enforcement thereof, or the enactment or adoption of new tax laws, treaties, regulations or policies could materially
impact our effective tax rate.
If we do not achieve, sustain or successfully
manage our anticipated growth, our business and prospects will be harmed.
If we are unable to obtain or sustain adequate
revenue growth, our financial results could suffer. Furthermore, significant growth will place strains on our management and our operational
and financial systems and processes and our operating costs may escalate even faster than planned. If we cannot effectively manage our
expanding operations and our costs, we may not be able to grow effectively or we may grow at a slower pace. Additionally, if we do not
successfully forecast the timing of regulatory authorization for our additional tests, marketing and subsequent demand for our diagnostic
tests or manage our anticipated expenses accordingly, our operating results will be harmed.
Other companies or institutions have commercial
assays or may develop and market novel or improved methods for infectious disease diagnostics, which may make our diagnostic platform
less competitive or obsolete.
The market for diagnostics is large and established,
and our competitors may possess significantly greater financial resources and have larger development and commercialization capabilities
than we do. We may be unable to compete effectively against these competitors either because their diagnostic platforms are superior or
because they may have more expertise, experience, financial resources or stronger business relationships.
New technologies, techniques or assays could
emerge that might offer better combinations of price and performance than our current or future assays.
It is critical to our success that we anticipate
changes in technology and customer requirements and to successfully introduce, on a timely and cost-effective basis, new, enhanced and
competitive technologies that meet the needs of current and prospective customers. If we do not successfully innovate and introduce new
technology into our product lines or manage the transitions to new product offerings, our revenues, results of operations and business
will be adversely impacted. Competitors may be able to respond more quickly and effectively than we can to new or changing opportunities,
technologies, standards or customer requirements. We anticipate that we will face increased competition in the future as existing companies
and competitors develop new or improved diagnostic tests and as new companies enter the market with new technologies.
We could be exposed to liability if we experience
security breaches or other disruptions, which could harm our reputation and business
.
We may be subject to cyber-attacks whereby computer
hackers may attempt to access our computer systems or our third-party IT service provider's systems and, if successful, misappropriate
personal or confidential information. In addition, a contractor or other third party with whom we do business may attempt to circumvent
our security measures or obtain such information and may purposefully or inadvertently cause a breach involving sensitive information.
We will continue to evaluate and implement additional protective measures to reduce the risk and detect cyber incidents, but cyber-attacks
are becoming more sophisticated and frequent and the techniques used in such attacks change rapidly. Even though we take cyber-security
measures that are continuously reviewed and updated, our information technology networks and infrastructure may still be vulnerable due
to sophisticated attacks by hackers or breaches.
Even the most well protected IT networks, systems,
and facilities remain potentially vulnerable because the techniques used in security breaches are continually evolving and generally are
not recognized until launched against a target and, in fact, may not be detected. Any such compromise of our or our third party's
IT service providers' data security and access, public disclosure, or loss of personal or confidential business information, could
result in legal claims proceedings, liability under laws to protect, privacy of personal information, and regulatory penalties, disrupt
our operations, require significant management attention and resources to remedy any damages that result, damage our reputation and customers
willingness to transact business with us, any of
which could adversely affect our business.
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We expect to generate a portion of our revenue
internationally and are subject to various risks relating to those international activities which could adversely affect our operating
results.
A portion of our revenue is expected to come from
international sources. Engaging in international business involves a number of difficulties and risks, including:
●
required compliance with existing and changing foreign healthcare and other regulatory requirements and laws, such as those relating to patient privacy or handling of bio-hazardous waste;
●
required compliance with anti-bribery laws, such as the U.S. Foreign Corrupt Practices Act and U.K. Bribery Act, data privacy requirements, labor laws and anti-competition regulations;
●
export or import restrictions;
●
various reimbursement and insurance regimes;
●
laws and business practices favoring local companies;
●
longer payment cycles and difficulties in enforcing agreements and collecting receivables through certain foreign legal systems;
●
political and economic instability;
●
potentially adverse tax consequences, tariffs, customs charges, bureaucratic requirements and other trade barriers;
●
foreign exchange controls;
●
difficulties and costs of staffing and managing foreign operations;
●
difficulties protecting or procuring intellectual property rights; and
●
pandemics and public health emergencies, such as the coronavirus (COVID-19), could result in disruptions to travel and distribution in geographic locations where our products are sold.
As we expand internationally, our results of operations
and cash flows will become increasingly subject to fluctuations due to changes in foreign currency exchange rates. Our expenses are generally
denominated in U.S. dollars. If the value of the U.S. dollar increases relative to foreign currencies in the future, in the absence of
a corresponding change in local currency prices, our future revenue could be adversely affected as we convert future revenue from local
currencies to U.S. dollars.
If we dedicate resources to our international
operations and are unable to manage these risks effectively, our business, operating results and prospects will suffer.
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Our employees, independent contractors,
principal investigators, consultants, commercial partners, distributors and vendors may engage in misconduct or other improper activities,
including non-compliance with regulatory standards and requirements.
We are exposed to the risk of fraud or other misconduct
by our employees, independent contractors, principal investigators, consultants, commercial partners, distributors and vendors. Misconduct
by these parties could include intentional, reckless or negligent failures to: comply with the regulations of the FDA and other similar
foreign regulatory bodies; provide true, complete and accurate information to the FDA and other similar regulatory bodies; comply with
manufacturing standards we have established; comply with healthcare fraud and abuse laws and regulations in the United States and similar
foreign fraudulent misconduct laws; or report financial information or data accurately, or disclose unauthorized activities to us. These
laws may impact, among other things, our activities with principal investigators and research subjects, as well as our sales, marketing
and education programs. In particular, the promotion, sales, marketing and business arrangements in the healthcare industry are subject
to extensive laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing and other abusive practices. These laws
may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs
and other business arrangements. Such misconduct could also involve the improper use of information obtained in the course of clinical
studies, which could result in regulatory sanctions and cause serious harm to our reputation. We currently have a code of conduct applicable
to all of our employees, but it is not always possible to identify and deter employee misconduct, and our code of conduct and the other
precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses, or in
protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with these laws or regulations.
If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions
could have a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary
fines, disgorgement, individual imprisonment, possible exclusion from participation in Medicare, Medicaid and other federal healthcare
programs, contractual damages, reputational harm, diminished profits and future earnings, and curtailment of our operations, any of which
could adversely affect our ability to operate our business and our results of operations. Any of these actions or investigations could
result in substantial costs to us, including legal fees, and divert the attention of management from operating our business.
We have limited experience in marketing
and selling our products, and if we are unable to expand, manage and maintain our direct sales and marketing organizations, or otherwise
commercialize our products, our business may be adversely affected.
Because we received CE-mark for our S1 Assay Panel
in November of 2019 and began commercial sales activities in September 2020, we have limited experience marketing and selling our products.
We began staffing our sales and marketing organization in 2021 and currently have a staff of 3. Our financial condition and operating
results will be highly dependent upon the efforts of our sales and marketing organization. If we are unable to quickly build our sales
and marketing team or if our sales and marketing efforts fail to adequately promote, market and sell our products, our sales may not increase
at levels that are in line with our forecasts.
Our future sales growth will depend in large part
on our ability to successfully build and expand the size and geographic scope of our sales and marketing team. Accordingly, our future
success will depend largely on our ability to hire, train, retain and motivate skilled sales and marketing personnel. Because the competition
for individuals with their skillset is high, there is no assurance we will be able to hire and retain personnel on commercially reasonable
terms. If we are unable to build and expand our sales and marketing capabilities, we may not be able to effectively commercialize our
products and our business and operating results may be adversely affected. Additionally, we will need to implement management information
systems to support the sales and marketing operations. There is no assurance that these systems will be implemented and effective. Lack
of these management information systems may negatively impact sales efforts.
Outside of the United States, we will sell our
products through distribution partners and there is no guarantee that we will be successful in attracting or retaining desirable distribution
partners for these markets or that we will be able to enter into such arrangements on favorable terms. Distributors may not commit the
necessary resources to market and sell our products effectively or may choose to favor marketing the products of our competitors. If distributors
do not perform adequately, or if we are unable to enter into effective arrangements with distributors in particular geographic areas,
we may not realize our sales growth.
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Our ability to grow our business will be
limited if we fail to develop and maintain new and existing distribution channels.
Our plan to grow our business depends on third
parties and distributors to sell our products. The sale of our products depends in large part on our ability to sell products to these
customers and on the marketing and distribution abilities of the companies with which we collaborate.
Reliance on distributors and third-parties to
market and sell our products could negatively impact our business for various reasons, including: (i) we may not be able to find suitable
distributors for our products on satisfactory terms, or at all; (ii) agreements with distributors may prematurely terminate or may result
in litigation between the parties; (iii) our distributors or other customers may not fulfill their contractual obligations and distribute
our products in the manner or at the levels we expect; (iv) our distributors may prioritize other products or their own private label
products that compete with our products; (v) Our existing distributor relationships or contracts may preclude or limit us from entering
into arrangements with other distributors; and (vi) we may not be able to negotiate new or renew existing distribution agreements on acceptable
terms, or at all.
We will try to maintain and expand our business
with distributors and third parties and make every effort to require that they fulfill their contractual obligations, but there can be
no assurance that such companies will do so or that new distribution channels will be available on satisfactory terms. If we are unable
to do so, our business will be negatively impacted.
Potential customers may not adopt rapid
Point-of-Care diagnostic testing.
Rapid point-of-care tests are beneficial because,
among other things, they can be administered by healthcare providers in their own facilities or used by healthcare facilities without
sending samples to central laboratories. But currently the majority of diagnostic tests used by healthcare providers in the U.S. are provided
by clinical reference laboratories and hospital-based laboratories. In some international markets, such as Europe, diagnostic testing
is performed primarily by centralized laboratories. Future sales of our products will depend, in part, on our ability to expand market
acceptance of rapid point-of-care testing and successfully compete against laboratory testing methods and products. However, we expect
that clinical reference and other hospital-based laboratories will continue to compete vigorously against our rapid point-of-care products.
Even if we can demonstrate that our products are more cost effective, save time, or have better performance or other benefits, healthcare
providers may resist changing to rapid point-of-care tests and instead may choose to obtain diagnostic results through laboratory tests.
If we fail to achieve and expand market acceptance of our rapid point-of-care diagnostic tests with customers, it would have a negative
effect on our future sales growth.
Even if we receive regulatory approval for
any of our product candidates, we may not be able to successfully commercialize the product and the revenue that we generate from their
sales, if any, may be limited.
If approved for marketing, the commercial success
of our product candidates will depend upon each product's acceptance by the medical community, including physicians, patients and
health care payors. The degree of market acceptance for any of our product candidates will depend on a number of factors, including:
●
demonstration of clinical safety and efficacy;
●
relative convenience, dosing burden and ease of administration;
●
the prevalence and severity of any adverse effects;
●
the willingness of physicians to prescribe our product candidates, and the target patient population to try new therapies;
●
efficacy of our product candidates compared to competing products;
●
the introduction of any new products that may in the future become available targeting indications for which our product candidates may be approved;
●
new procedures or therapies that may reduce the incidences of any of the indications in which our product candidates may show utility;
30
●
pricing and cost-effectiveness;
●
the inclusion or omission of our product candidates in applicable therapeutic and vaccine guidelines;
●
the effectiveness of our own or any future collaborators' sales and marketing strategies;
●
limitations or warnings contained in approved labeling from regulatory authorities;
●
our ability to obtain and maintain sufficient third-party coverage or reimbursement from government health care programs, including Medicare and Medicaid, private health insurers and other third-party payors or to receive the necessary pricing approvals from government bodies regulating the pricing and usage of therapeutics; and
●
the willingness of patients to pay out-of-pocket in the absence of third-party coverage or reimbursement or government pricing approvals.
If any of our product candidates are approved,
but do not achieve an adequate level of acceptance by physicians, health care payors, and patients, we may not generate sufficient revenues
and we may not be able to achieve or sustain profitability. Our efforts to educate the medical community and third-party payors on the
benefits of our product candidates may require significant resources and may never be successful.
In addition, even if we obtain regulatory approvals,
the timing or scope of any approvals may prohibit or reduce our ability to commercialize our product candidates successfully. For example,
if the approval process takes too long, we may miss market opportunities and give other companies the ability to develop competing products
or establish market dominance. Any regulatory approval we ultimately obtain may be limited or subject to restrictions or post-approval
commitments that render our product candidates not commercially viable. For example, regulatory authorities may approve any of our product
candidates for fewer or more limited indications than we request, may grant approval contingent on the performance of costly post-marketing
clinical trials, or may approve any of our product candidates with a label that does not include the labeling claims necessary or desirable
for the successful commercialization for that indication. Further, the FDA or comparable foreign regulatory authorities may place conditions
on approvals or require risk management plans or a Risk Evaluation and Mitigation Strategy ("REMS") to assure the safe use
of the drug. If the FDA or applicable foreign regulatory agency concludes a REMS is needed, the sponsor of the BLA must submit a proposed
REMS; the regulatory agencies will not approve the BLA without an approved REMS, if required. A REMS could include medication guides,
physician communication plans, or elements to assure safe use, such as restricted distribution methods, patient registries and other risk
minimization tools. The regulatory agencies may also require a REMS for an approved product when new safety information emerges. Any of
these limitations on approval or marketing could restrict the commercial promotion, distribution, prescription or dispensing of our product
candidates. Moreover, product approvals may be withdrawn for non-compliance with regulatory standards or if problems occur following the
initial marketing of the product. Any of the foregoing scenarios could materially harm the commercial success of our product candidates.
Adverse events involving our products may
lead the FDA or applicable foreign regulatory agency to delay or deny clearance for our products or result in product recalls that could
harm our reputation, business and financial results.
Once a product receives regulatory clearance or
approval, the agency has the authority to require the recall of commercialized products in the event of adverse side effects, material
deficiencies or defects in design or manufacture. The authority to require a recall must be based on a regulatory finding that there is
a reasonable probability that the product would cause serious injury or death. Manufacturers may, under their own initiative, recall a
product if any material deficiency in a product is found. A government-mandated or voluntary recall by us or one of our distributors could
occur as a result of adverse side effects, impurities or other product contamination, manufacturing errors, design or labeling defects
or other deficiencies and issues. Recalls of any of our products would divert managerial and financial resources and have an adverse effect
on our financial condition and results of operations. The regulatory agencies require that certain classifications of recalls be reported
to them within ten (10) working days after the recall is initiated. Companies are required to maintain certain records of recalls, even
if they are not reportable to the regulatory agency. We may initiate voluntary recalls involving our products in the future that we determine
do not require notification of the regulatory agencies. If the regulatory agency disagrees with our determinations, they could require
us to report those actions as recalls. A future recall announcement could harm our reputation with customers and negatively affect our
sales. In addition, the regulatory agency could take enforcement action for failing to report the recalls when they were conducted.
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The in-licensing of technologies and the
successful testing and early development of technologies in the laboratory may not be indicative of future results and may not result
in commercially viable technologies or products. Further, our future products may have to be modified from their originally conceived
versions in order to reach or be successful in the market.
Positive results from laboratory testing and early
developmental successes, may not be predictive of future successful development, commercialization and sales results and should not be
relied upon as evidence that products developed from our technologies will become commercially viable and successful. Further, the products
we plan to develop in the future may have to be significantly modified from their originally conceived versions in order for us to control
costs, compete with similar products, receive market acceptance, meet specific development and commercialization timeframes, avoid potential
infringement of the proprietary rights of others, or otherwise succeed in developing our business and earning ongoing revenues. This can
be a costly and resource draining activity. What appear to be promising technologies when we license them may not lead to viable technologies
or products, or to commercial success.
We utilize third-party, single-source suppliers
for some components and materials used in our products and product candidates, and the loss of any of these suppliers could have an adverse
impact on our business.
We rely on single-source suppliers for some components
and materials used in our products and product candidates. Our ability to supply our products commercially and to develop any future products
depends, in part, on our ability to obtain these components in accordance with regulatory requirements and in sufficient quantities for
clinical testing and commercialization. While our suppliers have generally met our demand for their products on a timely basis in the
past, these were with limited production quantities and we cannot assure that they will in the future be able to meet our demand for their
products, either because we do not have long-term agreements with those suppliers, our relative importance as a customer to those suppliers,
or their ability to produce the components used in our products. For example, our supplier of printed electrodes has exited the printing
business. We purchased safety stock from the supplier prior to their discontinuing production and have begun qualification of a replacement
supplier.
While we believe replacement suppliers exist for
all components and materials we obtain from single sources, establishing additional or replacement suppliers for any of these components
or materials, if required, may not be accomplished quickly. Even if we are able to find a replacement supplier, the replacement supplier
would need to be qualified and may require additional regulatory authority approval, which could result in further delay. While we will
seek to maintain adequate inventory of the single-source components and materials used in our products in the event of disruption, those
inventories may not be sufficient.
If our third-party suppliers fail to deliver the
required commercial quantities of materials on a timely basis and at commercially reasonable prices, and we are unable to find one or
more replacement suppliers capable of production at a substantially equivalent cost in substantially equivalent volumes and quality on
a timely basis, the continued commercialization of our products, the supply of our products to customers and the development of any future
products would be delayed, limited or prevented, which could have an adverse impact on our business.
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Manufacturing risks may adversely affect
our ability to manufacture products and could reduce our gross margins and negatively affect our operating results.
Our business strategy depends on our ability to
manufacture and assemble our current and proposed products in sufficient quantities and on a timely basis to meet consumer demand, while
adhering to product quality standards, complying with regulatory requirements and managing manufacturing costs. We are subject to numerous
risks relating to our manufacturing capabilities, including:
●
quality or reliability defects in product components that we source from third party suppliers;
●
our inability to secure product components in a timely manner, in sufficient quantities or on commercially reasonable terms;
●
our failure to increase production of products to meet demand;
●
the challenge of implementing and maintaining acceptable quality systems while experiencing rapid growth;
●
our inability to build production lines to enable us to efficiently produce products; and
●
difficulty identifying and qualifying alternative suppliers for components in a timely manner.
As demand for our products increases, we will
need to invest additional resources to purchase components, hire and train employees, and enhance our manufacturing processes and implement
manufacturing and quality systems. If we fail to increase our production capacity efficiently while also maintaining quality requirements,
our sales may not increase in line with our forecasts and our operating margins could fluctuate or decline. In addition, while we expect
most new products will utilize the eLab instrument system and existing consumable cartridge, manufacturing of future products may require
the modification of our production lines, the hiring of specialized employees, the identification of new suppliers for specific components,
or the development of new manufacturing technologies. It may not be possible for us to manufacture these products at a cost or in quantities
sufficient to make these products commercially viable. Any future interruptions we experience in the manufacturing or shipping of our
products could delay our ability to recognize revenues in a particular quarter and could also adversely affect our relationships with
our customers.
Risks Related to Intellectual Property
The extent to which we can protect our business
and technologies through intellectual property rights that we own, acquire or license is uncertain.
We employ a variety of proprietary and patented
technologies and methods in connection with the assays that we sell or are developing. We license some of these technologies from third
parties. We cannot provide any assurance that the intellectual property rights that we own or license provide effective protection from
competitive threats or that we would prevail in any litigation in which our intellectual property rights are challenged. In addition,
we may not be successful in obtaining new proprietary or patented technologies or methods in the future, whether through acquiring ownership
or through licenses from third parties.
Our currently pending or future patent applications
may not result in issued patents, and we cannot predict how long it may take for a patent to issue on any of our pending patent applications,
assuming a patent does issue.
Other parties may challenge patents issued or
exclusively licensed to us, or courts or administrative agencies may hold our patents or the patents we license on an exclusive basis
to be invalid or unenforceable. We may not be successful in defending challenges made against our patents and other intellectual property
rights. Any third-party challenge to any of our patents could result in the unenforceability or invalidity of some or all of the claims
of such patents and could be time consuming and expensive.
33
The extent to which the patent rights of
life sciences companies effectively protect their diagnostic tests and technologies is often highly uncertain and involves complex legal
and factual questions for which important legal principles remain unresolved.
No consistent policy regarding the proper scope
of allowable claims of patents held by life sciences companies has emerged to date in the United States. Various courts, including the
U.S. Supreme Court, have rendered decisions that impact the scope of patentability of certain inventions or discoveries relating to diagnostic
tests or genomic diagnostic testing. These decisions generally stand for the proposition that inventions that recite laws of nature are
not themselves patentable unless they have sufficient additional features that provide practical assurance that the processes are genuine
inventive applications of those laws rather than patent drafting efforts designed to monopolize a law of nature itself. What constitutes
a "sufficient" additional feature for this purpose is uncertain. Although we do not generally rely on gene sequence patents,
this evolving case law in the United States may adversely impact our ability to obtain new patents and may facilitate third-party challenges
to our existing owned and exclusively licensed patents.
We cannot predict the breadth of claims that may
be allowed or enforced in patents we own or in those to which we have exclusive license rights. For example:
●
the inventor(s) named in one or more of our patents or patent applications might not have been the first to have made the relevant invention;
●
the inventor (or his assignee) might not have been the first to file a patent application for the claimed invention;
●
others may independently develop similar or alternative diagnostic tests and technologies or may successfully replicate our product and technologies;
●
it is possible that the patents we own or in which have exclusive license rights may not provide us with any competitive advantages or may be challenged by third parties and found to be invalid or unenforceable;
●
any patents we obtain or exclusively license may expire before, or within a limited time period after, the assays and services relating to such patents are commercialized;
●
we may not develop or acquire additional proprietary assays and technologies that are patentable; and
●
others may acquire patents that could be asserted against us in a manner that could have an adverse effect on our business.
Changes in either the patent laws or in
interpretations of patent laws in the United States or other countries may diminish the value of our intellectual property rights.
On September 16, 2011, the Leahy-Smith America
Invents Act, or the Leahy-Smith Act, was signed into law. The Leahy-Smith Act includes a number of significant changes to U.S. patent
law. These include provisions that affect the way patent applications are prosecuted, redefine prior art, may affect patent litigation
and switch the U.S. patent system from a "first-to-invent" system to a "first-to-file" system. Under a first-to-file
system, assuming the other requirements for patentability are met, the first inventor to file a patent application generally will be entitled
to the patent on an invention regardless of whether another inventor had made the invention earlier. The U.S. Patent and Trademark Office,
or USPTO, recently developed new regulations and procedures to govern administration of the Leahy-Smith Act, and many of the substantive
changes to patent law associated with the Leahy-Smith Act, including the first-to-file provisions in particular, only became effective
on March 16, 2013. Accordingly, it is not clear what, if any, impact the Leahy-Smith Act will have on the operation of our business. However,
the Leahy-Smith Act and its implementation could increase the uncertainties and costs surrounding the prosecution of our owned and licensed
patent applications and the enforcement or defense of issued patents that we own or license, all of which could have a material adverse
effect on our business and financial condition.
Patent applications in the United States and many
foreign jurisdictions are not published until at least eighteen months after filing and it is possible for a patent application filed
in the United States to be maintained in secrecy until a patent issues on the application. In addition, publications in the scientific
literature often lag behind actual discoveries. We therefore cannot be certain that others have not filed patent applications that cover
inventions that are the subject of pending applications that we own or exclusively license or that we were the first to invent the technology
(if filed prior to the Leahy-Smith Act) or first to file (if filed after the Leahy-Smith Act). Our competitors may have filed, and may
in the future file, patent applications covering technology that is similar to or the same as our technology. Any such patent application
may have priority over patent applications that we own and, if a patent issues on such patent application, we could be required to obtain
a license to such patent in order to carry on our business. If another party has filed a U.S. patent application covering an invention
that is similar to, or the same as, an invention that we own, we may have to participate in an interference or other proceeding in the
USPTO or a court to determine priority of invention in the United States, for applications and patents made prior to the enactment of
the Leahy-Smith Act. For applications and patents made following the enactment of the Leahy-Smith Act, we may have to participate in a
derivation proceeding to resolve disputes relating to inventorship. The costs of these proceedings could be substantial, and it is possible
that such efforts would be unsuccessful, resulting in our inability to obtain or retain any U.S. patent rights with respect to such invention.
34
In addition, the laws of foreign jurisdictions
may not protect our rights to the same extent as the laws of the United States. For example, European patent law restricts the patentability
of methods of treatment of the human body more than U.S. law does. Publications of discoveries in scientific literature often lag behind
the actual discoveries, and patent applications in the United States and other jurisdictions are typically not published until 18 months
after filing, or in some cases not at all. Therefore, we cannot be certain that we were the first to make the inventions claimed in our
owned or licensed patents or pending patent applications, or that we or our licensors were the first to file for patent protection of
such inventions. Moreover, the USPTO might require that the term of a patent issuing from a pending patent application be disclaimed and
limited to the term of another patent that is commonly owned or names a common inventor. As a result, the issuance, scope, validity, term,
enforceability and commercial value of our patent rights are highly uncertain.
The patent prosecution process is expensive
and time-consuming, is highly uncertain and involves complex legal and factual questions. Recent patent reform legislation could increase
the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our issued patents.
Our success depends in large part on our ability
to obtain and maintain patent protection in the United States and other countries with respect to our proprietary technology and product
candidates. We seek to protect our proprietary position by filing in the United States and in certain foreign jurisdictions patent applications
related to our novel technologies and product candidates that are important to our business.
The patent prosecution process is expensive and
time-consuming, and we may not be able to file and prosecute all necessary or desirable patent applications at a reasonable cost or in
a timely manner. It is also possible that we will fail to identify patentable aspects of our research and development output before it
is too late to obtain patent protection. In addition, we may not pursue or obtain patent protection in all major markets. Moreover, in
some circumstances, we may not have the right to control the preparation, filing or prosecution of patent applications, or to maintain
the patents, covering technology that we license from third parties. In some circumstances, our licensors may have the right to enforce
the licensed patents without our involvement or consent, or to decide not to enforce or to allow us to enforce the licensed patents. Therefore,
these patents and patent applications may not be prosecuted and enforced in a manner consistent with the best interests of our business.
If any of our licensors fail to maintain such patents, or lose rights to those patents, the rights that we have licensed may be reduced
or eliminated and our right to develop and commercialize any of our product candidates that are the subject of such licensed rights could
be adversely affected.
Our pending and future patent applications may
not result in patents being issued which protect our technology or products, in whole or in part, or which effectively prevent others
from commercializing competitive technologies and products. In particular, during prosecution of any patent application, the issuance
of any patents based on the application may depend upon our ability to generate additional nonclinical or clinical data that support the
patentability of our proposed claims. We may not be able to generate sufficient additional data on a timely basis, or at all. Moreover,
changes in either the patent laws or interpretation of the patent laws in the United States or other countries may diminish the value
of our patents or narrow the scope of our patent protection.
Moreover, we may be subject to a third-party pre-issuance
submission of prior art to the USPTO, or become involved in opposition, derivation, reexamination,
inter partes
review,
post-grant review or interference proceedings or other patent office proceedings or litigation, in the United States or elsewhere, challenging
our patent rights or the patent rights of others. An adverse determination in any such submission or proceeding could reduce the scope
of, or invalidate, our patent rights; allow third parties to commercialize our technology or products and compete directly with us, without
payment to us; or result in our inability to manufacture or commercialize products without infringing third-party patent rights. In addition,
if the breadth or strength of protection provided by our owned and licensed patents and patent applications is threatened, it could dissuade
companies from collaborating with us to license, develop or commercialize current or future product candidates.
35
Obtaining and maintaining our patent protection
depends upon compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent
agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.
The USPTO and various foreign governmental patent
agencies require compliance with a number of procedural, documentary, fee payment and other provisions during the patent prosecution process
and following the issuance of a patent. There are situations in which noncompliance with these requirements can result in abandonment
or lapse of a patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. In such
an event, competitors might be able to enter the market earlier than would otherwise have been the case if our patent were in force.
Our intellectual property rights may not
be sufficient to protect our competitive position and to prevent others from manufacturing, using or selling competing assays.
The scope of our owned and exclusively licensed
intellectual property rights may not be sufficient to prevent others from manufacturing, using or selling competing assays. Competitors
could purchase our product and attempt to replicate some or all of the competitive advantages we derive from our development efforts,
willfully infringe our intellectual property rights, design around our protected technology or develop their own competitive technologies
and thereby avoid infringing our intellectual property rights. If our intellectual property is not sufficient to effectively prevent our
competitors from developing and selling similar diagnostic tests, our competitive position and our business could be adversely affected.
We may become involved in disputes relating
to our intellectual property rights, and may need to resort to litigation in order to defend and enforce our intellectual property rights.
Extensive litigation regarding patents and other
intellectual property rights has been common in the medical diagnostic testing industry. Litigation may be necessary to assert infringement
claims, protect trade secrets or know-how and determine the enforceability, scope and validity of certain proprietary rights. Litigation
may even be necessary to resolve disputes of inventorship or ownership of proprietary rights. The defense and prosecution of intellectual
property lawsuits, USPTO interference or derivation proceedings and related legal and administrative proceedings (
e.g
., a re-examination)
in the United States and internationally involve complex legal and factual questions. As a result, such proceedings are costly and time
consuming to pursue, and their outcome is uncertain.
Even if we prevail in such a proceeding in which
we assert our intellectual property rights against third parties, the remedy we obtain may not be commercially meaningful or adequately
compensate us for any damages we may have suffered. If we do not prevail in such a proceeding, our patents could potentially be declared
to be invalid, unenforceable or narrowed in scope, or we could otherwise lose valuable intellectual property rights. Similar proceedings
involving the intellectual property we exclusively license could also have an impact on our business. Further, if any of our other owned
or exclusively licensed patents are declared invalid, unenforceable or narrowed in scope, our competitive position could be adversely
affected.
We could face claims that our activities
or the manufacture, use or sale of our assays infringe the intellectual property rights of others, which could cause us to pay damages
or licensing fees and limit our ability to sell some or all of our assays and services.
Our research, development and commercialization
activities may infringe or be claimed to infringe patents or other intellectual property rights owned by other parties of which we may
be unaware because the relevant patent applications may have been filed but not yet published. Certain of our competitors and other companies
have substantial patent portfolios and may attempt to use patent litigation as a means to obtain a competitive advantage or to extract
licensing revenue. In addition to patent infringement claims, we may also be subject to other claims relating to the violation of intellectual
property rights, such as claims that we have misappropriated trade secrets or infringed third party trademarks. The risks of being involved
in such litigation may also increase as we gain greater visibility as a public company and as we gain commercial acceptance of our diagnostic
tests and move into new markets and applications for our assays.
36
Regardless of merit or outcome, our involvement
in any litigation, interference or other administrative proceedings could cause us to incur substantial expense and could significantly
divert the efforts of our technical and management personnel. Any public announcements related to litigation or interference proceedings
initiated or threatened against us could cause our share price to decline. An adverse determination, or any actions we take or agreements
we enter into in order to resolve or avoid disputes, may subject us to the loss of our proprietary position or to significant liabilities,
or require us to seek licenses that may include substantial cost and ongoing royalties. Licenses may not be available from third parties
or may not be obtainable on satisfactory terms. An adverse determination or a failure to obtain necessary licenses may restrict or prevent
us from manufacturing and selling our diagnostic tests and offering our services. These outcomes could materially harm our business, financial
condition and results of operations.
We may not be able to adequately protect
our intellectual property outside of the United States.
The laws of some foreign countries do not protect
intellectual property rights to the same extent as the laws of the United States, and many companies have encountered significant problems
in protecting and defending such rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing
countries, do not favor the enforcement of patents and other intellectual property protection, particularly those relating to medical
devices, diagnostic testing and biotechnology, which could make it difficult for us to stop the infringement of our patents and for licensors,
if they were to seek to do so, to stop infringement of patents that are licensed to us. Proceedings to enforce our patent rights in foreign
jurisdictions could result in substantial cost and divert our efforts and attention from other aspects of our business. Additionally,
prosecuting and maintaining intellectual property (particularly patent) rights are very costly endeavors, and for these and other reasons
we may not pursue or obtain patent protection in all major markets. We do not know whether legal and government fees will increase substantially
and therefore are unable to predict whether cost may factor into our global intellectual property strategy.
In addition to the risks associated with patent
rights, the laws in some foreign jurisdictions may not provide protection for our trade secrets and other intellectual property. If our
trade secrets or other intellectual property are misappropriated in foreign jurisdictions, we may be without adequate remedies to address
these issues. Additionally, we also rely on confidentiality and assignment of invention agreements to protect our intellectual property
in foreign jurisdictions. These agreements may provide for contractual remedies in the event of misappropriation, but we do not know to
what extent, if any, these agreements, and any remedies for their breach, will be enforced by a foreign court. If our intellectual property
is misappropriated or infringed upon and an adequate remedy is not available, our future prospects will likely diminish. The sale of diagnostic
tests that infringe our intellectual property rights, particularly if such diagnostic tests are offered at a lower cost, could negatively
impact our ability to achieve commercial success and may materially and adversely harm our business.
Our failure to secure trademark registrations
could adversely affect our business and our ability to market our assays and product candidates.
Our trademark applications in the United States
and any other jurisdictions where we may file may not be allowed for registration, and our registered trademarks may not be maintained
or enforced. During trademark registration proceedings, we may receive rejections. Although we are given an opportunity to respond to
those rejections, we may be unable to overcome such rejections. In addition, in the USPTO and in corresponding foreign agencies, third
parties are given an opportunity to oppose pending trademark applications and to seek to cancel registered trademarks. Opposition or cancellation
proceedings may be filed against our applications and/or registrations, and our applications and/or registrations may not survive such
proceedings. Failure to secure such trademark registrations in the United States and in foreign jurisdictions could adversely affect our
business and our ability to market our diagnostic tests and product candidates.
37
We may be unable to adequately prevent disclosure
of trade secrets and other proprietary information, or the misappropriation of the intellectual property we regard as our own.
We rely on trade secrets to protect our proprietary
know how and technological advances, particularly where we do not believe patent protection is appropriate or obtainable. Nevertheless,
trade secrets are difficult to protect. We rely in part on confidentiality agreements with our employees, consultants, third party contractors,
third party collaborators and other advisors to protect our trade secrets and other proprietary information. These agreements generally
require that the other party to the agreement keep confidential and not disclose to third parties all confidential information developed
by us or made known to the other party by us during the course of the other party's relationship with us. These agreements may not
effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure
of confidential information. Monitoring unauthorized disclosure is difficult, and we do not know whether the steps we have taken to prevent
such disclosure are, or will be, adequate. If we were to seek to pursue a claim that a third party had illegally obtained and was using
our trade secrets, it would be expensive and time consuming, and the outcome would be unpredictable. Further, courts outside the United
States may be less willing to protect trade secrets. In addition, others may independently discover our trade secrets and proprietary
information and therefore be free to use such trade secrets and proprietary information. Costly and time consuming litigation could be
necessary to enforce and determine the scope of our proprietary rights. In addition, our trade secrets and proprietary information may
be misappropriated as a result of breaches of our electronic or physical security systems in which case we may have no legal recourse.
Failure to obtain, or maintain, trade secret protection could enable competitors to use our proprietary information to develop assays
that compete with our assays or cause additional, material adverse effects upon our competitive business position.
We may be subject to claims that our employees
have wrongfully used or disclosed alleged trade secrets of their former employers.
As is common in our industry, we employ individuals
who were previously employed at other companies in our industry or in related industries, including our competitors or potential competitors.
We may be subject to claims that we or these employees have inadvertently or otherwise used or disclosed trade secrets or other proprietary
information of their former employers. Litigation may be necessary to defend against these claims. Even if we are successful in defending
against these claims, litigation could result in substantial costs and be a distraction to management.
Third parties may initiate legal proceedings
alleging that we are infringing their intellectual property rights, the outcome of which would be uncertain.
Our commercial success depends upon our ability
to develop, manufacture, market and sell our product candidates without infringing the proprietary rights of third parties. There is considerable
intellectual property litigation in the life sciences industry. We cannot guarantee that our product candidates will not infringe third-party
patents or other proprietary rights. We may become party to, or threatened with, future adversarial proceedings or litigation regarding
intellectual property rights with respect to our products and technology, including
inter partes
review, interference,
or derivation proceedings before the USPTO and similar bodies in other countries. Third parties may assert infringement claims against
us based on existing intellectual property rights and intellectual property rights that may be granted in the future.
If we are found to infringe a third party's
intellectual property rights, we could be required to obtain a license from such third party to continue developing and marketing our
products. However, we may not be able to obtain any required license on commercially reasonable terms or at all. Even if we were able
to obtain a license, it could be non-exclusive, thereby giving our competitors access to the same technologies licensed to us. We could
be forced, including by court order, to cease commercializing the infringing technology or product. In addition, we could be found liable
for monetary damages, including treble damages and attorneys' fees if we are found to have willfully infringed a patent. A finding
of infringement could prevent us from commercializing our product candidates or force us to cease some of our business operations, which
could materially harm our business. Claims that we have misappropriated the confidential information or trade secrets of third parties
could have a similar negative impact on our business.
Obtaining and maintaining our patent protection
depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent
agencies, and our own patent protection could be reduced or eliminated for noncompliance with these requirements.
Periodic maintenance fees and annuities on any
issued patent are due to be paid to the USPTO and foreign patent agencies in several stages over the lifetime of the patent. The USPTO
and various foreign governmental patent agencies require compliance with a number of procedural, documentary, fee payment and other similar
provisions during the patent application process. While an inadvertent lapse can in many cases be cured by payment of a late fee or by
other means in accordance with the applicable rules, there are situations in which noncompliance can result in abandonment or lapse of
the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Noncompliance events
that could result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond to official
actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents. In such an event,
our competitors might be able to enter our markets, which could have a material adverse effect on our business.
38
Intellectual property litigation could cause
us to spend substantial resources and distract our personnel from their normal responsibilities.
Even if resolved in our favor, litigation or other
legal proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our technical
and management personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings,
motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it
could have an adverse effect on the price of our common stock. Such litigation or proceedings could increase our operating losses and
reduce the resources available for development activities or any future sales, marketing or distribution activities. We may not have sufficient
financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the
costs of such litigation or proceedings more effectively than we can because of their greater financial resources. Uncertainties resulting
from the initiation and continuation of patent litigation or other proceedings could compromise our ability to compete in the marketplace.
We may spend considerable resources developing
and maintaining patents, licensing agreements and other intellectual property that may later be abandoned or may otherwise never result
in products brought to market.
Not all technologies and candidate products that
initially show potential as the basis for future products ultimately meet the rigors of our development process and as a result may be
abandoned and/or never otherwise result in products brought to market. In some cases, prior to abandonment we may be required to
incur significant costs developing and maintaining intellectual property and/or maintaining license agreements and our business could
be harmed by such costs.
We rely on information technology, and if
we are unable to protect against service interruptions, data corruption, cyber-based attacks or network security breaches, our operations
could be disrupted, and our business could be negatively affected.
We rely on information technology networks and
systems to process, transmit and store electronic and financial information; to coordinate our business; and to communicate within our
Company and with customers, suppliers, partners and other third parties. These information technology systems may be susceptible to damage,
disruptions or shutdowns, hardware or software failures, power outages, computer viruses, cyber-attacks, telecommunication failures, user
errors or catastrophic events. If our information technology systems suffer severe damage, disruption or shutdown, and our business continuity
plans do not effectively resolve the issues in a timely manner, our operations could be disrupted, and our business could be negatively
affected. In addition, cyber-attacks could lead to potential unauthorized access and disclosure of confidential information, and data
loss and corruption. There is no assurance that we will not experience these service interruptions or cyber-attacks in the future.
Risks Related to the Company and our Business
We have a limited operating history and may
face difficulties encountered by companies early in their commercialization in competitive and rapidly evolving markets.
We received CE-Mark for our eLab instrument and
S1 Assay panel in November of 2019 and began commercializing these products in the fourth quarter of 2020. We have also developed products
for COVID-19 with the intent to file for FDA EUA. The application for our COVID-19 antibody test was not reviewed by the FDA due to the
volume of EUA requests the Agency has received for similar tests. The EUA application for our COVID-19 antigen test was reviewed by the
FDA and additional clinical and analytical information was requested. The Company conducted additional work and refiled the EUA in November
2021. The FDA has requested additional information primarily from clinical testing sites prior to initiating their formal review.
39
Accordingly, we have a relatively limited operating
history upon which to evaluate our business and forecast our future sales and operating results. In assessing our business prospects,
you should consider the various risks and difficulties frequently encountered by companies early in their commercialization in competitive
and rapidly evolving markets, particularly companies that develop and sell medical devices. These risks include our ability to:
●
implement and execute our business strategy;
●
establish a sales and marketing infrastructure to grow sales of our products and product candidates;
●
implement computer based systems for the management of orders, production, inventory, invoicing, and receivable collections;
●
increase awareness of our brand;
●
manage expanding operations
●
expand our manufacturing capabilities, including increasing production of current products efficiently while maintaining quality standards and adapting our manufacturing facilities to the production of new product candidates;
●
respond effectively to competitive pressures and developments;
●
enhance our existing product and develop new products;
●
obtain and maintain regulatory clearance or approval to commercialize product candidates and enhance our existing products;
●
effectively perform clinical trials with respect to our proposed products;
●
attract, retain and motivate qualified personnel in various areas of our business: and
●
implement and maintain systems and processes that are compliant with applicable regulatory standards.
We may not have the institutional knowledge or
experience to be able to effectively address these and other risks that may face our business. In addition, we may not be able to develop
insights into trends that could emerge and negatively affect our business and may fail to respond effectively to those trends. As a result
of these or other risks, we may not be able to execute key components of our business strategy, and our business, financial condition
and operating results may suffer.
Sales cycles for our products may be lengthy,
which can cause variability and unpredictability in our business.
Some of our products may require lengthy and unpredictable
sales cycles, which makes it more difficult to accurately forecast revenues and may cause revenues and operating results to vary from
period to period. Our products may involve sales to large public and private institutions which may require many levels of approval and
may be dependent on economic or political conditions and the availability of funding from government or public health agencies which can
vary from period to period. There can be no assurance that purchases or funding from these agencies will occur or continue. As a result,
we may expend considerable resources on unsuccessful sales efforts or we may not be able to complete transactions at all or on a schedule
and in an amount consistent with our objectives.
40
We have limited commercial scale capabilities.
If we are unable to successfully implement commercial capabilities and manage our growth, our business will be harmed.
We have been a development stage company and we
will need to establish and significantly expand our operations and capabilities. We expect this expansion to occur rapidly and continue
to an even greater degree in the future as we continue to commercialize our products, build a sales and marketing organization, and seek
marketing clearance from the FDA and international regulatory bodies for our future product candidates. Our growth will place a significant
strain on our management, operating and financial systems and our sales, marketing, manufacturing, engineering, product development, and
administrative resources. As a result of our growth, operating costs may escalate even faster than planned, and some of our internal systems
and processes, including those relating to manufacturing our products, will need to be established and may need to be enhanced, updated
or replaced. Additionally, our anticipated growth will increase demands placed on our suppliers, resulting in an increased need for us
to manage our suppliers and monitor for quality assurance. If we cannot effectively manage our expanding operations, manufacturing capacity
and costs, including scaling to meet increased demand and properly managing suppliers, we may not be able to grow or we may grow at a
slower pace than expected and our business could be adversely affected.
We face substantial competition, which may
result in others discovering, developing or commercializing products before or more successfully than we do.
The development and commercialization of medical
devices is highly competitive. We compete with a variety of multinational pharmaceutical companies and specialized biotechnology companies,
as well as products and processes being developed at universities and other research institutions. Our competitors have developed, are
developing or will develop product candidates and processes competitive with our product candidates. Competitive therapeutic treatments
include those that have already been approved and accepted by the medical community and any new treatments that may enter the market.
We believe that a significant number of products are currently available, under development, and may become commercially available in
the future, for the treatment of indications for which we may try to develop product candidates.
More established companies may have a competitive
advantage over us due to their greater size, cash flows and institutional experience. Compared to us, many of our competitors may have
significantly greater financial, technical and human resources. As a result of these factors, our competitors may have an advantage in
marketing their approved products and may obtain regulatory approval of their product candidates before we are able to, which may limit
our ability to develop or commercialize our product candidates. Our competitors may also develop drugs that are safer, more effective,
more widely used and less expensive than ours, and may also be more successful than us in manufacturing and marketing their products.
Mergers and acquisitions in the pharmaceutical
and biotechnology industries may result in even more resources being concentrated among a smaller number of our competitors. Smaller and
other early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and
established companies. These companies compete with us in recruiting and retaining qualified scientific, management and commercial personnel,
establishing clinical trial sites and subject registration for clinical trials, as well as in acquiring technologies complementary to,
or necessary for, our programs.
Our technologies and products under development,
and our business, may fail if we are not able to successfully commercialize them and ultimately generate significant revenues as a result.
Successful development of technologies and our
product candidates will require significant additional investment, including costs associated with additional development, completing
trials and obtaining regulatory approval, as well as the ability to manufacture or have others manufacture our products in sufficient
quantities at acceptable costs while also preserving product quality. Difficulties often encountered in scaling up production include
problems involving production yields, quality control and assurance, shortage of qualified personnel, production costs and process controls.
In addition, we are subject to inherent risks associated with new technologies and products. These risks include the possibility that
any of our technologies or future products may:
●
be found unsafe;
●
be ineffective or less effective than anticipated;
●
fail to receive necessary regulatory approvals;
41
●
be difficult to competitively price relative to alternative solutions;
●
be harmful to consumers or the environment;
●
be difficult to manufacture on an economically viable scale;
●
be subject to supply chain constraints for raw materials;
●
fail to be developed and accepted by the market prior to the successful marketing of alternative products by competitors;
●
be difficult to market because of infringement on the proprietary rights of third parties; or
●
be too expensive for commercial use.
Furthermore, we may be faced with lengthy market
partner or distributor evaluation and approval processes. Consequently, we may incur substantial expenses and devote significant management
effort in order to customize products for market partner or distributor acceptance, though there can be no assurance of such acceptance.
As a result, we cannot accurately predict the volume or timing of any future sales.
Customers may not adopt our products quickly,
or at all.
Customers in the sector in which we operate can
be generally cautious in their adoption of new products and technologies. In addition, given the relative novelty of our future planned
products, customers of those products may require education regarding their utility and use, which may delay their adoption. There can
be no assurance that customers will adopt our products quickly, or at all.
The significant level of competition in
the markets for our products developed in the future may result in pricing pressure, reduced margins or the inability of our future products
to achieve market acceptance.
The markets for our future products are intensely
competitive and rapidly changing. We may be unable to compete successfully, which may result in price reductions, reduced margins and
the inability to achieve market acceptance for our products.
Our competitors may have longer operating histories,
significantly greater resources, greater brand recognition and large customer bases than we do. As a result, they may be able to devote
greater resources to the manufacture, promotion or sale of their products, receive greater resources and support from market partners
and independent distributors, initiate or withstand substantial price competition or more readily take advantage of acquisition or other
opportunities.
We may rely on third parties for the production
of our future products. If these parties do not produce our products at a satisfactory quality, in a timely manner, in sufficient quantities
or at an acceptable cost, our sales and development efforts could be delayed or otherwise negatively affected.
We may rely on third parties for the manufacture
of our future products. Our reliance on third parties to manufacture our future products may present significant risks to us, including
the following:
●
reduced control over delivery schedules, yields and product reliability;
●
price increases;
●
manufacturing deviations from internal and regulatory specifications;
●
the failure of a key manufacturer to perform as we require for technical, market or other reasons;
42
●
difficulties in establishing additional manufacturer relationships if we are presented with the need to transfer our manufacturing process technologies to them;
●
misappropriation of our intellectual property; and
●
other risks in potentially meeting our product development schedule or satisfying the requirements of our market partners, distributors, direct customers and end users.
If we need to enter into agreements for the manufacturing
of our future products, there can be no assurance we will be able to do so on favorable terms, if at all.
If we are unable to establish successful
relations with third-party market partners or distributors, or these market partners or distributors do not focus adequate resources on
selling our products or are otherwise unsuccessful in selling them, sales of our products may not develop.
We anticipate relying on independent market partners
and distributors to distribute and assist us with the marketing and sale of our products. Our future revenue generation and growth will
depend in large part on our success in establishing and maintaining this sales and distribution channel. If our market partners and distributors
are unable to sell our products, or receive negative feedback from end users, they may not continue to purchase or market our products.
In addition, there can be no assurance that our market partners and distributors will focus adequate resources on selling our products
to end users or will be successful in selling them. Many of our potential market partners and distributors are in the business of distributing
and sometimes manufacturing other, possibly competing, products. As a result, these market partners and distributors may perceive
our products as a threat to various product lines currently being distributed or manufactured by them. In addition, these market partners
and distributors may earn higher margins by selling competing products or combinations of competing products. If we are unable to establish
successful relationships with independent market partners and distributors, we will need to further develop our own sales and distribution
capabilities, which would be expensive and time-consuming and might not be successful.
The use of our products may be limited by
regulations, and we may be exposed to product liability and remediation claims.
The use of our planned products may be regulated
by various local, state, federal and foreign regulators. Even if we are able to comply with all such regulations and obtain all necessary
registrations, we cannot provide assurance that our future products will not cause injury to the environment, people, or animals and/or
otherwise have unintended adverse consequences, under all circumstances. For example, our products may be improperly combined with other
chemicals or, even when properly combined, our products may be blamed for damage caused by those other chemicals. The costs of remediation
or products liability could materially adversely affect our results, financial condition and operations.
We may be held liable for, or incur costs
to settle, liability and remediation claims if any products we develop, or any products that use or incorporate any of our technologies,
cause injury or are found unsuitable during product testing, manufacturing, marketing, sale or use. These risks exist even with respect
to products that have received, or may in the future receive, regulatory approval, registration or clearance for commercial use. We cannot
guarantee that we will be able to avoid product liability exposure.
At the stage customary to do so, we expect to
maintain product liability insurance at levels we believe are sufficient and consistent with industry standards for like companies and
products. However, we cannot guarantee that our product liability insurance will be sufficient to help us avoid product liability-related
losses. In the future, it is possible that meaningful insurance coverage may not be available on commercially reasonable terms or at all.
In addition, a product liability claim could result in liability to us greater than our assets or insurance coverage. Moreover, even if
we have adequate insurance coverage, product liability claims or recalls could result in negative publicity or force us to devote significant
time and attention to these matters, which could harm our business.
43
There may be limitations on the effectiveness
of our internal controls, and a failure of our control systems to prevent error or fraud may materially harm our Company.
We do not expect that internal control over financial
accounting and disclosure, even if timely and well established, will prevent all error and all fraud. A control system, no matter how
well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met.
Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be
considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide
absolute assurance that all control issues and instances of fraud, if any, have been detected. Failure of our control systems to prevent
error or fraud could materially adversely affect our business.
Risks Related to this Offering and Our Common
Stock
There has been a limited public market for
our common stock, and we do not know whether one will develop to provide you adequate liquidity. Furthermore, the trading price for our
common stock, should an active trading market develop, may be volatile and could be subject to wide fluctuations in per-share price.
Our common stock is quoted on the Pink Open Market
under the trading symbol "NNMX"; historically, however, there has been a limited public market for our common stock. Although
we have applied to list our Common Stock on the Nasdaq Stock Market, we cannot assure you that an active trading market for our common
stock will develop or be sustained. The liquidity of any market for the shares of our common stock will depend on a number of factors,
including:
●
the number of stockholders;
●
our operating performance and financial condition;
●
the market for similar securities;
●
the extent of coverage of us by securities or industry analysts; and
●
the interest of securities dealers in making a market in the shares of our common stock.
Even if an active trading market develops, the
market price for our common stock may be highly volatile and could be subject to wide fluctuations. In addition, the price of shares of
our common stock could decline significantly if our future operating results fail to meet or exceed the expectations of market analysts
and investors and actual or anticipated variations in our quarterly operating results could negatively affect our share price.
The volatility of the price of our common stock
may also be impacted by the risks discussed under this "Risk Factors" section, in addition to other factors, including:
●
developments in the financial markets and worldwide or regional economies;
●
announcements of innovations or new products or services by us or our competitors;
●
announcements by the government relating to regulations that govern our industry;
●
significant sales of our common stock or other securities in the open market;
●
variations in interest rates;
●
changes in the market valuations of other comparable companies; and
●
changes in accounting principles.
44
Our outstanding warrants and preferred stock
may affect the market price and liquidity of the common stock.
As of May 1, 2022, we had approximately 6,827,956
shares of common stock warrants for the purchase of up to approximately an additional 6,827,956 shares of common stock outstanding. There
are 500 shares of series D preferred outstanding that are convertible into approximately 243,000 shares of common stock. In February 2022,
963,964 shares of our series B preferred stock outstanding, were converted into approximately 5.6 million shares of common stock, as well
as 1,000,000 shares of our series C preferred stock which were converted into approximately 35.6 million shares of common stock. The amount
of common stock reserved for issuance may have an adverse impact on our ability to raise capital and may affect the price and liquidity
of our common stock in the public market. In addition, the issuance of these shares of common stock will have a dilutive effect on
current stockholders' ownership.
The conversion of outstanding convertible
notes into shares of common stock could materially dilute our current stockholders.
As of the date of this prospectus, we had approximately
$9.1 million aggregate principal amount of convertible notes outstanding, convertible into shares of our common stock at a fixed price
of $1.1717 per share. The conversion prices of these notes may be less than the market price of our common stock at the time of conversion,
and which may be subject to future adjustment due to certain events, including our issuance of common stock or common stock equivalents
at an effective price per share lower than the conversion rate then in effect. If the entire principal amount of all the outstanding convertible
notes is converted into shares of common stock, we would be required to issue an aggregate of no less than approximately 7.7 million shares
of common stock. If we issue all of these shares, the ownership of our current stockholders will be diluted.
Because our common stock may be deemed a
low-priced "penny" stock, an investment in our common stock should be considered high-risk and subject to marketability restrictions.
Historically, the trading price of our common
stock has been $5.00 per share or lower, and deemed a penny stock, as defined in Rule 3a51-1 under the Exchange Act, and subject to the
penny stock rules of the Exchange Act specified in rules 15g-1 through 15g-100. Those rules require broker–dealers, before effecting
transactions in any penny stock, to:
●
deliver to the customer, and obtain a written receipt for, a disclosure document;
●
disclose certain price information about the stock;
●
disclose the amount of compensation received by the broker-dealer or any associated person of the broker-dealer;
●
send monthly statements to customers with market and price information about the penny stock; and
●
in some circumstances, approve the purchaser's account under certain standards and deliver written statements to the customer with information specified in the rules.
Consequently, the penny stock rules may restrict
the ability or willingness of broker-dealers to sell the common stock and may affect the ability of holders to sell their common stock
in the secondary market and the price at which such holders can sell any such securities. These additional procedures could also limit
our ability to raise additional capital in the future.
Financial Industry Regulatory Authority
("FINRA") sales practice requirements may also limit a stockholder's ability to buy and sell our common stock, which
could depress the price of our common stock.
In addition to the "penny stock" rules
described above, FINRA has adopted rules that require a broker-dealer to have reasonable grounds for believing that the investment is
suitable for that customer before recommending an investment to a customer. Prior to recommending speculative low-priced securities to
their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial
status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a
high probability that speculative low-priced securities will not be suitable for at least some customers. Thus, the FINRA requirements
make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy
and sell our shares of common stock, have an adverse effect on the market for our shares of common stock, and thereby depress our price
per share of common stock.
45
If securities or industry analysts do not
publish research or reports about our business, or if they issue an adverse or misleading opinion regarding our stock, our stock price
and trading volume could decline.
The trading market for our common stock may be
influenced by the research and reports that industry or securities analysts publish about us or our business. We do not currently have,
and may never obtain, research coverage by securities and industry analysts. If no or few securities or industry analysts commence coverage
of us, the trading price for our common stock may be negatively affected. In the event that we receive securities or industry analyst
coverage, if any of the analysts who cover us issue an adverse or misleading opinion regarding us, our business model, our intellectual
property or our stock performance, or if our operating results fail to meet the expectations of analysts, our stock price would likely
decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, we could lose visibility in
the financial markets, which in turn could cause our stock price or trading volume to decline.
Certain provisions of our certificate of
incorporation and Delaware law make it more difficult for a third party to acquire us and make a takeover more difficult to complete,
even if such a transaction were in stockholders' interest.
Our certificate of incorporation and the Delaware
General Corporation Law contain certain provisions that may have the effect of making it more difficult or delaying attempts by others
to obtain control of our Company, even when these attempts may be in the best interests of our stockholders. We also are subject to the
anti-takeover provisions of the Delaware General Corporation Law, which prohibits us from engaging in a "business combination"
with an "interested stockholder" unless the business combination is approved in a prescribed manner and prohibits the voting
of shares held by persons acquiring certain numbers of shares without obtaining requisite approval. The statutes and our certificate of
incorporation have the effect of making it more difficult to effect a change in control of our Company.
We do not currently or for the foreseeable
future intend to pay dividends on our common stock.
We have never declared or paid any cash dividends
on our common stock. We currently anticipate that we will retain future earnings for the development, operation and expansion of our business
and do not anticipate declaring or paying any cash dividends for the foreseeable future. As a result, any return on your investment in
our common stock will be limited to the appreciation in the price of our common stock, if any.
INDUSTRY AND MARKET DATA
This prospectus contains estimates and other statistical
data made by independent parties and by us relating to market size and growth and other data about our industry. We obtained the industry
and market data in this prospectus from our own research as well as from industry and general publications, surveys and studies conducted
by third parties. These data involve a number of assumptions and limitations and contain projections and estimates of the future performance
of the industries in which we operate that are subject to a high degree of uncertainty, including those discussed in "Risk Factors."
We caution you not to give undue weight to such projections, assumptions and estimates. Further, industry and general publications, studies
and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy
or completeness of such information. While we believe that these publications, studies and surveys are reliable, we have not independently
verified the data contained in them. In addition, while we believe that the results and estimates from our internal research are reliable,
such results and estimates have not been verified by any independent source.
USE OF PROCEEDS
The net proceeds from any disposition of the shares
of common stock covered hereby will be received by the selling stockholders. We will not receive any of the proceeds from any such shares
of common stock offered by this prospectus. We will, however, receive the net proceeds of any Warrants exercised for cash. We expect to
use the proceeds received from the exercise of the Warrants, if any, for general working capital purposes.
46
DIVIDEND POLICY
We plan to retain any earnings for the foreseeable
future for our operations. We have never paid any dividends on our common stock and do not anticipate paying any cash dividends in the
foreseeable future. Any future determination to pay cash dividends will be at the sole discretion of our Board and will depend on our
financial condition, operating results, capital requirements and such other factors as our Board deems relevant.
MARKET FOR REGISTRANT'S COMMON EQUITY
AND RELATED STOCKHOLDER MATTERS
Our common stock is quoted to trade in the over-the-counter
securities market through the OTCQB under the symbol "NNMX". We have been eligible to participate in on the over-the-counter
markets since February 28, 2012. Any over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark-down
or commission and may not necessarily represent actual transactions.
Stockholders
As of June 16, 2022, there were 1,947 holders
of record of our common stock. This number does not include "street name," or beneficial holders, whose shares are held of
record by banks, brokers, financial institutions and other nominees. The transfer agent for Madison's Common Stock is Worldwide
Stock Transfer, LLC, One University Plaza, Suite 505, Hackensack, NJ 07601 and their telephone number is
(201)
820-2008
.
.
Dividends
We have not paid any dividends on our common stock
to date and do not anticipate that we will pay dividends in the foreseeable future. Any payment of cash dividends on our common stock
in the future will be dependent upon the amount of funds legally available, our earnings, if any, our financial condition, our anticipated
capital requirements and other factors that the Board may think are relevant. However, we currently intend for the foreseeable future
to follow a policy of retaining all of our earnings, if any, to finance the development and expansion of our business and, therefore,
do not expect to pay any dividends on our common stock during such time.
47
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND PLAN OF OPERATIONS
You should read the following discussion and
analysis of our financial condition and plan of operations together with "Selected Financial Data" and our financial statements
and the related notes appearing elsewhere in this prospectus. In addition to historical information, this discussion and analysis contains
forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those discussed
below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed
in the section titled "Risk Factors" included elsewhere in this prospectus. All amounts in this report are in U.S. dollars,
unless otherwise noted.
FORWARD-LOOKING STATEMENTS
This report, including
exhibits that are being filed as part of this report, as well as other statements made by Nanomix Corporation (the "Company",
"we", "us", and "our"), contain "forward-looking statements" that include information
relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such
as "may," "should," "could," "would," "predicts," "potential,"
"continue," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking
statements.
These forward-looking
statements include such things as: investment objectives and the Company's ability to make investments in a timely manner on acceptable
terms; references to future success of the Company's products; the Company's business strategy; estimated future capital expenditures;
sales of the Company's products; competitive strengths and goals; and, other similar matters.
These forward-looking
statements reflect the Company's current beliefs and expectations with respect to future events and are based on assumptions and
are subject to risks and uncertainties and other factors outside the Company's control that may cause actual results to differ materially
from those projected. Such factors include, but are not limited to, the following: ability to develop, commercialize and market new products;
ability to market and sell products, whether through an internal, direct sales force or third parties; ability to manufacture products
in accordance with applicable specifications, performance standards and quality requirements; ability to obtain, and timing and cost of
obtaining, necessary regulatory approvals for new products or new indications or applications for existing products; ability to comply
with applicable regulatory requirements; ability to effectively resolve warning letters, audit observations and other findings or comments
from the FDA or other regulatory entities; changes in relationships, including disputes or disagreements, with strategic partners or other
parties and reliance on strategic partners for the performance of critical activities under collaborative arrangements; competing products
and technology changes; reduction or deferral of public funding available to customers; competition from new or better technology or lower
cost products; market acceptance of our products; changes in market acceptance of products based on product performance or other factors,
including changes in testing guidelines, algorithms or other recommendations by the Centers for Disease Control and Prevention and other
agencies; ability to fund research and development and other products and operations; ability to obtain and maintain new or existing product
distribution channels; reliance on sole supply sources for critical products and components; ability to reach and maintain sustained profitability;
uncertainty relating to patent protection and potential patent infringement claims; uncertainty and costs of litigation relating to patents
and other intellectual property; availability of licenses to patents or other technology; obstacles to international marketing and manufacturing
of products; ability to sell products internationally, including the impact of changes in international funding sources and testing algorithms;
adverse movements in foreign currency exchange rates; loss or impairment of sources of capital; ability to attract and retain qualified
personnel; exposure to product liability and other types of litigation; changes in international, federal or state laws and regulations;
customer consolidations and inventory practices; equipment failures and ability to obtain needed raw materials and components; the impact
of terrorist attacks and civil unrest; changes in laws or regulations; global and regional economic conditions; and general political,
business and market conditions.
48
Although the Company
believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, these are only assumptions,
and forward-looking statements should not be read as a guarantee of future performance or results and will probably not be accurate indications
of when such performance or results will be achieved. Investors are cautioned that forward-looking statements may not be reliable and
speak only as of the date they are made and that, except as required by law, the Company undertakes no obligation to update these forward-looking
statements to reflect any future events or circumstances. All subsequent written or oral forward-looking statements attributable to the
Company or to individuals acting on its behalf are expressly qualified in their entirety by this section.
Investors should also
be aware that while we do, from time to time, communicate with securities analysts, it is against our policy to disclose any material
non-public information or other confidential commercial information to securities analysts unless and until we have made it publicly available.
Accordingly, stockholders should not assume that we agree with any statement or report issued by any analyst irrespective of the content
of the statement or report. Furthermore, we have a policy against issuing or confirming financial forecasts or projections issued by others.
Thus, to the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such reports are not the
responsibility of the Company.
Overview
This discussion and analysis
should be read in conjunction with the accompanying Consolidated Financial Statements and related notes. The discussion and analysis of
our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance
with generally accepted accounting principles in the United States ("U.S. GAAP"). The preparation of financial statements
in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities,
disclosure of any contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting
period. On an ongoing basis, we review our estimates and assumptions. Our estimates are based on our historical experience and other assumptions
that we believe to be reasonable under the circumstances. Actual results are likely to differ from those estimates under different assumptions
or conditions, but we do not believe such differences will materially affect our financial position or results of operations. Our critical
accounting policies, the policies we believe are most important to the presentation of our financial statements and require the most difficult,
subjective and complex judgments, are outlined below in "Critical Accounting Policies,''.
This management's
discussion and analysis of financial condition and results of operations ("MD&A") is intended to help you understand the
business operations and financial condition of the Company as of December 31, 2021 and March 31, 2022
.
Our MD&A is presented
in six sections:
●
Executive Overview
●
Consolidated Results of Operations
●
Liquidity and Capital Resources
●
Recent Developments
●
Significant Accounting Policies and Critical Accounting Estimates
●
Recently Issued Accounting Pronouncements
49
Executive Overview
On June 6, 2021, Boston
Therapeutics and Nanomix, Inc., or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation
(the "Company"). The Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible
Preferred Stock of the Company (the "Preferred Stock"). Upon the effectiveness of the amendment to our Certificate of Incorporation
to effectuate the reverse stock split of one-for-173, all such shares of Preferred Stock issued to Nanomix shareholders automatically
converted into approximately 35,644,997 shares of common stock of the Company, the warrants to be assumed at closing may be exercisable
into approximately 2,124,687 shares of common stock of the Company and the options and restricted stock units assumed at closing may be
exercisable into approximately 5,718,838 shares of common stock of the Company. The shares of common stock issuable upon conversion of
the Preferred Stock together with warrants, restricted stock units and options to be assumed on the closing date represented approximately
80% of the outstanding shares of Common Stock of the Company upon closing of the Merger.
The Closing of the merger
effectuated a change in control of the Company. As a result of the Closing, the Nanomix shareholders own approximately 80.0% of the Company's
issued and outstanding common stock on a fully diluted basis assuming full conversion of the Series C Preferred Stock. As Nanomix is now
the controlling management party, financial statements are consolidated based on the historical results of operations for Nanomix and
the combined balance sheets of the entities. The Company's name change to "Nanomix Corporation" and the symbol change
to "NNMX" were effective November 15, 2021. The previously approved 173:1 reverse stock split was effective on March 3, 2022.
Our Business
Nanomix, Inc, is a development
stage company that seeks to develop, manufacture, and commercialize point-of-care diagnostic tests that are used to detect or monitor
diseases. The Company's product development efforts are focused on our proprietary technology, a novel point-of-care diagnostic
platform that offers certain customer advantages as compared to other point-of-care diagnostic technologies. Nanomix, Inc. was originally
formed in 2001 as a nanotechnology sensor company. In 2009, ownership changed and the business was redirected to development and commercialization
of a mobile point-of-care diagnostic platform.
Business Strategy
The healthcare market
is rapidly evolving to incorporate a decentralized system of care delivery within a broad spectrum of environments: the emergency department,
skilled nursing facilities, elderly homes, urgent care centers, ambulances, and remote locations. While hospital central laboratories
currently are the gold standard of clinical testing, a mobile diagnostic platform offering high-quality testing results at affordable
prices is needed to serve the decentralized testing requirements. The Nanomix eLab System is specifically designed to meet this evolving
market need. The system includes a durable, handheld, rechargeable battery powered instrument and a disposable multiplex, microfluidic
test cartridge. Proprietary biosensors deliver laboratory-quality performance wherever the patient or healthcare provider needs it, including
a wide range of testing environments outside the hospital. The Nanomix eLab System is well suited for markets that include pre-hospital
assessment, chronic medical care, and post-hospital disease management, as well as use in remote locations far from traditional centers
of health care delivery. Whether in an Emergency Department, an Urgent Care facility, a skilled nursing facility or on an ambulance, the
Nanomix eLab System is designed to help mobile health providers to quickly assess a patient's condition and intervene with a higher
level of care when necessary.
Our initial product development
focus is on testing for critical medical conditions where rapidly available information is needed to help inform clinical decision making.
The Nanomix S1 Assay Panel is designed to provide information about critical infections, including sepsis, in approximately 11 minutes.
The S1 Assay Panel has received CE marking. Future product development efforts for other critical conditions are planned for development.
50
Results of Operations
Results of operations for the year ended
December 31, 2021 and 2020
The results of operations
for the years ended December 31, 2021 and 2020 were as follows:
December 31,
2021
2020
Revenues
$
141,778
$
513,244
Operating costs and expenses:
Research and development
3,017,263
4,184,820
Selling, general and administrative expenses
2,849,666
1,234,784
Total operating expenses
5,866,929
5,419,604
Loss from operations
(5,725,151
)
(4,906,360
)
Other income (expense):
Interest income
2
6
Interest expense
(1,644,829
)
(209,538
)
Interest expense, related, party
(572,347
)
(1,076,478
)
Change in fair value of derivative liability
15,282
-
Change in fair value of warrant liability
438,972
-
Forgiveness of PPP loan and accrued interest
408,242
Loss on debt modification
(2,385,204
)
-
Total income (expense)
(3,739,882
)
(1,286,010
)
Loss before income taxes
(9,465,033
)
(6,192,370
)
Provision for income taxes
-
-
Net loss
$
(9,465,033
)
$
(6,192,370
)
Total Revenues
Total net revenues during
the year ended December 31, 2021 were $142 thousand, a decrease of $371 thousand compared to the same period in 2020. The decrease in
total net revenues was attributable to a reduction of COVID-19 development funding received from BARDA. The BARDA funding began in 2020
and the project funding was completed earlier in 2021. There was no appreciable product related revenue in either period.
Research and Development
This category includes
costs incurred for product and process development, and clinical & regulatory affairs. Costs for the year ended December 31, 2021
were largely related to the development and clinical trials of two assays for COVID-19. Costs in the year ended December 31, 2020 were
related to the development of the S1 Assay Panel and development work on the COVID-19 program. All development efforts were for development
of the eLab platform.
Selling, General and
Administrative Expense
Selling, general and
administrative expense ("SG&A") for the year ended December 31, 2021 increased by $1,615 thousand from the same period
in 2020. The increase was due to establishment of a sales and marketing function in 2021 and increased general and administrative costs
in 2021 mainly from legal and accounting costs related to the merger and subsequent regulatory filings.
Other Income (Expense)
Other Income (Expense)
in 2021 was $3,740 thousand, an increase in expense of $2,454 compared to 2020. Other expense in 2021 was primarily composed of loss on
debt modification of $2,385 thousand and interest expense of $2,217 thousand for the year ended December 31, 2021. Interest expense of
$2,217 thousand in 2021 and $1,286 thousand in 2020 are primarily related to issued Secured Notes and Unsecured Convertible Notes used
to fund the Company's operations. The Secured Notes and accrued interest were exchanged into senior secured convertible notes and
the unsecured Notes and Accrued interest were converted to Preferred Series C stock in 2021 as part of the merger. Boston Therapeutics
notes and related accrued interest, predating the merger, were converted into common stock or remain on the balance sheet.
51
Other expense in 2021
was reduced by $408 thousand in forgiveness of the PPP loan received in 2020 and by a gain in the fair value of derivative and warrant
liabilities in the amount of $454 thousand.
Net Loss
The Net Loss for the
year ended December 31, 2021 was $9.465 million versus $6.192 million for the same period in 2020. The increased loss of $3.273 million
was largely due to the loss on debt modification, an increase in interest expense, offset by the PPP loan forgiveness and the change in
the fair value of warrant and derivative liabilities.
Results of operations
for the three months ended March 31, 2022 and 2021
The results of operations
for the three months ended March 31, 2022 and 2021 were as follows:
March 31,
2022
2021
Revenues
$
-
$
141,778
Operating costs and expenses:
Research and development
861,353
608,771
Selling, general and administrative expenses
1,136,381
388,871
Total operating expenses
1,997,734
997,642
Loss from operations
(1,997,734
)
(855,864
)
Other income (expense):
Interest income
-
-
Interest expense
(847,299
)
(28,643
)
Interest expense, related, party
-
(327,943
)
Total income (expense)
(847,299
)
(356,586
)
Loss before income taxes
(2,845,033
)
(1,212,450
)
Provision for income taxes
-
-
Net loss
$
(2,845,033
)
$
(1,212,450
)
Total Revenues
There were no net revenues
during the three months ended March 31, 2022. Revenues of $142 thousand in in the first three months of 2021 were related to completion
of a BARDA product development contract.
Research and Development
This category includes
costs incurred for product and process development, and clinical & regulatory affairs. Costs for the three months ended March 31,
2022 were largely related to further development of the Company's S-1 Assay Panel for critical infections and for regulatory filing
and related activities for an assay for the detection of COVID-19. Costs in the three months ended March 31, 2021 were related to the
development of the S1 Assay Panel and development work on the COVID-19 program. All development efforts were for development of the eLab
platform.
Selling, General and
Administrative Expense
Selling, general and
administrative expense ("SG&A") for the three months ended March 31, 2022 increased by $748 thousand from the same period
in 2021. The increase was due to establishment of a sales and marketing function in 2021 and increased general and administrative costs
in 2022 mainly from legal and accounting costs related to the merger and subsequent regulatory filings, insurance, and warrant expense
recorded in the first quarter of 2022.
52
Other Income (Expense)
Other Income (Expense)
in 2022 was $847 thousand, an increase in expense of $491 compared to 2021. Other expense in 2022 was primarily composed of amortization
of debt discount for the three months ended March 31, 2022. Interest expense of $352 thousand in 2021 is related to issued Secured Notes
and Unsecured Convertible Notes used to fund the Company's operations. These Notes and accrued interest were converted to Preferred
Series C stock in 2021 as part of the merger.
Net Loss
The Net Loss for the
three months ended March 31, 2022 was $2.8 million versus $1.2 million for the same period in 2021. The increased loss of $1.6 million
was largely due to the increase in operating expenses, debt discount amortization and the decrease in revenue.
Liquidity and Capital
Resources
Overview
Our liquidity requirements
are primarily to fund our business operations, including capital expenditures and working capital requirements. Our primary sources of
liquidity are additional capital investment and debt.
On June 25, 2021, the
Company entered into a securities purchase agreement with accredited investors pursuant to which the Company issued senior secured convertible
notes in an aggregate principal amount of approximately $8.4 million for an aggregate purchase price of approximately $7.9 million. Immediately
prior to the execution of the agreement described above, we entered into exchange agreements with the holders of outstanding promissory
notes with an aggregate principal amount, together with accrued but unpaid interest, of approximately $2.1 million. The holders of the
outstanding promissory notes were issued senior secured notes in the financing described above for an aggregate principal amount of $2.1
million. In connection with the issuance of the Notes, we issued to the Investors warrants to purchase an aggregate of approximately 4.1
million shares of Common Stock (collectively, the "Warrants"). The Company received approximately $5.8 million in funding
from the transaction.
In
March of 2022, the Company entered into a Convertible Preferred stock arrangement and issued 500 shares of Preferred D stock for $500
thousand. The Preferred D investment agreement is expected to provide an additional $2.5 million in funding over the next 6 months.
Cash Flows
As of December 31, 2021,
the Company had cash and equivalents of $297 thousand compared to $15 thousand as of December 31, 2020 and outstanding debt of $8.4 million
compared to $9.3 million as of the end of 2020.
As of March 31, 2022, the Company had cash and equivalents
of $10 thousand compared to $66 thousand as of March 31, 2021 and outstanding debt of $9.1 million compared to $9.5 million in the same
quarter of 2021.
Cash used in operating
activities during the year ended December 31, 2021 was $6.318 million. The net loss of $9.465 million for 2021 was increased by non-cash
gains of $408 thousand in forgiveness of the PPP loan and accrued interest received in 2020 and a change of $454 thousand in the fair
value of derivative and warrant liabilities, offset by a loss on debt modification of $2,385 thousand, and amortization of the discount
from the issue of promissory notes of $1,478 thousand, which were the significant non-cash expense items.
Cash
used in operating activities during the three months ended March 31, 2022 was $1.364 million. The net loss of $2.845 million for the three
months of 2022 was increased by amortization of the discount from the issue of promissory notes of $815 thousand, which were the significant
non-cash expense items.
Cash used by investing
activities during 2021 of $273 thousand was primarily for investing in of manufacturing equipment offset by cash received in the merger.
53
Cash
used by investing activities during 2021 of $23 thousand was primarily for investing in manufacturing equipment and leasehold improvements.
Cash provided by financing
activities during 2021 of $6.9 million was primarily related to proceeds from the sale of Senior Secured Convertible notes and convertible
debt issuances used to fund company operations.
Cash
provided by financing activities during three months of 2022 of $1.1 million was primarily related to proceeds from the sale of convertible
debt issuances and proceeds of issuance Preferred D stock used to fund company operations.
Off-Balance Sheet
Arrangements
The Company does not
have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K under the Securities Exchange Act of 1934,
as amended.
Recent Developments
In June 2021, the Company
completed a merger with Boston Therapeutics, a publicly held entity. The Company is the majority shareholder of the resulting entity.
As part of the merger agreement, substantially all of the Company's debt has been converted to equity in the merged entity. In addition,
and in conjunction with the merger, Boston Therapeutics entered into a Convertible Equity arrangement, issuing $8.3 million in secured
Notes and a related cash investment of $5.8 million.
Significant Accounting
Policies and Critical Accounting Estimates
Significant accounting
policies are described in Note 3 – Significant Accounting Policies to the audited consolidated financial statements included herein.
Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions
for calculating financial estimates. By their nature, these judgments are subject to an inherent degree of uncertainty. These judgments
are based on our historical experience, terms of existing contracts, our evaluation of trends in the industry, information provided by
our customers and information available from other outside sources, as appropriate. We consider an accounting estimate to be critical
if:
●
It requires us to make assumptions about matters that were uncertain at the time we were making the estimate, and
●
Changes in the estimate or different estimates that we could have selected would have had a material impact on our financial condition or results of operations.
The following listing
is not intended to be a comprehensive list of all of our accounting policies. In many cases, the accounting treatment of a particular
transaction is specifically dictated by accounting principles generally accepted in the United States of America, with no need for management's
judgment in their application. There are also areas in which management's judgment in selecting any viable alternative would not
produce a materially different result. There have been no significant changes in our critical accounting estimates during the year ended
December 31, 2021.
Revenue Recognition
For certain contracts,
we recognize revenue from R&D, milestone and grant revenues when earned. Grants are invoiced after expenses are incurred, as that
is the depiction of the timing of the transfer of services. Performance obligations generally follow the major phases of product development
processes: design feasibility & planning, product development & design optimization, design verification, design validation &
process validation, and pivotal studies. Further details regarding revenue recognition are document at Note 3(b) – Summary of Significant
Accounting Policies: Revenue Recognition to the Unaudited Condensed Consolidated Financial Statements.
54
Stock-Based Compensation
We recognize the fair
value of equity-based awards as compensation expense in our statement of operations. The fair value of our stock option awards was estimated
using a Black-Scholes option valuation model. This valuation model's computations incorporate highly subjective assumptions, such
as the expected stock price volatility and the estimated life of each award. The fair value of the options, after considering the effect
of expected forfeitures, is then amortized, generally on a straight-line basis, over the related vesting period of the option.
Research & Development
Costs
Research and development
activities consist primarily of new product development, continuing engineering for existing products, and regulatory and clinical trial
costs. Costs related to research and development efforts on existing or potential products are expensed as incurred.
Accounts Receivable
No allowance has been
provided for uncollectible accounts. As of December 31, 2021 and 2020, the Company has $0 and $821 accounts receivable balance, respectively.
Income Taxes
Income taxes are accounted
for under ASC 740 authoritative guidance ("Guidance"), which requires the asset and liability method of accounting for deferred
income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases
of assets and liabilities. Deferred tax assets or liabilities at the end of each period are determined using the tax rate expected to
be in effect when taxes are actually paid or recovered.
The Guidance also requires
that a valuation allowance be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized.
A review of all available positive and negative evidence needs to be considered, including a company's current and past performance,
the market environment in which the company operates, length of carryback and carryforward periods and existing contracts that will result
in future profits. The Company believes that it is more likely than not that it will not be able to utilize its net operating loss carryforwards
and maintains a full valuation allowance. The Company maintains a full valuation allowance on research and development tax credits.
The Guidance also prescribes
a comprehensive model for recognizing, measuring, presenting and disclosing in the consolidated financial statements tax positions taken
or expected to be taken on a tax return, including a decision whether to file or not to file in a particular jurisdiction.
55
BUSINESS
Overview
On June 6, 2021, Boston
Therapeutics and Nanomix, Inc., or Nanomix, completed a reverse merger, or the Merger, resulting in the formation of Nanomix Corporation
(the "Company").. As consideration for the Merger, The Company issued to the shareholders of Nanomix 1,000,000 shares of a
newly created Series C Convertible Preferred Stock of the Company (the "Preferred Stock"). On March 2, 2022, all such shares
of Preferred Stock issued to Nanomix shareholders automatically converted into approximately 35,644,997 shares of common stock of the
Company, the warrants assumed at closing may be exercisable into approximately 2,124,687 shares of common stock of the Company and the
options and restricted stock units assumed at closing may be exercisable into approximately 5,718,838 shares of common stock of the Company.
The shares of common stock issued upon conversion of the Preferred Stock together with warrants, restricted stock units and options assumed
on the closing date represent approximately 80% of the outstanding shares of Common Stock of the Company upon closing of the Merger. After
the merger, the Company changed its name to Nanomix Corporation and its ticker symbol to NNMX. A previously approved 173:1 reverse stock
split was effective on March 2, 2022.
After the Merger, our
primary focus is on the development and commercialization of Nanomix's advanced mobile Point-of-Care, or POC, diagnostic system
that can be used in performing a wide range of in vitro diagnostic tests in many environments. Nanomix's goal is to provide laboratory
quality testing for time sensitive medical conditions, at the first point of contact that a patient has with the healthcare system, no
matter where that occurs.
The Nanomix eLab® system is CE Marked, a 510(k) application is currently
in development, and Emergency Use Application (EUA) for COVID antigen testing has been submitted to the FDA. Nanomix intends to market
and sell this system for the detection and diagnosis of a variety of time sensitive medical conditions.
Prior to the Merger,
we were a pre-clinical and clinical-stage pharmaceutical development company focused on the clinical development, outsourced contract
manufacture and test marketing for commercialization of carbohydrate-based patented formulation of investigative materials as medical
food, supplements, drug and drug combination, and other clinical exploratory outsourced exploratory peptide therapeutic options. Due to
limited funding and the merger, our activity including any drug development during year ended December 31, 2021 was severely limited.
Following the closing of the Merger, the Company intends to conduct a comprehensive review of strategic alternatives for our legacy products
and product candidates pertaining to the commercialization of our therapeutic drugs including SUGARDOWN®, BTI-320 and IPOXYN. The
Company does not expect to receive any form of material consideration in connection with such alternatives. In the event it is not able
to dispose of these assets, the Company expects to cease all operations in connection therewith in order to avoid incurring any further
associated expense.
Nanomix eLab System
Nanomix believes that quality healthcare should
be available to consumers anywhere and anytime. The foundation of quality healthcare is timely information supporting a proper diagnosis
and associated treatment. Our vision is to make healthcare accessible to patients without compromise, by delivering the highest quality,
fastest, most cost-effective and portable detection systems that bring the patient and caregiver closer together.
The Nanomix eLab System is a proprietary diagnostic
platform developed by Nanomix to meet the growing need for decentralized medical diagnostic solutions. The platform is designed to provide
rapid test results in a handheld device at the first point of patient contact in locations that range from Emergency Departments, to long
term and assisted care facilities, to urgent care and emergency medical response settings.
The Nanomix eLab system is a rapid, easy-to-use,
quantitative detection platform that performs a range of in vitro diagnostic assays, such as electrochemical immunoassay and enzymatic
assays. The platform consists of a hand-held analyzer and a disposable cartridge. The eLab System utilizes a proprietary nano-biosensor
with multiple detection electrodes to generate multiple electrochemical assay results from a single patient sample. Specificity is generated
by functionalizing each of the electrodes on the sensor for particular biomarkers. The sensor is incorporated into a single-use consumable
microfluidics cartridge that processes the biological sample and reports its results through the handheld eLab System.
56
The eLab system is designed to be operated by
medical and non-medically trained persons. An assay is run by inserting the cartridge into the eLab Analyzer. Following the prompts on
the Analyzer interface, the user identifies the subject, scans a barcode on the consumable package, loads the test sample into the cartridge,
and presses start. Assay results generally take between 10 and 15 minutes, from sample collection to answer. A wide variety of biomolecules
with varying chemistries can be tested on a single device in one operation. The electrochemical detection system eliminates the need for
ongoing instrument calibration and maintenance commonly associated with optical systems. Wireless connectivity provides for transmission
of patient results to other devices for data sharing, management, and EMR integration.
Compared with other POC testing systems, the Nanomix
eLab system provides testing in traditional laboratories as well as non-traditional decentralized environments with enhanced sensitivity
and specificity, advanced multiplexing and multimodal capabilities, quantitative results, Bluetooth communication of results and an on
board electronic data base of testing activities. The Nanomix eLab® system is CE Marked, a 510(k) is currently in development, and
a COVID-19 Antigen test has been submitted to the FDA for Emergency Use Authorization.
Our strategy is to develop a menu of diagnostic
tests for the detection and diagnosis of time sensitive medical conditions on the Nanomix eLab Analyzer and to sell, market and distribute
the eLab Analyzer and associated tests on a worldwide basis.
Products
The Nanomix
eLab is an in vitro diagnostic test platform for the quantitative determination of analytes in biological samples that include plasma,
whole blood, and nasal swab specimens. The eLab system consists of a handheld analyzer, a sample transfer device and a disposable cartridge.
The Nanomix eLab is a platform technology and
Nanomix intends to develop a range of test
cartridges compatible with Nanomix eLab analyzer.
The key advantages of our approach are:
●
Laboratory quality results;
●
Multiplexing and multimodal testing;
●
Quantitative determination of test results;
●
Operates in distributed environments; and
●
Electronic record storage with Bluetooth communication of results.
The eLab has been shown to be easily operated
by non-medically trained personnel. The platform performs immunoassays and enzymatic assays. All tests run on the eLab Analyzer utilize
the same disposable cartridge format.
Nanomix's first product, the S1 Panel Assay
for use in aiding the diagnosis of critical infections, received CE marking for the assay and the eLab Analyzer in November of 2019. Filing
of a 510(k) was started in 2020 through a third-party reviewer for the CRP assay. With the advent of the Coronavirus pandemic, Nanomix
shifted to developing COVID-19 testing products in April of 2020. Preparation of a 510(k) for the S1 Panel using plasma samples is currently
in process.
eLab Analyzer
The eLab
Analyzer is a handheld portable instrument that operates via a touch screen using a simple instruction menu. The analyzer works from a
rechargeable battery or wall power and can be operated during recharging. The eLab Analyzer contains electronics, a pneumatic system,
a barcode scanner, data storage, USB connections, and Bluetooth communications. To use the eLab system, an operator signs into the system
and then follows the prompts on the eLab screen to run an assay, run controls, or review past test results. To run a test, the operator
scans or enters a patient ID and scans the consumable test package using the built-in bar code scanner. The barcode contains information
about the test including manufacturing lot codes and expiration dating for the consumable. The operator loads the patient sample into
the disposable cartridge and inserts the cartridge into the eLab analyzer. The operator is then prompted on the screen to activate the
assay. The eLab automatically runs through to completion using the programmed test protocol specific for that assay. At conclusion of
the test protocol, results are displayed on the screen and can be sent electronically via Bluetooth as selected by the operator. All test
information is recorded in the onboard database. The instrument includes a robust control system and, if there are errors in processing,
the eLab displays an error code on the screen.
57
COVID-19 Rapid IgG/IgM Test Panel
The Nanomix eLab COVID-19 Rapid IgG/IgM Panel
is an electrochemical immunoassay test intended for qualitative detection of IgG and IgM antibodies (without differentiation) to SARS-CoV-2
in human venous whole blood and plasma (K2EDTA, lithium-heparin, sodium-heparin, sodium citrate).
Venous whole blood or plasma samples are collected
and using a provided transfer device the sample is transferred to the single-use, microfluidic cartridge. The cartridge is then run on
Nanomix eLab Analyzer, which will display results after about 10 minutes. The presence of SARS-CoV-2 antibodies is determined using a
quantitative electrochemical reading which is then compared to a cutoff level to report a qualitative result of positive or negative.
An EUA for the COVID-19 Rapid IgG/IgM Test Panel
was filed with the FDA in July 2020. In April of 2021, the FDA notified us that given the volume of EUA requests the Agency had received,
FDA is having to prioritize EUA requests and they will not be reviewing our product as filed.  Nanomix is currently tracking use
cases and reviewing alternative approaches to market the COVID antibody test but at this time does not expect to actively market the COVID-19
Rapid IgG/IgM Test Panel
COVID-19 Rapid Antigen Test Panel
The Nanomix eLab COVID-19 Rapid Antigen Panel
is an electrochemical immunoassay test intended for the qualitative detection of nucleocapsid antigens from SARS-CoV-2 in nasal (anterior
nares) swabs from individuals who are suspected of COVID-19.
Nasal swab samples are collected using a provided
swab and sample collection tube, then transferred to the single-use, microfluidic cartridge. The cartridge is then run on Nanomix eLab
Analyzer, which will display results after about 15 minutes. The presence of SARS-CoV-2 antigen is determined using a quantitative electrochemical
reading which is then compared to a cutoff level to report a qualitative result of positive or negative.
The COVID-19 Rapid Antigen Test Panel is CE marked.
An EUA for the COVID-19 Antigen Test panel was submitted to the FDA in February of 2021. The Company received comments from the FDA in
May and conducted further clinical and analytical work identified by the FDA. The EUA for the COVID-19 Antigen Test panel was resubmitted
to the FDA in November. The FDA has requested additional data primarily from clinical testing sites prior to beginning their formal review.
Given reductions in COVID-19 infection rates, the timing of any potential EUA, and the current pricing of COVID-19 tests, the Company
doesn't expect significant revenue to be produced by the COVID-19 Antigen Test panel.
S1 Assay Panel
The S1 Assay panel was developed as an aid in
rapidly diagnosing critical infections including sepsis. The panel provides quantitative tests results for Lactate (LAC), C-Reactive Protein
(CRP) and Procalcitonin (PCT) from a single patient sample. A venous whole blood sample type is expected to be added to the S1 Assay in
2022. The assay runs on the eLab Analyzer with results available in approximately 11 minutes, providing information rapidly versus the
current diagnostic solutions which can take hours to provide a test result.
The Nanomix S1 Panel Cartridge quantitatively
measures two biomarkers, CRP, and PCT and the metabolite Lactate (LAC) in lithium heparinized (Li-heparinized) plasma specimens.
CRP test results can be used to evaluate infection,
tissue injury, and inflammatory disorders.
58
PCT test results can be used:
●
To aid in decision making on antibiotic therapy for patient with suspected or confirmed lower respiratory tract infections (LRTI) defined as community acquired pneumonia (CAP) acute bronchitis, and acute exacerbation of chronic obstructive pulmonary disease (AECOPD) in an inpatient setting or Emergency Department.
●
To aid in antibiotic decision making from therapy to discontinuation of treatment for patients with suspected or confirmed sepsis.
●
To aid in the risk assessment of critically ill patients on their first day of ICU admission for progression of severe sepsis and septic shock.
●
To aid in assessing the cumulative 28-day risk of all-cause mortality for patients diagnosed with sever sepsis or septic shock in the ICU or when obtained in the emergency department of other medical wards prior to ICU admission, using a change in PCT level over time.
LAC test results can be used in the diagnosis
and treatment of lactic acidosis, monitoring tissue hypoxia, and diagnosis of hyperlactatemia and septicemia.
Each of the three tests provides important information
about a patient's condition. Having all three of these answers in a short time period provides a healthcare provider with important
information about the patient's status within the clinical window for infection diagnosis. All of the test results are used in the
context of other information about the patient.
S1 Assay Panel use in Sepsis
One potential use of the S1 Assay panel is in
the diagnosis of Sepsis. Sepsis has been highlighted as a global health crisis and there is intense pressure to improve management of
sepsis from early identification to administration of antimicrobial therapy, monitoring and de-escalation of therapy.
Sepsis is the body's overwhelming and life-threatening
response to infection that can lead to tissue damage, organ failure, and death. There are more than 49 million cases of Sepsis annually
with more the 6 million associated deaths. Sepsis is the #1 cost of hospitalization in the U.S with costs for acute sepsis hospitalization
and skilled nursing estimated to be $62 billion annually. As many as 87% of sepsis cases start in the community. According to the Sepsis
Alliance, Mortality from sepsis increases 8% every hour that treatment is delayed. As many as 80% of sepsis deaths could be prevented
with rapid diagnosis and treatment.
Sepsis testing and diagnosis can be viewed as
a 2-stage process:
●
Immediate patient testing and assessment focused on emergency treatment decisions, and
●
Specific diagnosis of bacterial or fungal pathogen
The Nanomix S1 test panel focuses on the first
phase, the need for rapid screening or patients suspected of sepsis. The S1 test panel provides an easy to use, rapid test at the first
point of patient contact to deliver important information about the patient's condition. The panel includes Lactate, the current
tool most used in sepsis screening, and adds two other tests (CRP and PCT) that are currently used to confirm a diagnosis. By using our
multiplexing and multimodal technology, we are able to bring all three of these test results from a single sample to healthcare providers
in an 11-minute test providing clinicians with host response diagnostics at the time of initial evaluation, in any care setting, may help
assess the following questions and advance standards of care: 1) is there an infection or not? 2) is the infection viral or bacterial?
3) what is the severity and deficit of tissue perfusion?
Once hospitalized, a sepsis patient spends on
average 8 days in an ICU. The S1 panel can also be used to monitor the progress of a patient and to support modification or discontinuation
of antibiotic therapy.
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Partnerships and Licensees
RedPharm (Beijing) Biotechnology Co., Ltd. (RedPharm)
has the right to produce eLab cartridges for the S1 Assay panel in the PRC and has the right to sell and distribute the S1 Assay panel
in the PRC, Japan, Korea, and other countries in Southeast Asia.
Sales Channels
We recently established our sales and marketing
function. We intend our products to be sold globally, both directly and through distributors, to hospitals and clinics, clinical laboratories,
and other healthcare entities such as assisted living, extended care, and other non-hospital based care facilities. We have limited product
distribution and our new sales and marketing team is working to build our product distribution capabilities in key markets such as North
America, Europe, and Southeast Asia.
Currently RedPharm has rights to distribute our
products in PRC, Japan, Korea, and countries in Southeast Asia. We are also actively developing distribution partners in the United Kingdom
and European Union. To support our distributor's efforts, we plan to build a distribution sales and technical support capability
within the company.
Manufacturing
We currently have limited manufacturing capacity
for our consumable test cartridges and plan to implement automated production processes in the U.S. and bring on additional manufacturing
resources to expand consumable test cartridge manufacturing capacity. We depend on several single source vendors to supply components
for our disposable test cartridge and a US-based contract manufacturer for our eLab analyzer. We plan to bring on additional component
suppliers to add supply chain capacity as well as backup. We have completed the purchase of a significant supply of printed electrodes
from a former vendor and plan to qualify a new vendor of electrodes.
Sensor functionalization (converting raw electrodes
into a biosensor) is currently done by Nanomix using a robotic system and final cartridge assembly is done by Nanomix manually. We plan
to invest significantly in increasing capacity of sensor manufacturing processes and to automate portions of the cartridge assembly processes.
The costs of our products are expected to decline significantly with volume growth as well as process automation.
RedPharm has the right to produce eLab cartridges
in the PRC.
The Nanomix eLab analyzer is produced by a contract
manufacturer located in the United States. While this is not an exclusive supply arrangement, it would be difficult to transfer production
or add an additional supplier. The production of instruments is done on a purchase order basis. Nanomix purchases and consigns the materials
for the quantity of instruments on the purchase order. The contract manufacturer builds, tests, and ships the units and invoices Nanomix
based on the units shipped less the cost of the consigned materials. Some of the components used in the eLab analyzer have long lead times
and Nanomix will purchase many of those components in quantities beyond the current purchase order.
Collaboration, License
and Quality Agreements
To support the development
and commercialization of our eLab system and products, in September 2017 we entered into a development and license agreement with RedPharm
(Beijing) Biotechnology Co., Ltd., or the RedPharm License. Pursuant to the RedPharm License, we granted an exclusive license to the technology
know-how, data and regulatory documents for our eLab technology to RedPharm that will support the development of our eLab analyzer in
both humans and animals.
Under the agreement,
RedPharm has the rights to produce the eLab cartridges in China for specific assays that are transferred by Nanomix to RedPharm. RedPharm
is responsible for any clinical and regulatory activities necessary to register the products for sale in their territories. To date, Nanomix
has transferred the S1 Critical Infections test to RedPharm and RedPharm has paid Nanomix $200 thousand in license fees related to the
transfer of that specific assay. RedPharm is obligated to pay a royalty on the sales of S1 test cartridges. There are limited activities
in China on registration of the S1 Assay panel, no current regulatory approvals, and no commercial sales activity.
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RedPharm also has the
rights to produce the eLab Analyzer in China for sale in the RedPharm territories upon the payment of an up front license fee. Each eLab
analyzer placed by RedPharm with a customer carries a per unit royalty in the range of a low hundred dollars.
We retain exclusive rights
to commercialize our products throughout the world, except in Australia, New Zealand, Singapore, China, Japan, Korea, Vietnam, Indonesia,
Malaysia and the Philippines, where RedPharm will have exclusive rights to commercialize our elab technology. We retain rights to participate
in the RedPharm markets depending on their progress in each of the countries. With RedPharm, we have established a collaboration for the
management of the development of any product that utilizes our technology, including any joint, cross-territory studies that may be undertaken
by the parties, if any.
Under the RedPharm License,
RedPharm are obligated to pay us future milestone payments up to an aggregate of $6.4 million. Further, sales of test cartridges
bear royalties of a low single-digit percentage based on net sales and sales of eLab Analyzers carry a per unit royalty in the low hundreds
of dollars.
The RedPharm License
continues in effect until the expiration of all payment obligations thereunder (including royalty payments and licensee revenue) on a
product-by-product and country-by-country basis, unless earlier terminated by the parties. Pursuant to the terms of the RedPharm License,
in addition to each party's right to terminate the agreement upon the other party's material breach (if not cured within a
specified period after receipt of notice) or insolvency, (i) we also have unilateral termination rights in the event RedPharm commences
any court action to invalidate any our intellectual property., and (ii) RedPharm has unilateral termination rights to cancel this agreement
upon six (6) months prior written notice.
Technology & Development
Our products are based on the Nanomix eLab electrochemical
detection technology. Current and planned products will operate on the eLab Analyzer using the current microfluidic disposable test cartridge
form. New product development will be largely focused on expanding the menu of tests that operate on the eLab Analyzer. Our initial focus
will be on testing for medical conditions that require rapid results for patient management and benefit from the mobile capabilities of
our system. Future developments will expand the menu to tests that support other decentralized healthcare needs.
Competition
Many of our competitors are significantly larger
and have greater financial, research, manufacturing, and marketing resources. Important competitive factors include product quality, performance,
ease of use, price, customer service and reputation. Industry competition is based on these and the following additional factors:
●
patent protection;
●
technology expertise;
●
ability to develop and market products and processes;
●
ability to obtain required regulatory approvals;
●
ability to manufacture cost-effective products that meet applicable regulatory requirements;
●
access to adequate capital; and,
●
ability to attract and retain qualified personnel.
We believe our technical capabilities and proprietary
know-how relating to our eLab system are strong, particularly for the development of tests for critical care conditions in decentralized
care environments. However, there are a number of competitive technologies used and/or seeking to be used by others in point-of-care settings.
Although we have no specific knowledge of any
other competitors' products that could render our products obsolete, if we fail to maintain and enhance our competitive position
or fail to introduce new products and product features, our customers may decide to use the products developed by our competitors, which
could result in a loss of revenues and cash flow.
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Employees
As of June 1, 2022, we had 27 full-time equivalent
employees, of whom 3 were in administration, 10 in research and development and engineering, 11 in manufacturing and quality, and 3 in
sales and marketing. The majority of our employees are located in San Leandro, California.
We have never had a work stoppage, and none of
our employees are represented by a labor organization or subject to any collective bargaining arrangements. We consider our employee relations
to be good.
Governmental Regulation
Certain of our activities are subject to regulatory
oversight by the FDA under provisions of the Federal Food, Drug, and Cosmetic Act and regulations thereunder, including regulations governing
the development, marketing, labeling, promotion, manufacturing, and export of diagnostic products. Our clinical laboratory customers are
subject to oversight by Centers for Medicare and Medicaid Services, or CMS, pursuant to CLIA, as well as agencies in various states. Failure
to comply with applicable requirements can lead to sanctions, including withdrawal of products from the market, recalls, refusal to authorize
government contracts, product seizures, civil money penalties, injunctions, and criminal prosecution.
FDA Approval/Clearance Requirements
Unless an exemption applies, each medical device
that we wish to market in the United States must receive 510(k) clearance or Premarket Approval (PMA). Medical devices that receive 510(k)
clearance are "cleared" by the FDA to market, distribute, and sell in the United States. Medical devices that obtain a PMA
by the FDA are "approved" to market, distribute and sell in the United States. We cannot be certain that 510(k) clearance
or PMA approval will ever be obtained for any products that we develop. Descriptions of the PMA and 510(k) clearance processes are provided
below.
The FDA decides whether a device must undergo
either the 510(k) clearance or PMA based on statutory criteria that utilize a risk-based classification system. PMA is the FDA process
of scientific and regulatory review to evaluate the safety and effectiveness of Class III medical devices and, in many cases, Class II
medical devices. Class III devices are those that support or sustain human life, are of substantial importance in preventing impairment
of human health, or which present a potential, unreasonable risk of illness or injury. The FDA uses these criteria to decide whether a
PMA or a 510(k) is appropriate, including the level of risk that the agency perceives is associated with the device and a determination
by the agency of whether the product is a type of device that is similar to devices that are already legally marketed. Devices deemed
to pose relatively less risk are placed in either Class I or II. In many cases, the FDA requires the manufacturer to submit a 510(k) requesting
clearance (also referred to as a premarket notification), unless an exemption applies. The 510(k) must demonstrate that the manufacturer's
proposed device is "substantially equivalent" in intended use and in safety and effectiveness to a legally marketed predicate
device. A "predicate device" is a pre-existing medical device to which equivalence can be drawn, that is either in Class I
or Class II or is a Class III device that was in commercial distribution before May 28, 1976, for which the FDA has not yet called for
submission of a PMA application.
Device classification depends on the device's
intended use and its indications for use. In addition, classification is risk-based, that is, the risk the device poses to the patient
and/or the user is a major factor in determining the class to which it is assigned. Class I includes devices with the lowest risk and
Class III includes those with the greatest risk.
Class I
devices are those for which safety
and effectiveness can be assured by adherence to the FDA's general regulatory controls for medical devices, or the General Controls,
which include compliance with the applicable portions of the FDA's quality system regulations, facility registration and product
listing, reporting of adverse medical events, and appropriate, truthful and non-misleading labeling, advertising, and promotional materials.
Some Class I devices also require premarket clearance by the FDA through the 510(k) process.
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Class II
devices are subject to the FDA's
General Controls, and any other special controls as deemed necessary by the FDA to ensure the safety and effectiveness of the device.
Premarket review and clearance by the FDA for Class II devices is accomplished through the 510(k) process. Pursuant to the Medical Device
User Fee and Modernization Act of 2002, unless a specific exemption applies, 510(k) submissions are subject to user fees. Certain Class
II devices are exempt from this premarket review process.
Class III
includes devices with the greatest
risk. Devices in this class must meet all of the requirements in Classes I and II. In addition, Class III devices cannot be marketed until
they receive Premarket Approval.
The safety and effectiveness of Class III devices
cannot be assured solely by the General Controls and the other requirements described above. These devices require formal clinical studies
to demonstrate safety and effectiveness. Under Medical Device User Fee and Modernization Act of 2002, PMA applications (and supplemental
premarket approval applications) are subject to significantly higher user fees than 510(k) applications, and they also require considerably
more time and resources.
510(k) Clearance Pathway
We are currently developing products that either
will or are likely to require an FDA 510(k) clearance. We anticipate submitting a 510(k) for each such product to demonstrate that such
proposed device is substantially equivalent to a previously cleared 510(k) device or a device that was in commercial distribution before
May 28, 1976, for which the FDA has not yet called for the submission of a 510(k). The FDA's 510(k) clearance pathway usually takes
from three to twelve months but could take longer. In some cases, the FDA may require additional information, including clinical data,
to make a determination regarding substantial equivalence.
If a device receives 510(k) clearance, any modification
that could significantly affect its safety or effectiveness, or that would constitute a new or major change in its intended use, will
require a new 510(k) clearance or, depending on the modification, a PMA. The FDA requires each device manufacturer to determine whether
the proposed change requires submission of a new 510(k) or a PMA, but the FDA can review any such decision and, if it disagrees with the
manufacturer's determination, can require the manufacturer to cease marketing and/or recall the modified device until 510(k) clearance
or PMA of the modified device is obtained.
Clinical Laboratory Improvement Amendments
of 1988
A manufacturer of a test categorized as moderately
complex may request that categorization of the test be waived through a CLIA Waiver (CW) by Application submission to the FDA. When a
test is categorized as waived, it may be performed by laboratories with a Certificate of Waiver, such as a physician's office or
other outreach setting. In a CW submission, the manufacturer provides evidence to the FDA that a test meets the CLIA statutory criteria
for waiver CLIA, a walk-in clinic or an emergency room provides CMS authority over all laboratory testing, except research that is performed
on humans in the United States. The Division of Laboratory Services, within the Survey and Certification Group under the CMS, has the
responsibility for implementing the CLIA program.
The CLIA program is designed to establish quality
laboratory testing by ensuring the accuracy, reliability and timeliness of patient test results. Under CLIA, a laboratory is a facility
that does laboratory testing on specimens derived from humans and used to provide information for the diagnosis, prevention or treatment
of disease, or impairment of, or assessment of health. Under the CLIA program, unless waived, laboratories must be certified by the government,
satisfy governmental quality and personnel standards, undergo proficiency testing, be subject to inspections and pay fees. We anticipate
requesting CLIA Waiver for the tests we develop.
Pervasive and Continuing FDA Regulation
A host of regulatory requirements apply to our
approved devices, including: the quality system regulation, which requires manufacturers to follow elaborate design, testing, control,
documentation and other quality assurance procedures; the Medical Reporting Regulations, which require manufacturers to report to the
FDA specified types of adverse events involving their products; labeling regulations; and the FDA's general prohibition against
promoting products for unapproved or "off-label" uses. Some Class II devices are subject to special controls-such as performance
standards, post-market surveillance, patient registries, and FDA guidelines-that do not apply to Class I devices.
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The regulatory requirements that apply to our
approved products classified as medical devices include:
●
product listing and establishment registration, which helps facilitate FDA inspections and other regulatory action;
●
QSR, which require manufacturers, including third-party manufacturers, to follow stringent design, testing, control, documentation and other quality assurance procedures during all aspects of the development and manufacturing process;
●
labeling regulations and FDA prohibitions against the promotion of products for uncleared, unapproved or off-label use or indication;
●
clearance of product modifications that could significantly affect safety or efficacy or that would constitute a major change in intended use of one of our cleared devices;
●
approval of product modifications that affect the safety or effectiveness of one of our cleared devices;
●
medical device reporting regulations, which require that manufacturers comply with FDA requirements to report if their device may have caused or contributed to a death or serious injury, or has malfunctioned in a way that would likely cause or contribute to a death or serious injury if the malfunction of the device or a similar device were to recur;
●
post-approval restrictions or conditions, including post-approval study commitments;
●
post-market surveillance regulations, which apply when necessary to protect the public health or to provide additional safety and effectiveness data for the device;
●
the FDA's recall authority, whereby it can ask, or under certain conditions order, device manufacturers to recall from the market a product that is in violation of governing laws and regulations;
●
regulations pertaining to voluntary recalls; and,
●
notices of corrections or removals.
Our Emeryville, CA facility was licensed by the
State of California. We have moved to a new facility and will need to transfer or obtain a State of California license for the new facility.
We and any third-party manufacturers are subject to announced and unannounced inspections by the State or the FDA to determine our compliance
with QSR and other regulations.
21st Century Cures Act
The 21st Century Cures Act, enacted in December
2016, contains several sections specific to medical device innovations. We believe that implementation of the 21st Century Cures Act may
have a positive impact on its businesses by facilitating innovation and/or reducing the regulatory burden imposed on medical device manufacturers.
Environmental Laws
We believe that we are in compliance in all material
respects with all foreign, federal, state, and local environmental regulations applicable to our manufacturing facilities. The cost of
ongoing compliance with such regulations does not have a material effect on our operations.
64
Intellectual Property
Intellectual Property Strategy
Our intellectual property strategy is to: (1)
build our own intellectual property portfolio around our eLab and electrochemical detection system; (2) pursue licenses, trade secrets
and know-how within the area of rapid point-of-care testing; and, (3) develop and acquire proprietary positions to certain biomarkers.
eLab and Electrochemical Detection System Intellectual
Property
We have obtained patent coverage on eLab and Electrochemical
detection technology, including numerous patents in the United States, China, Japan, and the European Union. Additional patent applications
are pending in the United States, as well as in the European Union.
Trademarks
We have filed and obtained trademarks for our
products, including the Nanomix eLab System. Our trademarks have been obtained in the United States and certain other countries around
the world.
Trade Secrets and Know-How
We have developed a substantial body of trade
secrets and know-how relating to the development and manufacture of our eLab and electrochemical test system, including the production
of sensors, the design and production of microfluidics contained in the disposable test cartridge, the sourcing and optimization of materials
for such tests, and methods to maximize sensitivity, speed-to-result, specificity, stability and reproducibility of our tests. These trade
secrets and know-how provide us with an important competitive advantage.
Properties
We do not own real properties. Our principal executive
offices recently relocated to 2121 Williams Street, San Leandro, CA, 94577. We lease our office pursuant to a 5-year lease which terminates
on March 31, 2027. We believe that our existing facilities are suitable and adequate to meet our current needs. However, we may need to
add or expand as we increase production levels or add employees. We believe that suitable additional or substitute space will be available
as needed to accommodate any such expansion of our operations.
Legal Proceedings
The Company is subject to claims and legal proceedings
that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of
any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect
upon the Company's Consolidated Financial Statements. The Company does not believe that any of such pending claims and legal proceedings
will have a material adverse effect on its Consolidated Financial Statements. The Company records a liability in its Consolidated Financial
Statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews
these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter
is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the
possible loss or range of loss to the extent necessary for its Consolidated Financial Statements not to be misleading. If the loss is
not probable or cannot be reasonably estimated, a liability is not recorded in its Consolidated Financial Statements.
Set forth below is a description of the Company's
Legal Proceedings.
In March 2019, we were served with notification
of complaint filed by CureDM Inc. as agent for the members of CureDM Group Holdings, LLC filed with the Supreme Court of the State of
New York County of New York regarding breach of contract and other matters relating to their desire to unwind the acquisition of CureDM
Group Holdings LLC according to the original Contribution Agreement. The complaint was withdrawn by CureDM, Inc. in December 2019. The
Company is continuing to work with the representatives from CureDM Inc. to settle this claim and unwind the Contribution Agreement.
65
In addition to the above matter, we are also in
a dispute with Level Brands, Inc. regarding a License Agreement dated June 21, 2018 (JAMS Ref. No.: 1220061261). The Company filed an
Answer to Complaint and Counter-complaint on June 25, 2019. Both parties are claiming non-performance under the License Agreement. The
matter was scheduled for arbitration in October 2019. In October 2019, the arbitration was dismissed without prejudice.
On October 16, 2019 the Company received a Summons
and Complaint filed by Microcap Headlines Inc. against the Company in the Supreme Court of the United States of New York County of Suffolk
claiming damages of $18,000 and the costs and disbursements of the action. During January 2021, the Company settled this claim with Microcap
Headlines, Inc. for $10,000.
MANAGEMENT
Executive Officers and Directors
The following table sets forth the name, age and
position of each of our executive officers, key employees and directors as of the date of this prospectus.
Name
Age
Position(s)
    with the Company
David Ludvigson
71
Chief Executive Officer, Chief Financial
    Officer, Secretary and Director
Vidur Sahney
48
Chief Operating Officer
John Hardesky
50
Chief Commercial Officer
Garrett Gruener
67
Director
Jerry Fiddler
69
Director
Gregory Schiffman
64
Director
David Ludvigson
has served
as the President and Chief Executive Officer of Nanomix, Inc. since June 2013. From October 2009 through present day, Mr. Ludvigson has
served as President of Knight Ludvigson Advisors p
roviding advisory and business consulting
services to Life Science and Technology companies including M&A, financing, business strategy, go to market planning and sales channel
strategy and implementation. Mr. Ludvigson serves on the board of directors of Imagion Biosystems, Inc. (IBX), One BioMed PTE LTD (privately
held), and China Stem Cells Ltd. (privately held). Mr. Ludvigson received his BS and MAS in Accounting from Gies College of Business –
University of Illinois Urbana-Champaign.
Mr. Ludvigson is not related to any Officers or Directors of the Company. There are
no related party transactions reportable under Item 5.02 of Form 8-K and Item 404(a) of Regulation S-K.
Vidur Sahney
has served as Chief
Operating Officer of the Company since March 2022. From May 2019 through March 2022, Mr. Sahney served as chief operating officer of ExThera
Medical, a medical device company. From November 2019 through May 2021, Mr. Sahney was a senior partner at MKA Insights, a consulting
company focused on the life science industry. From September 2018 through May 2019, Mr. Sahney was the Operations Lead (Medical Devices),
Global Operations and Supply Chain for JUUL Labs, an electronic cigarette manufacturer. From February 2017 through August 2018, Mr. Sahney
was the Vice President, Global Operations & Supply Chain for Sientra, Inc (NASDAQ: SIEN), a medical aesthetics company. Mr. Sahney
received his B.S, Mechanical Engineering from San Francisco State University.
John Hardesky
has
served as Chief Commercial Officer of the Company since March 2021. From July 2020 to March 2021, Mr. Hardesky was head of commercial
activities for LIQUIDsmarts, a consulting organization. From 2016 to 2020, he served as VP, Laboratory Solutions for McKesson, from 2014
to 2106 he was Vice President of Marketing for LABSCO (acquired by McKesson), and from 2005 to 2014, he was Chief Operating Officer of
Vital Diagnostics, Inc, a manufacturer of laboratory diagnostic testing devices. Mr. Hardesky receive a B.S. degree from Lenoir-Rhyne
University.
66
Garrett
Gruener
is a co-founder of Alta Partners, and was also a Partner at Burr, Egan, Deleage & Co. He served as the Chief
Executive Officer at Nanomix from 2008 to 2013 and has more than two decades of experience in the fields of software development, systems
engineering and corporate development. In 1982, he founded Virtual Microsystems, a successful communications software company that was
later merged with a larger corporation. Mr. Gruener then founded Ask Jeeves, now Ask.Com, a leading Internet search engine which
is now part of IAC. Mr. Gruener is now Chairman of Nanomix, a point-of-care diagnostics company. He earned a Masters Degree from the University
of California, Berkeley and a Bachelor of Science from the University of California, San Diego, both in Political Science with a focus
on technology policy.
Gregory Schiffman
has served
as the Chief Financial Officer of privately-held AbSci, LLC since April 2020. He previously served as the Chief Financial
Officer
of Vineti, Inc. from October 2017 through April 2018. He also previously served as the Chief Financial Officer of each of Iovance Biotherapeutics
(formerly Lion Biotechnologies), from October 2016 through June 2017, Stem Cells, Inc., from January 2014 through September 2016, Dendreon
Corporation, from December 2006 through December 2013 and Affymetrix from August 2001 through December 2006. He currently serves on the
boards of directors of BioEclipse, a private company, as well as on the board of Ayro, Inc. (Nasdaq: Ayro). Mr. Schiffman holds a B.S.
in Accounting from DePaul University and an MM (MBA) from Northwestern University Kellogg Graduate School of Management. Mr. Schiffman's
qualifications to sit on the Board include his financial background, business experience and education.
Jerry Fiddler
is the principal
of Zygote Ventures and has helped create and grow numerous companies, as CEO, chairman, director, investor and advisor. Mr. Fiddler is
the founder of Wind River Systems and was for 23 years its CEO and Chairman and was Chairman of Solazyme (Nasdaq: SZYM).  Mr. Fiddler
graduated from the University of Illinois at Urbana-Champaign with a MS Computer Science and BA in Music and Photography. He currently
serves on several private company and non-profit boards.
Family Relationships
No family relationships exist between any of our
current or former directors or executive officers.
Involvement in Certain Legal Proceedings
There are no material proceedings to which any
director or executive officer or any associate of any such director or officer is a party adverse to our company or has a material interest
adverse to our company.
Section 16(a) Beneficial Ownership Reporting
Compliance
Section 16(a) of the Securities Exchange Act of
1934, as amended, requires our directors and executive officers and persons who own more than 10% of the issued and outstanding shares
of our common stock to file reports of initial ownership of common stock and other equity securities and subsequent changes in that ownership
with the SEC. Officers, directors and greater than ten percent stockholders are required by SEC regulation to furnish us with copies of
all Section 16(a) forms they file. To our knowledge, based solely on a review of the copies of such reports furnished to us and written
representations no other reports were required, during the fiscal year ended December 31, 2020 all Section 16(a) filing requirements applicable
to our officers, directors and greater than 10% beneficial owners were not complied with.
Code of Ethics
We have not adopted a code of ethics because our
Board of Directors believes that our small size does not merit the expense of preparing, adopting and administering a code of ethics.
Our Board of Directors intends to adopt a code of ethics during the fiscal year ended December 31, 2022.
Corporate Governance
Our Directors are elected annually and each holds
office until the annual meeting of our stockholders and until their respective successors are elected and qualified. Our officers, including
any officers we may elect moving forward, will hold their positions at the pleasure of the Board of Directors, absent any employment agreement.
In the event we employ any additional officers or directors, they may receive compensation as determined by our Board of Directors from
time to time. Vacancies in the Board of Directors will be filled by majority vote of the remaining directors. Our Directors may be reimbursed
by us for expenses incurred in attending meetings of the Board of Directors.
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Board of Directors Independence
We are not currently subject to any law, rule
or regulation requiring that all or any portion of our Board of Directors include "independent" directors.
Board Committees, Compensation Committee Interlocks and Insider
Participation
The Company has two Board Committees, an Audit
Committee and a Compensation Committee. The Audit Committee is composed of Greg Schiffman (Committee Chair) and Jerry Fiddler. The Compensation
Committee is composed of Garret Gruener and Jerry Fiddler.
Director Nominations
We do not have any defined policy or procedure
requirements for shareholders to submit recommendations or nominations for directors. We do not currently have any specific or minimum
criteria for the election of nominees to our board of directors and we do not have any specific process or procedure for evaluating such
nominees. Our Board of Directors assesses all candidates, whether submitted by management or shareholders, and makes recommendations for
election or appointment.
A shareholder who wishes to communicate with our
Board of Directors may do so by directing a written request to the address appearing on the first page of this annual report.
Your letter should indicate that you are a stockholder of our Company.
 Depending on the subject matter, management will:
●
Forward the communication to the Director or Directors to whom it is addressed;
●
Attempt to handle the inquiry directly; or
●
Not forward the communication if it is primarily commercial in nature or if it relates to an improper or irrelevant topic.
At each Board of Directors meeting or through
the course of other communication, a member of management presents a summary of all communications received since the last meeting that
were not forwarded and makes those communications available to the Directors on request.
Audit Committee and Audit Committee Financial
Expert
Our Board of Directors has determined that prior
to the closing of the Merger, we did not have a board member that qualifies as an "audit committee financial expert" as defined
in Item 407(d)(5)(ii) of Regulation S-K. Subsequent to the merger upon installation of a new board of directors, Greg Schiffman qualifies
as an "audit committee financial expert".
EXECUTIVE AND DIRECTOR COMPENSATION
Summary Compensation
Set forth below is certain information regarding
the historical compensation of our named executive officers during the year ended December 31, 2021. The named executive officers
for the year ended December 31, 2021 consisted of the principal executive officer and our two most highly compensated executive officers
other than our principal executive officer of Nanomix who were serving as executive officers as of December 31, 2021 (our "named
executive officers").
68
Summary Compensation Table
The following table shows information regarding
the compensation of the named executive officers during the fiscal years ended December 31, 2021, 2020 and 2019.
Name and Principal Position
Year
Bonus
Salary
Stock
Awards
(2)
Option
Awards(3)
Nonqualified
Deferred
Compensation
Earnings
All Other
Compensation
Total
David Ludvigson,
2021
—
$
237,500
$
7,051
$
7,651
—
—
$
252,202
Chief Executive Officer & Director (1)
2020
—
$
137,500
—
$
12,040
—
—
$
149,540
2019
—
$
237,500
—
$
7,364
—
—
$
244,864
Sherill Lavagnino
2021
$
500
$
211,250
$
2,489
$
7,227
—
—
$
218,977
Vice President of Engineering (4)
2020
—
$
200,000
—
$
11,071
—
—
$
223,709
2019
—
$
200,000
—
$
7,063
—
—
$
200,000
John Hardesky (5)
2021
$
500
$
197,917
—
$
13,132
—
—
$
198,417
Chief Commercial Officer
2020
—
—
—
—
—
—
$
0
2019
—
—
—
—
—
—
$
0
(1)
Mr. Ludvigson joined Nanomix effective June, 2013. Mr. Ludvigson was appointed our Chief Executive Officer and a member of our Board of Directors in connection with the Merger.  In 2020, Mr. Ludvigson received convertible notes in the amount of $150,000 in lieu of a portion of his cash compensation. These notes and accrued interest were converted to Preferred Series C stock as part of the merger.
(2)
Represents the aggregate grant date fair value of the stock awards granted during the relevant fiscal year computed in accordance with FASB ASC Topic 718. The assumptions used in the valuation of these awards are consistent with the valuation methodologies specified in Note 12 to Nanomix's financial statements included in this prospectus.
(3)
Represents the aggregate grant date fair value of the option awards granted during the relevant fiscal year computed in accordance with FASB Topic ASC 718.
(4)
Ms. Lavagnino joined Nanomix in 2013.  Ms. Lavagnino receives an annual salary of $235,000.
(5)
Mr. Hardesky joined Nanomix in March of 2021.  Mr. Hardesky receives an annual salary of $250,000 plus a target 30% of salary based on a combination of company performance and personal objectives.
69
Narrative Disclosure to Summary Compensation
Table
We do not
have employment arrangements with our named executive officers.
Outstanding Equity Awards at December 31,
2021
The following table sets forth specified information
concerning outstanding equity incentive plan awards for each of the named executive officers outstanding as of December 31, 2021.
Option Awards
Name
Grant Date
Number
of
Securities
Underlying
Unexercised
Options
Exercisable
(#)
Number
of
Securities
Underlying
Unexercised
Options
Non-
Exercisable
(#)
Option
Exercise
Price
Option
Expiration
Date
David Ludvigson, Chief Executive Officer & Director
11/30/2012
41,723
$
0.059
11/30/2022
3/31/2014
559,206
$
0.235
3/31/2024
10/4/2016
86,220
$
0.235
10/4/2026
5/31/2017
85,142
$
0.235
5/31/2027
2/11/2020
66,522
61,201
$
0.294
2/11/2030
2/01/2021
1,062,665
$
0.00
2/01/2031
Sherrill Lavagnino, Vice President of Engineering
6/25/2012
44,277
$
0.059
6/25/2022
11/30/2012
27,248
$
0.059
11/30/2022
3/31/2014
28,950
$
0.235
3/31/2024
9/30/2015
17,030
$
0.235
9/30/2025
10/4/2016
67,267
$
0.235
10/4/2026
5/31/2017
$
0.235
5/31/2027
2/11/2020
62,087
57,121
$
0.294
2/11/2030
2/01/2021
375,058
$
0.00
2/01/2031
John Hardesky, Chief Commercial Officer
5/19/2021
64,575
193,725
$
0.29
5/19/2031
5/19/2021
258,300
$
0.00
5/19/2031
Compensation of Directors
The following table shows
the total compensation paid or accrued during the fiscal year ended December 31, 2021 to each of Nanomix's current and former non-employee directors.
Directors who are employed by us are not compensated for their service on our Board of Directors.
Name
Fees Earned
or Paid in
Cash ($)
Option
Awards*
($)(6)
Total($)
Garrett Gruener (7)
$
24,000
$
24,000
Jerry Fiddler
$
4,048
$
4,048
Greg Schiffman
$
4,048
$
4,048
(6)
These amounts represent the aggregate grant date fair value of options granted to each director in the fiscal year ended December 31, 2020, computed in accordance with FASB ASC Topic 718.
(7)
Garrett Gruener receives a payment of $2,000 per month to serve as our Executive Chairman.
CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
Except as otherwise set forth herein, during the
last two fiscal years, we have not entered into any material transactions or series of transactions that would be considered material
in which any officer, director or beneficial owner of 5% or more of any class of our capital stock, or any immediate family member of
any of the preceding persons, had a direct or indirect material interest. There are no transactions presently proposed, except as follows:
●
The Company had a secured note payable to Mr. Garrett Gruener, its investor, with a balance $1,000,000 and accrued interest of $510,444 at December 31, 2020.
70
●
The Company had convertible notes payable to: Mr. Gruener, its investor, with a total balance of $6,182,000 as of December 31, 2020, and accrued interest of $1,156,759; Mr. Fiddler, its investor, with a total balance of $950,000 and accrued interest of $127,788 as of December 31,2020; and Mr. Ludvigson, its Chief Executive Officer, with a total balance of $175,000 and accrued interest of $15,241 as of December 31,2020.
●
The Company had senior secured convertible note to Mr. Gruener, its investor, with a total balance of $1,603,778 as of December 31, 2021.
●
The Company had accrued salary payable to Mr.
    Ludvigson, its Chief Executive Officer, with a total balance of $50,000 as of December 31,2021 and 2020, respectively.
●
The Company had accrued salary, bonus and vacation
    payable to Ms. Upham, Boston Therapeutics, Inc ex Chief Operating Officer, with a total balance of $226,824 as of December 31,2021.
●
The Company had accounts payable to Mr. Neill,
    Boston Therapeutics, Inc ex Director, with a total balance of $73,750 as of December 31,2021
●
The Company had accrued payable to Dr. Platt,
    Boston Therapeutics, Inc significant shareholder, with a total balance of $4,399 as of December 31,2021.
●
Mr. Garrett Gruener is paid a salary of $24,000 per year plus benefits in the role of Executive Chairman.
SECURITY OWNERSHIP OF BENEFICIAL OWNERS AND
MANAGEMENT
The following table sets forth certain information
regarding beneficial ownership of our common stock as of June 21, 2022 by (i) each person (or group of affiliated persons) who is
known by us to own more than five percent (5%) of the outstanding shares of our common stock, (ii) each director and executive officer,
and (iii) all of our directors and executive officers as a group. As of April 12, 2022, there were 46,203,866 shares of our common stock
issued and outstanding.
Except as otherwise indicated, the persons listed
below have sole voting and investment power with respect to all shares of our common stock owned by them, except to the extent that power
may be shared with a spouse.
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 currently owns or has the
right to acquire within 60 days of the date of this prospectus. With respect to options and warrants, this would include options
and warrants that are currently exercisable within 60 days. With respect to convertible securities, this would include securities that
are currently convertible within 60 days.
Except as indicated in footnotes to this table,
we believe that the stockholders named in this table have sole voting and investment power with respect to all shares of common stock
shown to be beneficially owned by them, based on information provided to us by such stockholders. Unless otherwise indicated, the address
for each director and executive officer listed is: c/o Nanomix Corp., 2121 Williams St, San Leandro, CA 94577.
The following table sets forth certain information
regarding beneficial ownership of our common stock and preferred stock as of May 1, 2022, after the Transaction was consummated on such
date by (i) each person known by us to be the beneficial owner of more than 5% of our outstanding common stock, (ii) each director and
each of our Named Executive Officers and (iii) all executive officers and directors as a group.
The number of shares of common stock beneficially
owned by each person is determined under the rules of the SEC and the information is not necessarily indicative of beneficial ownership
for any other purpose. Under such rules, beneficial ownership includes any shares as to which such person has sole or shared voting power
or investment power and also any shares which the individual has the right to acquire within 60 days after the date hereof, through the
exercise of any stock option, warrant or other right. Unless otherwise indicated, each person has sole investment and voting power (or
shares such power with his or her spouse) with respect to the shares set forth in the following table. The inclusion herein of any shares
deemed beneficially owned does not constitute an admission of beneficial ownership of those shares.
71
Name and Address of Beneficial Owner
Shares of
Common
Stock
Beneficially
Owned
Percentage of
Class
Outstanding (1)
Security Ownership of Certain Beneficial Owners:
HT Investments MA LLC (7)
9,230,000
9.99
Security Ownership of Management and Directors:
David Ludvigson (2)
1,662,884
3.60
Vidur Sahney
--
*
John Hardesky (6)
166,842
*
Garrett Gruener (3)
28,162,182
60.95
Jerry Fidler (4)
2,746,874
5.95
Greg Schiffman (5)
135,541
*
Executive officers and directors as a group — 4 persons
--
(1)
The number and percentage of shares beneficially owned are determined in accordance with Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the information is not necessarily indicative of beneficial ownership for any other purpose. Under such rule, beneficial ownership includes any shares over which the individual or entity has voting power or investment power and any shares of common stock that the individual has the right to acquire within 60 days of May 1, 2022, through the exercise of any stock option or other right. As of June 16, 2022, 46,203,866 shares of the Company's common stock were outstanding.
(2)
Includes 38,019 shares of common stock issuable upon exercise of the warrants assumed by the Company as a result of the Merger, 845,621 common stock subject to options and 354,271 shares of common stock subject to Restricted Stock Units ("RSU").
(3)
Includes (i) 1,368,762 shares of common stock issuable upon conversion of the senior secured promissory notes issued in the June 2021 and February 2022 private placements, (ii) 1,368,762 shares of common stock issuable upon exercise of the warrants issued in the June 2021 and February 2022 private placements and (iii) 1,012,022 shares of common stock issuable upon exercise of the warrants assumed by the Company as a result of the Merger.  Mr. Gruener has agreed to restrict the aggregate maximum number and percentage of shares (and therefore, offer for resale at any one time) as he has agreed to voluntarily restrict his ability to convert his notes and/or exercise his warrants and receive shares of our common stock such that the number of shares of common stock held by him and his affiliates in the aggregate after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock.
(4)
Includes (i) 64,712 shares of common stock issuable upon conversion of the senior secured promissory notes issued in the February 2022 private placements, (ii) 64,712 shares of common stock issuable upon exercise of the warrants issued in the February 2022 private placements, (iii) 51,667 shares of common stock subject to options, (iv) 2,411,175 shares of common stock held by Zygote Ventures and (iv) 176,087 shares of common stock issuable upon exercise of the warrants assumed by the Company as a result of the Merger.  Mr. Fiddler has voting and dispositive shares held by Zygote Ventures. Mr. Fidler has agreed to restrict the aggregate maximum number and percentage of shares (and therefore, offer for resale at any one time) as he has agreed to voluntarily restrict his ability to convert his notes and/or exercise his warrants from the February 2022 private placement and receive shares of our common stock such that the number of shares of common stock held by him and his affiliates in the aggregate after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock.
(5)
Includes
    (i) 41,679 shares of common stock subject to RSUs, (i) 36,167 shares of common stock and (iii) 57,695 shares of common stock subject
    to options.
(6)
Includes
    (i) 86,112 shares of common stock subject to RSUs and (ii) 80,730 shares of common stock subject to options.
(7)
Represents
    the aggregate maximum number and percentage of shares that High Trail Investments MA LLC can own at one time (and therefore, offer
    for resale at any one time) as it has agreed to voluntarily restrict its ability to convert its note and/or exercise its warrant
    and receive shares of our common stock such that the number of shares of common stock held by them and their affiliates in the aggregate
    after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. Hudson Bay Capital
    Management LP, the investment manager of High Trail Investments MA LLC, has voting and investment power over these securities. Sander
    Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital Management LP. Each
    of High Trail Investments MA LLC and Sander Gerber disclaims beneficial ownership over these securities. The address for the selling
    shareholder is c/o High Trail Capital LP, 221 River Street, 9th Floor, Hoboken, NJ 07030.
72
DESCRIPTION OF CAPITAL STOCK
General
The following description of the Company's
capital stock and provisions of its Certificate of Incorporation, as amended and Bylaws are summaries and are qualified by reference to
the full text of the Company's Certificate of Incorporation and
Bylaws
.
The Company is authorized to issue 2,005,000,000
shares of capital stock, par value $0.001 per share, of which 2,000,000,000 are shares of common stock and 5,000,000 are shares of "blank
check" preferred stock.
As of the date of this prospectus, the Company
had outstanding 46,203,866 shares of common stock held by 1,752 shareholders of record. The actual number of holders of our common stock
is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street
name by brokers or held by other nominees. This number of holders of record also does not include stockholders whose shares may be held
in trust by other entities.
Common Stock
Each share
of our common stock entitles the holder to receive notice of and to attend all meetings of our stockholders with the entitlement to one
vote. Holders of common stock are entitled, subject to the rights, privileges, restrictions and conditions attaching to any other class
of shares ranking in priority to the common stock, to receive any dividend declared by the Board of Directors. If we are voluntarily or
involuntarily liquidated, dissolved or wound-up, the holders of common stock will be entitled to receive, after distribution in full of
the preferential amounts, if any, all of the remaining assets available for distribution ratably in proportion to the number of shares
of common stock held by them. Holders of common stock have no redemption or conversion rights. The rights, preferences and privileges
of holders of shares 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 issued and outstanding or that we may designate and issue in the future.
Preferred Stock
We are authorized to
issue up to 5,000,000 shares of preferred stock. This preferred stock may be issued in one or more series, the terms of which may be determined
at the time of issuance by our board of directors without further action by stockholders. The terms of any series of preferred stock may
include voting rights (including the right to vote as a series on particular matters), preferences as to dividend, liquidation, conversion
and redemption rights and sinking fund provisions. The issuance of any preferred stock could materially adversely affect the rights of
the holders of our common stock, and therefore, reduce the value of our common stock and the Notes. In particular, specific rights granted
to future holders of preferred stock could be used to restrict our ability to merge with, or sell our assets to, a third party and thereby
preserve control by the present management.
73
Transfer Agent
The transfer agent and registrar for our common
stock is Worldwide Stock Transfer, LLC.
Delaware Anti-Takeover Law and Provisions
of Certificate of Incorporation and By-Laws
Delaware Anti-Takeover Law
We are subject to Section 203
of the Delaware General Corporation Law. Section 203 generally prohibits a public Delaware corporation from engaging in a "business
combination" with an "interested stockholder" for a period of three years after the date of the transaction in which
the person became an interested stockholder, unless:
●
prior to the date of the transaction, the Board of Directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
●
upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding specified shares; or
●
at or subsequent to the date of the transaction, the business combination is approved by the Board of Directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3 % of the outstanding voting stock which is not owned by the interested stockholder.
Section 203 defines a "business
combination" to include:
●
any merger or consolidation involving the corporation and the interested stockholder;
●
any sale, lease, exchange, mortgage, pledge, transfer or other disposition of 10% or more of the assets of the corporation to or with the interested stockholder;
●
subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;
●
subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or
●
the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.
In general, Section 203 defines an "interested
stockholder" as any person that is:
●
the owner of 15% or more of the outstanding voting stock of the corporation;
●
an affiliate or associate of the corporation who was the owner of 15% or more of the outstanding voting stock of the corporation at any time within three years immediately prior to the relevant date; or
●
the affiliates and associates of the above.
Under specific circumstances,
Section 203 makes it more difficult for an "interested stockholder" to effect various business combinations with a corporation
for a three-year period, although the stockholders may, by adopting an amendment to the corporation's certificate of incorporation
or bylaws, elect not to be governed by this section, effective 12 months after adoption.
Our certificate of incorporation
and bylaws do not exclude us from the restrictions of Section 203. We anticipate that the provisions of Section 203 might encourage
companies interested in acquiring us to negotiate in advance with our Board of Directors since the stockholder approval requirement would
be avoided if a majority of the directors then in office approve either the business combination or the transaction that resulted in the
stockholder becoming an interested stockholder.
74
Certificate of Incorporation and Bylaws
Provisions of our certificate
of incorporation and bylaws to be in effect upon the consummation of this offering may delay or discourage transactions involving an
actual or potential change of control or change in our management, including transactions in which stockholders might otherwise receive
a premium for their shares, or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these
provisions could adversely affect the price of our common stock. Among other things, our certificate of incorporation and bylaws will:
●
permit
    our Board of Directors to issue up to shares of preferred stock, with any rights, preferences and privileges as they may designate;
●
provide that all vacancies
    on our Board of Directors, including as a result of newly created directorships, may, except as otherwise required by law, be filled
    by the affirmative vote of a majority of directors then in office, even if less than a quorum;
●
require that any action
    to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written
    consent;
●
provide that stockholders
    seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of
    stockholders must provide advance notice in writing, and also specify requirements as to the form and content of a stockholder's
    notice;
●
not provide for cumulative
    voting rights, thereby allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors
    to elect all of the directors standing for election; and
●
provide that special meetings
    of our stockholders may be called only by the Board of Directors or by such person or persons requested by a majority of the Board
    of Directors to call such meetings.
Equity Incentive Plan
2021 Equity Incentive Plan
Introduction
On January 25, 2021, our board of directors
adopted our 2021 Omnibus Equity Incentive Plan (the "2021 Plan"). The 2021 Plan became effective on the date that it was
approved by our stockholders (the "Effective Date").
Under the 2021 Plan, 5,497,977 shares 
of Company common stock are initially available for grant.
Our administrator may grant incentive stock options,
non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards
to participants to acquire shares of Company common stock under the 2021 Plan. It is anticipated that the Plan will be administered by
our Board of Directors or the Compensation Committee. The following table sets forth, as of May 1, 2022, the approximate number of each
class of participants eligible to participate in the 2021 Stock Incentive Plan and the basis of such participation.
75
Class and Basis of Participation
Approximate
Number of
Class
Employees
27
Directors
(1)
4
Consultants
5
(1)
One of the four directors
    is an employee of the Company.
Rationale for Adoption of the 2021 Plan
Grants of options, stock appreciation rights,
restricted shares of common stock, restricted stock units, and other stock-based awards to our employees, directors, and independent
contractors are an important part of our long-term incentive compensation program, which we use in order to strengthen the commitment
of such individuals to us, motivate them to faithfully and diligently perform their responsibilities, and attract and retain competent
and dedicated individuals whose efforts are expected to result in our long-term growth and profitability.
The number of shares proposed to be available
for grant under the 2021 Plan is designed to enable the Company to properly incentivize its employees and management teams over a number
of years on a going-forward basis.
Shares Available; Certain Limitations.
The maximum number of shares of common stock reserved and available for issuance under the 2021 Plan will be equal to 11,568,437
shares of common stock provided that shares of common stock issued under the 2021 Plan with respect to an Exempt Award will not count
against the share limit. We use the term "Exempt Award" to mean (i) an award granted in the assumption of, or in substitution
for, outstanding awards previously granted by another business entity acquired by us or any of our subsidiaries or with which we or any
of our subsidiaries merge, or (ii) an award that a participant purchases at fair market value.
New shares reserved for issuance under the 2021
Plan may be authorized but unissued shares of Company's common stock or shares of Company's common stock that will have been
or may be reacquired by us in the open market, in private transaction or otherwise. If any shares of Company's common stock subject
to an award are forfeited, cancelled, exchanged or surrendered or if an award terminates or expires without a distribution of shares
to the participant, the shares of Company common stock with respect to such award will, to the extent of any such forfeiture, cancellation,
exchange, surrender, termination or expiration, again be available for awards under the Plan except that any shares of Company common
stock surrendered or withheld as payment of either the exercise price of an award and/or withholding taxes in respect of an award will
not again be available for awards under the Plan. If an award is denominated in shares of Company's common stock, but settled in
cash, the number of shares of common stock previously subject to the award will again be available for grants under the 2021 Plan. If
an award can only be settled in cash, it will not be counted against the total number of shares of common stock available for grant under
the 2021 Plan. However, upon the exercise of any award granted in tandem with any other awards, such related awards will be cancelled
as to the number of shares as to which the award is exercised and such number of shares of Company's common stock will no longer
be available for grant under the 2021 Plan.
The stock reserved under the 2021 Plan will provide
us with the platform needed for our continued growth, while managing program costs and share utilization levels within acceptable industry
standards.
Description of 2021 Plan
The following is a summary of the material features
of the 2021 Plan. This summary is qualified in its entirety by the full text of the 2021 Plan.
Types of Awards.
The 2021 Plan
provides for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights ("SARs"),
restricted stock, restricted stock units ("RSUs"), and other stock-based awards. Items described above in the Section
called "Shares Available" are incorporated herein by reference.
Administration.
The 2021 Plan will
be administered by our board of directors, or if our board of directors does not administer the 2021 Plan, a committee or subcommittee
of our board of directors that complies with the applicable requirements of Section 16 of the Exchange Act and any other applicable legal
or stock exchange listing requirements (each of our board of directors or such committee or subcommittee, the "plan administrator").
The plan administrator may interpret the 2021 Plan and may prescribe, amend and rescind rules and make all other determinations necessary
or desirable for the administration of the 2021 Plan.
76
The 2021 Plan permits the plan administrator
to select the eligible recipients who will receive awards, to determine the terms and conditions of those awards, including but not limited
to the exercise price or other purchase price of an award, the number of shares of common stock or cash or other property subject to
an award, the term of an award and the vesting schedule applicable to an award, and to amend the terms and conditions of outstanding
awards.
Restricted Stock and Restricted Stock Units.
Restricted stock and RSUs may be granted under the 2021 Plan. The plan administrator will determine the purchase price, vesting
schedule and performance goals, if any, and any other conditions that apply to a grant of restricted stock and RSUs. If the restrictions,
performance goals or other conditions determined by the plan administrator are not satisfied, the restricted stock and RSUs will be forfeited.
Subject to the provisions of the 2021 Plan and the applicable award agreement, the plan administrator has the sole discretion to provide
for the lapse of restrictions in installments.
Unless the applicable award agreement provides
otherwise, participants with restricted stock will generally have all of the rights of a stockholder; provided that dividends will only
be paid if and when the underlying restricted stock vests. RSUs will not be entitled to dividends prior to vesting, but may be entitled
to receive dividend equivalents if the award agreement provides for them. The rights of participants granted restricted stock or RSUs
upon the termination of employment or service to us will be set forth in the award agreement.
Options.
Incentive stock options
and non-statutory stock options may be granted under the 2021 Plan. An "incentive stock option" means an option intended
to qualify for tax treatment applicable to incentive stock options under Section 422 of the Internal Revenue Code. A "non-statutory stock
option" is an option that is not subject to statutory requirements and limitations required for certain tax advantages that are
allowed under specific provisions of the Internal Revenue Code. A non-statutory stock option under the 2021 Plan is referred to
for federal income tax purposes as a "non-qualified" stock option. Each option granted under the Plan will be designated
as a non-qualified stock option or an incentive stock option. At the discretion of the administrator, incentive stock options may
be granted only to our employees, employees of our "parent corporation" (as such term is defined in Section 424(e) of the
Code) or employees of our subsidiaries.
The exercise period of an option may not exceed
ten years from the date of grant and the exercise price may not be less than 100% of the fair market value of a share of common stock
on the date the option is granted (110% of fair market value in the case of incentive stock options granted to ten percent stockholders).
The exercise price for shares of common stock subject to an option may be paid in cash, or as determined by the administrator in its
sole discretion, (i) through any cashless exercise procedure approved by the administrator (including the withholding of shares of common
stock otherwise issuable upon exercise), (ii) by tendering unrestricted shares of common stock owned by the participant, (iii) with any
other form of consideration approved by the administrator and permitted by applicable law or (iv) by any combination of these methods.
The option holder will have no rights to dividends or distributions or other rights of a stockholder with respect to the shares of Common
Stock subject to an option until the option holder has given written notice of exercise and paid the exercise price and applicable withholding
taxes.
In the event of a participant's termination
of employment or service, the participant may exercise his or her option (to the extent vested as of such date of termination) for
such period of time as specified in his or her option agreement.
Stock Appreciation Rights.
SARs
may be granted either alone (a "free-standing SAR") or in conjunction with all or part of any option granted under the
2021 Plan (a "tandem SAR"). A free-standing SAR will entitle its holder to receive, at the time of exercise, an amount
per share up to the excess of the fair market value (at the date of exercise) of a share of common stock over the base price of the free-standing SAR
(which shall be no less than 100% of the fair market value of the related shares of common stock on the date of grant) multiplied by
the number of shares in respect of which the SAR is being exercised. A tandem SAR will entitle its holder to receive, at the time of
exercise of the SAR and surrender of the applicable portion of the related option, an amount per share up to the excess of the fair market
value (at the date of exercise) of a share of common stock over the exercise price of the related option multiplied by the number of
shares in respect of which the SAR is being exercised. The exercise period of a free-standing SAR may not exceed ten years from
the date of grant. The exercise period of a tandem SAR will also expire upon the expiration of its related option.
77
The holder of a SAR will have no rights to dividends
or any other rights of a stockholder with respect to the shares of Common Stock subject to the SAR until the holder has given written
notice of exercise and paid the exercise price and applicable withholding taxes.
In the event of a participant's termination
of employment or service, the holder of a SAR may exercise his or her SAR (to the extent vested as of such date of termination) for such
period of time as specified in his or her SAR agreement.
Other Stock-Based Awards.
The
administrator may grant other stock-based awards under the 2021 Plan, valued in whole or in part by reference to, or otherwise based
on, shares of common stock. The administrator will determine the terms and conditions of these awards, including the number of shares
of common stock to be granted pursuant to each award, the manner in which the award will be settled, and the conditions to the vesting
and payment of the award (including the achievement of performance goals). The rights of participants granted other stock-based awards
upon the termination of employment or service to us will be set forth in the applicable award agreement. In the event that a bonus is
granted in the form of shares of common stock, the shares of common stock constituting such bonus shall, as determined by the administrator,
be evidenced in uncertificated form or by a book entry record in the name of the participant to whom such grant was made and delivered
to such participant as soon as practicable after the date on which such bonus is payable. Any dividend or dividend equivalent award issued
hereunder shall be subject to the same restrictions, conditions and risks of forfeiture as apply to the underlying award.
Equitable Adjustment and Treatment of Outstanding
Awards Upon a Change in Control
Equitable Adjustments.
In the event
of a merger, consolidation, reclassification, recapitalization, spin-off, spin-out,
repurchase, reorganization, special or
extraordinary dividend or other extraordinary distribution (whether in the form of common shares, cash or other property), combination,
exchange of shares, or other change in corporate structure affecting our common stock, an equitable substitution or proportionate adjustment
shall be made in (i) the aggregate number and kind of securities reserved for issuance under the 2021 Plan, (ii) the kind and number
of securities subject to, and the exercise price of, any outstanding options and SARs granted under the 2021 Plan, (iii) the kind, number
and purchase price of shares of common stock, or the amount of cash or amount or type of property, subject to outstanding restricted
stock, RSUs and other stock-based awards granted under the 2021 Plan and (iv) the terms and conditions of any outstanding awards
(including any applicable performance targets). Equitable substitutions or adjustments other than those listed above may also be made
as determined by the plan administrator. In addition, the plan administrator may terminate all outstanding awards for the payment of
cash or in-kind consideration having an aggregate fair market value equal to the excess of the fair market value of the shares of
common stock, cash or other property covered by such awards over the aggregate exercise price, if any, of such awards, but if the exercise
price of any outstanding award is equal to or greater than the fair market value of the shares of common stock, cash or other property
covered by such award, the plan administrator may cancel the award without the payment of any consideration to the participant. With
respect to awards subject to foreign laws, adjustments will be made in compliance with applicable requirements. Except to the extent
determined by the plan administrator, adjustments to incentive stock options will be made only to the extent not constituting a "modification"
within the meaning of Section 424(h)(3) of the Code.
Change in Control.
The 2021 Plan
provides that, unless otherwise determined by the plan administrator and evidenced in an award agreement, if a "change in control"
(as defined below) occurs and a participant is employed by us or any of our affiliates immediately prior to the consummation of the change
in control, then the plan administrator, in its sole and absolute discretion, may (i) provide that any unvested or unexercisable portion
of an award carrying a right to exercise will become fully vested and exercisable; and (ii) cause the restrictions, deferral limitations,
payment conditions and forfeiture conditions applicable to any award granted under the 2021 Plan to lapse, and the awards will be deemed
fully vested and any performance conditions imposed with respect to such awards will be deemed to be fully achieved at target performance
levels. The administrator shall have discretion in connection with such change in control to provide that all outstanding and unexercised
options and SARs shall expire upon the consummation of such change in control.
78
For purposes of the 2021 Plan, a "change
in control" means, in summary, the first to occur of the following events: (i) a person or entity becomes the beneficial owner
of more than 50% of our voting power; (ii) an unapproved change in the majority membership of our board of directors; (iii) a merger
or consolidation of us or any of our subsidiaries, other than (A) a merger or consolidation that results in our voting securities continuing
to represent 50% or more of the combined voting power of the surviving entity or its parent and our board of directors immediately prior
to the merger or consolidation continuing to represent at least a majority of the board of directors of the surviving entity or its parent
or (B) a merger or consolidation effected to implement a recapitalization in which no person is or becomes the beneficial owner of our
voting securities representing more than 50% of our combined voting power; or (iv) stockholder approval of a plan of our complete
liquidation or dissolution or the consummation of an agreement for the sale or disposition of substantially all of our assets, other
than (A) a sale or disposition to an entity, more than 50% of the combined voting power of which is owned by our stockholders in substantially
the same proportions as their ownership of us immediately prior to such sale or (B) a sale or disposition to an entity controlled by
our board of directors. However, a change in control will not be deemed to have occurred as a result of any transactions or series of
integrated transaction following which our stockholders, immediately prior thereto, hold immediately afterward the same proportionate
equity interests in the entity that owns all or substantially all of our assets.
Tax Withholding
Each participant will be required to make arrangements
satisfactory to the plan administrator regarding payment of up to the maximum statutory tax rates in the participant's applicable
jurisdiction with respect to any award granted under the 2021 Plan, as determined by us. We have the right, to the extent permitted by
applicable law, to deduct any such taxes from any payment of any kind otherwise due to the participant. With the approval of the plan
administrator, the participant may satisfy the foregoing requirement by either electing to have us withhold from delivery of shares of
common stock, cash or other property, as applicable, or by delivering already owned unrestricted shares of common stock, in each case,
having a value not exceeding the applicable taxes to be withheld and applied to the tax obligations. We may also use any other method
of obtaining the necessary payment or proceeds, as permitted by applicable law, to satisfy our withholding obligation with respect to
any award.
Amendment and Termination of the 2021 Plan
The 2021 Plan provides our board of directors
with authority to amend, alter or terminate the 2021 Plan, but no such actions may impair the rights of any participant with respect
to outstanding awards without the participant's consent. The plan administrator may amend an award, prospectively or retroactively,
but no such amendment may materially impair the rights of any participant without the participant's consent. Stockholder approval
of any such Actions will be obtained if required to comply with applicable law.
The 2021 Plan will terminate on the tenth
anniversary of the Effective Date (although awards granted before that time will remain outstanding in accordance with their terms).
Clawback
If we are required to prepare a financial restatement
due to material non-compliance with any financial reporting requirement, then the plan administrator may require any Section 16
officer to repay or forfeit to us that part of the cash or equity incentive compensation received by that Section 16 officer during the
preceding three years that the plan administrator determines was in excess of the amount that such Section 16 officer would have received
had such cash or equity incentive compensation been calculated based on the financial results reported in the restated financial statement.
The plan administrator may take into account any factors it deems reasonable in determining whether to seek recoupment of previously
paid cash or equity incentive compensation and how much of such compensation to recoup from each Section 16 officer (which need not be
the same amount or proportion for each Section 16 officer). The amount and form of the incentive compensation to be recouped shall be
determined by the administrator in its sole and absolute discretion.
US Federal Income Tax Consequences
The following is a summary of certain United
States federal income tax consequences of awards under the 2021 Plan. It does not purport to be a complete description of all applicable
rules, and those rules (including those summarized here) are subject to change.
79
Non-Qualified Stock Options.
A
participant who has been granted a non-qualified stock option will not recognize taxable income upon the grant of a non-qualified stock
option. Rather, at the time of exercise of such non-qualified stock option, the participant will recognize ordinary income for income
tax purposes in an amount equal to the excess of the fair market value of the shares of common stock purchased over the exercise price.
We generally will be entitled to a tax deduction at such time and in the same amount that the participant recognizes ordinary income.
If shares of common stock acquired upon exercise of a non-qualified stock option are later sold or exchanged, then the difference
between the amount received upon such sale or exchange and the fair market value of such shares on the date of such exercise will generally
be taxable as long-term or short-term capital gain or loss (if the shares are a capital asset of the participant) depending
upon the length of time such shares were held by the participant.
Incentive Stock Options.
In general,
no taxable income is realized by a participant upon the grant of an ISO. If shares of common stock are purchased by a participant, or
option shares, pursuant to the exercise of an ISO granted under the 2021 Plan and the participant does not dispose of the option shares
within the two-year period after the date of grant or within one year after the receipt of such option shares by the participant,
such disposition a disqualifying disposition, then, generally (1) the participant will not realize ordinary income upon exercise and
(2) upon sale of such option shares, any amount realized in excess of the exercise price paid for the option shares will be taxed to
such participant as capital gain (or loss). The amount by which the fair market value of the common stock on the exercise date of an
ISO exceeds the purchase price generally will constitute an item which increases the participant's "alternative minimum taxable
income." If option shares acquired upon the exercise of an ISO are disposed of in a disqualifying disposition, the participant
generally would include in ordinary income in the year of disposition an amount equal to the excess of the fair market value of the option
shares at the time of exercise (or, if less, the amount realized on the disposition of the option shares), over the exercise price paid
for the option shares. Subject to certain exceptions, an option generally will not be treated as an ISO if it is exercised more than
three months following
termination of employment. If an ISO is exercised at a time when it no longer qualifies as an ISO,
such option will be treated as a nonqualified stock option as discussed above. In general, we will receive an income tax deduction at
the same time and in the same amount as the participant recognizes ordinary income.
Stock Appreciation Rights.
A participant
who is granted an SAR generally will not recognize ordinary income upon receipt of the SAR. Rather, at the time of exercise of such SAR,
the participant will recognize ordinary income for income tax purposes in an amount equal to the value of any cash received and the fair
market value on the date of exercise of any shares of common stock received. We generally will be entitled to a tax deduction at such
time and in the same amount, if any, that the participant recognizes as ordinary income. The participant's tax basis in any shares
of common stock received upon exercise of an SAR will be the fair market value of the shares of common stock on the date of exercise,
and if the shares are later sold or exchanged, then the difference between the amount received upon such sale or exchange and the fair
market value of such shares on the date of exercise will generally be taxable as long-term or short-term capital gain or loss
(if the shares are a capital asset of the participant) depending upon the length of time such shares were held by the participant.
Restricted Stock.
A participant
generally will not be taxed upon the grant of restricted stock, but rather will recognize ordinary income in an amount equal to the fair
market value of the shares of common stock at the earlier of the time the shares become transferable or are no longer subject to a substantial
risk of forfeiture (within the meaning of the Code). We generally will be entitled to a deduction at the time when, and in the amount
that, the participant recognizes ordinary income on account of the lapse of the restrictions. A participant's tax basis in the
shares of common stock will equal their fair market value at the time the restrictions lapse, and the participant's holding period
for capital gains purposes will begin at that time. Any cash dividends paid on the shares of common stock before the restrictions lapse
will be taxable to the participant as additional compensation and not as dividend income, unless the individual has made an election
under Section 83(b) of the Code. Under Section 83(b) of the Code, a participant may elect to recognize ordinary income at the time the
restricted shares are awarded in an amount equal to their fair market value at that time, notwithstanding the fact that such stock is
subject to restrictions or transfer and a substantial risk of forfeiture. If such an election is made, no additional taxable income will
be recognized by such participant at the time the restrictions lapse, the participant will have a tax basis in the shares of common stock
equal to their fair market value on the date of their award, and the participant's holding period for capital gains purposes will
begin at that time. We generally will be entitled to a tax deduction at the time when, and to the extent that, ordinary income is recognized
by such participant.
Restricted Stock Units.
In general,
the grant of RSUs will not result in income for the participant or in a tax deduction for us. Upon the settlement of such an award in
cash or shares of common stock, the participant will recognize ordinary income equal to the aggregate value of the payment received,
and we generally will be entitled to a tax deduction at the same time and in the same amount.
80
Other Awards.
With respect to other
stock-based awards, generally when the participant receives payment in respect of the award, the amount of cash and/or the fair
market value of any shares of common stock or other property received will be ordinary income to the participant, and we generally will
be entitled to a tax deduction at the same time and in the same amount.
New Plan Benefits
Future grants under the 2021 Plan will be made
at the discretion of the plan administrator and, accordingly, are not yet determinable. In addition, benefits under the 2021 Plan will
depend on a number of factors, including the fair market value of our common stock on future dates and the exercise decisions made by
participants. Consequently, at this time, it is not possible to determine the future benefits that might be received by participants
receiving discretionary grants under the 2021 Plan.
Penny Stock Regulation
.
The SEC has adopted regulations which generally
define "
penny stock
" to be any equity security that has a market price of less than $5.00 per share or an exercise
price of less than $5.00 per share. Such securities are subject to rules that impose additional sales practice requirements on broker-dealers
who sell them. For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchaser
of such securities and have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for
any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the transaction, of a disclosure schedule
prepared by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer
and the registered representative, current quotations for the securities and, if the broker-dealer is the sole market-maker, the broker-dealer
must disclose this fact and the broker-dealer's presumed control over the market. Finally, among other requirements, monthly statements
must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny
stocks. As our common stock immediately following this offering may be subject to such penny stock rules, purchasers in this offering
may find it more difficult to sell their common stock shares in the secondary market.
SELLING STOCKHOLDERS
The Common Stock being offered by the selling
stockholders are those previously issued to the selling stockholders, and those issuable to the selling stockholders, upon exercise of
the GHS Warrants and the Merger Warrants. For additional information regarding the issuances of those shares of Common Stock and warrants,
see "Offering - The Transactions" above. We are registering the shares of Common Stock in order to permit the selling stockholders
to offer the shares for resale from time to time. No selling shareholder other than David Ludvigson, Garrett Gruener, Greg Schiffman
and Jerry Fiddler, the trustee of Zygote Ventures LLC, each of whom are directors of the Company, had any material relationship with
us within the past three years.
The table below lists the selling stockholders
and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934, as
amended, and the rules and regulations thereunder) of the shares of common stock held by each of the selling stockholders. The second
column lists the number of shares of common stock beneficially owned by the selling stockholders, based on their respective ownership
of shares of common stock, preferred stock and warrants, as of June 16, 2022, assuming conversion of the Series D Preferred Stock and
exercise of the GHS Warrants and Merger Warrants held by each such selling stockholder on that date but taking account of any limitations
on conversion and exercise set forth therein.
The third column lists the shares of common stock
being offered by this prospectus by the selling stockholders and does not take in account any limitations on (i) conversion of the preferred
stock set forth therein or (ii) exercise of the warrants set forth therein.
Because the conversion price of the Series D
Preferred Stock and the exercise price of the GHS Warrants may be adjusted, the number of shares that will actually be issued may be
more or less than the number of shares being offered by this prospectus. The fourth column assumes the sale of all of the shares offered
by the selling stockholders pursuant to this prospectus.
Under the terms of the Series D Preferred Stock
and the GHS Warrants, a selling stockholder may not convert the Series D Preferred Stock or exercise the GHS Warrants to the extent (but
only to the extent) such selling stockholder or any of its affiliates would beneficially own a number of shares of our common stock which
would exceed 9.99% of the outstanding shares of the Company (the "Maximum Percentage"). The number of shares in the second
column reflects these limitations. The selling stockholders may sell all, some or none of their shares in this offering. See "Plan
of Distribution."
81
Name of Selling Stockholder
Number of
Shares of
Common
Stock
Beneficially
Owned
Prior to
Offering
Maximum
Number of
Shares
of
Common
Stock to be
Sold
Pursuant
to this Prospectus
Number of
Shares of
Common
Stock
Owned
After
Offering
GHS Investments LLC (1)
560,000
9,750,000
--
Simon Rosenberg
15,501
15,501
--
Warren Bock
227
227
--
Daniel Miller (2)
46,308
46,308
--
Susan Rapp
226
226
--
Stephen Spanos
543,249
543,249
--
Zygote Ventures LLC (3)
2,746,874
517,452
2,229,422
Karen Buitano
15,070
15,070
--
Future King, Inc. (4)
2,801,391
667,057
2,134,334
Calvert Research
6,469
6,469
--
Robert Frankel
91
91
--
Alexander K. Zettl
1,227
1,227
--
J. Leon & Company Limited (5)
316,180
316,180
--
Edward Penhoet
115,319
115,319
--
Samnaun LLC (6)
46,061
46,061
--
Garrett Gruener (7)
28,162,182
5,234,472
22,927,710
Greg Schiffman
36,168
36,168
--
Jui-Ming Yang
12,827
12,827
--
Donna Morrow
106
106
--
Steven Barrer & Mitchell Barrer Ten Com
198
198
--
H. Joseph Reiser
5,001
5,001
--
Eustace Mita
332
332
--
David Ludvigson (8)
1,662,884
92,595
1,570,289
Cure DM, Inc. (9)
75,130
75,130
--
Lorraine Upham
4,494
4,494
--
Claresa Levetan
7,574
7,574
--
Marvin Cohen
31
31
--
Jeremy Rosenblatt (10)
27,572
27,572
--
Deborah Novak
31
31
--
Deborah Novak & Timothy Maroney JT TEN
829
829
--
Jane Frankel Rittenhouse
235
235
--
Engel Fischer Revocable Inter Vivos Family Trust DTD 7/14/1992
    (11)
133,417
133,417
--
Benno Friedman (12)
539,611
539,611
--
Pomona Capital VIII (13)
1,620
1,620
--
John & Katherine Steuart Joint Revocable Trust Dated 12/2/21
    (14)
48,841
48,841
--
Lindal Frankel
361
361
--
Jennifer Frankel
42
42
--
Rita El-Hajj
3,787
3,787
--
William Frankel
2,125
2,125
--
William Frankel Enterprises (15)
26,275
26,275
--
Gerry Frankel
42
42
--
E.C. Coppola Family Limited Partnership (16)
176
176
--
Edward C. Coppola, Jr.
702
702
--
Physio-Control, Inc. (17)
1,973,752
394,750
1,579,002
CJY Holdings Limited (18)
3,794,367
758,874
3,035,493
Sarah B Holbrooke & David D Holbrooke JT TEN (19)
45,979
45,979
--
Joseph Duggan
11,195
11,195
--
Kim Pickett
199
199
--
Dakota Gruener
1,601
1,601
--
1)
Includes 7,500,000 shares of common stock
                                            issuable upon conversion of the Series D Preferred Stock and (ii) 2,250,000 shares of common
                                            stock issuable upon exercise of warrants. Mark Grober has voting and investment power over
                                            these securities.
82
2)
Includes 4,002 shares of common stock issuable
                                            upon exercise of warrants.
3)
Includes 35,217 shares of common stock
                                            issuable upon exercise of warrants. Jerry Fiddler has voting and investment power over these
                                            securities.
4)
Includes 106,779 shares of common stock
                                            issuable upon exercise of warrants. Wu An Ming has voting and investment power over these
                                            securities.
5)
Alexander Church has voting and investment power
                                            over these securities.
6)
Includes 4,002 shares of common stock issuable upon exercise of warrants. John van Merkensteijn has
                                 voting and investment power over these securities.
7)
Includes 202,404 shares of common stock
                                            issuable upon exercise of warrants.
8)
Includes 7,600 shares of common stock issuable
                                            upon exercise of warrants.
9)
Lorraine Upham has voting and investment
                                            power over these securities.
10)
Includes 2,401 shares of common stock
                                            issuable upon exercise of warrants.
11)
Includes 8,004 shares of common stock
                                            issuable upon exercise of warrants. Jerome Engel has voting and investment power over these
                                            securities.
12)
Includes 40,020 shares of common stock
                                            issuable upon exercise of warrants.
13)
Pomoma
                                            Management LLC, the investment manager of Pomona Capital VIII, L.P.,
has
                                            voting and investment power over these securities.
14)
John Steuart has voting and investment
                                            power over these securities.
15)
William Frankel has voting and investment
                                            power over these securities.
16)
Edward C. Coppola Jr. has voting and investment
                                            power over these securities.
17)
J.
                                            Andrew Pierce, President of Physio-Control, Inc.,
has
                                            voting and investment power over these securities.
18)
Conroy Chi-Heng Cheng has voting and investment
                                            power over these securities.
19)
Includes 4,002 shares of common stock
                                            issuable upon exercise of warrants.
PLAN OF DISTRIBUTION
We are registering the shares of common stock
issuable upon conversion of the notes and exercise of the warrants to permit the resale of these shares of common stock by the holders
of the notes and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale
by the selling stockholders of the shares of common stock, although we will receive the exercise price of any Warrants not exercised
by the selling stockholders on a cashless exercise basis. We will bear all fees and expenses incident to our obligation to register the
shares of common stock.
The selling stockholders may sell all or a portion
of the shares of common stock held by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers
or agents. If the shares of common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible
for underwriting discounts or commissions or agent's commissions. The shares of common stock may be sold in one or more transactions
at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale or at negotiated
prices. These sales may be effected in transactions, which may involve crosses or block transactions, pursuant to one or more of the
following methods:
●
on any national securities
    exchange or quotation service on which the securities may be listed or quoted at the time of sale;
83
●
in the over-the-counter
    market;
●
in transactions otherwise
    than on these exchanges or systems or in the over-the-counter market;
●
through the writing or
    settlement of options, whether such options are listed on an options exchange or otherwise;
●
ordinary brokerage transactions
    and transactions in which the broker-dealer solicits purchasers;
●
block trades in which the
    broker-dealer will attempt to sell the shares 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;
●
short sales made after
    the date the Registration Statement is declared effective by the SEC;
●
broker-dealers may agree
    with a selling security holder to sell a specified number of such shares at a stipulated price per share;
●
a combination of any such
    methods of sale; and
●
any other method permitted
    pursuant to applicable law.
The selling stockholders may also sell shares
of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended, if available, rather than under this prospectus.
In addition, the selling stockholders may transfer the shares of common stock by other means not described in this prospectus. If the
selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents,
such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling
stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as
principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling stockholders
may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the
course of hedging in positions they assume. The selling stockholders may also sell shares of common stock short and deliver shares of
common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales.
The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.
The selling stockholders may pledge or grant
a security interest in some or all of the notes, warrants or shares of common stock owned by them and, if they default in the performance
of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant
to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending,
if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders
under this prospectus. The selling stockholders also may transfer and donate the shares of common stock in other circumstances in which
case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.
84
To the extent required by the Securities Act
and the rules and regulations thereunder, the selling stockholders and any broker-dealer participating in the distribution of the shares
of common stock may be deemed to be "underwriters" within the meaning of the Securities Act, and any commission paid, or
any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities
Act. At the time a particular offering of the shares of common stock is made, a prospectus supplement, if required, will be distributed,
which will set forth the aggregate amount of shares of common stock being offered and the terms of the offering, including the name or
names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling stockholders
and any discounts, commissions or concessions allowed or re-allowed or paid to broker-dealers.
Under the securities laws of some states, the
shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states
the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or an exemption
from registration or qualification is available and is complied with.
There can be no assurance that any selling stockholder
will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this prospectus forms
a part.
The selling stockholders and any other person
participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the
rules and regulations thereunder, including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which
may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders and any other participating
person. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the shares
of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the
marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect
to the shares of common stock.
We will pay all expenses of the registration
of the shares of common stock pursuant to the registration rights agreement, estimated to be $75,000 in total, including, without limitation,
Securities and Exchange Commission filing fees and expenses of compliance with state securities or "blue sky" laws; provided,
however, a selling stockholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling stockholders
against liabilities, including some liabilities under the Securities Act in accordance with the registration rights agreements or the
selling stockholders will be entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities, including
liabilities under the Securities Act that may arise from any written information furnished to us by the selling stockholder specifically
for use in this prospectus, in accordance with the related registration rights agreements or we may be entitled to contribution.
Once sold under the registration statement, of
which this prospectus forms a part, the shares of common stock will be freely tradable in the hands of persons other than our affiliates.
LEGAL MATTERS
The validity of the issuance of the securities
offered hereby will be passed upon for us by Sheppard, Mullin, Richter & Hampton LLP, New York, New York.
EXPERTS
M&K CPAs PLLC, an independent registered
public accounting firm, has audited our financial statements as of and for the years ended December 31, 2020 and 2019, as set forth in
their report which includes an unqualified opinion on the financial statements and an explanatory paragraph about the existence of substantial
doubt concerning the Company's ability to continue as a going concern. Such financial statements are included in reliance upon
the report of such firm given upon their authority as experts in accounting and auditing.
85
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the Securities and Exchange
Commission a Registration Statement on Form S-1 under the Securities Act with respect to the common stock offered by this prospectus.
This prospectus, which is part of the registration statement, omits certain information, exhibits, schedules and undertakings set forth
in the registration statement. For further information pertaining to us and our common stock, reference is made to the registration statement
and the exhibits and schedules to the registration statement. Statements contained in this prospectus as to the contents or provisions
of any documents referred to in this prospectus are not necessarily complete, and in each instance where a copy of the document has been
filed as an exhibit to the registration statement, reference is made to the exhibit for a more complete description of the matters involved.
Registration statements and certain other filings
made with the Securities and Exchange Commission electronically are publicly available through the Securities and Exchange Commission's
website at
http://www.sec.gov
. The registration statement, including all exhibits and amendments to the registration statement,
has been filed electronically with the Securities and Exchange Commission.
We are subject to the information and periodic
reporting requirements of the Securities Exchange Act of 1934, as amended, and, accordingly, are required to file annual reports containing
financial statements audited by an independent public accounting firm, quarterly reports containing unaudited financial data, current
reports, proxy statements and other information with the Securities and Exchange Commission. You may inspect and copy such periodic reports,
proxy statements and other information at the Securities and Exchange Commission's public reference room, and the website of the
Securities and Exchange Commission referred to above.
86
NANOMIX CORPORATION
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Registered
    Public Accounting Firm (PCAOB ID 2738)
F-2
Consolidated Balance Sheets as of December, 31 2021
    and 2020
F-3
Consolidated Statements of Operations for the Years
    Ended December 31, 2021 and 2020
F-4
Consolidated Statements of Changes in Stockholders'
    Deficit for Years Ended December 31, 2021 and 2020
F-5
Consolidated Statements of Cash Flows for Years Ended
    December 31, 2021 and 2020
F-6
Notes to the Consolidated Financial Statements
F-7
Consolidated
    Balance Sheets as of March 31, 2022 (unaudited) and December, 31 2021
F-29
Consolidated Statements of
    Operations for the three months ended March 31, 2022 and 2021 (unaudited)
F-30
Consolidated Statements of
    Changes in Stockholders' Deficit for the three months ended March 31, 2022 and 2021 (unaudited)
F-31
Consolidated Statements of
    Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)
F-32
Notes to the Consolidated
    Financial Statements
F-33
F-
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the Board of Directors and Stockholders
Nanomix Corporation
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated
balance sheets of Nanomix Corporation (the Company) as of December 31, 2021 and 2020, and the related consolidated statements of operations,
changes in stockholders' deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the
"consolidated 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, 2021 and 2020, and the results of its operations and its cash flows
for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying consolidated financial
statements have been prepared assuming the company will continue as a going concern. As discussed in Note 2 to the consolidated financial
statements, the company has not yet realized any significant revenues from its planned operations and has had net losses of approximately
$9.5 million and $6.2 million for the years ended December 31, 2021 and 2020, respectively, which raises substantial doubt about its ability
to continue as a going concern. Management's plans regarding these matters are also described in Note 2. The Consolidated 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 consolidated
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 audits to obtain reasonable assurance about whether
the consolidated 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 consolidated 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
consolidated financial statements. Our audits also included evaluating the accounting principles used and the significant estimates made
by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe our audits provide
a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated
below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to
be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the
critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.
Capital Stock and Other Equity Accounts
As discussed in Note 3, the Company issues
stock options and warrants as stock-based compensation to employees and non-employees.
Auditing management's calculation
of the fair value of the options and warrants issued can be a significant judgment given the fact that the Company uses management estimates
on various inputs to the calculations.
To test the valuation of the warrants
and options, we evaluated management's significant judgments and estimates. Significant judgements and estimates related to the
valuation of the warrants and options include fair valuing of warrants and options which involve significant estimates of volatility,
grant terms, risk-free rates and the use of historical trading data. We evaluated management's conclusions regarding their fair
values and reviewed support for the significant inputs used in the valuation model, as well as assessing the model for reasonableness.
In addition, we evaluated the Company's disclosure in relation to this matter included in Notes 3 to the consolidated financial
statements.
s/ M&K CPAS, PLLC
M&K CPAS, PLLC
We have served as the Company's auditor since 2020
Houston, TX
April 12, 2022
F-
2
NANOMIX CORPORATION
CONSOLIDATED BALANCE SHEETS
As of December, 31
2021
2020
ASSETS
Current assets:
Cash
$
297,351
$
15,098
Accounts receivable
-
821
Prepaid expenses and other current assets
171,488
156,875
Total current assets
468,839
172,794
Deposit
97,555
60,000
Property and equipment, net
339,318
65,612
Other long-term assets
-
232,065
Total Assets
$
905,712
$
530,471
LIABILITIES, PREFERRED STOCK SUBJECT TO REDEMPTION AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
407,943
$
898,463
Accrued expenses
726,148
344,065
Accounts payable and accrued expenses, related party
354,973
50,000
Accrued interest
332,561
132,175
Accrued interest, related party
-
1,810,232
Convertible note payable, net of discount
200,000
-
Notes payable, related party
547,821
-
Notes payable marketing
450,000
-
Deferred Revenues
293,523
188,741
Other current liabilities
12,129
313,146
Total current liabilities
3,325,098
3,736,822
Notes payable – net of current portion
-
610,000
Notes payable, related party – net of current portion
-
8,307,000
Secured Promissory Note, net of discount
2,012,287
-
Secured Promissory Note, net of discount, related party
1,603,778
-
Other long-term liabilities
0
402,154
Total Liabilities
6,941,163
13,055,976
Commitments and Contingencies (Note 7)
Preferred stock; $0.00001 par value, 120,467,864 shares authorized, 0 and 101,015,049 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively
-
40,070,108
Preferred stock B; 1,000,000 shares designated, 963,964 and 0 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively
963,964
-
Preferred stock C; 1,000,000 and 0 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively
14,670,633
-
Stockholders' deficit:
Common stock; $0.001 par value, 2,000,000,000 shares authorized, 5,300,084 and 4,298 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively
5,300
-null-
Additional paid-in capital
85,092,094
44,727,171
Stock payable
20,375
-
Accumulated deficit
(106,787,817
)
(97,322,784
)
Total stockholders' deficit
(21,670,048
)
(52,595,613
)
Total Liabilities, Preferred Stock Subject to Redemption and Stockholders' Deficit
$
905,712
$
530,471
The accompanying notes are an integral part
of the consolidated financial statements
F-
3
NANOMIX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
December 31,
2021
2020
Revenues
$
141,778
$
513,244
Operating costs and expenses:
Research and development
3,017,263
4,184,820
Selling, general and administrative expenses
2,849,666
1,234,784
Total operating expenses
5,866,929
5,419,604
Loss from operations
(5,725,151
)
(4,906,360
)
Other income (expense):
Interest income
2
6
Interest expense
(1,644,829
)
(209,538
)
Interest expense, related, party
(572,347
)
(1,076,478
)
Change in fair value of derivative liability
15,282
-
Change in fair value of warrant liability
438,972
-
Forgiveness of PPP loan and accrued interest
408,242
Loss on debt modification
(2,385,204
)
-
Total income (expense)
(3,739,882
)
(1,286,010
)
Loss before income taxes
(9,465,033
)
(6,192,370
)
Provision for income taxes
-
-
Net loss
$
(9,465,033
)
$
(6,192,370
)
Weighted average number of common shares  outstanding – basic and diluted
5,300,084
4,298
Net loss per common share – basic and diluted
(1.79
)
(1,440.76
)
The accompanying notes are an integral part of the consolidated financial statements
F-
4
NANOMIX CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
Years Ended December 31, 2021 and 2020
Stockholders' Deficit
Stock
Additional
Total
Common Stock
payable
Paid-in
Accumulated
Stockholders'
Mezzanine
Shares
Amount
Amount
Capital
Deficit
Deficit
Equity
Balance, December 31, 2019
4,298
-null-
$
-
$
44,465,702
$
(91,130,414
)
$
(46,664,712
)
$
40,070,108
Stock based compensation
-
-
-
261,469
-
261,469
Net loss
-
-
-
-
(6,192,370
)
(6,192,370
)
Balance, December 31, 2020
4,298
-null-
$
-
$
44,727,171
$
(97,322,784
)
$
(52,595,613
)
$
40,070,108
Stock based compensation
-
-
-
193,747
-
193,747
Warrants issued with notes
5,796,609
5,796,609
Issuance of Common Shares
4,700
-null-
-
23,450
-
23,450
Preferred Stock conversion into common stock
618,687
6
-
40,070,102
-
40,070,108
(40,070,108
)
Notes payable and accrued interest conversion into common stock
571,621
6
-
10,639,610
-
10,639,616
Preferred Stock C exchange for Nanomix Common Stock
(1,199,306
)
(12
)
-
(14,670,621
)
-
(14,670,633
)
14,670,633
Merge with Boston Therapeutics
5,300,084
5,300
-
(3,870,990
)
-
(3,865,690
)
963,964
Loss on debt modification
-
2,385,204
2,385,204
Nanomix common stock purchase
(202,188
)
(202,188
)
Nanomix options exercised
20,375
20,375
Net loss
-
-
-
-
(9,465,033
)
(9,465,033
)
Balance, December 31, 2021
5,300,084
$
5,300
$
20,375
$
85,092,094
$
(106,787,817
)
$
(21,670,048
)
$
15,634,597
The accompanying notes are an integral part of the consolidated financial statements
F-
5
NANOMIX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years
Ended December 31,
2021
2020
Cash flows from operating activities:
Net loss
$
(9,465,033
)
$
(6,192,370
)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization expense
64,597
28,331
Stock-based compensation
160,593
82,238
Warrants
33,154
179,231
Amortization of debt discount
1,477,895
-
Loss on debt modification
2,385,204
-
Change in fair value of derivative liability
(15,282
)
-
Change in fair value of warrant liability
(438,972
)
-
Leasing
2,885
38,050
Forgiveness of PPP loan and accrued interest
(408,242
)
-
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Accounts receivable
821
(821
)
Prepaid expenses
(14,613
)
(152,429
)
Other assets
(37,555
)
(40,000
)
Accounts payable
(754,509
)
764,322
Accrued expenses
(292,400
)
192,779
Accounts payable and accrued expenses, related party
367,473
12,500
Accrued Interest
127,991
82,983
Accrued Interest, related party
572,346
1,076,478
Other liabilities
(83,942
)
12,639
Net cash used by operating activities
(6,317,589
)
(3,916,069
)
Cash flows from investing activities:
Purchase of property and equipment
(336,157
)
(43,421
)
Cash received with merge with Boston Therapeutics
63,362
-
Net cash used by investing activities
(272,795
)
(43,421
)
Cash flows from financing activities:
Proceeds from notes payable
410,000
250,000
Proceeds from notes payable, related party
290,000
2,732,000
Net proceeds from notes payable - related parties
50,000
-
Repayments of notes payable - related parties
(50,000
)
-
Proceeds from Secured Promissory Notes
6,331,000
-
Proceeds from borrowing PPP loan
-
402,154
Proceeds from issuance of common stock
23,450
-
Proceeds from options exercised
20,375
-
Re-purchase of Nanomix common shares
(202,188
)
-
Net cash provided by financing activities
6,872,637
3,384,154
Net increase (decrease) in cash
282,253
(575,336
)
Cash at the beginning of the year
15,098
590,434
Cash at the end of the year
$
297,351
$
15,098
Non-cash investing and financing transactions:
Right-of-use asset obtained in exchange for lease obligations
(232,065
)
(192,788
)
Lease liability
229,180
154,738
Convertible notes payable for accrued expenses
62,500
75,000
Preferred stock conversion into common stock
40,070,108
-
Secured promissory note for related party for related party note payable
1,603,778
-
Common stock for convertible note payable
10,639,616
-
Discount for beneficial conversion feature and warrants issued with notes
5,796,609
-
The accompanying notes are an integral part of the consolidated financial statements
F-
6
NANOMIX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years ended
December 31, 2021 and 2020
NOTE 1 – THE COMPANY AND
NATURE OF BUSINESS
Nature of Operations
Boston Therapeutics, Inc.
(the "Company") was formed as a Delaware corporation on August 24, 2009 under the name Avanyx Therapeutics, Inc. On November
10, 2010, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Boston Therapeutics, Inc.,
a New Hampshire corporation ("BTI") providing for the merger of BTI into the Company with the Company being the surviving
entity (the "Merger"), the issuance by the Company of 4,000,000 shares of common stock to the stockholders of BTI in exchange
for 100% of the outstanding common stock of BTI, and the change of the Company's name to Boston Therapeutics, Inc. On February 12,
2018, the Company acquired CureDM Group Holdings LLC ("CureDM"), for 47,741,140 shares of common stock of which 25,000,000
were delivered at closing and 22,741,140 were to be delivered in four equal tranches of 5,685,285 each upon the achievement of specific
milestones.
On January 26, 2021, Boston Therapeutics, Inc., a Delaware corporation (the "Company"),
BTHE Acquisition Inc., a California corporation and wholly-owned subsidiary of the Company ("Merger Sub"), and Nanomix, Inc.,
a California corporation ("Nanomix"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant
to which, Merger Sub merged with and into Nanomix, with Nanomix continuing as a wholly-owned subsidiary of the Company and the surviving
corporation of the merger (the "Merger"). As consideration for the Merger, the Company issued to the shareholders of Nanomix
1,000,000 shares of a newly created Series C Convertible Preferred Stock of the Company (the "Preferred Stock"). Upon the
effectiveness of the amendment to our Certificate of Incorporation to effectuate the reverse stock split of one-for-173, all such
shares of Preferred Stock issued to Nanomix shareholders shall automatically convert into approximately
35,644,997
shares
of common stock of the Company, the warrants to be assumed at closing may be exercisable into approximately 2,124,687 shares of common
stock of the Company and the options and restricted stock units to be assumed at closing may be exercisable into approximately 5,718,838
shares of common stock of the Company. The shares of common stock issuable upon conversion of the Preferred Stock together with warrants,
restricted stock units and options to be assumed on the closing date shall represent approximately 80% of the outstanding shares of Common
Stock of the Company upon closing of the Merger. The merger closed on June 4, 2021.
See Note 9
Nanomix
has developed an advanced mobile Point-of-Care (POC) diagnostic system that can be used in performing a wide range of in vitro diagnostic
tests in many environments. Our goal is to provide laboratory quality testing for time sensitive medical conditions, at the first point
of contact that a patient has with the healthcare system, no matter where that occurs. The Nanomix eLab® system is CE Marked, a 510(k)
is currently in development, and Emergency Use Application (EUA) for COVID testing has been submitted to the FDA. Nanomix intends to market
and sell the Nanomix eLab system for the detection and diagnosis of a variety of time sensitive medical conditions.
NOTE 2 – BASIS OF PRESENTATION
The accompanying financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP")
and include all adjustments necessary for the fair presentation of the Company's financial position for the periods presented.
The Company currently operates
in one business segment focusing on the development of mobile diagnostic tests. The Company is not organized by market and is managed
and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer, who
comprehensively manages the entire business. The Company does not currently operate any separate lines of business or separate business
entities.
F-
7
Going Concern
The accompanying financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization
of assets and satisfaction of liabilities in the normal course of business. The Company has not yet realized any significant revenues
from its planned operations. The Company had net losses of approximately $9.5 million and $6.2 million for the years ended December 31,
2021 and 2020, respectively. These matters, among others, raise substantial doubt about the Company's ability to continue as a going
concern.
Since inception, the operations
of the Company have been funded through the sale of common stock, preferred stock subject to redemption, debt and convertible debt, and
derived revenue from contract research and development services. Management believes that its existing working capital is insufficient
to fund the Company's operations for the next twelve months. As a result, the Company will need to raise additional capital to fund
its operations and continue to conduct activities that support the development and commercialization of its products. Management intends
to raise additional funds by way of public or private offering and continued contract research and development services. Management cannot
be certain that additional funding will be available on acceptable terms, or at all to the extent that the Company raises additional funds
by issuing equity securities, the Company's stockholders may experience significant dilution. Any debt financing, if available,
may involve restrictive covenants that impact the Company's ability to conduct business. If the Company is not able to raise additional
capital when required or an acceptable terms, the Company may have to (i) significantly delay, scale back or discontinue the development
and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidates at an earlier stage than otherwise
would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of
rights to technologies, product candidates or products that the Company would otherwise seek to develop or commercialize.
The consolidated financial
statements do not include any adjustments that might be necessary if Company is unable to continue as a going concern.
Principles of Consolidation
The consolidated financial
statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and
transactions have been eliminated.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of the consolidated
financial statements and related disclosures in conformity with U.S. generally accepted accounting principles ("U.S. GAAP")
requires the Company's management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated
financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions
it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values
of assets and liabilities. Actual results may differ from these estimates and these differences may be material. The more significant
estimates and assumptions by management include among others: recoverability of long-lived assets, accrued liabilities, the valuation
allowance of deferred tax assets resulting from net operating losses and the valuation of the Company's common stock, preferred
stock, warrants and options on the Company's common stock.
Revenue Recognition
Revenues are derived from
two sources:
●
Net product sales,
●
R&D revenue.
The Company recognizes
revenue when the customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects
to receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under Accounting
Standards Update ("ASU") 2014-09 ASC 606 – Revenue from Contracts with customers: (i) identify contract(s) with a customer;
(ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price
to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation.
F-
8
Product Revenue
Revenue from product
sales are recognized when the customer obtains control of the Company's product, which occurs at a point in time, typically upon
tendering the product to the customer. The Company expenses incremental costs of obtaining a contract as and when incurred because the
expected amortization period of the asset that it would have recognized is one year or less or the amount is immaterial. Freight and distribution
activities on products are performed when the customer obtains control of the goods. The Company has made an accounting policy election
to account for shipping and handling activities that occur either when or after goods are tendered to the customer as a fulfillment activity,
and therefore recognizes freight and distribution expenses in cost of product sales. The Company excludes certain taxes from the transaction
price (e.g., sales, value added and some excise taxes).
The Company's
contracts with customers may include promises to transfer products or services to a customer. Determining whether products and services
are considered distinct performance obligations that should be accounted for separately versus together may require judgment to determine
the stand-alone selling price ("SSP") for each distinct performance obligation. SSP is directly observable, and the Company
can use a range of amounts to estimate SSP, as it sells products and services separately, and can determine whether there is a discount
to be allocated based on the relative SSP of the various products and services, for the various geographies.
The Company's
payment terms vary by the type and location of the Company's customer and products or services offered. Payment terms differ by
jurisdiction and customer, but payment is generally required in a term ranging from 30 to 60 days from date of shipment or satisfaction
of the performance obligation. From time to time the Company may receive prepayment from customers for products to be manufactured or
component materials to be procured and shipped in future dates. Customer payments in advance of the applicable performance obligation
are deferred and recognized when the product has been tendered to the customer.
R&D Revenue
All contracts
with customers are evaluated under the five-step model described above. The company recognizes income from R&D milestone-based contracts
when those milestones are reached and non-milestone contracts and grants when earned. These projects are invoiced after expenses are incurred.
Any projects or grants funded in advance are deferred until earned.
Cash and Cash Equivalents
For purposes of the Consolidated
Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.
As of December 31, 2021, the Company places all of its cash and with one financial institution. Such funds are insured by The Federal
Deposit Insurance Corporation ("FDIC") up to $250,000. Cash balances could exceed insured amounts at any given time; however,
the Company has not experienced any such losses. At December 31, 2021 and 2020 there were no cash equivalents.
Allowances for Sales Returns and Doubtful
Accounts
The allowance for sales returns
is based on the Company's estimates of potential future product returns and other allowances related to current period product revenue.
The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company's products.
The allowance for doubtful accounts is based on the Company's assessment of the collectability of customer accounts and the aging
of the related invoices, and represents the Company's best estimate of probable credit losses in its existing trade accounts receivable.
The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts
receivable balances, and current economic conditions that may affect a customer's ability to pay. We determined that no
allowances for sales returns and doubtful accounts were required at December 31, 2021 and 2020.
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9
Property and Equipment
Property and equipment are
carried at cost and depreciated or amortized using a straight-line basis over the estimated useful lives of assets, as follows:
Computer equipment
3 years
Office furniture and equipment
5 years
Laboratory equipment
4 years
Manufacturing equipment
5 years
Leasehold improvements are
depreciated over the shorter of their estimated useful lives or the term of the respective lease on a straight line basis.
The cost of repairs and maintenance
is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated
depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.
The Company will assess the
recoverability of property and equipment by determining whether the depreciation and amortization of these assets over their remaining
life can be recovered through projected undiscounted future cash flows. The amount of equipment impairment, if any, will be measured based
on fair value and is charged to operations in the period in which such impairment is determined by management.
Income Taxes
The Company accounts for income
taxes under an asset and liability approach that recognizes deferred tax assets and liabilities based on the difference between the financial
statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences
are expected to reverse.
The Company follows a more-likely
than -not threshold for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return.
The company assesses the realizability
of its net deferred tax assets on an annual basis. If, after considering all relevant positive and negative evidence, it is more likely
than not that some portion or all of the net deferred tax assets will not be realized, the Company will reduce the net deferred tax assets
by a valuation allowance. The realization of the net deferred tax assets is dependent on several factors, including the generation of
sufficient taxable income prior to the expiration of the net operating loss carryforwards.
The Company has no uncertain
tax positions at any of the dates presented.
Foreign Currency Translation
The Company derives a portion
of its revenue from foreign countries, but customers pay in U.S. Dollars. Therefore, no adjustments are required in the accompanying consolidated
financial statements for foreign currency transactions.
Research and Development Costs
The Company expenses the cost
of research and development as incurred. Research and development expenses comprise costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other externa costs. Nonrefundable advance payments for goods and services that will be used in future research
and development activities are expensed when the activity is performed or when the goods have been received, rather when payment is made,
in accordance with ASC 730,
Research and Development
.
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Fair Value Measurements
Fair value is defined as the
price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs ( Level 3 measurements). These tiers include:
●
Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets;
●
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly
observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets
that are not active; and
●
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring
an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs
or significant value drivers are unobservable.
The Company had no assets or liabilities which
were measured at fair value on a nonrecurring basis during the reporting periods.
Fair Value of Financial Instruments
In accordance with current
accounting standards, certain assets and liabilities must be measured at fair value. ASC 820 defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency
and comparability of fair value measurements and the related disclosures. ASC 820 requires that certain assets and liabilities must be
measured at fair value, and the standard details the disclosures that are required for items measured at fair value. The Company had no
assets and liabilities required to be measured on a recurring basis at December 31, 2021 and 2020.
The current assets and current
liabilities reported on the Company's balance sheets are estimated by management to approximate fair market value due to their short-term
nature.
Employee Stock-based Compensation
Stock-based compensation issued
to employees and members of the Company's Board of Directors is measured at the date of grant based on the estimated fair value
of the award, net of estimated forfeitures. The grant date fair value of a stock-based award is recognized as an expense over the requisite
service period of the award on a straight-line basis.
For purposes of determining
the variables used in the calculation of stock-based compensation issued to employees, the Company performs an analysis of current market
data and historical data to calculate an estimate of implied volatility, the expected term of the option and the expected forfeiture rate.
With the exception of the expected forfeiture rate, which is not an input, the Company uses these estimates as variables in the Black-choles
option pricing model. Depending upon the number of stock options granted, any fluctuations in these calculations could have a material
effect on the results presented in the Company's Statements of Operations. In addition, any differences between estimated forfeitures
and actual forfeitures could also have a material impact on the Company's financial statements.
Stock-Based Compensation Issued to Non-employees
Common stock issued to non-employees for acquiring
goods or providing services is recognized at fair value when the goods are obtained or over the service period, which is generally the
vesting period. If the award contains performance conditions, the measurement date of the award is the earlier of the date at which a
commitment for performance by the non-employee is reached or the date at which performance is reached. A performance commitment is reached
when performance by the non-employee is probable because of sufficiently large disincentives for nonperformance.
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11
Earnings per Share
The computation of basic earnings
per common share is based on the weighted average number of shares outstanding during the period. The computation of diluted earnings
per common share is based on the weighted average number of shares outstanding during the period plus the weighted average common stock
equivalents which would arise from the exercise of stock options, warrants, convertible preferred stock and other rights during the period.
For the years ended December
31, 2021 and 2020, the diluted weighted average number of shares is the same as the basic weighted average number of shares as the inclusion
of any common stock equivalents would be anti-dilutive.
Recent Accounting Pronouncements Affecting
the Company:
Recently Adopted
In December 2019, the FASB
issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects
related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies
and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2020, with early adoption permitted. This guidance had no effect on the Company's
consolidated financial statements upon adoption in 2021.
NOTE 4 – REVENUE
Deferred Revenue
The company recognizes income
from R&D milestone-based contracts when those milestones are reached and non-milestone contracts and grants when earned. These projects
are invoiced after expenses are incurred. Any projects or grants funded in advance are deferred until earned.
From time to time the Company
may receive prepayment from customers for products to be manufactured or component materials to be procured and shipped in future dates.
Customer payments in advance of the applicable performance obligation are deferred and recognized in accordance with ASC 606.
As of December 31, 2021 and
2020, there were $293,523 and $188,741 unearned advanced revenues, respectively.
Disaggregation of Revenue
The following table disaggregates
total revenues for the periods ending December 31, 2021 and 2020:
Years Ended
December 31,
2021
2020
Net Product sales
$
-
$
60,375
Government grant income
141,778
452,869
$
141,778
$
513,244
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12
NOTE 5 – PROPERTY AND EQUIPMENT
Property and equipment consisted of the following
at December 31, 2021 and 2020:
As of December 31,
2021
2020
Computer Equipment &Office Equipment
$
27,453
$
16,511
Lab Equipment
300,112
294,578
Manufacturing Equipment
435,220
113,393
Furniture and fixtures
14,370
14,370
Leasehold Improvements
20,232
20,232
Total property and equipment
797,387
459,084
Accumulated depreciation
(458,069
)
(393,472
)
Total property and equipment, net of accumulated depreciation
$
339,318
$
65,612
Depreciation expense was $64,597 and $28,331 for
the years ended December 31, 2021 and 2020.
NOTE 6 – NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE
Convertible Note payable, net of discount
In August and September 2016,
the Company issued senior convertible debentures for an aggregate of $1,600,000 (the "Convertible Debentures") in exchange
for an aggregate net cash proceeds of $1,327,300, net of financing costs. The Convertible Debentures have a stated interest rate of 6%
per annum payable quarterly beginning June 30, 2017 and were due two years from the date of issuance, the latest due September 15, 2018
and are convertible into shares of the Company's common stock at the option of the holder at a conversion price of $12.975 with
certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price
for each of any 10 consecutive trading days equals or exceeds $86.50, or (ii) the Company's elects to lists a class of securities
on a national securities exchange.
As long as the convertible
notes remain outstanding, the Company is restricted from incurring any indebtedness or liens, except as permitted (as defined), amend
its charter in any matter that materially effects rights of noteholders, repay or repurchase more than de minimis number of shares of
common stock other than conversion or warrant shares, repay or repurchase all or any portion of any indebtedness or pay cash dividends.
The Convertible Notes and
accrued interest were exchanged into common stock prior to the merger leaving a remaining Convertible notes payable balance of $200,000
as of December 31, 2021. Accrued interest $55,008 and $0 was included in accrued interest balance as of December 31, 2021 and 2020, respectively.
Notes Payable
Through December 31, 2011,
a founder of the company and significant shareholder, Dr. David Platt advanced $257,820 to the Company to fund start-up costs and operations.
Advances by Dr. Platt carry an interest rate of 6.5% and were due on June 29, 2013. On May 7, 2012, Dr. Platt and the Company's
former President and also a significant shareholder entered into promissory notes to advance to the Company $20,000 each for an aggregate
of $40,000. The notes accrue interest at 6.5% per year and were due June 30, 2013. The outstanding notes of $297,820 were amended each
year to extend the maturity dates. Effective June 30, 2015, the outstanding notes for Dr. Platt were amended to extend the maturity dates
to June 30, 2017. During 2017, the Company made fully paid the note and all accrued interest to the former President of the Company. Dr.
Platt's notes and accrued interest remain outstanding and are classified as current liabilities.
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13
In December 2013, the Board
of Directors agreed to indemnify Dr. Platt for legal costs incurred in connection with an arbitration (now concluded) initiated before
the American Arbitration Association by Galectin Therapeutics, Inc. (formerly named Pro-Pharmaceuticals, Inc.) for which Dr. Platt previously
served as CEO and Chairman. Galectin sought to rescind or reform the Separation Agreement entered into with Dr. Platt upon his resignation
from Galectin to remove a $1.0 million milestone payment which Dr. Platt asserted he was entitled to receive and to be repaid all separation
benefits paid to Dr. Platt. The Company initially capped the amount for which it would indemnify Dr. Platt at $150,000 in December 2013
and Dr. Platt agreed to reimburse the indemnification amounts paid by the Company should he prevail in the arbitration. The Board decided
to indemnify Dr. Platt after considering a number of factors, including the scope of the Company's existing indemnification obligations
to officers and directors and the potential impact of the arbitration on the Company. In May 2014, the Board approved a $50,000 increase
in indemnification support, solely for the payment of outside legal expenses. The Company recorded a total of $182,697 in costs associated
with Dr. Platt's indemnification, of which $119,401 was expensed in the year ended December 31, 2013 and of which $63,296 was expensed
in the year ended December 31, 2014. In July 2014, the arbitration was concluded in favor of Dr. Platt, confirming the effectiveness of
the separation agreement and payment was made to Dr. Platt in July 2014.
On March 2, 2015, the Board
of Directors voted to reduce the amount that Dr. Platt was required to reimburse the Company to $82,355 and to offset this amount against
interest accrued in respect of the outstanding note payable to Dr. Platt. In addition, the Board determined that Dr. Platt would be charged
interest related to the $182,697 indemnification payment since funds were received by Dr. Platt in July 2014. The Board of Directors concluded
the foregoing constituted complete satisfaction of Dr. Platt's indemnification by the Company. Accordingly, the Company recorded
the reduction in accrued interest through equity during the year ended December 31, 2015. As of December 31, 2021 and 2020, the balance
of the notes payable to Dr. Platt totaled $277,821 and are included in notes payable. Accrued interest $127,575 and $0 was included into
accrued interest balance as of December 31, 2021 and 2020, respectively.
During 2021 the company issued
notes payable for a total amount of $270,000 to CJY Holdings, Ltd ("CJY"). CJY is a Hong Kong company owned by Conroy Chi-Heng
Cheng, a former director of Boston Therapeutics. The CJY Note is an unsecured obligation of the Company. Principal and interest under
the CJY Note is due and payable after one year. Interest accrues on the CJY Note at the rate of 10% per annum. As of December 31, 2021
and 2020, the balance of the notes payable to CJY totaled $270,000 and $0 and are included notes payable. Accrued interest $23,485 and
$0 was included into accrued interest balance as of December 31, 2021 and 2020, respectively.
Note Payable Marketing
On June 26, 2018, the Company entered into a License Agreement with
Level Brands, Inc. (NYSE: LEVB), an innovative licensing, marketing and brand management company with a focus on lifestyle-based products
which includes an exclusive license to the Kathy Ireland® Health & Wellness™ brand. Under the terms of the License Agreement,
the Company received a non-exclusive, non-transferrable license to use the Kathy Ireland Health& Wellness™ trademark in the
marketing, development, manufacture, sale and distribution of the Sugardown® product domestically and internationally. The initial
term of the License Agreement is seven years, with an automatic two-year extension unless either party notifies the other of non-renewal
at least 90 days prior to the end of the then current term. Level Brands has agreed to use its commercially reasonable efforts to perform
certain promotional obligations, including: (i) producing four branded videos to promote the licensed product and/or the Company; (ii)
creation of an electronic press kit; (iii) making their media and marketing teams available for use in creating the video content for
which the Company will separately compensate; and (iv) curate social media posts in multiple social media channels.
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14
As compensation, the Company
will provide Level Brands with the following:
●
A marketing fee of $850,000, for development of video content
and an electronic press kit which will be used ongoing to support product marketing. This fee is paid with a promissory note of $450,000
and a number of shares of stock of the Company valued at $400,000 in accrued expenses, based on the closing price on the day prior to
the effective date;
●
Quarterly fees for the first two years of up to $100,000 and
issuance of 100,000 shares each quarter, based on sales volumes. The Company has the right to make all the stock payments in cash; and
●
a royalty of 5% of the gross licensed marks sales up to $10,000,000,
7.5% royalty on sales from $10,000,000 to $50,000,0000 and 10% on sales over $50,000,000,payable monthly as well as a 1% of all revenue
for all Company products as of the date hereof.
The note payable of $450,000
bears interest at 8% and matures December 31, 2019, unless the Company raises $750,000 through Level Brands prior to that date in which
case the Note is to be repaid in full including accrued interest. Accrued interest at December 31, 2021 and 2020 totaled $126,493 and
$0, respectively. As of December 31, 2021 and 2020 the principal balance of the marketing note was $450,000.
As of December 31, 2021, the
Company has not issued the $400,000 of common stock which was due upon execution of the agreement or any of the shares pursuant to the
quarterly fee. The $400,000 is included in accrued expenses at December 31, 2021. Due to the Company's low sales volume, no accrual
for royalties is included in the financial statements as the amounts would not be material.
Level Brands sued the Company
for non-performance under the contract. The matter was taken to arbitration with both parties claiming nonperformance under the contract.
In October 2019, the arbitration was dismissed without prejudice.
Convertible Note Payable
From 2018 to June 3, 2021, the
Company issued a total of $8.7 million of unsecured notes payable to investors including $7.7 million to related parties. These notes
bear interest at a rate of 15% per annum and include a common stock warrant equal to 30% of the face value of the note. The outstanding
principal, and accrued but unpaid interest on the notes converts into fully paid and non-assessable shares of Special Preferred Stock
at a price of $0.32276 per share in a Qualified Investment. In the event of conversion not in conjunction with a Qualified Investment,
the notes are convertible into Common Stock at a price of $18.613. As of June 3, 2021 and December 31, 2020, the Company had $1,960,116
and $1,429,327 interest accrued, respectively.
On June 4,2021 as a part of merger, the principal amount and accrued
interest were converted into 571,621 shares of Common Stock, fully converting the notes and accrued interest as of December 31, 2021.
The principal and accrued interest were converted per the terms of the agreement as such no gain or loss was recognized. The merger did
not meet the Qualified Investment criteria.
Note Payable and Senior Secured Convertible
Notes
In May 2018, the Company issued
a secured note payable to a related party for a total amount of $1.0 million with a 90-day maturity. The maturity date of this note was
extended by mutual agreement with the note holder and the note was outstanding until June 25, 2021. As of June 25,2021, and December 31,
2020, the Company has $603,778 and $510,444 interest accrued respectively.
On June 25, 2021, the Company
and the $1.0 secured million note payable Holder entered into exchange agreement, whereby the company issued the Holder a Senior Secured
Convertible Note in the principal amount of $1,603,778 with a maturity date of June 18, 2023. On the maturity date, the Company shall
pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall accrue thereunder unless and until
an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible into validly, fully paid and non-assessable
shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also granted 779,025 2-year warrants exercisable
at $2.0587. The issuance of the note and warrants resulted in a loss on modification of debt of $2,385,204. As of December 31, 2021, the
note balance was $1,603,778.
F-
15
On June 25, 2021, the Company
and Gold Blaze Limited Vistra Corporate Services entered into exchange agreement, where the company issued the Gold Blaze Limited Vistra
Corporate Services Senior Secured Convertible Note in the principal amount of $500,000 with a maturity date of June 25, 2023. On the maturity
date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall accrue thereunder
unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible into validly, fully
paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also granted 242,872 2-year
warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount from the beneficial conversion feature totaling
$500,000. As of December 31, 2021, the note was shown net of unamortized discount of $375,000. Discount amortization for the year ended
December 31, 2021 was $125,000.
In June 25, 2021, the Company
issued a Senior Secured Convertible Note to HT Investment MA LLC for a principal amount $5.0 million and maturity date of June 25, 2023.
On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 2,428,717 2-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount from the beneficial
conversion feature totaling $4,500,000. Funds received were $4,500,000 net of an original issue discount of $500,000. As of December 31,
2021, the note was shown net of unamortized discount of $3,750,000. Discount amortization for the year ended December 31, 2021 was $1,250,000.
In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Dr. Harold Parnes for a principal amount $1.2 million and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 582,892 2-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $222,534 and a discount from the relative fair value of warrants issued of $494,802. As
of December 31, 2021, the note was shown net of unamortized discount of $624,680. Discount amortization for the year ended December 31,
2021 was $92,656.
In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Steve Schrader for a principal amount $131 thousand and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 64,604 2-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $24,775 and a discount from the relative fair value of warrants issued of $54,598. As
of December 31, 2021, the note was shown net of unamortized discount of $69,033. Discount amortization for the year ended December 31,
2021 was $10,239.
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Paycheck Protection Program (PPP Loan)
On May 5, 2020, the Company received a U.S. Small Business Administration
Loan under the Paycheck Protection Program (PPP Loan) primarily for payroll costs related to the COVID-19 crisis in the amount of $402,154.
Under the Paycheck Protection Program, the PPP Loan has a fixed interest rate of 1%, a maturity date is twenty-four (24) months from the
date of the funding of the loan. Pursuant to the terms of the PPP Loan, the Company may apply for forgiveness of the amount due on the
PPP Loan in an amount equal to the sum of the following costs incurred by the Company during the 8-week period (or any other period that
may be authorized by the U.S. Small Business Association) beginning on the date of first disbursement of the loan: payroll costs, any
payment of interest on a covered mortgage obligation, payment on a covered rent obligation, and any covered utility payment. The amount
of PPP Loan forgiveness shall be calculated in accordance with the requirements of the Paycheck Protection Program, including the provisions
of Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), although no more than 25% of the amount forgiven
can be attributable to non-payroll costs. The Company has applied for forgiveness of the full loan amount, and at November 1 , 2021 received
loan forgiveness $402,154 in principal and $6,088 in interest, which was recorded as a gain on forgiveness of debt to the consolidated
statement of operations. As of December 31, 2021 and 2020, the Company has $0 and $2,636 interest accrued, respectively.
NOTE 7 – COMMITMENTS AND CONTINGENCIES
Preferred Stock
Preferred Stock
The following table represents a Preferred Stock by Series as of December
31, 2020:
Convertible Preferred Stock
Issued and
outstanding
shares
Issue
price
Outstanding
value
Series AA (Authorized: 1,045,650):
1,045,650
$
1.15
$
1,202,498
Series BB (Authorized: 22,120,639):
22,120,639
0.08111
1,794,205
Series CC (Authorized: 13,761,489):
13,761,489
0.46175
6,354,368
Series DD (Authorized: 45,000,000):
33,790,975
0.61971
20,940,605
Series EE-1 (Authorized: 17,000,000):
14,030,343
0.32276
4,528,434
Series EE-2 (Authorized: 18,000,000):
16,265,953
0.32276
5,249,999
101,015,049
$
40,070,108
On June 4, 2021, as consideration for the Merger, the Company converted
101,015,049 shares of preferred stock into 618,687 shares of common stock:
Convertible Preferred Stock
Preferred
stock shares
Outstanding
Conversion
Ratio
Common
Stock
Shares
Outstanding
Series AA:
1,045,650
0.007064
7,386
Series BB:
22,120,639
0.005780
127,865
Series CC:
13,761,489
0.006256
86,093
Series DD:
33,790,975
0.006576
222,220
Series EE-1:
14,030,343
0.005780
81,100
Series EE-2:
16,265,953
0.005780
94,023
Total Preferred Stock:
101,015,049
618,687
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17
Series B
The Company has designated
1,000,000 shares of its preferred stock as Series B Preferred Stock. Each share of Series B Preferred Stock has a stated value of $1.
Each share of the Series B Preferred Stock is convertible into 1,000 shares of the Company's common stock. The Series B Preferred
Stock shall have no voting rights until January 1, 2022 when it will be on an as converted basis (subject to limitations) and liquidation
preference for each share of Series B Preferred Stock at an amount equal to the stated value per share.
As of December 31, 2021, the
Company has 963,964 shares of Series B Preferred Stock outstanding. The Series B Preferred Stock has been classified outside of permanent
equity and liabilities since it embodies a conditional obligation that the Company may settle by paying the monetary value in cash upon
a liquidation event due to the liquidation preferences of the Series B Preferred Stock based upon its designation.
The Series B preferred stock shares are accounted
for outside of permanent equity due to the terms of cash-redemption features.
Series C
As
consideration for the Merger, the Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible
Preferred Stock of the Company (the "Preferred Stock"). Upon the effectiveness of the amendment to our Certificate of Incorporation
to effectuate the reverse stock split of one-for-173, all such shares of Preferred Stock issued to Nanomix shareholders shall automatically
convert into approximately
35,644,997
shares of common stock of the Company.
Shares
of the Series C Preferred Stock shall be entitled to vote on any matter and shall each collectively represent 80% of the votes eligible
to be cast in any manner. The Series C Preferred Stock are not entitled to any dividends (unless specifically declared by our Board),
but will participate on an as-converted-to-common-stock basis in any dividends to the holders of our common stock. The Series C Preferred
Stock has been classified outside of permanent equity and liabilities since it embodies a conditional obligation that the Company may
settle by paying the monetary value in cash upon a liquidation event due to the liquidation preferences of the Series C Preferred Stock
based upon its designation.
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18
The
Series C preferred stock shares are accounted for outside of permanent equity due to the terms of cash-redemption features.
Research
and Development Arrangement
In
April of 2020, the Company received a BARDA fixed price, cost sharing contract for development and EUA filing of COVID-19 Antibody and
Antigen tests on the Nanomix eLab platform. The total amount of the milestone-based contract was $569,647. As of December 31, 2021, the
full amount of $569,467 had been received under the contract.
Employments
Agreements
The
Company does not have Employment Agreements with any employees. All employees are employed under "at will" arrangements without
guarantees or separation arrangements.
Leases
The
Company leased its facility under sublease agreement. The Sublease term is from November 19, 2019 to December 15, 2021. The sublease
agreement was extended till December 31, 2021. Rent expense is recognized on a straight-line basis over the lease term. The company incurred
rent expense, which is included as part of selling, general and administrative expenses, of $361,035 and $231,914 for the years ended
December 31, 2021 and 2020, respectively. See details at Note 8.
On
December 6, 2021 the Company signed the short-term lease agreement with term from January 1, 2022 to March 31, 2022. See details at Note
8. See Note 17 for facility lease agreement signed in February, 2022
.
Legal
The
Company is not currently involved in any legal matters in the normal course of business. From time to time, the Company could become
involved in disputes and various litigation matters that arise in the normal course of business. These may include disputes and lawsuits
related to intellectual property, licensing, contract law and employee relations matters. Periodically, the Company reviews the status
of significant matters, if any exist, and assesses its potential financial exposure. If the potential loss from any claim and legal claim
is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings are
subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information
available at the time. As additional information becomes available, the Company reassesses the potential liability related to pending
claims and litigations.
NOTE
8 – LEASES
Our
adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases
on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed
below. We adopted this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application.
Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for
prior periods. We elected the 'package of practical expedients,' which permitted us to not reassess our prior conclusions
related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.
Lease
ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease
term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use
the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental
borrowing rate based on the information available at the lease commencement date, including the lease term.
F-
19
Short-term
leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized
on a straight-line basis over the lease term. As of December 31, 2021 the Company had three-months lease which will be recognized over
the period January 1, 2022 to March 31,2022. There were no short-term leases as of December 31, 2020.
The
tables below present financial information associated with our lease.
Balance
    Sheet
December 31,
December 31,
Classification
2021
2020
Right-of-use assets
Other
                                            long-term assets
$
0
$
232,065
Current lease liabilities
Other
                                            current liabilities
0
313,146
Non-current lease liabilities
Other
                                            long-term liabilities
0
0
As
of December 31, 2021, our maturities of our lease liability are as follows:
2022
$
0
Total
$
0
Less:
    Imputed interest
0
Present value of lease
    liabilities
$
0
NOTE
9 – BUSINESS COMBINATION
On
June 4, 2021, the Company consummated the Business Combination with Nanomix, Inc pursuant to the agreement between Nanomix, Inc and Boston
Therapeutics, Inc (the Merger Agreement"). Pursuant to ASC 805, for financial accounting and reporting purposes, Nanomix, Inc was
deemed the accounting acquirer and the Company was treated as the accounting acquiree, and the Business Combination was accounted for
as a reverse recapitalization. Accordingly, the Business Combination was treated as the equivalent of the Nanomix, Inc issuing stock
for the net assets of Boston Therapeutics, Inc, accompanied by a recapitalization. The net assets of Boston Therapeutics, Inc were stated
at historic costs, with no goodwill or other intangible assets recorded, and are consolidated with Nanomix, Inc's financial statements
on the Closing date. The shares and net income (loss) per share available to holders of the Company's common stock, prior to the
Business Combination, have been adjusted as shares reflecting the exchange ratio established in the Merger Agreement.
NOTE
10 – STOCKHOLDERS' DEFICIT
Common
Stock
As of December 31, 2020, the Company was authorized
to issue 137,000,000 shares of common stock with a par value of $0.00001 per share, and 4,298 common shares were issued and outstanding.
On January 25, 2021, the Company
issued 1,214 common shares for option exercise with exercise price $1.73 per share
On February 11, 2021, the Company issued 3,486 common shares for option
exercise with average exercise price $6.12 per share.
On
June 4, 2021, as consideration for the Merger, the Company:
●
converted 101,015,049 shares of preferred stock into 618,687 shares of common stock;
●
converted $10,639,615.96 of notes payable and accrued interest into 571,621 shares of common stock with conversion rate 18.613 $/shares;
●
exchanged all outstanding 1,199,306 shares of common stock for newly created 1,000,000 shares Series C Convertible Preferred Stock;
F-
20
On September 2021, the Company
re-purchased 5,435 of Nanomix, Inc. pre-merger common shares from unaccredited investors for the amount $202,188.
On October 8, 2021, a Nanomix, Inc stock option was exercised for 506
shares of Nanomix, Inc. pre-merger common stock with an exercise price of $8.65 per share for a total amount of $4,375. The shares weren't
issued pending effectiveness of the reverse stock split and the exercise was recorded in Stock payable. Shares of Nanomix Corporation
common stock were subsequently issued in 2022 after effectiveness of the reverse stock split.
On November 15, 2021, a Nanomix,
Inc stock option exercised for 2,312 shares of Nanomix, Inc. pre-merger common stock with an exercise price $6.92 per share for the amount
$16,000. The shares weren't issued pending effectiveness of the reverse stock split and the exercise was recorded in Stock payable.
Shares of Nanomix Corporation common stock were subsequently issued in 2022 after effectiveness of the reverse stock split.
On
January 11, 2022, Nanomix Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware
Secretary of State to effect a reverse split of the Company's outstanding shares of common stock, par value $0.0001 per share (the
"Common Stock"), at a ratio of 1-for-173. The reverse split was recorded retrospectively in 2021 financial statements converted
916,914,554 common shares of Boston Therapeutics stock into 5,300,084 common shares of Nanomix Corporation with par value $0.001.
As
of December 31, 2021, the Company has a total of 5,300,084 common shares issued and outstanding with a par value of $0.001. The Company
has 2,000,000,000 authorized shares of common stock as of the same period and after the reverse stock split.
NOTE
11 – WARRANTS
As
described in Note 6, pursuant to issuance convertible notes payable to investors, the Company issued warrants to purchase an aggregate
of 1,373,861 shares of the Company's Common Stock at an exercise price $0.058 per share during 2018 - 2021. The Company has recognized
an expense for these services within general and administrative expense in the accompanying Statements of Operations in the years of
warrants issuance of approximately $33,154 and $126,555 for the years ended December 31, 2021 and 2020, respectively.
On
September 1, 2018, the Company issued warrant to investor to purchase an aggregate of 527,921 shares of the Company's Common Stock
at an exercise price of $0.058 per share.
On
January 3, 2020, the Company issued warrants to Fastnet Advisors, LLC. to purchase an aggregate of 96,951 shares of the Company's
Common Stock at an exercise price of $0.058 per share. On December 14, 2020, the Company issued warrants outside consultant to purchase
an aggregate of 102,178 shares of the Company's Common Stock at an exercise price of $0.058 per share. The Company has recognized
an expense for these services within general and administrative expense in the accompanying Statements of Operations in the year of warrants
issuance of approximately $24,733 for the year ended December 31, 2020.
On
June 25, 2021, the Company issued warrants to related party to purchase an aggregate of 779,025 shares of the Company's Common
Stock at an exercise price of $2.0587 per share. The issuance of warrants resulted in a loss on modification of debt of $2,385,204. (refer
to Note 6). On June 25, 2021, the Company issued warrants to Gold Blaze Limited Vista Corporate Services to purchase an aggregate of
242,872 shares of the Company's Common Stock at an exercise price of $2.0587 per share. On June 25, 2021, the Company issued warrants
to HT Investments MA LLC to purchase an aggregate of 2,428,717 shares of the Company's Common Stock at an exercise price of $2.0587
per share. On September 27, 2021, the Company issued warrants to Dr. Harold Parnes to purchase an aggregate of 582,892 shares of the
Company's Common Stock at an exercise price of $2.0587 per share. On September 27, 2021, the Company issued warrants to Steve Schrader
to purchase an aggregate of 64,604 shares of the Company's Common Stock at an exercise price of $2.0587 per share. The Company
recognized $5,247,308 for the beneficial conversion feature as a debt discount at issuance of the notes in addition to an original issue
discount of $500,000 and a discount from the relative fair value of warrants issued of $549,300. For the year ended December 31, 2021,
the Company recorded amortization of $1,477,895 for the  debt discounts as interest expense in the accompanying consolidated statements
of operations.
F-
21
As of December 31, 2021 all warrants remain outstanding.
The
following represents a summary of the Warrants outstanding at December 31, 2021, and changes during the period then ended:
Weighted
Average
Warrants
Exercise
Price
Outstanding at December 31, 2020
2,002,622
$
0.058
Granted with exercise price $0.058
122,065
$
0.058
Exercised/Expired/Forfeited
-
Outstanding at June 4, 2021
2,124,687
$
0.058
BTHE warrants
222,302
$
1.730
Granted after merge
4,098,109
$
2.059
Exercised/Expired/Forfeited
-
Outstanding at December 31, 2021
6,445,098
$
1.393
NOTE
12 – STOCK-BASED COMPENSATION
Terms
of the Company's share-based on compensation are governed by the Company's 2010 Equity Incentive Plan ("the 2010 Plan").
The 2010 Plan permits the Company to grant non-statutory stock options, incentive stock options, restricted stocks, and stock purchase
rights to the Company's employees, outside directors and consultants; however incentive stock options may only be granted to the
Company's employees. As of June 30, 2021, the maximum aggregate number of shares of common stock that may be issued is 3,342,869
shares under the 2010 Plan, subject to adjustment due the effect of any stock split, stock dividend, combination, recapitalization or
similar transaction. The exercise price for each option is determined by the Board of Directors, but will be (i) in the case of an incentive
stock option, (A) granted to an employee who, at the time of grant of such option, is a 10% Holder, no less than 110% of the fair market
value per share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the
date of grant; and (ii) in the case of a nonstatutory stock option, no less than 100% of the fair market value per share on the date
of grant. The options awarded under the 2010 Plan shall vest as determined by the Board of Directors but shall not exceed a ten-year
period.
Restricted
Stock Units
During
year ended December 31, 2021, the company granted 3,407,206 restricted stock units (RSU) to its employees. Of these, 265,703 were forfeited
due to employee resignations.
Restricted stock is valued at the fair market value on the date of grant with expense recognized
over the vesting period from June 4, 2021 till February 20, 2023. The Company has recognized an expense for vested RSU within general
and administrative expense in the accompanying Statements of Operations of approximately $21,077 for year ended December 31, 2021.
Options
Issued to Directors and Employees as Compensation and to Nonemployees for Services Received
Pursuant to the terms of the
2010 Plan, from 2010 to 2020, the Company has granted an aggregate of 5,077,341 options to its executive officers and employees of the
Company and to Nonemployees for Services Received. Of these, 2,608,508 options were exercised or forfeited and 2,468,834 remain outstanding
as of December 31, 2020. The exercise prices of these grants, as determined by the Company's Board of Directors, were $0.058 to
$0.46 per share.
F-
22
During year ended December
31, 2021, the Company granted an aggregate of 263,503 options to purchase the Company's common stock to its executive officers
and employees of the Company and to Nonemployees for Services Received. During year ended December 31, 2021, 155,002 options were exercised
or forfeited, and 2,577,355 options remain outstanding. The exercise prices of these option grants, as determined by the Company's
Board of Directors, was $0.29 per share. The Company has recognized an expense for these services within general and administrative expense
in the accompanying Statements of Operations of approximately $139,515 and $82,238 for years ended December 31, 2021 and 2020, respectively.
As of December 31, 2021, there was approximately $167,731 of total unrecognized compensation cost related to non-vested share-based compensation
arrangements. This cost is expected to be recognized over a weighted average period of 2.81 years.
Stock-based
Compensation Summary Tables
The
following table represents a summary of the options granted to employees and non-employees outstanding at December 31, 2021 and changes
during the period then ended:
Weighted Average
Total
Weighted
Average
Options
Exercise
Price
Intrinsic
Value
Remaining
Life
Outstanding at December 31, 2020
2,468,834
$
0.23
$
0.06
6.56
Granted
263,503
0.29
-
9.28
Exercised/Expired/Forfeited
(155,002
)
-0.29
-
-
Outstanding at December 31, 2021
2,577,335
$
0.23
$
0.06
5.92
Exercisable at December, 2021
2,299,318
$
0.23
$
0.06
5.03
Expected to be vested
278,017
$
0.29
$
0.00
8.89
NOTE
13 – WARRANTS AND OPTIONS VALUATION
The
Company calculates the fair value of warrant and stock-based compensation awards granted to employees and nonemployees using the Black-Scholes
option-pricing method. If the company determinates that other methods are more reasonable, or other methods for calculating these assumptions
are prescribed by regulators, the fair value calculated for the Company's stock options could change significantly. Higher volatility
and longer expected lives would result in an increase to stock-based compensation expense to non-employees determined at the date of
grant. Stock-based compensation expense to non-employees affects the Company's selling, general and administrative expenses and
research and development expenses.
The
Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based
awards. The assumptions used in the Black-Scholes option-pricing method for the periods ended December 31, 2021 and 2020 are set forth
below:
For
    the period ended
December 31,
2021
December 31,
2020
Expected dividend
    yield
0.00
%
0.00
%
Expected stock-price volatility
54.97% - 127.15%
54.97% - 121.02%
Risk-free rate
0.70%
                                            - 2.82%
0.61%
                                            - 2.82%
Term of options
5-10
5-10
Stock price
$
0.29
$
0.29
F-
23
●
Expected
                                            term
. The expected term represents the period that the stock-based awards are expected
                                            to be outstanding. The Company's historical share option exercise experience does not
                                            provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient
                                            data. Therefore, the Company estimates term by using the simplified method provided by the
                                            SEC. The simplified method calculates the expected term as the average of the time-to-vesting
                                            and the contractual life of the options.
●
Expected
                                            volatility.
As the Company's common stock has never been publicly traded, the expected
                                            volatility is derived from the average historical volatilities of publicly traded companies
                                            within the Company's industry that the Company considers to be comparable to the Company's
                                            business over a period approximately equal to the expected term.
●
Risk-free
                                            interest rate
. The risk-free interest rate is based on the U.S. Treasury yield in
effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term.
●
Expected
                                            dividend
. The expected dividend is assumed to be zero as the Company has never paid dividends
                                            and have no current plans to pay any dividends on the Company's common stock.
In
addition to the assumptions used in the Black-Scholes option-pricing model, the Company also estimates a forfeiture rate to calculate
the stock-based compensation for the Company's equity awards. The Company will continue to use judgement in evaluating the expected
volatility, expected terms and forfeiture rates utilized for the Company's stock-based compensation calculations on a prospective
basis.
NOTE
14 – RELATED PARTY TRANSACTIONS
The
Company had a secured note payable to Mr. Garrett Gruener, its investor, with a balance of $1,000,000 at June 25, 2021 and December 31,
2020. The note and related accrued interest of $603,778 were exchanged for an equal amount of Convertible Equity in the June 25, 2021
financing. As a result of the exchange as part of the merger, the Company issued a senior secured convertible note to Mr. Garrett Gruener,
its investor, with a principal amount of $1,603,778 and 779,025 5-year warrants exercisable at $2.0587. The issuance of the note and
warrants resulted in a loss on modification of debt of $2,385,204. As of December 31, 2021, the note balance was $1,603,778.
The
Company had convertible notes payable to: Mr. Gruener, its investor, with a total balance of $6,182,000 as of December 31, 2020; Mr.
Fiddler, its investor, with a total balance of $950,000 as of December 31, 2020; and Mr. Ludvigson, its Chief Executive Officer, with
a total balance of $175,000 as of December 31, 2020. See Note 6 for detailed disclosure of this related party debt, including interest
rates, terms of conversion and other repayment terms. The notes and accrued interest were exchanged for Preferred Series C shares as
part of the merger.
The
Company had accrued salary payable to Mr. Ludvigson, its Chief Executive Officer, with a total balance of $50,000 and $50,000 as of December
31, 2021 and 2020, respectively.
Included
in the account payable and accrued expenses at December 31, 2021 and 2020 are amounts due shareholders, officers and directors of Boston
Therapeutics in the amounts of $304,973 and $0, respectively.
F-
24
The
summary of related party balances as of December 31, 2021 and 2020 :
31-Dec-21
31-Dec-20
Account payable
    and accrued expenses, related party:
Mr.
    Ludvigson
50,000
50,000
Loraine
    Upham
11,995
-
Loraine
    Upham accrued compensation
188,716
David
    Platt
4,399
-
S.
    Colin Neill
73,750
-
Upham
    Bioconsulting, LLC
6,113
-
Uphambc
    Consulting
20,000
-
$
354,973
$
0
Accrued
    interest, related party:
Mr.
    Gruener
0
1,667,203
Mr.
    Fiddler
0
127,788
Mr.
    Ludvigson
0
15,241
$
0
$
1,810,232
Notes payable,
    related party – net of current portion:
Mr.
    Gruener
0
7,182,000
Mr.
    Fiddler
0
950,000
Mr.
    Ludvigson
0
175,000
$
0
$
8,307,000
Senior
    Secured Convertible note, related party:
Mr.
    Gruener
1,603,778
-
$
1,603,778
$
0
NOTE
15 – INCOME TAXES
The
Company accounts for income taxes in accordance with standards of disclosure propounded by the FASB, and any related interpretations
of those standards sanctioned by the FASB. Accordingly, deferred tax assets and liabilities are determined based on differences between
the consolidated financial statement and tax bases of assets and liabilities, as well as a consideration of net operating loss and credit
carry forwards, using enacted tax rates in effect for the period in which the differences are expected to impact taxable income. A valuation
allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Due
to the uncertainty as to the utilization of net operating loss carry forwards, a valuation allowance has been made to the extent of any
tax benefit that net operating losses may generate.
At
the date the financial statements were available to be issued, the federal and state income tax returns for the year ended December 31,
2021 have not been filed by the company.
As
of December 31, 2020, the Company has federal and state net operating loss carryforward of approximately 93.0 million and $57,8 million
available to reduce future taxable income, if any, for Federal and state income tax purposes. The Company experienced a Section 382 change
of ownership in connection with the merger in 2021, thereby subjecting net operating loss carryovers generated previously to limitations
on utilization. To-date, these limitations have not had an impact on the Company's reported income tax.
F-
25
The
Company's deferred tax asset and valuation allowance at December 31, 2021:
Schedule of Deferred Tax Assets
As of December 31, 2021
NOL at 12/31/20
(93,056,108
)
Net income year ended December 31, 2021
(9,465,033
)
Loss on debt modification
2,385,204
Interest Expense - Debt Discount
1,511,049
Interest Expense
706,126
Other accrued expenses - CY
547,642
Stock Compensation - Options
139,515
Accrued Vacation - CY
35,152
Compensation - RSU
21,077
Change in fair value of derivative liability
(15,282
)
Change in fair value of warrant liability
(438,972
)
NOL at 12/31/21
(97,629,630
)
Effective rate
21
%
Deferred tax asset
(20,502,222
)
Valuation allowance
20,502,222
Net deferred tax asset at 12/31/21
-
The
ultimate realization of our deferred tax asset is dependent, in part, upon the tax laws in effect, our future earnings, and other events. 
As of and December 31, 2021 and 2020, we recorded a 100% allowance against our deferred tax asset since we were unable to conclude that
it is more likely than not that our deferred tax asset will be realized.
The
company's major tax jurisdictions are the United States and California. All of the Company's tax years will remain open three
and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating
loss. As of December 31, 2021, the tax years beginning after 2018 and 2017 remain subject to examination by US Federal and Californian
authorities. However, net operating losses carried forward are subject to examination in the tax year utilized.
NOTE
16 – EMPLOYEE BENEFIT PLAN
The
company established a 401(k) tax deferred saving plan, which permits participants to make contributions by salary deduction pursuant
to Section401(k) of the Internal Revenue Code. The Company may, at its discretion, make matching contributions to the plan. The Company
is responsible for administrative cost of the Plan. As of December 31, 2021, the Company has made no contributions to the plan since
its inception.
NOTE
17 – SUBSEQUENT EVENTS
New
lease agreement
On
February 4, 2022 the Company signed a new facility lease agreement moving all departments to a new location. The Lease term is from April
1, 2022 to March 31, 2027. Rent expense will be recognized on a straight-line basis over the lease term.
F-
26
Reverse
Stock Split
On
January 11, 2022, Nanomix Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware
Secretary of State to effect a reverse split of the Company's outstanding shares of common stock, par value $0.0001 per share (the
"Common Stock"), at a ratio of 1-for-173. Pursuant to the Amendment, every one-hundred and seventy three (173) shares of
the Company's Common Stock issued and outstanding or held in treasury (if any) immediately prior to the effectiveness of Amendment
shall be automatically reclassified as and combined, without further action, into one (1) validly issued, fully paid and nonassessable
share of Common Stock. No fractional shares will be issued in connection with the Reverse Stock Split; but rather, the Company will issue
one whole share of the post-Reverse Stock Split Common Stock to any stockholder who otherwise would have received a fractional share
as a result of the Reverse Stock Split. On March 1, 2022, FINRA notified the Company that the Company's common stock would open
for trading on Tuesday, March 2, 2022 on a post-split basis.
February
2022 Private Placement
On
February 28, 2022, Nanomix Corporation entered into a securities purchase agreement with accredited investors pursuant to which the Company
issued senior secured convertible notes in an principal amount of approximately $666,667 for an aggregate purchase price of $600,000.
Garrett Gruener, a director of the Company, purchased a Note in an aggregate principal amount of $444,444 for an aggregate purchase price
of $400,000 and Jerry Fiddler, a director of the Company purchased a Note in an aggregate amount of $111,111 for an aggregate purchase
price of $100,000. The Notes each have a term of twenty-four months and mature on February 28, 2024, unless earlier converted or extended
under certain conditions as set forth in the Note (the "Maturity Date"). On the Maturity Date, the Company shall pay to the
Investors an amount in cash representing 115% of all outstanding principal amount and any other amounts which may be due under the Notes.
Upon an Event of Default (as defined in the Notes), the Notes accrue interest at a rate of 14% per annum.
March
2022 Private Placement
On
March 23, 2022, Nanomix Corporation entered into a Securities Purchase Agreement with a Purchaser pursuant to which the Purchaser purchased
five hundred (500) shares of the Company's Series D Convertible Preferred Stock for an aggregate purchase price of $500,000. In
addition, in connection with the issuance of the Series D Preferred Stock, the Purchaser received a five year warrant to purchase 60,000
shares of the Company's common stock. The Warrant is exercisable at an exercise price of $2.0587 per share of Common Stock, subject
to certain beneficial ownership limitations (with a maximum ownership limit of 9.99%). The exercise price is also subject to adjustment
due to certain events, including stock dividends, stock splits and fundamental transactions and in connection with the issuance by the
Company of our Common Stock or Common Stock equivalents at an effective price per share lower than the exercise price then
in effect. The holders may exercise the Warrants on a cashless basis if the shares of our Common Stock underlying the Warrants are not
then registered pursuant to an effective registration statement.
F-
27
In
addition, upon the terms and subject to the conditions set forth in the Purchase Agreement, fifteen (15) calendar days following the
effective date of a registration statement registering the resale of the maximum aggregate number of (i) shares of Common Stock issuable
pursuant to the conversion of the Preferred Stock and (ii) Warrant Shares issuable upon exercise of the Warrants issuable pursuant to
the Purchase Agreement, and on each of the 30
th
, 60
th
, 90
th
and 120
th
calendar day anniversaries
of the Effective Date, assuming no Event of Default (as defined in the Purchase Agreement) has taken or is taking place, the Company
agrees to sell, and the Purchaser agrees to purchase, an additional five hundred (500) shares of Preferred Stock at price of $1,000 per
share of Series D Preferred Stock. Concurrently with the issuance of any Series D Preferred Stock, the Company shall issue to Purchaser
a warrant to purchase up to a number of Warrant Shares equal to 30% of the quotient of (a) the Purchase Price due at the relevant closing)
and the Closing Price of the Company's Common Stock for the Trading Day preceding such additional closing date.
In
connection with the entry into the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations
of Series D Convertible Preferred Stock with the Delaware Secretary of State to create a new class of preferred stock designated Series
D Preferred Stock and authorized the issuance of up to ten thousand (10,000) shares of Series D Preferred Stock. The Series D Preferred
Stock has a stated value of $1,200 per share and the holder of the Series D Preferred Stock has the right to receive a dividend equal
to eight percent (8%) per annum, payable quarterly, beginning on the issuance date of the Series D Preferred Stock and ending on the
date that the Series D Preferred Stock has been converted or redeemed. Dividends may be paid in cash or in shares of Series D Preferred
Stock at the discretion of the Company. At closing, the Company prepaid one year's worth of interest in shares of Series D Preferred
Stock. The Series D Preferred Stock will vote together with the common stock on an as-converted basis subject to the Beneficial Ownership
Limitations. Further, the holders of the Series D Preferred Stock have the right to receive assets in the event of liquidation, dissolution
or winding up before any distribution or payment shall be made to the holders of any securities junior to the Series D Preferred Stock.
The Company is required to reserve and keep available out of our authorized and unissued shares of Common Stock three times the number
of Common Stock needed to convert or exercise all Series D Preferred Stock and Warrants issued pursuant to the Purchase Agreement.
The
conversion price for the Series D Preferred Stock shall be the amount equal to the lower of (1) $2.08, a fixed price equaling the closing
bid price of the Common Stock on the trading day immediately preceding the date of the Purchase Agreement and (2) one hundred percent
(100%) of the quotient of (A) the sum of the VWAP of the Common Stock for each of the three (3) trading days with the lowest VWAP during
the twenty (20) consecutive trading day period ending on the trading day immediately preceding the date of delivery of a conversion notice
and (B) three, subject to the Beneficial Ownership Limitations. Following an "Event of Default," as defined in the Purchase
Agreement, the Conversion price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price per share equaling
eighty percent (80%) of the lowest traded price for the Company's common stock during the fifteen (15) Trading Days immediately
preceding, but not including, the Conversion Date. The Conversion Price is also subject to adjustment due to certain events, including
stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of our Common Stock
or Common Stock equivalents at an effective price per share lower than the Conversion Price then in effect.
Management
has evaluated subsequent events according to the requirements of ASC TOPIC 855 as of the date of the report, and believes there are no
additional subsequent events to report.
F-
28
NANOMIX CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)
As of
March 31,
As of
December 31,
2022
2021
ASSETS
Current assets:
Cash
$
10,961
$
297,351
Prepaid expenses and other current assets
110,323
171,488
Total current assets
121,284
468,839
Deposit
57,555
97,555
Property and equipment, net
340,027
339,318
Operating lease right-of-use assets
639,335
-
Total Assets
$
1,158,201
$
905,712
LIABILITIES, PREFERRED STOCK SUBJECT TO REDEMPTION AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
812,082
$
407,943
Accrued expenses
665,723
726,148
Accounts payable and accrued expenses, related party
369,973
354,973
Accrued interest
359,586
332,561
Convertible note payable, net of discount
200,000
200,000
Notes payable, related party
547,821
547,821
Notes payable marketing
450,000
450,000
Deferred Revenues
293,523
293,523
Other current liabilities
86,737
12,129
Total current liabilities
3,785,445
3,325,098
Secured Promissory Note, net of discount
2,808,621
2,012,287
Secured Promissory Note, net of discount, related party
1,622,297
1,603,778
Operating lease liabilities, net of current portion
556,278
-
Total Liabilities
8,772,641
6,941,163
Commitments and Contingencies (Note 7)
Preferred stock B; 1,000,000 shares designated, 963,964 shares issued, 0 and 963,964 shares outstanding at March 31, 2022 and December 31, 2021, respectively
-
963,964
Preferred stock C; 1,000,000 shares designated, 1,000,000 shares issued, 8,867 and 1,000,000 shares outstanding at March 31, 2022 and December 31, 2021, respectively
130,085
14,670,633
Preferred stock D; 10,000 shares designated, 500 shares issued, 500 and 0 shares outstanding at March 31, 2022 and December 31, 2021, respectively
500,000
-
Stockholders' deficit:
Common stock; $0.001 par value, 2,000,000,000 shares authorized, 46,203,866 and 5,300,084 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively
46,204
5,300
Additional paid-in capital
101,405,293
85,092,094
Stock payable
-
20,375
Accumulated deficit
(109,696,022
)
(106,787,817
)
Total stockholders' deficit
(8,244,525
)
(21,670,048
)
Total Liabilities, Preferred Stock Subject to Redemption and Stockholders' Deficit
$
1,158,201
$
905,712
The accompanying notes are an integral part of the consolidated interim financial statements
F-
29
NANOMIX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
March 31,
2022
2021
Revenues
$
-
$
141,778
Operating costs and expenses:
Research and development
861,353
608,771
Selling, general and administrative expenses
1,136,381
388,871
Total operating expenses
1,997,734
997,642
Loss from operations
(1,997,734
)
(855,864
)
Other income (expense):
Interest income
-
-
Interest expense
(847,299
)
(28,643
)
Interest expense, related, party
-
(327,943
)
Total  income (expense)
(847,299
)
(356,586
)
Loss before income taxes
(2,845,033
)
(1,212,450
)
Provision for income taxes
-
-
Net loss
$
(2,845,033
)
$
(1,212,450
)
Common stock warrant deemed dividends
(63,172
)
-
Net loss attributable to common sharehoders
$
(2,908,205
)
$
(1,212,450
)
Weighted average number of common shares  outstanding – basic and diluted
18,936,485
1,225,881
Net loss per common share – basic and diluted
(0.15
)
(0.99
)
The accompanying notes are an integral
    part of the consolidated interim financial statements
F-
30
NANOMIX CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
DEFICIT
For the Three Month Ended March 31, 2022
(unaudited)
Stockholders' Deficit
Common Stock
Stock
payable
Additional
Paid-in
Total
Accumulated
Stockholders'
Mezzanine
Shares
Amount
Amount
Capital
Deficit
Deficit
Equity
Balance, December 31, 2021
5,300,084
$
5,300
$
20,375
$
85,092,094
$
(106,787,817
)
$
(21,670,048
)
$
15,634,597
Fractional shares rounding
2,757
3
(3
)
-
Stock based compensation
-
-
-
29,550
-
29,550
Warrants issued with notes
-
-
-
736,494
-
736,494
Issuance of Series D Shares
-
-
-
-
-
-
500,000
Change in number of warrants pursuant by antidilution issuance
63,172
(63,172
)
-
Preferred Stock B conversion into common stock
5,572,045
5,572
-
958,392
-
963,964
(963,964
)
Preferred Stock C conversion into common stock
35,328,980
35,329
(20,375
)
14,525,594
-
14,540,548
(14,540,548
)
Net loss
-
-
-
-
(2,845,033
)
(2,845,033
)
Balance, March 31, 2022
46,203,866
$
46,204
$
-
$
101,405,293
$
(109,696,022
)
$
(8,244,525
)
$
630,085
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS'
DEFICIT
For the Three Month Ended March 31, 2021
(unaudited)
Stockholders' Deficit
Common Stock
Stock
payable
Additional
Paid-in
Total
Accumulated
Stockholders'
Mezzanine
Shares
Amount
Amount
Capital
Deficit
Deficit
Equity
Balance, December 31, 2020
4,298
-null-
$
-
$
44,727,171
$
(97,322,784
)
$
(52,595,613
)
$
40,070,108
Stock based compensation
-
-
-
28,405
-
28,405
Issuance of Common Shares
4,700
1
-
23,450
-
23,451
Net loss
-
-
-
-
(1,212,450
)
(1,212,450
)
Balance, March 31, 2021
8,998
$
1
$
-
$
44,779,026
$
(98,535,234
)
$
(53,756,207
)
$
40,070,108
The accompanying notes are an integral part of the consolidated interim
financial statements
F-
31
NANOMIX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For Three Months Ended
March 31,
2022
2021
Cash flows from operating activities:
Net loss
$
(2,845,033
)
$
(1,212,450
)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization expense
21,443
8,165
Loss from asset disposal
485
-
Stock-based compensation
29,550
28,405
Warrants
136,493
-
Amortization of debt discount
814,853
-
Leasing
-
811
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Accounts receivable
-
821
Prepaid expenses
61,165
(8,686
)
Other assets
40,000
-
Accounts payable
404,139
341,515
Accrued expenses
(60,425
)
(111,742
)
Accounts payable and accrued expenses, related party
15,000
50,000
Accrued Interest
27,025
27,379
Accrued Interest, related party
-
327,943
Other liabilities
(8,448
)
-
Net cash used by operating activities
(1,363,753
)
(547,839
)
Cash flows from investing activities:
Purchase of property and equipment
(22,637
)
(4,219
)
Net cash used by investing activities
(22,637
)
(4,219
)
Cash flows from financing activities:
Proceeds from notes payable
-
290,000
Proceeds from notes payable, related party
-
290,000
Proceeds from Secured Promissory Notes
600,000
-
Proceeds from issuance of common stock
-
23,450
Proceeds from issuance of Preferred stock D
500,000
-
Net cash provided by financing activities
1,100,000
603,450
Net increase (decrease) in cash
(286,390
)
51,392
Cash at the beginning of the year
297,351
15,098
Cash at the end of the year
$
10,961
$
66,490
Non-cash investing and financing transactions:
Right-of-use asset obtained in exchange for lease obligations
639,335
(53,717
)
Lease liability
(639,335
)
52,905
Convertible notes payable for accrued expenses
-
37,500
Preferred stock conversion into common stock
15,504,512
-
Dividend pursuant to warrant number change
63,172
-
Warrant issued with debt
600,000
-
The accompanying notes are an integral part of the consolidated interim financial statements
F-
32
NANOMIX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Information
as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 is unaudited.
Information as of December 31, 2021 is derived
from audited financial statements)
NOTE 1 – THE COMPANY AND
NATURE OF BUSINESS
Nature of Operations
Boston Therapeutics, Inc. (the "Company") was formed as
a Delaware corporation on August 24, 2009 under the name Avanyx Therapeutics, Inc. On November 10, 2010, the Company entered into an Agreement
and Plan of Merger (the "Merger Agreement") with Boston Therapeutics, Inc., a New Hampshire corporation ("BTI")
providing for the merger of BTI into the Company with the Company being the surviving entity (the "Merger"), the issuance
by the Company of 4,000,000 shares of common stock to the stockholders of BTI in exchange for 100% of the outstanding common stock of
BTI, and the change of the Company's name to Boston Therapeutics, Inc. On February 12, 2018, the Company acquired CureDM Group Holdings
LLC ("CureDM"), for 47,741,140 shares of common stock of which 25,000,000 were delivered at closing and 22,741,140 were to
be delivered in four equal tranches of 5,685,285 each upon the achievement of specific milestones. On January 26, 2021, Boston Therapeutics,
Inc., a Delaware corporation (the "Company"), BTHE Acquisition Inc., a California corporation and wholly-owned subsidiary
of the Company ("Merger Sub"), and Nanomix, Inc., a California corporation ("Nanomix"), entered into an Agreement
and Plan of Merger (the "Merger Agreement"), pursuant to which, Merger Sub merged with and into Nanomix, with Nanomix continuing
as a wholly-owned subsidiary of the Company and the surviving corporation of the merger (the "Merger"). On November 12, 2021,
FINRA notified the Company that the name change to "Nanomix Corporation" and the symbol change to "NNMX" would
be effective November 15, 2021. As consideration for the Merger, the Company issued to the shareholders of Nanomix 1,000,000 shares of
a newly created Series C Convertible Preferred Stock of the Company (the "Preferred Stock"). On March 22, 2022, 991,133 of
such shares of Preferred Stock issued to Nanomix shareholders automatically converted into 35,328,980 shares of common stock of the Company,
3,281 shares of Preferred Stock C were converted into 116,939 of common stock in April 2022 and 5,586 of Preferred Stock C are still outstanding
and will be converted into 199,131 of common stock of the Company; the warrants assumed at closing may be exercisable into approximately
2,124,687 shares of common stock of the Company and the options and restricted stock units assumed at closing may be exercisable into
approximately 5,718,838 shares of common stock of the Company. The shares of common stock issuable upon conversion of the Preferred Stock
together with warrants, restricted stock units and options assumed on the closing date represent approximately 80% of the outstanding
shares of Common Stock of the Company upon closing of the Merger. The merger closed on June 4, 2021. See Note 9
Nanomix has developed an
advanced mobile Point-of-Care (POC) diagnostic system that can be used in performing a wide range of in vitro diagnostic tests in many
environments. Our goal is to provide laboratory quality testing for time sensitive medical conditions, at the first point of contact
that a patient has with the healthcare system, no matter where that occurs. The Nanomix eLab® system is CE Marked, a 510(k) is currently
in development, and Emergency Use Application (EUA) for COVID testing has been submitted to the FDA. Nanomix intends to market and sell
the Nanomix eLab system for the detection and diagnosis of a variety of time sensitive medical conditions.
NOTE 2 – BASIS OF PRESENTATION
The accompanying financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP")
and include all adjustments necessary for the fair presentation of the Company's financial position for the periods
presented.
The Company currently operates
in one business segment focusing on the development of mobile diagnostic tests. The Company is not organized by market and is managed
and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer, who
comprehensively manages the entire business. The Company does not currently operate any separate lines of business or separate business
entities.
F-
33
Going Concern
The accompanying financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization
of assets and satisfaction of liabilities in the normal course of business. The Company has not yet realized any significant revenues
from its planned operations. The Company had net losses of approximately $2.8 million and $1.2 million for the three months ended March
31, 2022 and 2021, respectively. These matters, among others, raise substantial doubt about the Company's ability to continue as
a going concern.
Since inception, the operations
of the Company have been funded through the sale of common stock, preferred stock subject to redemption, debt and convertible debt, and
derived revenue from contract research and development services. Management believes that its existing working capital is insufficient
to fund the Company's operations for the next twelve months. As a result, the Company will need to raise additional capital to
fund its operations and continue to conduct activities that support the development and commercialization of its products. Management
intends to raise additional funds by way of public or private offering and continued contract research and development services. Management
cannot be certain that additional funding will be available on acceptable terms, or at all to the extent that the Company raises additional
funds by issuing equity securities, the Company's stockholders may experience significant dilution. Any debt financing, if available,
may involve restrictive covenants that impact the Company's ability to conduct business. If the Company is not able to raise additional
capital when required or an acceptable terms, the Company may have to (i) significantly delay, scale back or discontinue the development
and/or commercialization of one or more product candidates; (ii) seek collaborators for product candidates at an earlier stage than otherwise
would be desirable and on terms that are less favorable than might otherwise be available; or (iii) relinquish or otherwise dispose of
rights to technologies, product candidates or products that the Company would otherwise seek to develop or commercialize.
The consolidated financial
statements do not include any adjustments that might be necessary if Company is unable to continue as a going concern.
Principles of Consolidation
The consolidated financial
statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and
transactions have been eliminated.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of the consolidated
financial statements and related disclosures in conformity with U.S. generally accepted accounting principles ("U.S. GAAP")
requires the Company's management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated
financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions
it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values
of assets and liabilities. Actual results may differ from these estimates and these differences may be material. The more significant
estimates and assumptions by management include among others: recoverability of long-lived assets, accrued liabilities, the valuation
allowance of deferred tax assets resulting from net operating losses and the valuation of the Company's common stock, preferred
stock, warrants and options on the Company's common stock.
F-
34
Revenue Recognition
The Company recognizes revenue
when the customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to
receive in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under Accounting
Standards Update ("ASU") 2014-09 ASC 606 – Revenue from Contracts with customers: (i) identify contract(s) with a customer;
(ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price
to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies the performance obligation.
R&D Revenue
All contracts with customers
are evaluated under the five-step model described above. The company recognizes income from R&D milestone-based contracts when those
milestones are reached and non-milestone contracts and grants when earned. These projects are invoiced after expenses are incurred. Any
projects or grants funded in advance are deferred until earned.
Cash and Cash Equivalents
For purposes of the Consolidated
Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents.
As of March 31, 2022, the Company places all of its cash and with one financial institution. Such funds are insured by The Federal Deposit
Insurance Corporation ("FDIC") up to $250,000. Cash balances could exceed insured amounts at any given time; however, the
Company has not experienced any such losses. At March 31, 2022 and December 31, 2021 there were no cash equivalents.
Allowances for Sales Returns and Doubtful
Accounts
The allowance for sales returns
is based on the Company's estimates of potential future product returns and other allowances related to current period product
revenue. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of the Company's products.
The allowance for doubtful accounts is based on the Company's assessment of the collectability of customer accounts and the aging
of the related invoices, and represents the Company's best estimate of probable credit losses in its existing trade accounts receivable.
The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts
receivable balances, and current economic conditions that may affect a customer's ability to pay. We determined that
no allowances for sales returns and doubtful accounts were required at March 31, 2022 and December 31, 2021.
Property and Equipment
Property and equipment are
carried at cost and depreciated or amortized using a straight-line basis over the estimated useful lives of assets, as follows:
Computer equipment
3 years
Office furniture and equipment
5 years
Laboratory equipment
4 years
Manufacturing equipment
5 years
Leasehold improvements are
depreciated over the shorter of their estimated useful lives or the term of the respective lease on a straight line basis.
The cost of repairs and maintenance
is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated
depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.
The Company will assess the
recoverability of property and equipment by determining whether the depreciation and amortization of these assets over their remaining
life can be recovered through projected undiscounted future cash flows. The amount of equipment impairment, if any, will be measured
based on fair value and is charged to operations in the period in which such impairment is determined by management.
F-
35
Income Taxes
The Company accounts for
income taxes under an asset and liability approach that recognizes deferred tax assets and liabilities based on the difference between
the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in
which the differences are expected to reverse.
The Company follows a more-likely
than -not threshold for financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return.
The company assesses the
realizability of its net deferred tax assets on an annual basis. If, after considering all relevant positive and negative evidence, it
is more likely than not that some portion or all of the net deferred tax assets will not be realized, the Company will reduce the net
deferred tax assets by a valuation allowance. The realization of the net deferred tax assets is dependent on several factors, including
the generation of sufficient taxable income prior to the expiration of the net operating loss carryforwards.
The Company has no uncertain
tax positions at any of the dates presented.
Foreign Currency Translation
The Company derives a portion
of its revenue from foreign countries, but customers pay in U.S. Dollars. Therefore, no adjustments are required in the accompanying
consolidated financial statements for foreign currency transactions.
Research and Development Costs
The Company expenses the
cost of research and development as incurred. Research and development expenses comprise costs incurred in performing research and development
activities, including clinical trial costs, manufacturing costs for both clinical and pre-clinical materials as well as other contracted
services, license fees, and other externa costs. Nonrefundable advance payments for goods and services that will be used in future research
and development activities are expensed when the activity is performed or when the goods have been received, rather when payment is made,
in accordance with ASC 730,
Research and Development
.
Fair Value Measurements
Fair value is defined as
the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs ( Level 3 measurements). These tiers include:
●
Level 1, defined as observable inputs such as quoted prices
for identical instruments in active markets;
●
Level 2, defined as inputs other than quoted prices in active
markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in markets that are not active; and
●
Level 3, defined as unobservable inputs in which little or
no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques
in which one or more significant inputs or significant value drivers are unobservable.
The Company had no assets or liabilities which
were measured at fair value on a nonrecurring basis during the reporting periods.
F-
36
Fair Value of Financial Instruments
In accordance with current
accounting standards, certain assets and liabilities must be measured at fair value. ASC 820 defines fair value as the price that would
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date (an exit price). The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency
and comparability of fair value measurements and the related disclosures. ASC 820 requires that certain assets and liabilities must be
measured at fair value, and the standard details the disclosures that are required for items measured at fair value. The Company had
no assets and liabilities required to be measured on a recurring basis at December 31, 2021 and 2020.
The current assets and current
liabilities reported on the Company's balance sheets are estimated by management to approximate fair market value due to their
short-term nature.
Employee Stock-based Compensation
Stock-based compensation
issued to employees and members of the Company's Board of Directors is measured at the date of grant based on the estimated fair
value of the award, net of estimated forfeitures. The grant date fair value of a stock-based award is recognized as an expense over the
requisite service period of the award on a straight-line basis.
For purposes of determining
the variables used in the calculation of stock-based compensation issued to employees, the Company performs an analysis of current market
data and historical data to calculate an estimate of implied volatility, the expected term of the option and the expected forfeiture
rate. With the exception of the expected forfeiture rate, which is not an input, the Company uses these estimates as variables in the
Black-choles option pricing model. Depending upon the number of stock options granted, any fluctuations in these calculations could have
a material effect on the results presented in the Company's Statements of Operations. In addition, any differences between estimated
forfeitures and actual forfeitures could also have a material impact on the Company's financial statements.
Stock-Based Compensation Issued to Non-employees
Common stock issued to non-employees
for acquiring goods or providing services is recognized at fair value when the goods are obtained or over the service period, which is
generally the vesting period. If the award contains performance conditions, the measurement date of the award is the earlier of the date
at which a commitment for performance by the non-employee is reached or the date at which performance is reached. A performance commitment
is reached when performance by the non-employee is probable because of sufficiently large disincentives for nonperformance.
Earnings per Share
The computation of basic
earnings per common share is based on the weighted average number of shares outstanding during the period. The computation of diluted
earnings per common share is based on the weighted average number of shares outstanding during the period plus the weighted average common
stock equivalents which would arise from the exercise of stock options, warrants, convertible preferred stock and other rights during
the period.
For the period ended March
31, 2022, the diluted weighted average number of shares is the same as the basic weighted average number of shares as the inclusion of
any common stock equivalents would be anti-dilutive.
F-
37
NOTE 4 – REVENUE
Deferred Revenue
The company recognizes income
from R&D milestone-based contracts when those milestones are reached and non-milestone contracts and grants when earned. These projects
are invoiced after expenses are incurred. Any projects or grants funded in advance are deferred until earned.
From time to time the Company
may receive prepayment from customers for products to be manufactured or component materials to be procured and shipped in future dates.
Customer payments in advance of the applicable performance obligation are deferred and recognized in accordance with ASC 606.
As of March 31, 2022 and
December 31, 2021, there were $293,523 unearned advanced revenues.
Disaggregation of Revenue
The following table disaggregates
total revenues for the periods ending March 31, 2022 and 2021:
Three months Ended
March 31,
2022
2021
Government grant income
$
-
$
141,778
$
0
$
141,778
NOTE 5 – PROPERTY AND EQUIPMENT
Property and equipment consisted of the following
at March 31, 2022 and December 31, 2021:
As of
March 31,
As of
December 31,
2022
2021
Computer Equipment &Office Equipment
$
27,502
$
27,453
Lab Equipment
300,112
300,112
Manufacturing Equipment
445,280
435,220
Furniture and fixtures
14,370
14,370
Leasehold Improvements
11,550
20,232
Total property and equipment
798,814
797,387
Accumulated depreciation
(458,787
)
(458,069
)
Total property and equipment, net of accumulated depreciation
$
340,027
$
339,318
Depreciation expense was $21,443 and $8,165 for
the three months ended March 31, 2022 and 2021, respectively.
F-
38
NOTE 6 – NOTES PAYABLE AND CONVERTIBLE NOTES PAYABLE
Convertible Note payable, net of discount
In August and September 2016,
the Company issued senior convertible debentures for an aggregate of $1,600,000 (the "Convertible Debentures") in exchange
for an aggregate net cash proceeds of $1,327,300, net of financing costs. The Convertible Debentures have a stated interest rate of 6%
per annum payable quarterly beginning June 30, 2017 and were due two years from the date of issuance, the latest due September 15, 2018
and are convertible into shares of the Company's common stock at the option of the holder at a conversion price of $0.075 with
certain anti-dilutive (reset) provisions and are subject to forced conversion if either i) the volume weighted average common stock price
for each of any 10 consecutive trading days equals or exceeds $0.50, or (ii) the Company's elects to lists a class of securities
on a national securities exchange.
As long as the convertible
notes remain outstanding, the Company is restricted from incurring any indebtedness or liens, except as permitted (as defined), amend
its charter in any matter that materially effects rights of noteholders, repay or repurchase more than de minimis number of shares of
common stock other than conversion or warrant shares, repay or repurchase all or any portion of any indebtedness or pay cash dividends.
The Convertible Notes and
accrued interest were exchanged into common stock prior to the merger leaving a remaining Convertible notes payable balance of $200,000
as of March 31, 2022 and December 31, 2021. Accrued interest $58,008 and $55,008 was included in accrued interest balance as of March
31, 2022 and December 31, 2021, respectively.
Notes Payable
Through December 31, 2011,
a founder of the company and significant shareholder, Dr. David Platt advanced $257,820 to the Company to fund start-up costs and operations.
Advances by Dr. Platt carry an interest rate of 6.5% and were due on June 29, 2013. On May 7, 2012, Dr. Platt and the Company's
former President and also a significant shareholder entered into promissory notes to advance to the Company $20,000 each for an aggregate
of $40,000. The notes accrue interest at 6.5% per year and were due June 30, 2013. The outstanding notes of $297,820 were amended each
year to extend the maturity dates. Effective June 30, 2015, the outstanding notes for Dr. Platt were amended to extend the maturity dates
to June 30, 2017. During 2017, the Company made fully paid the note and all accrued interest to the former President of the Company.
Dr. Platt's notes and accrued interest remain outstanding and are classified as current liabilities.
In December 2013, the Board
of Directors agreed to indemnify Dr. Platt for legal costs incurred in connection with an arbitration (now concluded) initiated before
the American Arbitration Association by Galectin Therapeutics, Inc. (formerly named Pro-Pharmaceuticals, Inc.) for which Dr. Platt previously
served as CEO and Chairman. Galectin sought to rescind or reform the Separation Agreement entered into with Dr. Platt upon his resignation
from Galectin to remove a $1.0 million milestone payment which Dr. Platt asserted he was entitled to receive and to be repaid all separation
benefits paid to Dr. Platt. The Company initially capped the amount for which it would indemnify Dr. Platt at $150,000 in December 2013
and Dr. Platt agreed to reimburse the indemnification amounts paid by the Company should he prevail in the arbitration. The Board decided
to indemnify Dr. Platt after considering a number of factors, including the scope of the Company's existing indemnification obligations
to officers and directors and the potential impact of the arbitration on the Company. In May 2014, the Board approved a $50,000 increase
in indemnification support, solely for the payment of outside legal expenses. The Company recorded a total of $182,697 in costs associated
with Dr. Platt's indemnification, of which $119,401 was expensed in the year ended December 31, 2013 and of which $63,296 was expensed
in the year ended December 31, 2014. In July 2014, the arbitration was concluded in favor of Dr. Platt, confirming the effectiveness
of the separation agreement and payment was made to Dr. Platt in July 2014.
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39
On March 2, 2015, the Board
of Directors voted to reduce the amount that Dr. Platt was required to reimburse the Company to $82,355 and to offset this amount against
interest accrued in respect of the outstanding note payable to Dr. Platt. In addition, the Board determined that Dr. Platt would be charged
interest related to the $182,697 indemnification payment since funds were received by Dr. Platt in July 2014. The Board of Directors
concluded the foregoing constituted complete satisfaction of Dr. Platt's indemnification by the Company. Accordingly, the Company
recorded the reduction in accrued interest through equity during the year ended December 31, 2015. As of March 31, 2022 and December
31, 2021, the balance of the notes payable to Dr. Platt totaled $277,821 and are included in notes payable. Accrued interest $135,942
and $127,575 was included into accrued interest balance as of March 31, 2022 and December 31, 2021, respectively.
During 2021 the company issued
notes payable for a total amount of $270,000 to CJY Holdings, Ltd ("CJY"). CJY is a Hong Kong company owned by Conroy Chi-Heng
Cheng, a former director of Boston Therapeutics. The CJY Note is an unsecured obligation of the Company. Principal and interest under
the CJY Note is due and payable after one year. Interest accrues on the CJY Note at the rate of 10% per annum. As of March 31, 2022 and
December 31, 2021, the balance of the notes payable to CJY totaled $270,000 and are included notes payable. Accrued interest $30,142
and $23,485 was included into accrued interest balance as of March 31, 2022 andDecember 31, 2021, respectively.
Note Payable Marketing
On June 26, 2018, the Company
entered into a License Agreement with Level Brands, Inc. (NYSE: LEVB), an innovative licensing, marketing and brand management company
with a focus on lifestyle-based products which includes an exclusive license to the kathy ireland® Health & Wellness™ brand.
Under the terms of the License Agreement, the Company received a non-exclusive, non-transferrable license to use the kathy ireland Health
& Wellness™ trademark in the marketing, development, manufacture, sale and distribution of the Sugardown® product domestically
and internationally. The initial term of the License Agreement is seven years, with an automatic two-year extension unless either party
notifies the other of non-renewal at least 90 days prior to the end of the then current term. Level Brands has agreed to use its commercially
reasonable efforts to perform certain promotional obligations, including: (i) producing four branded videos to promote the licensed product
and/or the Company; (ii) creation of an electronic press kit; (iii) making their media and marketing teams available for use in creating
the video content for which the Company will separately compensate; and (iv) curate social media posts in multiple social media channels.
As compensation, the Company
will provide Level Brands with the following:
●
A marketing fee of $850,000, for development of video content
and an electronic press kit which will be used ongoing to support product marketing. This fee is paid with a promissory note of $450,000
and a number of shares of stock of the Company valued at $400,000 in accrued expenses, based on the closing price on the day prior to
the effective date;
●
Quarterly fees for the first two years of up to $100,000 and
issuance of 100,000 shares each quarter, based on sales volumes. The Company has the right to make all the stock payments in cash; and
●
a royalty of 5% of the gross licensed marks sales up to $10,000,000,
7.5% royalty on sales from $10,000,000 to $50,000,0000 and 10% on sales over $50,000,000,payable monthly as well as a 1% of all revenue
for all Company products as of the date hereof.
The note payable of $450,000
bears interest at 8% and matures December 31, 2019, unless the Company raises $750,000 through Level Brands prior to that date in which
case the Note is to be repaid in full including accrued interest. As of March 31, 2022 and December 31, 2021 the principal balance of
the marketing note was $450,000. Accrued interest at March 31, 2022 and December 31, 2021 totaled $135,493 and $126,493, respectively.
As of March 31 2022, the
Company has not issued the $400,000 of common stock which was due upon execution of the agreement or any of the shares pursuant to the
quarterly fee. The $400,000 is included in accrued expenses at March 31, 2022 and December 31, 2021. Due to the Company's low sales
volume, no accrual for royalties is included in the financial statements as the amounts would not be material.
Level Brands sued the Company
for non-performance under the contract. The matter was taken to arbitration with both parties claiming nonperformance under the contract.
In October 2019, the arbitration was dismissed without prejudice.
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Convertible Note Payable
From 2018 to June 3, 2021,
the Company issued a total of $8.7 million of unsecured notes payable to investors including $7.7 million to related parties. These notes
bear interest at a rate of 15% per annum and include a common stock warrant equal to 30% of the face value of the note. The outstanding
principal, and accrued but unpaid interest on the notes converts into fully paid and non-assessable shares of Special Preferred Stock
at a price of $0.32276 per share in a Qualified Investment. In the event of conversion not in conjunction with a Qualified Investment,
the notes are convertible into Common Stock at a price of $0.10759. As of June 3, 2021, the Company had $1,960,116 interest accrued.
On June 4,2021 as a part of merger, the principal
amount and accrued interest were converted into 571,621 shares of Common Stock, fully converting the notes and accrued interest as of
March 31, 2022 and December 31, 2021. The principal and accrued interest were converted per the terms of the agreement as such no gain
or loss was recognized. The merger did not meet the Qualified Investment criteria.
Note Payable and Senior Secured Convertible
Notes
In May 2018, the Company
issued a secured note payable to a related party for a total amount of $1.0 million with a 90-day maturity. The maturity date of this
note was extended by mutual agreement with the note holder and the note was outstanding until June 25, 2021. As of June 25,2021, the
Company has $603,778 interest accrued.
On June 25, 2021, the Company
and the $1.0 secured million note payable Holder entered into exchange agreement, whereby the company issued the Holder a Senior Secured
Convertible Note in the principal amount of $1,603,778 with a maturity date of June 18, 2023. On the maturity date, the Company shall
pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall accrue thereunder unless and until
an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible into validly, fully paid and non-assessable
shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also granted 1,368,762 2-year warrants exercisable
at $1.1717. The issuance of the note and warrants resulted in a loss on modification of debt of $2,385,204 for the year ended December
31, 2021. As of March 31, 2022 and December 31, 2021, the note balance was $1,603,778.
On June 25, 2021, the Company
and Gold Blaze Limited Vistra Corporate Services entered into exchange agreement, where the company issued the Gold Blaze Limited Vistra
Corporate Services Senior Secured Convertible Note in the principal amount of $500,000 with a maturity date of June 25, 2023. On the
maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest shall
accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 426,730 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount from the beneficial
conversion feature totaling $500,000. As of March 31, 2022 and December 31, 2021, the note was shown net of unamortized discount of $312,500
and $375,000, respectively. Discount amortization for the three months ended March 31, 2022 and March 31, 2021 was $62,500 and $0, respectively.
In June 25, 2021, the Company
issued a Senior Secured Convertible Note to HT Investment MA LLC for a principal amount $5.0 million and maturity date of June 25, 2023.
On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 4,267,304 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount from the beneficial
conversion feature totaling $4,500,000. Funds received were $4,500,000 net of an original issue discount of $500,000. As of March 31,
2022 and December 31, 2021, the note was shown net of unamortized discount of $3,125,000 and $3,750,000, respectively. Discount amortization
for the three months ended March 31, 2022 and March 31, 2021 was $625,000 and $0, respectively.
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In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Dr. Harold Parnes for a principal amount $1.2 million and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 1,024,153 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $222,534 and a discount from the relative fair value of warrants issued of $494,802.
As of March 31, 2022 and December 31, 2021, the note was shown net of unamortized discount of $535,013 and $624,680, respectively. Discount
amortization for the three months ended March 31, 2022 and March 31, 2021 was $89,667 and $0, respectively.
In September 27, 2021, the
Company issued a Senior Secured Convertible Note to Steve Schrader for a principal amount $131 thousand and maturity date of September
27, 2023. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal.
No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note
may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the
noteholder was also granted 113,510 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount
from the beneficial conversion feature totaling $24,672 and a discount from the relative fair value of warrants issued of $54,598. As
of March 31, 2022 and December 31, 2021, the note was shown net of unamortized discount of $59,124 and $69,033, respectively. Discount
amortization for the three months ended March 31, 2022 and March 31, 2021 was $9,909 and $0, respectively.
In February 28, 2022, the
Company issued a Senior Secured Convertible Note to Zygote Ventures for a principal amount $111,111 and maturity date of February 28,
2024. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 94,829 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount totaling $100,000.
Funds received were $100,000 net of an original issue discount of $11,111. As of March 31, 2022 and December 31, 2021, the note was shown
net of unamortized discount of $106,481 and $0, respectively. Discount amortization for the three months ended March 31, 2022 and March
31, 2021 was $4,630 and $0, respectively.
In February 28, 2022, the
Company issued a Senior Secured Convertible Note to Gold Blaze Limited Vistra Corporate Services for a principal amount $111,111 and maturity
date of February 28, 2024. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding
Principal. No interest shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date,
this Note may be convertible into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement,
the noteholder was also granted 94,829 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount
totaling $100,000. Funds received were $100,000 net of an original issue discount of $11,111. As of March 31, 2022 and December 31, 2021,
the note was shown net of unamortized discount of $106,481 and $0, respectively. Discount amortization for the three months ended March
31, 2022 and March 31, 2021 was $4,630 and $0, respectively.
In February 28, 2022, the
Company issued a Senior Secured Convertible Note to Garrett Gruener for a principal amount $444,444 and maturity date of February 28,
2024. On the maturity date, the Company shall pay to the Holder an amount in cash representing 115% of all outstanding Principal. No interest
shall accrue thereunder unless and until an Event of Default has occurred. At any time after the Issuance Date, this Note may be convertible
into validly, fully paid and non-assessable shares of Common Stock. As an incentive to enter into the agreement, the noteholder was also
granted 379,316 2-year warrants exercisable at $1.1717. The issuance of the note and warrants resulted in a discount totaling $400,000.
Funds received were $400,000 net of an original issue discount of $44,444. As of March 31, 2022 and December 31, 2021, the note was shown
net of unamortized discount of $425,926 and $0, respectively. Discount amortization for the three months ended March 31, 2022 and March
31, 2021 was $18,519 and $0, respectively.
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42
NOTE 7 – COMMITMENTS AND CONTINGENCIES
Preferred Stock
Series B
The Company has designated
1,000,000 shares of its preferred stock as Series B Preferred Stock. Each share of Series B Preferred Stock has a stated value of $1.
Each share of the Series B Preferred Stock is convertible into 1,000 shares of the Company's common stock. The Series B Preferred
Stock shall have no voting rights until January 1, 2022 when it will be on an as converted basis (subject to limitations) and liquidation
preference for each share of Series B Preferred Stock at an amount equal to the stated value per share.
As of December 31, 2021,
the Company has 963,964 shares of Series B Preferred Stock outstanding. The Series B Preferred Stock has been classified outside of permanent
equity and liabilities since it embodies a conditional obligation that the Company may settle by paying the monetary value in cash upon
a liquidation event due to the liquidation preferences of the Series B Preferred Stock based upon its designation.
The Series B preferred stock
shares are accounted for outside of permanent equity due to the terms of cash-redemption features.
In March 2022 as a result
of the Reverse Stock Split, all shares of Preferred Stock B converted into 5,572,045 shares of common stock of the Company.
As of March 31, 2022, the
Company has 0 shares of Series B Preferred Stock outstanding.
Series C
As consideration for the
Merger, the Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible Preferred Stock of
the Company (the "Preferred Stock"). Upon the effectiveness of the amendment to our Certificate of Incorporation to effectuate
the reverse stock split of one-for-173, all such shares of Preferred Stock issued to Nanomix shareholders shall automatically convert
into approximately 35,644,997 shares of common stock of the Company. Shares of the Series C Preferred Stock shall be entitled to vote
on any matter and shall each collectively represent 80% of the votes eligible to be cast in any manner. The Series C Preferred Stock
are not entitled to any dividends (unless specifically declared by our Board), but will participate on an as-converted-to-common-stock
basis in any dividends to the holders of our common stock.
The Series C preferred stock
shares are accounted for outside of permanent equity due to the terms of cash-redemption features.
In March 2022 as a result of the Reverse Stock Split, 991,133 shares
of Preferred Stock C issued to the Nanomix shareholders converted into 35,328,980 shares of common stock of the Company. In April 2022
3,281 shares of preferred Stock C were converted into 116,939 shares of common stock of the Company. The remaining 5,586 shares of Preferred
Stock C are still outstanding.
Series D
On March 23, 2022, Nanomix
Corporation entered into a Securities Purchase Agreement with a Purchaser pursuant to which the Purchaser purchased five hundred (500)
shares of the Company's Series D Convertible Preferred Stock for an aggregate purchase price of $500,000. In addition, in connection
with the issuance of the Series D Preferred Stock, the Purchaser received a five year warrant to purchase 60,000 shares of the Company's
common stock. The Warrant is exercisable at an exercise price of $2.0587 per share of Common Stock, subject to certain beneficial ownership
limitations (with a maximum ownership limit of 9.99%). The exercise price is also subject to adjustment due to certain events, including
stock dividends, stock splits and fundamental transactions and in connection with the issuance by the Company of our Common Stock
or Common Stock equivalents at an effective price per share lower than the exercise price then in effect. The holders may exercise
the Warrants on a cashless basis if the shares of our Common Stock underlying the Warrants are not then registered pursuant to an effective
registration statement.
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In addition, upon the terms
and subject to the conditions set forth in the Purchase Agreement, fifteen (15) calendar days following the effective date of a registration
statement registering the resale of the maximum aggregate number of (i) shares of Common Stock issuable pursuant to the conversion of
the Preferred Stock and (ii) Warrant Shares issuable upon exercise of the Warrants issuable pursuant to the Purchase Agreement, and on
each of the 30
th
, 60
th
, 90
th
and 120
th
calendar day anniversaries of the Effective Date,
assuming no Event of Default (as defined in the Purchase Agreement) has taken or is taking place, the Company agrees to sell, and the
Purchaser agrees to purchase, an additional five hundred (500) shares of Preferred Stock at price of $1,000 per share of Series D Preferred
Stock. Concurrently with the issuance of any Series D Preferred Stock, the Company shall issue to Purchaser a warrant to purchase up
to a number of Warrant Shares equal to 30% of the quotient of (a) the Purchase Price due at the relevant closing) and the Closing Price
of the Company's Common Stock for the Trading Day preceding such additional closing date.
In connection with the entry
into the Purchase Agreement, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible
Preferred Stock with the Delaware Secretary of State to create a new class of preferred stock designated Series D Preferred Stock and
authorized the issuance of up to ten thousand (10,000) shares of Series D Preferred Stock. The Series D Preferred Stock has a stated
value of $1,200 per share and the holder of the Series D Preferred Stock has the right to receive a dividend equal to eight percent (8%)
per annum, payable quarterly, beginning on the issuance date of the Series D Preferred Stock and ending on the date that the Series D
Preferred Stock has been converted or redeemed. Dividends may be paid in cash or in shares of Series D Preferred Stock at the discretion
of the Company. At closing, the Company prepaid one year's worth of interest in shares of Series D Preferred Stock. The Series
D Preferred Stock will vote together with the common stock on an as-converted basis subject to the Beneficial Ownership Limitations.
Further, the holders of the Series D Preferred Stock have the right to receive assets in the event of liquidation, dissolution or winding
up before any distribution or payment shall be made to the holders of any securities junior to the Series D Preferred Stock. The Company
is required to reserve and keep available out of our authorized and unissued shares of Common Stock three times the number of Common
Stock needed to convert or exercise all Series D Preferred Stock and Warrants issued pursuant to the Purchase Agreement.
The conversion price for
the Series D Preferred Stock shall be the amount equal to the lower of (1) $2.08, a fixed price equaling the closing bid price of the
Common Stock on the trading day immediately preceding the date of the Purchase Agreement and (2) one hundred percent (100%) of the quotient
of (A) the sum of the VWAP of the Common Stock for each of the three (3) trading days with the lowest VWAP during the twenty (20) consecutive
trading day period ending on the trading day immediately preceding the date of delivery of a conversion notice and (B) three, subject
to the Beneficial Ownership Limitations. Following an "Event of Default," as defined in the Purchase Agreement, the Conversion
price shall equal the lower of: (a) the then applicable Conversion Price; or (b) a price per share equaling eighty percent (80%) of the
lowest traded price for the Company's common stock during the fifteen (15) Trading Days immediately preceding, but not including,
the Conversion Date. The Conversion Price is also subject to adjustment due to certain events, including stock dividends, stock splits
and fundamental transactions and in connection with the issuance by the Company of our Common Stock or Common Stock equivalents
at an effective price per share lower than the Conversion Price then in effect.
The Series D preferred stock
shares are accounted for outside of permanent equity due to the terms of cash-redemption features.
Research and Development Arrangement
In April of 2020, the Company
received a BARDA fixed price, cost sharing contract for development and EUA filing of COVID-19 Anitbody and Antigen tests on the Nanomix
eLab platform. The total amount of the milestone-based contract was $569,647. As of December 31, 2021, the full amount of $569,467 had
been received under the contract.
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Employments Agreements
The Company does not have Employment Agreements
with any employees. All employees are employed under "at will" arrangements without guarantees or separation arrangements.
Leases
During 2021 the Company leased
its facility under a sublease agreement. The Sublease term was from November 19, 2019 to December 15, 2021. The sublease agreement was
extended through December 31, 2021. Rent expense was recognized on a straight-line basis over the lease term.
On December 6, 2021 the Company
signed a short-term lease agreement for the same facility with a term from January 1, 2022 to March 31, 2022.
On February 4, 2022 the Company
signed a new facility lease agreement moving all operaations to a new location. The Lease term is from April 1, 2022 to March 31, 2027.
Rent expense will be recognized on a straight-line basis over the lease term. See details in Note 8.
Legal
The Company is not currently
involved in any legal matters in the normal course of business. From time to time, the Company could become involved in disputes and
various litigation matters that arise in the normal course of business. These may include disputes and lawsuits related to intellectual
property, licensing, contract law and employee relations matters. Periodically, the Company reviews the status of significant matters,
if any exist, and assesses its potential financial exposure. If the potential loss from any claim and legal claim is considered probable
and the amount can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings are subject to uncertainties,
and the outcomes are difficult to predict. Because of such uncertainties, accruals are based on the best information available at the
time. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigations.
NOTE 8 – LEASES
Our adoption of ASU 2016-02,
Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet
as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted
this standard on the effective date of January 1, 2019 and used this effective date as the date of initial application. Under this application
method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected
the 'package of practical expedients,' which permitted us to not reassess our prior conclusions related to lease identification,
lease classification, and initial direct costs, and we did not elect the use of hindsight.
Lease ROU assets and liabilities
are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset
also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining
the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the
information available at the lease commencement date, including the lease term.
We recognized a $639,335
right-of-use asset and $639,335 related lease liability as of March 31, 2022 for our operating lease. For our operating lease, the asset
is included in other long-term assets on the balance sheet and is amortized within operating income over the lease term. The long-term
component of the lease liability is included in other long-term liabilities, net, and the current component is included in other current
liabilities.
Short-term leases with an
initial term of 12 months or less are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight-line
basis over the lease term. As of March 31, 2022 the Company had three-months lease which was recognized over the period January 1, 2022
to March 31,2022.
The company incurred rent
expense, which is included as part of selling, general and administrative expenses, of $81,251 and $69,278 for the three months ended
March 31, 2022 and 2021.
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The tables below present
financial information associated with our lease.
Balance Sheet
March 31,
December 31,
Classification
2022
2021
Right-of-use assets
Other long-term assets
$
639,335
$
0
Current lease liabilities
Other current liabilities
83,056
0
Non-current lease liabilities
Other long-term liabilities
556,278
0
As of March 31, 2022, our maturities of our lease liability are as
    follows:
March 31,
2022
Maturity of lease liabilities
Operating
Leases
2023
$
173,400
2024
178,602
2025
183,960
2026
189,479
2027
195,163
Total lease payments
$
920,604
Less: Imputed interest
(281,269
)
Present value of lease liabilities
$
639,335
NOTE 9 – BUSINESS COMBINATION
On June 4, 2021, the Company
consummated the Business Combination with Nanomix, Inc pursuant to the agreement between Nanomix, Inc and Boston Therapeutics, Inc (the
Merger Agreement"). Pursuant to ASC 805, for financial accounting and reporting purposes, Nanomix, Inc was deemed the accounting
acquirer and the Company was treated as the accounting acquiree, and the Business Combination was accounted for as a reverse recapitalization.
Acordingly, the Business Combination was treated as the equivalent of the Nanomix, Inc issuing stock for the net assets of Boston Therapeutics,
Inc, accompanied by a recapitalization. The net assets of Boston Therapeutics, Inc were stated at historic costs, with no goodwill or
other intangible assets recorded, and are consolidated with Nanomox, Inc's financial statements on the Closing date. The shares
and net income (loss) per share available to holders of the Company's common stock, prior to the Business Combination, have been
adjusted as shares reflecting the exchange ration established in the Merger Agreement.
NOTE 10 – STOCKHOLDERS' DEFICIT
Common Stock
As of December 31, 2020,
the Company was authorized to issue 137,000,000 shares of common stock with a par value of $0.00001 per share, and 4,298 common shares
were issued and outstanding.
On January 25, 2021, the
Company issued 1,214 common shares for option exercise with exercise price $1.73 per share
On February 11, 2021, the
Company issued 3,486 common shares for option exercise with average exercise price $6.12 per share.
On June 4, 2021, as consideration for the Merger,
the Company:
●
converted 101,015,049 shares of preferred stock into 618,687
shares of common stock;
●
converted $10,639,615.96 of notes payable and accrued interest
into 571,621 shares of common stock with conversion rate 18.613;
●
exchanged all outstanding 1,199,306 shares of common stock
for newly created 1,000,000 shares Series C Convertible Preferred Stock;
On September 2021, the Company
re-purchased 5,435 of Nanomix, Inc. pre-merger common shares from unaccredited investors for the amount $202,188.
On October 8, 2021, a Nanomix,
Inc stock option was exercised for 506 shares of Nanomix, Inc. pre-merger common stock with an exercise price of $8.65 per share for
a total amount of $4,375. The shares weren't issued pending effectiveness of the reverse stock split and the exercise was recorded
in Stock payable. Shares of Nanomix Corporation common stock were subsequently issued in 2022 after effectiveness of the reverse stock
split.
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46
On November 15, 2021, a Nanomix,
Inc stock option exercised for 2,312 shares of Nanomix, Inc. pre-merger common stock with an exercise price $6.92 per share for the amount
$16,000. The shares weren't issued pending effectiveness of the reverse stock split and the exercise was recorded in Stock payable.
Shares of Nanomix Corporation common stock were subsequently issued in 2022 after effectiveness of the reverse stock split.
On January 11, 2022, Nanomix
Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware Secretary of State to
effect a reverse split of the Company's outstanding shares of common stock, par value $0.0001 per share (the "Common Stock"),
at a ratio of 1-for-173. The reverse split was recorded retrospectively in 2021 financial statements converted 916,914,554 common shares
of Boston Therapeutics stock into 5,300,084 common shares of Nanomix Corporation with par value $0.001.
As of December 31, 2021,
the Company had a total of 5,300,084 common shares issued and outstanding with a par value of $0.001. The Company has 2,000,000,000 authorized
shares of common stock as of the same period and after the reverse stock split.
On January 11, 2022, Nanomix
Corporation filed a Certificate of Amendment to its Certificate of Incorporation, as amended, with the Delaware Secretary of State to
effect a reverse split of the Company's outstanding shares of common stock, par value $0.0001 per share (the "Common Stock"),
at a ratio of 1-for-173. Pursuant to the Amendment, every one-hundred and seventy three (173) shares of the Company's Common Stock
issued and outstanding or held in treasury (if any) immediately prior to the effectiveness of Amendment were automatically reclassified
as and combined, without further action, into one (1) validly issued, fully paid and nonassessable share of Common Stock. No fractional
shares will be issued in connection with the Reverse Stock Split; but rather, the Company issued one whole share of the post-Reverse
Stock Split Common Stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split.
As a result additional 2,757 shares of common stock were issued.
In March 2022 as a result
of the Reverse Stock Split, all shares of Preferred Stock B converted into 5,572,045 shares of common stock of the Company.
In March 2022 as a result
of the Reverse Stock Split, 991,133 shares of Preferred Stock C issued to the Nanomix shareholders converted into 35,328,980 shares of
common stock of the Company.
As of March 31, 2022, the
Company has 2,000,000,000 authorized shares of common stock, 46,203,866 common shares issued and outstanding with a par value of $0.001.
NOTE 11 – WARRANTS
As described in Note 6, pursuant
to issuance convertible notes payable to investors, the Company issued warrants to purchase an aggregate of 1,373,861 shares of the Company's
Common Stock at an exercise price $0.058 per share during 2018 - 2021. The Company has recognized an expense for these services within
general and administrative expense in the accompanying Statements of Operations in the years of warrants issuance of approximately $0
for the three months ended March 31, 2022 and 2021, respectively.
On September 1, 2018, the
Company issued warrant to investor to purchase an aggregate of 527,921 shares of the Company's Common Stock at an exercise price
of $0.058 per share.
On January 3, 2020, the Company
issued warrants to Fastnet Advisors, LLC. to purchase an aggregate of 96,951 shares of the Company's Common Stock at an exercise
price of $0.058 per share. On December 14, 2020, the Company issued warrants outside consultant to purchase an aggregate of 102,178 shares
of the Company's Common Stock at an exercise price of $0.058 per share.
On June 25, 2021, the Company
issued warrants to related party to purchase an aggregate of 1,368,762 shares of the Company's Common Stock at an exercise price
of $1.1717 per share. The issuance of warrants resulted in a loss on modification of debt of $2,385,204. (refer to Note 6). On June 25,
2021, the Company issued warrants to Gold Blaze Limited Vista Corporate Services to purchase an aggregate of 426,730 shares of the Company's
Common Stock at an exercise price of $1.1717 per share. On June 25, 2021, the Company issued warrants to HT Investments MA LLC to purchase
an aggregate of 4,267,304 shares of the Company's Common Stock at an exercise price of $1.1717 per share. On September 27, 2021,
the Company issued warrants to Dr. Harold Parnes to purchase an aggregate of 1,024,153 shares of the Company's Common Stock at
an exercise price of $1.1717 per share. On September 27, 2021, the Company issued warrants to Steve Schrader to purchase an aggregate
of 113,510 shares of the Company's Common Stock at an exercise price of $1.1717 per share.
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47
On February 28, 2022, the
Company issued warrants to Gold Blaze Limited Vista Corporate Services to purchase an aggregate of 94,829 shares of the Company's
Common Stock at an exercise price of $1.1717 per share. On February 28, 2022, the Company issued warrants to Zygote Ventures to purchase
an aggregate of 94,829 shares of the Company's Common Stock at an exercise price of $1.1717 per share. On February 28, 2022, the
Company issued warrants to Garrett Gruener to purchase an aggregate of 379,316 shares of the Company's Common Stock at an exercise
price of $1.1717 per share. On March 23, 2022, the Company issued warrants to GHS Investments LLC to purchase an aggregate of 60,000
shares of the Company's Common Stock at an exercise price of $2.0587 per share.
As of March 31, 2022 all warrants remain outstanding.
The following represents a summary of the Warrants
outstanding at March 31, 2022, and changes during the period then ended:
Weighted
Average
Warrants
Exercise
Price
Outstanding at December 31, 2020
2,002,622
$
0.0581
Granted with exercise price $0.058
122,065
$
0.0581
BTHE warrants
222,302
$
1.7300
Granted with exercise price $1.1717
7,200,459
$
1.1717
Exercised/Expired/Forfeited
-
-
Outstanding at December 31, 2021
9,547,448
$
0.9369
Granted with exercise price $1.1717
568,973
$
1.1717
Granted with exercise price $2.0587
60,000
$
2.0587
Exercised/Expired/Forfeited
-
-
Outstanding at March 31, 2022
10,176,421
$
0.9566
NOTE 12 – STOCK-BASED COMPENSATION
Terms of the Company's
share-based on compensation are governed by the Company's 2010 Equity Incentive Plan ("the 2010 Plan"). The 2010 Plan
permits the Company to grant non-statutory stock options, incentive stock options, restricted stocks, and stock purchase rights to the
Company's employees, outside directors and consultants; however incentive stock options may only be granted to the Company's
employees. As of June 30, 2021, the maximum aggregate number of shares of common stock that may be issued is 19,410,000 shares under
the 2010 Plan, subject to adjustment due the effect of any stock split, stock dividend, combination, recapitalization or similar transaction.
The exercise price for each option is determined by the Board of Directors, but will be (i) in the case of an incentive stock option,
(A) granted to an employee who, at the time of grant of such option, is a 10% Holder, no less than 110% of the fair market value per
share on the date of grant; or (B) granted to any other employee, no less than 100% of the fair market value per share on the date of
grant; and (ii) in the case of a nonstatutory stock option, no less than 100% of the fair market value per share on the date of grant.
The options awarded under the 2010 Plan shall vest as determined by the Board of Directors but shall not exceed a ten-year period.
Restricted Stock Units
During year ended December
31, 2021, the company granted 19,783,551 restricted stock units (RSU) to its employees. Of these, 1,542,776 were forfeited due to employee
resignations. Restricted stock is valued at the fair market value on the date of grant with expense recognized over the vesting period
from June 4, 2021 till February 20, 2023. The Company has recognized an expense for vested RSU within general and administrative expense
in the accompanying Statements of Operations of approximately $9,159 and $0 for period ended March 31, 2022 and 2021, respectively.
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48
Options Issued to Directors and Employees as
Compensation and to Nonemployees for Services Received
Pursuant to the terms of
the 2010 Plan, from 2010 to 2021, the Company has granted an aggregate of 5,340,844 options to its executive officers and employees of
the Company and to Nonemployees for Services Received. Of these, 2,763,489 options were exercised or forfeited and 2,577,355 remain outstanding
as of December 31, 2021. The exercise prices of these grants, as determined by the Company's Board of Directors, were $0.058 to
$0.46 per share. The Company has recognized an expense for these services within general and administrative expense in the accompanying
Statements of Operations of approximately $20,391 and $28,405 for three months ended March 31, 2022 and 2021, respectively. As of March
31, 2022, there was approximately $146,267 of total unrecognized compensation cost related to non-vested share-based compensation arrangements.
This cost is expected to be recognized over a weighted average period of 2.56 years.
Stock-based Compensation Summary Tables
The following table represents a summary of the
options granted to employees and non-employees outstanding at March 31, 2022 and changes during the period then ended:
Total
Weighted
Average
Weighted
Average
Options
Exercise
Price
Intrinsic
Value
Remaining
Life
Outstanding at December 31, 2021
2,577,335
$
0.23
$
0.06
5.67
Granted
-
-
-
-
Exercised/Expired/Forfeited
-
-
-
-
Outstanding at March 31, 2022
2,577,335
$
0.23
$
0.06
5.67
Exercisable at March, 2022
2,358,804
$
0.23
$
0.06
4.78
Expected to be vested
218,531
$
0.29
$
0.00
8.64
NOTE 13 – WARRANTS AND OPTIONS VALUATION
The Company calculates the
fair value of warrant and stock-based compensation awards granted to employees and nonemployees using the Black-Scholes option-pricing
method. If the company determinates that other methods are more reasonable, or other methods for calculating these assumptions are prescribed
by regulators, the fair value calculated for the Company's stock options could change significantly. Higher volatility and longer
expected lives would result in an increase to stock-based compensation expense to non-employees determined at the date of grant. Stock-based
compensation expense to non-employees affects the Company's selling, general and administrative expenses and research and development
expenses.
The Black-Scholes option-pricing model requires
the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards. The assumptions used in the
Black-Scholes option-pricing method for the periods ended March 31, 2022 and 2021 are set forth below:
For the period ended
March 31,
2022
March 31,
2021
Expected dividend yield
0.00
%
0.00
%
Expected stock-price volatility
54.97% - 127.09
%
54.97% - 122.28
%
Risk-free rate
1.09%
- 2.82
%
0.61%
- 2.82
%
Term of options
5-10
5-10
Stock price
$
0.29
$
0.29
●
Expected term
. The expected term represents the period
that the stock-based awards are expected to be outstanding. The Company's historical share option exercise experience does not
provide a reasonable basis upon which to estimate an expected term because of a lack of sufficient data. Therefore, the Company estimates
term by using the simplified method provided by the SEC. The simplified method calculates the expected term as the average of the time-to-vesting
and the contractual life of the options.
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49
●
Expected volatility.
As the Company's common
stock has never been publicly traded, the expected volatility is derived from the average historical volatilities of publicly traded
companies within the Company's industry that the Company considers to be comparable to the Company's business over a period
approximately equal to the expected term.
●
Risk-free interest rate
. The risk-free interest rate
is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasure notes with maturities approximately
equal to the expected term.
●
Expected dividend
. The expected dividend is assumed
to be zero as the Company has never paid dividends and have no current plans to pay any dividends on the Company's common stock.
In addition to the assumptions used in
the Black-Scholes option-pricing model, the Company also estimates a forfeiture rate to calculate the stock-based compensation for the
Company's equity awards. The Company will continue to use judgement in evaluating the expected volatility, expected terms and forfeiture
rates utilized for the Company's stock-based compensation calculations on a prospective basis.
NOTE 14 – RELATED PARTY TRANSACTIONS
The Company had a secured
note payable to Mr. Garrett Gruener, its investor, with a balance of $1,000,000 at June 25, 2021 and December 31, 2020. The note and
related accrued interest of $603,778 were exchanged for an equal amount of Convertible Equity in the June 25, 2021 financing. As a result
of the exchange as part of the merger, the Company issued a senior secured convertible note to Mr. Garrett Gruener, its investor, with
a principal amount of $1,603,778 and 779,025 5-year warrants exercisable at $2.0587. The issuance of the note and warrants resulted in
a loss on modification of debt of $2,385,204. As of March 31, 2022 and December 31, 2021, the note balance was $1,603,778.
The Company has a Senior
Secured Convertible Note to Garrett Gruener, its investor, for a principal amount $444,444. As of March 31, 2022 and December 31, 2021,
the note net of unamortized discount balance as of March 31, 2022 and December 31, 2021 was $18,519 and $0, respectively.
The Company had accrued salary payable and accounts
payable to Mr. Ludvigson, its Chief Executive Officer, with a total balance of $65,000 as of March 31, 2022 and a balance of $50,000
as of December 31, 2021.
Included in the account payable
and accrued expenses at March 31, 2022 and December 31, 2021 are amounts due shareholders, officers and directors of Boston Therapeutics
in the amounts of $304,973.
The summary of related party balances as of March
31, 2022 and December 31, 2021:
31-Mar-22
31-Dec-21
Account payable and accrued expenses, related party:
Mr. Ludvigson
65,000
50,000
Loraine Upham
11,995
11,995
Loraine Upham accrued compensation
188,716
188,716
David Platt
4,399
4,399
S. Colin Neill
73,750
73,750
Upham Bioconsulting, LLC
6,113
6,113
Uphambc Consulting
20,000
20,000
$
369,973
$
354,973
Senior Secured Convertible note, related party:
Mr. Gruener
1,622,297
1,603,778
$
1,622,297
$
1,603,778
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NOTE 15 – INCOME TAXES
The Company accounts for
income taxes in accordance with standards of disclosure propounded by the FASB, and any related interpretations of those standards sanctioned
by the FASB. Accordingly, deferred tax assets and liabilities are determined based on differences between the consolidated financial
statement and tax bases of assets and liabilities, as well as a consideration of net operating loss and credit carry forwards, using
enacted tax rates in effect for the period in which the differences are expected to impact taxable income. A valuation allowance is established,
when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. Due to the uncertainty as to
the utilization of net operating loss carry forwards, a valuation allowance has been made to the extent of any tax benefit that net operating
losses may generate.
At the date the financial
statements were available to be issued, the federal and state income tax returns for the year ended December 31, 2021 have not been filed
by the company.
As of December 31, 2020,
the Company has federal and state net operating loss carryforward of approximately 93.0 million and $57,8 million available to reduce
future taxable income, if any, for Federal and state income tax purposes. The Company experienced a Section 382 change of ownership in
connection with the merger in 2021, thereby subjecting net operating loss carryovers generated previously to limitations on utilization.
To-date, these limitations have not had an impact on the Company's reported income tax.
The Company's deferred
tax asset and valuation allowance at December 31, 2021:
Schedule of Deferred Tax Assets
As of December 31, 2021
NOL at 12/31/20
(93,056,108
)
Net income year ended December 31, 2021
(9,465,033
)
Loss on debt modification
2,385,204
Interest Expense - Debt Discount
1,511,049
Interest Expense
706,126
Other accrued expenses - CY
547,642
Stock Compensation - Options
139,515
Accrued Vacation – CY
35,152
Compensation – RSU
21,077
Change in fair value of derivative liability
(15,282
)
Change in fair value of warrant liability
(438,972
)
NOL at 12/31/21
(97,629,630
)
Effective rate
21
%
Deferred tax asset
(20,502,222
)
Valuation allowance
20,502,222
Net deferred tax asset at 12/31/21
-
The ultimate realization
of our deferred tax asset is dependent, in part, upon the tax laws in effect, our future earnings, and other events.  As of and
December 31, 2021 and 2020, we recorded a 100% allowance against our deferred tax asset since we were unable to conclude that it is more
likely than not that our deferred tax asset will be realized.
The company's major
tax jurisdictions are the United States and California. All of the Company's tax years will remain open three and four years for
examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. As of December
31, 2021, the tax years beginning after 2018 and 2017 remain subject to examination by US Federal and Californian authorities. However,
net operating losses carried forward are subject to examination in the tax year utilized.
NOTE 16 – EMPLOYEE BENEFIT PLAN
The company established a
401(k) tax deferred saving plan, which permits participants to make contributions by salary deduction pursuant to Section401(k) of the
Internal Revenue Code. The Company may, at its discretion, make matching contributions to the plan. The Company is responsible for administrative
cost of the Plan. As of March 31, 2022 and December 31, 2021, the Company has made no contributions to the plan since its inception.
NOTE 17 – SUBSEQUENT EVENTS
In
April 2022 3,281 shares of Preferred Stock C were converted into 116,939 shares of common stock of the Company. 5,586 shares of Preferred
Stock C are still outstanding and will be converted into 199,131 of common stock of the Company later.
Management
has evaluated subsequent events according to the requirements of ASC TOPIC 855 as of the date of the report, and believes there are no
additional subsequent events to report.
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51
NANOMIX CORP.
_________ Shares of Common Stock
______________________________
PROSPECTUS
______________________________
We have not authorized any
dealer, salesperson, or other person to give you written information other than this prospectus or to make representations as to matters
not stated in this prospectus. You must not rely on unauthorized information. This prospectus is not an offer to sell these securities
or our solicitation of your offer to buy these securities in any jurisdiction where that would not be permitted or legal. Neither the
delivery of this prospectus nor any sales made hereunder after the date of this prospectus shall create an implication that the information
contained herein or the affairs of the Company have not changed since the date of this prospectus.
PART II—INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The following table sets forth
an estimate of the fees and expenses relating to the issuance and distribution of the securities being registered hereby, other than underwriting
discounts and commissions, all of which shall be borne by the selling stockholders. All of such fees and expenses, except for the SEC
Registration Fee, are estimated:
SEC registration fee
$
Legal fees and expenses
$
Printing fees and expenses
$
Accounting fees and expenses
$
Miscellaneous fees and expenses
$
Total
$
*
To be filed by amendment
Item 14. Indemnification of Directors and Officers
Section 145 of the Delaware
General Corporation Law provides that a corporation may indemnify directors and officers as well as other employees and individuals against
expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person
in connection with any threatened, pending or completed actions, suits or proceedings in which such person is made a party by reason of
such person being or having been a director, officer, employee or agent of the corporation. Section 145 of the Delaware General Corporation
Law also provides that expenses (including attorneys' fees) incurred by a director or officer in defending an action may be paid
by a corporation in advance of the final disposition of an action if the director or officer undertakes to repay the advanced amounts
if it is determined such person is not entitled to be indemnified by the corporation. The Delaware General Corporation Law provides that
Section 145 is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise. Our bylaws provide that, to the fullest extent permitted by law, we shall indemnify
and hold harmless any person who was or is made or is threatened to be made a party or is otherwise involved in any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person,
or the person for whom he is the legally representative, is or was a director or officer of ours, against all liabilities, losses, expenses
(including attorney's fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in
connection with such proceeding.
Section 102(b)(7) of
the Delaware General Corporation Law permits a corporation to provide in its certificate of incorporation that a director of the corporation
shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director,
except for liability (i) for any breach of the director's duty of loyalty to the corporation or its stockholders, (ii) for acts
or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) for unlawful payments of dividends
or unlawful stock repurchases, redemptions or other distributions, or (iv) for any transaction from which the director derived an improper
personal benefit.
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1
Our certificate of incorporation
provides that
we shall, to the maximum extent permitted from time to time under the law of
the State of Delaware, indemnify and upon request shall advance expenses to any person who is or was a party or is threatened to be made
a party to any threatened, pending or completed action, suit, proceeding or claim, whether civil, criminal, administrative or investigative,
by reason of the fact that such person is or was or has agreed to be a director or officer of ours or while a director or officer is or
was serving at our request as a director, officer, partner, trustee, employee or agent of any corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys' fees
and expenses), judgments, fines, penalties and amounts paid in settlement incurred in connection with the investigation, preparation to
defend or defense of such action, suit, proceeding or claim; provided, however, that the foregoing shall not require us to indemnify
or advance expenses to any person in connection with any action, suit, proceeding or claim initiated by or on behalf of such person or
any counterclaim against us initiated by or on behalf of such person. Such indemnification shall not be exclusive of other indemnification
rights arising under any by-law, agreement, vote of directors or stockholders or otherwise and shall inure to the benefit of the heirs
and legal representatives of such person. Any person seeking indemnification shall be deemed to have met the standard of conduct required
for such indemnification unless the contrary shall be established. Any repeal or modification of our certificate of incorporation shall
not adversely affect any right or protection of a director or officer of ours with respect to any acts or omissions of such director or
officer occurring prior to such repeal or modification
.
Our bylaws provide we
shall, to the fullest extent permitted under the laws of the State of Delaware, as amended and supplemented from time to time, indemnify
each person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of the fact that such party is or was, or has agreed to become, a
director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer or trustee of, or in
a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any employee benefit plan,
or by reason of any action alleged to have been taken or omitted in such capacity, against all expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred by such party or on such party's behalf in connection
with such action, suit or proceeding and any appeal therefrom.
Expenses incurred by
such a person in defending a civil or criminal action, suit or proceeding by reason of the fact that such person is or was, or has agreed
to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer or trustee
of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any employee
benefit plan, or by reason of any action alleged to have been taken or omitted in such capacity shall be paid by us in advance of the
final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such person to repay such amount
if it shall ultimately be determined that he is not entitled to be indemnified by us as authorized by relevant sections of the Delaware
General Corporation Law. Notwithstanding the foregoing, we shall not be required to advance such expenses to a person who is a party to
an action, suit or proceeding brought by us and approved by a majority of our Board of Directors that alleges willful misappropriation
of corporate assets by such person, disclosure of confidential information in violation of such person's fiduciary or contractual
obligations to us or any other willful and deliberate breach in bad faith of such person's duty to us or our stockholders.
We shall not indemnify
any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person unless the initiation
thereof was approved by our Board of Directors.
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2
The indemnification rights
provided in our bylaws shall not be deemed exclusive of any other rights to which those indemnified may be entitled under any by-law,
agreement or vote of stockholders or disinterested directors or otherwise, both as to action in their official capacities and as to action
in another capacity while holding such office, continue as to such person who has ceased to be a director or officer, and inure to the
benefit of the heirs, executors and administrators of such a person.
If the Delaware General
Corporation Law is amended to expand further the indemnification permitted to indemnitees, then we shall indemnify such persons to the
fullest extent permitted by the Delaware General Corporation Law, as so amended.
We may, to the extent
authorized from time to time by our Board of Directors, grant indemnification rights to other employees or agents of ours or other persons
serving us and such rights may be equivalent to, or greater or less than, those set forth in our bylaws.
Our obligation to provide
indemnification under our bylaws shall be offset to the extent of any other source of indemnification or any otherwise applicable insurance
coverage under a policy maintained by us or any other person.
Our bylaws shall be deemed
to be a contract between us and each person who was or is a party or is threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that person is or was, or
has agreed to become, a director or officer of ours, or is or was serving, or has agreed to serve, at our request, as a director, officer
or trustee of, or in a similar capacity with, another corporation, partnership, joint venture, trust or other enterprise, including any
employee benefit plan, or by reason of any action alleged to have been taken or omitted in such capacity, at any time while this by-law
is in effect, and any repeal or modification thereof shall not affect any rights or obligations then existing with respect to any state
of facts then or theretofore existing or any action, suit or proceeding theretofore or thereafter brought based in whole or in part upon
any such state of facts.
The indemnification provision
of our bylaws does not affect directors' responsibilities under any other laws, such as the federal securities laws or state or
federal environmental laws.
We may purchase and maintain
insurance on behalf of any person who is or was a director, officer or employee of ours, or is or was serving at our request as a director,
officer, employee or agent of another company, partnership, joint venture, trust or other enterprise against liability asserted against
him and incurred by him in any such capacity, or arising out of his status as such, whether or not we would have the power to indemnify
him against liability under the provisions of this section. We currently maintain such insurance.
The right of any person
to be indemnified is subject to our right, in lieu of such indemnity, to settle any such claim, action, suit or proceeding at our expense
of by the payment of the amount of such settlement and the costs and expenses incurred in connection therewith.
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to
the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission, 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 of expenses incurred or paid by a director, officer or controlling
person in a successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection
with the securities being registered herewith, we will, unless in the opinion of our counsel the matter has been settled by controlling
precedent, submit to the court of appropriate jurisdiction the question whether such indemnification by us is against public policy as
expressed in the Securities Act and will be governed by the final adjudication of such issue.
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Item 15. Recent Sales of Unregistered Securities
Set forth
below is information regarding all unregistered securities sold by us since January 1, 2019. Unless otherwise stated, the issuances
of the above securities were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) or 3(a)(9)
of the Securities Act or Regulation D promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the Securities Act as
transactions by an issuer not involving any public offering or pursuant to benefit plans and contracts relating to compensation as provided
under Rule 701.
On January 10, 2019, the Company issued 5,780
shares of its common stock in exchange for consulting services amounting to $22,900 pursuant to a consulting agreement entered into and
approved by the Board of Directors on November 23, 2018.
On January
3, 2020, the Company issued warrants to Fastnet Advisors, LLC. to purchase an aggregate of 3,291 shares of the Company's
Common Stock at an exercise price of $1.73 per share.
On December
14, 2020, the Company issued warrants outside consultant to purchase an aggregate of 3,468 shares of the Company's Common
Stock at an exercise price of $1.73 per share.
On
April 30, 2021, the Company received a short-term loan in the aggregate principal amount of $500,000 from Gold Blaze Limited Vistra Corporate
Services ("Gold Blaze"). To evidence the loan, the Company issued Gold Blaze a promissory note (the "Gold Blaze Note")
in the aggregate principal amount of $500,000. The Gold Blaze Note was converted into the same securities as issued in the June 2021 Financing.
On February
2, 2021, the Company previously entered into service agreements with various consultants and advisors pursuant to which it issued
963,964 shares of Series B preferred stock. The Series B preferred stock automatically convert into an aggregate of approximately 5,572,046
shares of the Company's common stock on March 2, 2022.
On January 26, 2021,
the Company, NNMX Acquisition Inc., a California corporation and wholly-owned subsidiary of the Company ("Merger Sub"), and
Nanomix, Inc., a California corporation ("Nanomix"), entered into an Agreement and Plan of Merger (the "Merger Agreement"),
pursuant to which, among other matters, Merger Sub will merge with and into Nanomix, with Nanomix continuing as a wholly-owned subsidiary
of the Company and the surviving corporation of the merger (the "Merger"). The merger closed on June 4, 2021. As consideration
for the Merger, Company issued to the shareholders of Nanomix 1,000,000 shares of a newly created Series C Convertible Preferred Stock
of the Company (the "Preferred Stock"). On March 2, 2022, in connection with our reverse stock split, ,
all
such shares of Preferred Stock issued to the Nanomix shareholders were automatically convert into approximately 35,644,997 shares of common
stock of the Company, the warrants assumed at closing of the merger were exercisable into approximately 2,124,687 shares of common stock
of the Company and the options and restricted stock units assumed at closing of the merger may be exercisable into approximately 5,718,838
shares of common stock of the Company.
From January 25, 2021
through January 27, 2021, the Company entered into various agreements with certain debt holders, including CJY Holdings Limited, a Hong
Kong company controlled by the Company's former CEO and sole director's cousin ("CJY"), pursuant to which liabilities
exceeding approximately $4.5 million were converted or exchanged into approximately 4.2 million shares of common stock. Further, the Company
entered into Exchange Agreements with the holders of the Company's Series A Preferred Stock pursuant to which the holders exchanged
all outstanding shares of Series A Preferred Stock for 433,526 shares of common stock. The Company entered into service agreements with
various consultants and advisors pursuant to which it issued 963,964 shares of a newly created Series B Preferred Stock. Each outstanding
share of the Series B Preferred Stock will automatically convert into 1,000 shares of common stock on the date that approval of an amendment
to the Corporation's Certificate of Incorporation, as amended, to implement a one-for-173 reverse stock split of the Corporation's
capital stock by a majority of the votes entitled to be cast thereon, whether presented at a special or annual meeting of shareholders
of the Corporation or by written consent of the shareholders and the subsequent filing of such amendment with the Secretary of State of
the State of Delaware.
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On
June 25, 2021, the Company and the $1.0 secured million note payable Holder entered into exchange agreement, whereby the company
issued the Holder a Senior Secured Convertible Note in the principal amount of $1,603,778 with a maturity date of June 25, 2023. As
an incentive to enter into the agreement, the noteholder was also granted 1,603,778 5-year warrants exercisable at $1.1717.
On June
25, 2021, the Company and Gold Blaze entered into exchange agreement, where the company issued the Gold Blaze Limited Vistra Corporate
Services Senior Secured Convertible Note in the principal amount of $500,000 with a maturity date of June 25, 2023. As an incentive to
enter into the agreement, the noteholder was also granted 426,730 5-year warrants exercisable at $1.1717.
On June
25, 2021, the Company issued a Senior Secured Convertible Note to HT Investment MA LLC for a principal amount $5.0 million and maturity
date of June 25, 2023. As an incentive to enter into the agreement, the noteholder was also granted 4,427,3045-year warrants exercisable
at $1.1717.
On September
27, 2021, the Company issued a Senior Secured Convertible Note to certain accredited investors for a principal amount $1.333 million and
maturity date of September 27, 2023. As an incentive to enter into the agreement, the noteholders were also granted an aggregate of 1.137.663
5-year warrants exercisable at $1.1717.
On February 28, 2022, the Company entered into
a securities purchase agreement with accredited investors pursuant to which the Company issued senior secured convertible notes in an
principal amount of approximately $666,667 for an aggregate purchase price of $600,000. Garrett Gruener, a director of the Company,
purchased a Note in an aggregate principal amount of $444,444 for an aggregate purchase price of $400,000 and Jerry Fiddler, a director
of the Company purchased a Note in an aggregate amount of $111,111 for an aggregate purchase price of $100,000. As an incentive to enter
into the agreement, the noteholders were also granted an aggregate of 323,829 5-year warrants exercisable at $1.1717.
On March
23, 2022, entered into a Securities Purchase Agreement (the "Purchase Agreement") with GHS Investments, LLC (the "Purchaser"),
pursuant to which the Purchaser purchased five hundred (500) shares of the Company's Series D Convertible Preferred Stock ("Series
D Preferred Stock") for an aggregate purchase price of $500,000. In addition, in connection with the issuance of the Series D Preferred
Stock, the Purchaser received a five year warrant to purchase 60,000 shares of the Company's common stock.
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Item 16. Exhibits and Financial Statement Schedules
EXHIBIT
INDEX
Exhibit
    No
Title
    of Document
2.1†
Agreement and Plan of Merger, dated February 2, 2021, by and between Nanomix Corp.., NNMX Acquisition Inc. and Nanomix, Inc. filed with the SEC on February 2, 2021 and incorporated herein by reference)
3.1
Certificate of Incorporation, as amended (filed as Exhibit 3.1 to Amendment No. 1 to the Company's Registration Statement on Form S-1 (File No. 333-192344) filed with the SEC on November 14, 2013 and incorporated herein by reference)
3.2
Bylaws
    (filed as Exhibit 3.2 to the Company's Registration Statement on Form S-1 (File No. 333-164785) filed with the SEC on February
    8, 2010 and incorporated herein by reference)
3.3
Certificate of Merger (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on November 18, 2010 and incorporated herein by reference)
3.4
Certificate of Designation – Series B Preferred Stock (filed as exhibit 4.1 to the Company's current Report on Form 8-K filed with the SEC on February 2, 2021 and incorporated herein by reference)
3.5
Certificate of Designation – Series C Preferred Stock (filed as exhibit 3.5 to the Company's Registration Statement on Form S-1 filed with the SEC on October 15, 2021 and incorporated herein by reference)
3.6
Certificate of Amendment to the Certificate of Incorporation, dated January 11, 2022 (filed as exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on March 3, 2022 and incorporated herein by reference)
3.7
Certificate of Designations of the Preferences, Rights and Limitations of the Series D Preferred Stock (filed as exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on March 24, 2022 and incorporated herein by reference)
3.8
Form of Securities Purchase Agreement by and between Boston Therapeutics, Inc. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on October 2, 2015 and incorporated herein by reference)
4.1
Form of Securities Purchase Agreement by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on October 2, 2015 and incorporated herein by reference)
4.2
Form of 10% Convertible Promissory Note issued to CJY Holdings Limited (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on October 2, 2015 and incorporated herein by reference)
4.3
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on October 30, 2015 and incorporated herein by reference)
4.4
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.4 to the Company's Current Report on Form 8-K filed with the SEC on December 10, 2015 and incorporated herein by reference)
4.6
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.5 to the Company's Current Report on Form 8-K filed with the SEC on March 2, 2016 and incorporated herein by reference)
4.7
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.6 to the Company's Current Report on Form 8-K filed with the SEC on March 22, 2016 and incorporated herein by reference)
4.8
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.7 to the Company's Current Report on Form 8-K filed with the SEC on May 12, 2016 and incorporated herein by reference)
4.9
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.8 to the Company's Current Report on Form 8-K filed with the SEC on July 6, 2016 and incorporated herein by reference)
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4.10
Form of Securities Purchase Agreement by and between Nanomix Corp. and Investors (filed as Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)
4.11
Form of 6% Senior Convertible Debenture Due 2018 issued to Investors (filed as Exhibit 4.2 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)
4.12
Form of Stock Purchase Warrant issued to Investors (filed as Exhibit 4.3 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)
4.13
Letter Amendment by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.4 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)
4.14
Form of Securities Purchase Agreement by and between Nanomix Corp. and CJY Holdings Limited (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on May 2, 2017 and incorporated herein by reference)
4.15
Form of 6% Subordinated Convertible Debenture Due (filed as Exhibit 4.2 to the Current Report on Form 8-K filed with the SEC on May 2, 2017 and incorporated herein by reference)
4.16
Form of Stock Purchase Warrants (filed as Exhibit 4.3 to the Current Report on Form 8-K filed with the SEC on May 2, 2017 and incorporated herein by reference)
4.17
Form of Securities Purchase Agreement by and between Nanomix Corp. and Investors (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on August 22, 2017 and incorporated herein by reference)
4.18
Form of Certificate of Designation (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on August 22, 2017 and incorporated herein by reference)
4.19
Form of Common Stock Purchase Warrants (filed as Exhibit 4.3 to the Current Report on Form 8-K filed with the SEC on August 22, 2017 and incorporated herein by reference)
4.20
Form of 10% promissory note issued to World Technology East II Limited (filed as exhibit 4.1 to the Company's current Report on Form 8-K filed with the SEC on June 12, 2018 and incorporated herein by reference)
4.21
Form of Promissory Note dated April 30, 2021 (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on May 12, 2021 and incorporated herein by reference)
4.22
Form of 10% Promissory Note issued by Nanomix, Inc. to Nanomix Corp. dated April 30, 2021 (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on May 12, 2021 and incorporated herein by reference)
4.23
Form of Senior Secured Convertible Note, dated June 25, 2021 (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
4.24
Form of Warrant, dated June 25, 2021 (filed as Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
4.26
Form of Senior Secured Convertible Note, dated February 28, 2022 (filed as exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)
4.27
Form of Warrant, dated February 28, 2022 (filed as exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)
5.1*
Opinion
    of Sheppard, Mullin, Richter & Hampton LLP
10.1
Technology Assignment Agreement dated as of August 24, 2009 by and between the Company and David Platt (filed as Exhibit 10.1 to Amendment No. 1 to the Company's Registration Statement on Form S-1 (File No. 333-164785) filed with the SEC on June 24, 2010 and incorporated herein by reference)
10.2
Amended and Restated Nanomix Corp. 2010 Stock Plan (filed as Exhibit 10.1 to Amendment No. 1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on November 13, 2013 and incorporated herein by reference)
10.3
Promissory
    Note dated as of February 9, 2010 issued by the Company to David Platt (filed as Exhibit 10.3 to Amendment No. 1 to the Company's
    Registration Statement on Form S-1 (File No. 333-164785) filed with the SEC on June 24, 2010 and incorporated herein by reference)
10.4
Agreement and Plan of Merger dated November 10, 2010 by and among Avanyx Therapeutics, Inc. and Nanomix Corp. (filed as Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the SEC on November 18, 2010 and incorporated herein by reference)
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10.5
Form of Subscription Agreement dated June 21, 2011, among Nanomix Corp. and the Investors named therein (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 22, 2011 and incorporated herein by reference)
10.6
License and Manufacturing Agreement between Nanomix Corp. and Advance Pharmaceutical Company Limited effective as of June 24, 2011 (filed as Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the SEC on August 15, 2011 and incorporated herein by reference)
10.7
Amended and Restated Nanomix Corp. 2011 Non-Qualified Stock Plan (filed as Exhibit 10.1 to the Company's Registration Statement on Form S-8 (File No. 333-185355) filed with the SEC on December 7, 2012 and incorporated herein by reference)
10.8
Unit Purchase Agreement between Nanomix Corp. and the investors named therein dated as of July 23, 2013, as amended (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 13, 2013 and incorporated herein by reference)
10.9
Registration Rights Agreement between Nanomix Corp. and the investors named therein dated as of July 23, 2013, as amended (filed as Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 13, 2013 and incorporated herein by reference)
10.10
Warrant
Repricing and Exercise Agreement entered by and between Nanomix Corp. and CJY Holdings Limited dated November 12, 2015, effective June
15, 2015 (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on November 12, 2015 and incorporated
herein by reference)
10.11
Executive
employment Agreement between Nanomix Corp. and Carl W. Rausch dated as of August 12, 2016 (filed as Exhibit 10.1 to the Company's
Current Report on Form 10-Q filed with the SEC on August 15, 2016 and incorporated herein by reference)
10.12
Letter Agreement dated March 27, 2017 entered between Nanomix Corp. and Carl W. Rausch (filed as exhibit 10.24 to the Company's Annual Report on Form 10-K filed with the SEC on March 28, 2017 and incorporated herein by reference)
10.13
Contribution Agreement by and among Nanomix Corp. and CureDM Group Holdings, LLC dated February 12, 2018, effective January 1, 2018, (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 12, 2018 and incorporated herein by reference)
10.14
Executive Retention Agreement by and between Nanomix Corp. and Loraine Upham dated February 12, 2018, effective January 1, 2018, (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 12, 2018 and incorporated herein by reference)
10.15
License agreement between Nanomix Corp. and Level Brands, Inc. (filed as exhibit 10.1 to the Company's current Report on Form 8-K filed with the SEC on July 2, 2018 and incorporated herein by reference)
10.16
Form of Exchange Agreement (filed as exhibit 10.1 to the Company's current Report on Form 8-K filed with the SEC on February 2, 2021 and incorporated herein by reference)
10.17
Form of Debt Settlement and Release Agreement (filed as exhibit 10.2 to the Company's current Report on Form 8-K filed with the SEC on February 2, 2021 and incorporated herein by reference)
10.18†
Securities Purchase Agreement, dated June 25, 2021, by and between Nanomix Corp. and the buyers signatory thereto (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
10.19
Registration Rights Agreement, dated June 25, 2021, by and between Nanomix Corp. and the buyers signatory thereto (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
10.20
Security and Pledge Agreement, dated June 25, 2021, by and between Boston Therapeutics, Inc, each of the Company's subsidiaries and HT Investments MA LLC, in its capacity as collateral agent (filed as Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
10.21
Guaranty, dated June 25, 2021, by each of the Company's subsidiaries in favor of HT Investments MA LLC, in its capacity as collateral agent (filed as Exhibit 10.4 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
10.22
Form of Exchange Agreement, dated June 25, 2021, with existing holders of convertible promissory notes  (filed as Exhibit 10.5 to the Company's Current Report on Form 8-K filed with the SEC on June 29, 2021 and incorporated herein by reference)
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10.23††
Development and License Agreement, dated September 26, 2017 by and between RedPharm (Beijing) Biotechnology Co., Ltd. and Medical Technology Associates II, Inc. and Nanomix, Inc. (filed as Exhibit 10.23 to the Company's Annual Report on Form 10-K filed with the SEC on April 12, 2022 and incorporated herein by reference)
10.24††
First Amendment to Development and License Agreement, dated September 1, 2018 by and between RedPharm (Beijing) Biotechnology Co., Ltd. and Medical Technology Associates II, Inc. and Nanomix, Inc. (filed as Exhibit 10.24 to the Company's Annual Report on Form 10-K filed with the SEC on April 12, 2022 and incorporated herein by reference)
10.25†
Securities Purchase Agreement, dated February 28, 2022 (filed as exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)
10.26
Consent, Amendment and Wavier, dated February 24, 2022 (filed as exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on March 1, 2022 and incorporated herein by reference)
10.27†
Securities Purchase Agreement, dated March 23, 2022 (filed as exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 24, 2022 and incorporated herein by reference)
10.28
Consent, Amendment and Wavier, dated March 22, 2022 (filed as exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on March 24, 2022 and incorporated herein by reference)
23.1
Consent of M&K CPAs
23.2*
Consent of Sheppard, Mullin, Richter & Hampton LLP (included in Exhibit 5.1)
24.1
Power of Attorney (included on the signature page to the Registration Statement)
107
Filing Fee Table
*
To be filed by amendment
†
The exhibits and schedules to this Exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby agrees to furnish a copy of any omitted schedules to the Commission upon request.
††
Certain confidential portions of this Exhibit were omitted by means of marking such portions with brackets ("[***]") because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed.
Financial Statement Schedules
Schedules have been omitted
because the information required to be set forth therein is not applicable or is shown in the financial statements or notes thereto.
Item 17. Undertakings
The undersigned registrant hereby undertakes:
1. To file, during any period in which offers
or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of this registration statement ( or most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) (Section 230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "
Calculation of Registration Fee
" table in the effective registration statement; and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
Provided, however, that:
2. That, for the purpose of determining any liability
under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the termination of the offering.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the provisions above, or otherwise,
we have been advised that in the opinion of the Securities and Exchange Commission 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 Act and will be governed by the final adjudication of such issue.
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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 on Form S-1
to be signed on its behalf by the undersigned, thereunto duly authorized in the City of San Leandro, State of California, on the 21
st
day of June, 2022.
Nanomix Corp.
By:
/s/ David Ludvigson
Name:
David Ludvigson
Title:
Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS,
that each person whose signature appears below constitutes and appoints David Ludvigson, his or her true and lawful attorney-in-fact and
agent with full power of substitution and re-substitution, for him/her and in his or her name, place and stead, in any and all capacities
to sign any or all amendments (including, without limitation, post-effective amendments) to this Registration Statement, any related Registration
Statement filed pursuant to Rule 462(b) under the Securities Act of 1933 and any or all pre- or post-effective amendments thereto,
and to file the same, with all exhibits thereto, and all other documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary
to be done in and about the premises, as fully for all intents and purposes as he or she might or could do in person, hereby ratifying
and confirming that said attorney-in-fact and agent, or any substitute or substitutes for him, may lawfully do or cause to be done by
virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, the following persons in the capacities and on the dates indicated have signed this Registration Statement
below.
Signature
Title
Date
/s/ David Ludvigson
Chief Executive Officer, President, and Director
June 21, 2022
David Ludvigson
(Principal Executive Officer and Principal Financial and Accounting Officer)
/s/ Vidur Sahney
Chief Operating Officer
June 21, 2022
Vidur Sahney
/s/ John Hardesky
Chief Commercial Officer
June 21, 2022
John Hardesky
/s/ Garrett Gruener
Director
June 21, 2022
Garrett Gruener
/s/ Jerry Fidler
Director
June 21, 2022
Jerry Fidler
/s/ Greg Schiffman
Director
June 21, 2022
Greg Schiffman
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