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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
filed with the Securities and Exchange Commission on June 14, 2023</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>WASHINGTON,
D.C. 20549</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>FORM
S-1<BR>
</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">REGISTRATION STATEMENT UNDER<BR>
THE SECURITIES ACT OF 1933</FONT></B></P>

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

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

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

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

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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nevada</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; width: 2%">&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>2080</B></FONT></TD>
    <TD STYLE="padding-bottom: 1pt; width: 2%">&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>86-1604197</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or other jurisdiction
    of<BR>
    incorporation or organization)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard Industrial<BR>
    Classification Code Number)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer<BR>
    Identification Number)</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>6800
Indian Creek Dr. Suite 1E</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Miami
Beach, FL 33141</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(786)
389-9771</B></FONT></P>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>6800
Indian Creek Dr. Suite 1E</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Miami
Beach, FL 33141</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(786)
389-9771</B></FONT></P>

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

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><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>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Copies
    to:</I></B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">Daniel
                           Nauth</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Nauth
    LPC</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">217
    Queen St. W., #401</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">Toronto,
    ON M5V 0R2</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">Canada</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">(416)
    477-6031</FONT></P></TD>
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ross
                           Carmel, Esq.</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Carmel,
    Milazzo &amp; Feil LLP</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">55
    West 39th Street, 4th Floor</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">New
    York, NY 10018</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">(212)
    658-0458</FONT></P></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Approximate
date of commencement of proposed sale to the public:</B> As soon as practicable after this Registration Statement becomes effective.</FONT></P>

<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: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. &#9746;</FONT></P>

<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: 7pt"><B>&nbsp;</B></FONT></P>

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

<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: 7pt"><B>&nbsp;</B></FONT></P>

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

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

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

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

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

<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: 7pt"><B>&nbsp;</B></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 20%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-size: 10pt">Large accelerated filer &#9744;</FONT></TD>
    <TD STYLE="width: 40%; text-align: justify"><FONT STYLE="font-size: 10pt">Accelerated filer &#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Non-accelerated filer &#9746;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Smaller reporting company &#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Emerging growth company &#9746;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt"><B>&nbsp;</B></FONT></P>

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

<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: 7pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The registrant
hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance
with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission,
acting pursuant to such Section 8(a), may determine.</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: 7pt"><B>&nbsp;</B></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"></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"><B>&nbsp;</B></FONT></P>




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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
registration statement contains two prospectuses, as set forth below.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Public
                                            Offering Prospectus</I></B>. A prospectus to be used for the public offering of 1,000,000
                                            shares of Common Stock through the underwriter named on the cover page of this prospectus,
                                            which we refer to as Public Offering Prospectus.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
                                            Resale Prospectus</I></B>. A prospectus to be used for the resale by selling stockholders
                                            of 5,381,668 shares of Common Stock, which we refer to as the Resale Prospectus.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Resale Prospectus is substantively identical to the Public Offering Prospectus, except for the following principal points:</FONT></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">they
                                            contain different Offering sections in the Prospectus Summary;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">they
                                            contain different Use of Proceeds sections;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Capitalization and Dilution sections are deleted from the Resale Prospectus;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
                                            Selling Stockholders section is included in the Resale Prospectus;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Underwriting section from the Public Offering Prospectus is deleted from the&nbsp;Resale
                                            Prospectus&nbsp;and a Plan of Distribution section is inserted in its place; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Legal Matters section in the Resale Prospectus deletes the reference to counsel for the underwriters.</FONT></TD></TR></TABLE>

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

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
registrant has included in this registration statement a set of alternate pages after the back cover page of the Public Offering Prospectus,
which we refer to as the Alternate Pages, to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering
Prospectus. The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant.
The Resale Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the
Alternate Pages and will be used for the resale offering by the selling stockholders.</FONT></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"></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; background-color: white"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Red"><B>SUBJECT
TO COMPLETION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Red"><B>&nbsp;</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; color: Red"><B>PRELIMINARY
PROSPECTUS DATED June 14, 2023</B></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,000,000
Shares of Common Stock</FONT></P>





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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
is an initial public offering (&ldquo;IPO,&rdquo; &ldquo;offering,&rdquo; or &ldquo;initial public offering&rdquo;) of our shares of
Common Stock, $0.0001 par value per share (&ldquo;Common Stock&rdquo;). We are offering 1,000,000 of our shares of Common Stock. We currently
estimate that the initial public offering price of our Common Stock will be between $4 and $6 per share. &nbsp;</FONT></P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prior
to this offering, there has been no public market for our shares. We are in the process of applying to list our shares of Common Stock
on the Nasdaq Capital Market tier operated by The Nasdaq Stock Market LLC, or Nasdaq, under the symbol &ldquo;LQR&rdquo;. Nasdaq might
not approve such an application, and if our application is not approved, this offering cannot be completed.</FONT></P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are an &ldquo;emerging growth company&rdquo;, as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal
securities laws, and are eligible for reduced public company reporting requirements. See &ldquo;<I>Risk Factors&mdash;Risks Related to
This Offering and Ownership of Common Stock&mdash;We will be subject to ongoing public reporting requirements that are less rigorous
than Exchange Act rules for companies that are not emerging growth companies, and our stockholders could receive less information than
they might expect to receive from more mature public companies.</I>&rdquo; for more information.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Investing
in our securities is highly speculative and involves a high degree of risk.&nbsp; See &ldquo;<I>Risk Factors</I>&rdquo; beginning on
page 11 for a discussion of information that should be considered in connection with an investment in our Common
Stock.</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Neither
the U.S. Securities and Exchange Commission nor any state or provincial securities commission has approved or disapproved of these securities
or determined if this prospectus is truthful or complete.&nbsp; Any representation to the contrary is a criminal offense.</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: 7pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&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">Per Share</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Assumed initial public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Underwriting discounts and
    commissions <SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds to us, before expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.60</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,600,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Does
                                            not include the following additional compensation payable to the underwriters. In addition
                                            to the compensation referenced above, we have agreed to pay to EF Hutton, division of Benchmark
                                            Investments, LLC, (&ldquo;EF Hutton&rdquo;), the representative of the underwriters (the
                                            &ldquo;Representative&rdquo;), a non-accountable expense allowance equal to one percent (1.00%)
                                            of the gross proceeds raised and to reimburse the underwriters for certain expenses incurred
                                            relating to this Offering. In addition, we will issue to the Representative a warrant to
                                            purchase up to that number of shares of our Common Stock equal to five percent (5.00%) of
                                            the number of shares of Common Stock sold in this Offering. The registration statement of
                                            which this prospectus forms a part also registers the issuance of the shares of Common Stock
                                            issuable upon exercise of the representative&rsquo;s warrants. See &ldquo;<I>Underwriting</I>&rdquo;
                                            for additional disclosure regarding underwriters&rsquo; compensation and offering expenses.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
offering is being conducted on a firm commitment basis. The underwriters are obligated to take and purchase all of the shares of Common
Stock offered under this prospectus if any such shares are taken.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
have granted the underwriters an option for a period of 45 days after the closing of this IPO to purchase up to 15% of the total number
of our shares to be offered by us pursuant to this offering (excluding shares subject to this option), solely for the purpose of covering
over-allotments, at the initial public offering price less the underwriting discount. If the underwriters exercise the option in full,
the total underwriting discount and commissions, not including other offering expenses, will be $460,000 based on the assumed initial
public offering price of $5 per share, which is the midpoint of the estimated range of the initial public offering shown on the cover
page of this prospectus, and the total gross proceeds to us, before underwriting discounts, commissions and expenses, will be $5,750,000.
Net proceeds will be delivered to us on the closing date.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
underwriters expect to deliver the shares of Common Stock to purchasers in the offering on or about [*].</FONT></P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>EF
Hutton</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>division
of Benchmark Investments, LLC</I></B></FONT></P>

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

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




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
date of this prospectus is </B>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]<B>, 2023.</B></FONT></P>


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

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

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



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Page</B></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="width: 90%; text-align: left"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prospectus Summary</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">1</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_002"><FONT STYLE="font-family: Times New Roman, Times, Serif">Risk Factors</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">11</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cautionary Statement Regarding Forward-Looking Statements</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">27</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif">Use of Proceeds</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">28</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dividend Policy</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">29</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif">Capitalization</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">30</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dilution</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">31</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">32</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif">Corporate History and Structure</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">40</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif">Business</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">42</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif">Management</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">55</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif">Executive Compensation</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">60</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_013"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain Relationships and Related Party Transactions</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">69</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif">Principal Shareholders</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">70</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif">Description of Securities</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">73</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares Eligible for Future Sale</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">76</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_017"><FONT STYLE="font-family: Times New Roman, Times, Serif">Material U.S. Federal Tax Considerations for Non-U.S. Holders of Our Common Stock</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">78</TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_018"><FONT STYLE="font-family: Times New Roman, Times, Serif">Underwriting</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">82</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_019"><FONT STYLE="font-family: Times New Roman, Times, Serif">Legal Matters</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">86</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_020"><FONT STYLE="font-family: Times New Roman, Times, Serif">Experts</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">86</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><A HREF="#a_021"><FONT STYLE="font-family: Times New Roman, Times, Serif">Where You Can Find More Information</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">86</FONT></TD></TR>
  <TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif; background-color: White">
    <TD STYLE="text-align: left"><A HREF="#a_022"><FONT STYLE="font-family: Times New Roman, Times, Serif">Financial Statements</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">F-1</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Please
read this prospectus carefully. It describes our business, financial condition, results of operations and prospects, among other things.
We are responsible for the information contained in this prospectus and in any free-writing prospectus we have authorized. Neither we
nor the underwriter have authorized anyone to provide you with different information, and neither we nor the underwriter take responsibility
for any other information others may give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction
where the offer or sale is not permitted. The information contained in this prospectus is accurate only as of the date on the front of
this prospectus, regardless of the time of delivery of this prospectus or any sale of shares of our Common Stock. You should not assume
that the information contained in this prospectus is accurate as of any date other than its date. </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are responsible for the information contained in this prospectus. This prospectus includes industry data and forecasts that we obtained
from industry publications and surveys as well as public filings and internal company sources. Industry publications, surveys and forecasts
generally state that the information contained therein has been obtained from sources believed to be reliable. Statements as to our ranking,
market position and market estimates are based on third-party forecasts, management&rsquo;s estimates and assumptions about our markets
and our internal research. We have not independently verified such third-party information, nor have we ascertained the underlying economic
assumptions relied upon in those sources. While we believe that all such information contained in this prospectus is accurate and complete,
nonetheless such data involve uncertainties and risks, including risks from errors, and is subject to change based on various factors,
including those discussed under &ldquo;<I>Risk Factors</I>&rdquo; and &ldquo;<I>Cautionary Statement Regarding Forward-Looking Statements</I>.&rdquo;</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>This
summary highlights selected information contained elsewhere in this prospectus. This summary is not complete and does not contain all
of the information that you should consider before deciding whether to invest in our Common Stock. You should carefully read the entire
prospectus, including the risks associated with an investment in our company discussed in the &ldquo;Risk Factors&rdquo; section of this
prospectus, before making an investment decision. Some of the statements in this prospectus are forward-looking statements. See the section
titled &ldquo;Cautionary Statement Regarding Forward-Looking Statements.&rdquo;</I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>In
this prospectus, unless the context indicates otherwise, &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;LQR House,&rdquo;
&ldquo;the Company,&rdquo; &ldquo;our company&rdquo; and similar references refer to the operations of LQR House Inc., a Nevada corporation.</I></FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our company, LQR House Inc., intends to become
the full-service digital marketing and brand development face of the alcoholic beverage space.. Currently, LQR has a key partnership
with Country Wine &amp; Spirits Inc. (&ldquo;CWS&rdquo;). LQR House holds the rights for all marketing elements for CWS allowing significant
support for emerging brands, whilst their exclusive influencer network serves as affiliates for LQR House directing traffic to www.cwspirits.com
as explained below. It is important to note that we do not engage in the sale or distribution of any alcoholic products. Currently, the
importation of alcoholic beverage products is handled by Rilo Import &amp; Export Inc. and all alcoholic beverage products are distributed
to customers through our agreement with CWS, a licensed distributor. Our business includes the development through marketing of premium
limited batch spirit brands, which includes establishing an exclusive wine club, and marketing internal and external brands through an
exclusive agreement with a U.S.-based e-commerce portal, CWS Platform as explained below. We believe that the marketing and brand management
services we provide to our wholly owned and third-party clients will increase the brand recognition thereof, and drive sales thereof
through our e-commerce platform partner.<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Our
Key Partnerships with CWS and Ssquared</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have an exclusive marketing agreement with
Country Wine &amp; Spirits Inc. and Ssquared Spirits Inc., which we refer to as CWS and Ssquared, respectively, and which together own
and operate one of the largest online retailers of liquor in the United States, located at www.cwspirits.com, which we refer to as the
CWS Platform. In this three-way business relationship, Ssquared operates the CWS Platform on a day-to-day basis, for example, by ensuring
timely stocking of product and communicating with the CWS influencer network; CWS provides import, fulfillment, and distribution services
for all products sold on the CWS Platform; and our company handles 100% of the promotion of spirits and other beverage products through
the internet and through various social media channels.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Specifically,
our company obtained the sole right to manage and make decisions regarding user-facing content on the CWS Platform, including the placement
and removal of products and the creation and management of promotional initiatives. The grant of rights to our company is exclusive such
that, during the term of this agreement, April 1, 2021, through April 1, 2031, Ssquared and CWS shall not grant to any third party any
right to promote or advertise products on the CWS Platform and shall not shall directly or indirectly promote or advertise any products
themselves. This agreement may be terminated upon a material breach by a party thereto that goes uncured for longer than 30 days or at
any time by our company with thirty days written notice to each of CWS and Ssquared. For additional information about the consideration
due under the agreement, please see &ldquo;<I>Certain Relationships and Related Party Transactions </I>&ndash; <I>Transactions with Related
Persons</I>&rdquo;.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
relationship with CWS and Ssquared is the cornerstone of our business. Under our agreement with CWS and Ssquared, we can focus on our
competitive strengths, which include marketing and brand promotion. Our relationship and agreement with CWS and Ssquared provide us access
to approximately 241,000 customers via the CWS mailing lists and recurring traffic on the CWS Platform. This agreement also allows us
to market our brands on the CWS Platform and have them sold and distributed by our partners, CWS and Ssquared. Moreover, any third-party
brands seeking to have their products marketed on the CWS Platform can only do so by becoming a client of the Company.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company&rsquo;s independent registered public accounting firm has expressed substantial doubt as to the Company&rsquo;s ability to continue
as a going concern. We had minimal cash as of March 31, 2023 and December 31, 2022 of $23,581 and $7,565, respectively. During the three
months ended March 31, 2023 and 2022, we had net losses of $322,074 and $701,128, respectively. For the years ended December 31, 2022
and 2021, our net loss was $1,842,175 and $1,962,726, respectively. The Company&rsquo;s cash balance and revenues generated are not currently
sufficient and cannot be projected to cover its operating expenses and obligations for the next 12 months. The Company expects to fund
its operations for the next 12 months through equity financing arrangements and sales of its services. However, the Company may not be
able to raise adequate funds for capital expenditures, working capital and other cash requirements from capital markets on acceptable
terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company&rsquo;s failure to raise capital as
and when needed and generate significantly higher revenues than operating expenses to achieve profitability would impact its going concern
status and would have a negative impact on its financial condition and its ability to pursue its business strategy and continue as a
going concern. For further discussion, see &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations &ndash; Liquidity and Capital Resources &ndash; Going Concern</I>&rdquo;.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
Services and Brands We Market</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following products and services constitute the core elements of our business model and allow us to serve various types of customers in
the alcohol industry, including individual consumers, wholesalers, and third-party alcohol brands:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>SWOL
                                            Tequila</I></B> is a limited-edition blend of A&ntilde;ejo Tequila made in exclusive batches
                                            of up to 10,000 bottles and represents the first installment under our &ldquo;SWOL&rdquo;
                                            trademark with application number 2345291 and registration number 2141431 which was originally
                                            owned by Dollinger Innovations and transferred over to LQR House Inc. pursuant to an asset
                                            purchase agreement dated March 19, 2021, among LQR House Inc. and Dollinger Innovations Inc.,
                                            Dollinger Holdings LLC and Sean Dollinger. Pursuant to the asset purchase agreement, LQR
                                            House Inc. purchased all of the right, title and interest in the trademarks SWOL and all
                                            associated trade dress and intellectual property rights and all labels, logos and other branding
                                            bearing the SWOL marks or any mark substantially similar to the same. Tequila bearing the
                                            &ldquo;SWOL&rdquo; trademark is produced by Casa Cava de Oro S.A., an authentic tequila distillery
                                            in Jalisco, Mexico, imported into the United States through Rilo Import &amp; Export Inc.
                                            by CWS and sold to retail customers in the United States via the CWS Platform and in CWS&rsquo;s
                                            physical locations.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Vault
                                            </I></B>is the exclusive membership program for the CWS Platform, which is offered and managed
                                            by the Company. We receive the subscriptions fees generated by this program. Through the
                                            CWS Platform, users can sign up for this exclusive membership where they will have access
                                            to all products available through CWS combined with special membership benefits.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Soleil
                                            Vino</I></B> will be a wine subscription service marketed on the CWS Platform that will offer
                                            a unique selection of vintage and limited production wines. Through the CWS Platform, users
                                            will be able to sign up for this exclusive membership where they will have access to curated
                                            selections of wine from around the world. With Soleil Vino, we intend to create the premium
                                            wine subscription service on the market with high qualities and diverse selections of wine
                                            offerings. Pursuant to an asset purchase agreement, dated May 31, 2021, between LQR House
                                            Inc. and Dollinger Holdings LLC, LQR House Inc. purchased all of the right, title and interest
                                            in all trademarks regardless of registration status for Soleil Vino and all associated trade
                                            dress and intellectual property rights, all labels, logos and other branding bearing the
                                            Soleil Vino marks or any mark substantially similar to the same, and all website and all
                                            related digital and social media content including but not limited to influencer networks,
                                            http://www.soleilvino.com, and all related content, and all related sales channels was transferred.
                                            </FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>LQR
                                            House Marketing</I></B> is a marketing service in which we utilize our marketing expertise
                                            to help our wholly owned brands and third-party clients market their products to consumers.
                                            For example, by engaging us for our marketing services, our clients gain the ability to advertise
                                            and sell their brand on the CWS Platform.</FONT></TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
plan to address market demand by aligning with key industry trends and by utilizing strategic relationships to source, brand, finance
and distribute products. Specifically, we will focus initially on tequila, wine, and other specialty products by utilizing e-commerce
and technology to drive sales. Our focus is on the United States alcohol market, which is expected to consume a total of approximately
$283.8 billion of alcoholic beverages in 2023 and represents one of the largest global markets for all alcoholic beverage category sales
(Statista, <I>Alcoholic Drinks &ndash; Worldwide</I>, January 2023). With the growing online alcohol market and the move towards premiumization
of alcohol brands, we believe that LQR House can become the leading digital marketing and brand development face of the United States
alcoholic beverage space.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
believe that we have the following competitive strengths that will allow us to capitalize on the growing alcoholic beverage industry
and alcohol e-commerce:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Unique
                                            Platform</I></B>. We believe that our branding style, and the branding services we provide
                                            to our clients, allow us to market directly to the millennial market demographic.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Extensive
                                            Influencer Network</I></B>. We believe that our team has created one of the most extensive
                                            influencer relationship lists within the alcohol industry for small batch and exclusive brands.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Extensive
                                            E-commerce and Marketing Expertise</I></B>. Our team has decades of experience in e-commerce
                                            and implementing online strategies to maximize the benefit of marketing campaigns.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>External
                                            Vetting Process</I></B>. We vet the external brands we promote to ensure that all of the
                                            products we market align with our own brand and strategy.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Strategic
                                            Relationships</I></B>. We believe we have developed and solidified relationships with multiple
                                            groups that can deliver value to external brand customers.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Development
                                            of Unique Products</I></B>. We focus our product development on unique flavors and variations
                                            of products that are not generally available in the market.</FONT></TD></TR></TABLE>

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

</DIV>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Setting
                                            Ideal Price Points</I></B>. We believe we set a competitive price point, which aligns with
                                            the uniqueness and quality of the products offered by the Company.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Focus
                                            on Quality</I></B>. We believe all our products are sourced from the highest quality producers,
                                            and we vet our producers by visiting locations to verify quality and control procedures.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Unique
                                            Labelling and Marketing Promotions</I></B>. We have crafted unique labelling which aligns
                                            with our branding but also includes a removable patch that can be affixed to other items.</FONT></TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
key elements of our strategy to expand our business include the following:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Collaborative
                                            Marketing</I></B>. We intend to develop leading brands for up-and-coming companies and start-ups
                                            and align with celebrities and influencers with significant followings to enhance their online
                                            marketing presence.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Expand
                                            Our Brand</I></B>. We intend to continue expanding and developing our existing SWOL brand
                                            by purchasing and selling larger amounts of SWOL products to accelerate brand recognition
                                            and increasing our marketing presence.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Opportunistic
                                            Acquisitions</I></B>. We intend to pursue opportunistic acquisitions with existing alcohol
                                            brands and companies that have distribution licenses and physical storage locations and acquire
                                            technology that complements our business.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act;</FONT></TD></TR></TABLE>

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting
standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would
otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial
statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
will remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which
our total annual gross revenues exceed $1.235 billion, (ii) the date that we become a &ldquo;large accelerated filer&rdquo; as defined
in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our
Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal
quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.</FONT></P>

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

</DIV>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our company was incorporated in the State of Delaware on January 11,
2021, under the name LQR House Inc. On February 3, 2023, we changed our state of incorporation to the State of Nevada by converting into
LQR House Inc., a Nevada corporation. On February 3, 2023, in accordance with our reincorporation to Nevada, our authorized capital stock
changed from 100,000,000 shares of Common Stock, $0.001 par value, to 350,000,000 shares, consisting of 300,000,000 shares of Common Stock,
par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value $0.0001 per share. At the same time, we also completed
a 1-for-6 reverse stock split of our outstanding Common Stock through the merger by issuing one (1) share of our Common Stock for every
six (6) previously outstanding shares of Common Stock of our predecessor Delaware company. As a result, our issued and outstanding Common
Stock decreased from 55,252,424 shares to 9,200,434 shares.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
March 29, 2023, the Company amended its articles of incorporation to institute a dual class share structure consisting of Class A Common
Stock, and Class B Common Stock, and any number of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes
per share on proposals requiring or requesting shareholder approval, and Class B Common Stock was entitled to one (1) vote on any such
matter. A share of Class A Common Stock could have been voluntarily converted into a share of Class B Common Stock. A transfer of a share
of Class A Common Stock would have resulted in its automatic conversion into Common Stock upon such transfer, subject to certain exceptions,
including that the transfer of shares of Class A Common Stock to another holder of Class A Common Stock would not have resulted in such
automatic conversion. Class B Common Stock was not convertible. Other than as to voting and conversion rights, Class A Common Stock and
Class B Common Stock had the same rights and preferences and ranked equally, shared ratably and were identical in all respects as to
all matters.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Due
to this amendment, the Company&rsquo;s authorized capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of Common
Stock, par value $0.0001 per share, of which 20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and
280,000,000 shares were designated as Class B Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock,
$0.0001 par value per share. All 9,200,434 shares of Common Stock issued and outstanding at the time of the amendment became shares of
Class B Common Stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
June 1, 2023, we conducted a private placement of our Common Stock and entered into certain subscription agreements with a number of
(i) accredited investors as defined in Section 2(a)(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon
the exemption contained in Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable
state securities laws or (ii) non-U.S. persons made in compliance with the provisions of Regulation S promulgated under the Securities
Act. Pursuant to the agreements, we issued 955,000 shares of Common Stock at $1.00 per share for a total of $955,000.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
June 1, 2023, we entered into advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate
advice in connection with the Offering to the Company. In consideration for the advisor&rsquo;s services, the Company issued 500,000
shares of Common Stock to six individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
June 5, 2023, the Company further amended its articles of incorporation to amend the share structure by (i) eliminating a dual class
share structure consisting of the Class A Common Stock and Class B Common Stock and establishing a single Common Stock structure consisting
of shares of Common Stock only, with 350,000,000 authorized shares being all designated as common stock with a par value of $0.0001 per
share (the &ldquo;Single Common Stock Structure&rdquo;), entitled to one (1) vote per share; and by (ii) eliminating all authorized shares
of preferred stock. All 13,155,434 shares of Class B Common Stock issued and outstanding at the time of the amendment became shares of
Common Stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the commencement of this offering, there
will be 10,155,434 shares of Common Stock outstanding representing voting power of 10,155,434 votes. Following this offering, there will
be 11,155,434 shares of Common Stock outstanding representing voting power of 11,155,434 votes.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
principal executive offices are located at 6800 Indian Creek Dr. Suite 1E, Miami Beach, FL 33141, and our telephone number is (786) 389-9771.
We maintain a website at https://www.lqrhouse.com. Information available on our website is not incorporated by reference in and is not
deemed a part of this prospectus.</FONT></P>

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

</DIV>

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

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

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

<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 26%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares being offered:</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 73%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,000,000 shares
    of Common Stock (or 1,150,000 shares if the underwriters exercise the over-allotment option in full).</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Offering price:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We currently estimate that
    the initial public offering price will be $5 per share (which is the midpoint of the estimated range of the initial public offering
    price shown on the cover page of this prospectus).</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&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">Shares outstanding as of the date <BR>
of this prospectus:
    <SUP></SUP></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,155,434 shares of Common
    Stock. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&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">Shares outstanding after the<BR>
 offering: <SUP>(1)</SUP></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,155,434 shares of Common
    Stock (or 11,305,434 shares if the underwriters exercise the over-allotment option in full). </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&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">Over-allotment option:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have granted to the
    underwriters a 45-day option to purchase from us up to an additional 15% of the shares sold in the offering (150,000 additional shares)
    at the initial public offering price, less the underwriting discounts and commissions.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&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">Representative&rsquo;s warrant:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have agreed to issue
    to the representative a warrant to purchase a number of shares of Common Stock equal in the aggregate to 5% of the total number of
    shares issued in this offering. The representative&rsquo;s warrant will be exercisable at a per share exercise price equal to the
    public offering price per share of Common Stock sold in this offering. The representative&rsquo;s warrant will be exercisable at
    any time and from time to time, in whole or in part, during the five-year period commencing on the effective date of this offering.
    The registration statement of which this prospectus forms a part also registers the shares of Common Stock issuable upon exercise
    of the representative&rsquo;s warrant. See &ldquo;<I>Underwriting</I>&rdquo; for more information.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&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 STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We expect to receive net
    proceeds of approximately $3,955,990 from this offering (or approximately $4,638,490 if the underwriters exercise their over-allotment
    option in full), assuming an initial public offering price of $5 per share (which is the midpoint of the estimated range of the initial
    public offering price shown on the cover page of this prospectus), and after deducting estimated underwriting discounts and commissions
    and estimated offering expenses payable by us. We plan to use the net proceeds of this offering for acquisitions, marketing, working
    capital, and as compensation for certain executive officers. See &ldquo;<I>Use of Proceeds</I>&rdquo; for more information on the
    use of proceeds.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk factors:</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investing in our Common
    Stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully
    consider the information set forth in the &ldquo;<I>Risk Factors</I>&rdquo; section beginning on page 11&nbsp;before deciding to
    invest in our Common Stock.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&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">Lock-up Agreements</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We,
        all of our directors and officers and all of our shareholders have agreed with the underwriters, subject to certain exceptions,
        not to sell, transfer or dispose of, directly or indirectly, any of our Common Stock or securities convertible into or exercisable
        or exchangeable for our Common Stock for six (6) months after the close of the IPO (the &ldquo;Lock-Up Period&rdquo;). See &ldquo;<I>Underwriting&mdash;Lock-Up
        Agreements</I>&rdquo;.</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Notwithstanding
    the above, we and the underwriters have agreed to waive the lock-up requirement for shares of Common Stock being offered for sale
    by the selling stockholders named in the Resale Prospectus. See &ldquo;<I>Shares Eligible For Future Sale&mdash;Lock-Up Agreements</I>&rdquo;.</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>

</DIV>

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

<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 26%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Proposed trading market and<BR>
 symbol</FONT></TD>
    <TD STYLE="text-align: justify; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; width: 73%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We have applied to list
    our Common Stock on Nasdaq under the symbol &ldquo;LQR&rdquo;.&nbsp;&nbsp;We believe that upon the completion of this offering, we
    will meet the standards for listing on Nasdaq.&nbsp;&nbsp;The closing of this offering is contingent upon such listing.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&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"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            number of shares of Common Stock outstanding immediately following this offering is based
                                            on 10,155,434 shares of Common Stock outstanding as of the date of this prospectus, and excludes:</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" 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"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,250,000
                                            shares of Common Stock that are reserved for issuance to our directors, director nominees,
                                            and officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">50,000
shares of Common Stock (57,500 shares of Common Stock if the underwriters exercise the over-allotment option in full) issuable upon exercise
of a warrant to be issued to the underwriters in connection with this offering; and</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">150,000
shares of Common Stock issuable upon the underwriters&rsquo; exercise of the over-allotment option in full.</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unless
otherwise indicated, this prospectus reflects and assumes no exercise by the underwriters of their over-allotment option.</FONT></P>

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

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

</DIV>

</DIV>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following tables summarize certain financial data regarding our business and should be read in conjunction with our financial statements
and related notes contained elsewhere in this prospectus and the information under &ldquo;<I>Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations</I>.&rdquo;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
summary financial data as of and for the three months ended March 31, 2023 and 2022 are derived from our interim financial statements
included elsewhere in this prospectus. Our summary financial data as of and for the fiscal years ended December 31, 2022, and period
from inception (January 11, 2021) to December 31, 2021, are derived from our audited financial statements included elsewhere in this
prospectus. All financial statements included in this prospectus are prepared and presented in accordance with generally accepted accounting
principles in the United States, or GAAP. The summary financial information is only a summary and should be read in conjunction with
the historical financial statements and related notes contained elsewhere herein. The financial statements contained elsewhere fully
represent our financial condition and operations; however, they are not indicative of our future performance.</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR> March 31,</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="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Year ended<BR>
 December&nbsp;31,</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="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Inception (January 11,<BR>
 2021) to<BR>
 December&nbsp;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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</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; font-weight: bold">Statements of Operations Data</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">(Unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 52%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">150,563</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">28,250</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">601,131</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">315,292</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt">Cost of revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">102,997</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">312,955</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">803,144</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">677,447</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Gross profit (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,566</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(284,705</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(202,013</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(362,155</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,323</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">162,886</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">655,151</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">464,011</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; padding-bottom: 1.5pt">General and administrative</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">321,317</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">253,537</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">985,011</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">1,136,560</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">369,640</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">416,423</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,640,162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,600,571</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(322,074</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(701,128</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,842,175</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,962,726</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; 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><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <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-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(322,074</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(701,128</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,842,175</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,962,726</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Weighted average common shares outstanding basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,200,406</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,950,544</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,015,023</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,443,489</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Net loss per common share &ndash; basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.04</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.08</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.20</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.26</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD 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="padding-bottom: 1.5pt; font-weight: bold; text-align: center">March 31,</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="padding-bottom: 1.5pt; font-weight: bold; text-align: center">March 31,</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="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 STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2023</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Balance Sheet Data</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Actual <BR>(unaudited)</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">Pro Forma<BR>
 As Adjusted</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; 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">23,581</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">5,249,081</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">7,565</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,116,101</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 current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,012</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,295,512</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,334,448</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">Intangible assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,020,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,020,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,083,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,333,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,150,104</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,316,345</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,630,356</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,667,781</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 liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">432,537</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">432,537</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">590,715</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">103,841</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,717,567</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,883,808</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,039,641</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,563,941</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 liabilities and stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,150,104</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">7,316,345</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,630,356</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,667,781</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

</DIV>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
investment in our Common Stock involves a high degree of risk. You should carefully consider the risks summarized below. These risks
are discussed more fully in the &ldquo;<I>Risk Factors</I>&rdquo; section immediately following this Prospectus Summary. These risks
include, but are not limited to, the following:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I><U>Risks
Related to Our Business and Industry </U></I></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Chief Executive Officer, Sean Dollinger, has been the subject of a compliance review that was initiated by the British Columbia Securities
Commission, and has not formally been concluded, in connection with the sale of a subsidiary by Namaste Technologies Inc. when Mr. Dollinger
was the Chief Executive Officer there, and if the British Columbia Securities Commission or any other regulatory agency takes additional
action against Mr. Dollinger, our business could be materially adversely affected.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
                                            business, revenue, and operations depend on our continuing relationship with Country Wine
                                            &amp; Spirits Inc. and Ssquared Spirits LLC.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
have a limited operating history, which may make it difficult to evaluate our business and prospects.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
                                            independent registered public accounting firm has expressed substantial doubt as to our ability
                                            to continue as a going concern in its report.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company may need to raise additional capital to support its operations.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company may incur significant losses, and there can be no assurance that the Company will ever become a profitable business.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
rely on other third parties to provide services essential to the success of our business.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Increased
regulatory costs or taxes would harm our financial performance.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Changes
in the prices of supplies and raw materials could have a materially adverse effect on our business.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

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

</DIV>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom could
adversely affect our business, operating results and financial condition.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Company fails to develop or protect its intellectual property adequately, the Company&rsquo;s business could suffer.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company&rsquo;s products, services or processes could be subject to claims of infringement of the intellectual property of others.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I><U>Risks
Related to Government Regulation and Being a Public Company</U></I></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
                                            will face growing regulatory and compliance requirements which can be costly and time consuming.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Failure
                                            to comply with data privacy and security laws and regulations could adversely affect our
                                            operating results and business.</FONT></TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Changes
                                            in laws and government regulations to which we are currently subject, including changes to
                                            the method or approach of enforcement, may increase our costs or limit our ability to market
                                            our alcohol brands and the brands of our clients, which could adversely affect our operating
                                            results and business.</FONT></TD></TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
                                            we fail to maintain an effective system of disclosure controls and internal control over
                                            financial reporting, our ability to produce timely and accurate financial statements or comply
                                            with applicable regulations could be impaired.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
                                            management team has limited experience managing a public company.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Industry
                                            and other market data used in this prospectus or in periodic reports that we may in the future
                                            file with the SEC, including those undertaken by us or our engaged consultants, may not prove
                                            to be representative of current and future market conditions or future results.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Adverse
                                            developments affecting the financial services industry, such as actual events or concerns
                                            involving liquidity, defaults, or non-performance by financial institutions or transactional
                                            counterparties, could adversely affect our current and projected business operations and
                                            our financial condition and results of operations.</FONT></TD></TR></TABLE>

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

</DIV>

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

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I><U>Risks
Related to This Offering and Ownership of Our Common Stock</U></I></FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
                                            active trading market for our Common Stock may not develop.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            market price of our Common Stock may be volatile or may decline regardless of our operating
                                            performance, and you may not be able to resell your shares at or above the initial public
                                            offering price.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain
                                            recent initial public offerings of companies with relatively small public floats comparable
                                            to our anticipated public float have experienced extreme volatility that was seemingly unrelated
                                            to the underlying performance of the respective company. Our Common Stock may potentially
                                            experience rapid and substantial price volatility, which may make it difficult for prospective
                                            investors to assess the value of our Common Stock.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
                                            may not be able to maintain a listing of our Common Stock on Nasdaq.</FONT></TD></TR></TABLE>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
                                            our initial public offering price is substantially higher than our net tangible book value
                                            per share, you will experience immediate and substantial dilution.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
                                            have broad discretion as to the use of the net proceeds from this offering and our use of
                                            the offering proceeds may not yield a favorable return on your investment. Additionally,
                                            we may use these proceeds in ways with which you may not agree or in the most effective way.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
                                            have never paid cash dividends on our stock and do not intend to pay dividends for the foreseeable
                                            future.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Raising
                                            additional capital may cause dilution to our stockholders, including purchasers of Common
                                            Stock in this offering or restrict our operations.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT>&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="text-align: justify; width: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in">&#9679;</TD>
    <TD STYLE="text-align: justify">Enforcing legal liability against our directors and senior management might be difficult.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">The offering price of the primary offering and resale offering could differ.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">The resale by the selling stockholders may cause the market price of our Common Stock to decline.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&#9679;</TD>
    <TD STYLE="text-align: justify">We will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, and our stockholders could receive less information than they might expect to receive from more mature public companies.</TD></TR>
  </TABLE>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="a_002"></A>RISK
FACTORS</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>An
investment in our Common Stock involves a high degree of risk. You should carefully consider the following risk factors, together with
the other information contained in this prospectus, before purchasing our Common Stock. We have listed below (not necessarily in order
of importance or probability of occurrence) what we believe to be the most significant risk factors applicable to us, but they do not
constitute all of the risks that may be applicable to us. Any of the following factors could harm our business, financial condition,
results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this prospectus,
including statements in the following risk factors, constitute forward-looking statements. Please refer to the section titled &ldquo;Cautionary
Statement Regarding Forward-Looking Statements&rdquo;.</I></FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
Chief Executive Officer, Sean Dollinger, has been the subject of a compliance review that was initiated by the British Columbia Securities
Commission, and has not formally been concluded, in connection with the sale of a subsidiary by Namaste Technologies Inc. when Mr. Dollinger
was the Chief Executive Officer there, and if the British Columbia Securities Commission or any other regulatory agency takes additional
action against Mr. Dollinger, our business could be materially adversely affected. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sean
Dollinger, our Chief Executive Officer, was the Chief Executive Officer of Namaste Technologies Inc., or Namaste, a Canadian public company,
from June 2015 to February 2019. In October 2017, Namaste sought to list its securities on the TSX Venture Exchange, or TSXV. During
that time, the TSXV and the Toronto Stock Exchange, or TXV, advised their listed issuers that they could not hold interests in any entities
engaging in activities related to cannabis in the United States. After receiving the TSXV Notice, Namaste sought to divest one of its
subsidiaries who would be the subject of the TSXV&rsquo;s notice, Dollinger Enterprises US Inc., or Dollinger US. On November 28, 2017,
in a transaction approved by the Namaste board of directors, Namaste sold Dollinger US to ESC Hughes Holdings Ltd, or ESC Hughes, a company
owned by David Hughes, who was acting as Chief Marketing Officer of Namaste through his wholly owned consulting firm, ORH Marketing Ltd.
In an Investor call on November 29, 2017, Mr. Dollinger affirmed that the $400,000.00 purchase price for Dollinger US was fair market
value and that the deal was conducted at arm&rsquo;s length.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
September 13, 2018, and October 4, 2018, Citron Research, a company controlled by US-based short-seller Andrew Left, released two reports
on Namaste. In those reports, Citron Research made allegations of securities fraud relating to the sale of Dollinger US. On October 9,
2018, and October 10, 2018, the British Columbia Securities Commission&rsquo;s (&ldquo;BCSC&rdquo;) compliance department, which is a
separate and distinct group from the BCSC&rsquo;s enforcement department, issued comment letters to Namaste containing requests for information
regarding the allegations in Citron Research&rsquo;s report. Namaste responded to the letter and stated that neither ESC Hughes nor David
Hughes was then, or is now, a &ldquo;related party&rdquo; to the Company (as defined in Multilateral Instrument 61-101, <I>Protection
of Minority Security Holders in Special Transactions</I>) as neither ESC Hughes nor David Hughes individually, or in aggregate, held
then, or hold now, greater than 10% of the outstanding securities of Namaste. Mr. Dollinger departed from Namaste in February 2019 but
has offered his full cooperation to the BCSC in all requests. The BCSC has not filed an action against Mr. Dollinger, or Namaste, because
of the Dollinger US transaction.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the sale of Dollinger US, on October 19, 2018, a class action complaint was filed in the Ontario Superior Court of Justice
against Namaste and its former CEO, Sean Dollinger, and COO, Philip Van Den Berg on behalf of those who acquired securities of Namaste
during certain time periods, alleging that the Defendants made misrepresentations of material facts relating to Namaste&rsquo;s business,
operations, and finances by omitting from core documents, non-core documents and statements, material facts about the sale of Dollinger
US. The complaint asserted causes of action for misrepresentations with respect to securities under Section 138.3 of Ontario Securities
Act (imposing liability &ldquo;Where a responsible issuer or a person or company with actual, implied or apparent authority to act on
behalf of a responsible issuer releases a document that contains a misrepresentation &hellip;&rdquo;) and common law claims for secondary
market negligent and fraudulent misrepresentations. The Ontario Court approved a settlement agreement on July 22, 2019, in which the
plaintiffs received $2,150,000.00, paid out by Namaste&rsquo;s insurance policy, and the defendants, including Mr. Dollinger, did not
make any admissions of guilt, liability, or wrongdoing. We do not believe that Mr. Dollinger&rsquo;s involvement in this class action,
which was settled without any admissions of guilt or wrongdoing or liability, will have any effect on our ability to operate our business,
the price of our stock, or the results of our operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additionally,
on November 19, 2018, a class action complaint was filed in the United States District Court for the Southern District of New York against
Namaste, Sean Dollinger, Philip Van Den Berg, and former CFO, Kenneth Ngo, on behalf of persons and entities who or which purchased or
otherwise acquired shares of Namaste common stock traded on the over-the-counter market between November 29, 2017, and March 6, 2019.
In that claim, plaintiffs alleged violations of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 based on allegations that
the defendants made false or misleading statements or failed to disclose that Namaste did not disclose that it had sold Dollinger US
to Namaste executives and, consequently, Namaste did not sell Dollinger US in an arm&rsquo;s length transaction, and as a result, Namaste&rsquo;s
public statements were materially false and misleading at all relevant times relating to the sale of Dollinger US. The District Court
in this case approved a settlement agreement on March 11, 2020, in which the plaintiffs were awarded $2,750,000.00, paid out by Namaste&rsquo;s
insurance policy, and the defendants, including Mr. Dollinger, did not make any admissions of guilt, liability, or wrongdoing. We do
not believe that Mr. Dollinger&rsquo;s involvement in this class action, which was settled without any admissions of guilt or wrongdoing
or liability, will have any effect on our ability to operate our business, the price of our stock, or the results of our operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Regarding
the BCSC compliance review and correspondence with Mr. Dollinger, we believe that it is reasonable to infer from the length of time that
has passed since the last contact from the BCSC, though not a certainty, that the BCSC compliance department has concluded its review
into Mr. Dollinger. Additionally, we believe it is reasonable to infer that, had the BCSC enforcement department, which has a six-year
statute of limitations as to actionable securities fraud, found wrongdoing involving the matter described above, the BCSC enforcement
department likely would have contacted Mr. Dollinger or his lawyer by now, though, again, that inference is by no means a certainty.
We do not believe that there is an ongoing BCSC investigation or review in which Mr. Dollinger is a subject, however, we have not received
formal confirmation to that effect, and we will likely never receive formal confirmation of that fact since the BCSC does not make public
their confidential investigations. If there is an active investigation or review of Mr. Dollinger by the BCSC or any other enforcement
division of a regulatory agency, and that review results in an enforcement action against him by the BCSC or any other regulatory agency,
then the filing of that action or the result thereof could cause a diversion of the time that Mr. Dollinger has to spend on our business
and otherwise may have a have a material adverse impact on the price of our securities and the results of our operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
business, revenue, and operations depend on our continuing relationship with Country Wine &amp; Spirits Inc. and Ssquared Spirits LLC.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In the three months ended
March 31, 2023 and years ended December 31, 2022 and 2021, all revenue was derived from or directly related to contractual relationship
with Country Wine &amp; Spirits Inc. and Ssquared Spirits LLC. We have an exclusive marketing agreement with Country Wine &amp; Spirits
Inc. and Ssquared and our relationship with them is the cornerstone of our business. While our relationship with those two entities is
ongoing and is expected to continue, we cannot be certain that Country Wine &amp; Spirits Inc. and Ssquared Spirits LLC will maintain
their relationship with us at the expiry of our exclusive marketing agreement, dated April 1, 2021, with them on April 1, 2031. That being
said, this marketing approach is adaptable to other alcohol e-commerce platforms and the Company will pursue such relationships though
it cannot guarantee a successful outcome will result from pursuing such relationships. As much as LQR House Inc. is dependent upon its
symbiotic relationship with Country Wine &amp; Spirits Inc., Country Wine &amp; Spirits Inc. is equally dependent on LQR House Inc. LQR
House Inc. is responsible for managing the marketing aspects of CWS, which includes providing substantial support for emerging brands.
Through its exclusive influencer network, LQR House Inc. serves as an affiliate for CWS, directing traffic to the www.cwspirits.com website.
As a result, CWS relies on LQR House Inc. to attract customers who have a strong intention to purchase alcohol online. As an example,
one of the products sold on www.cwspirits.com is Tequila with the trademark &ldquo;SWOL,&rdquo; a trademark owned by LQR House Inc. This
Tequila has gained viral popularity because of the marketing efforts of LQR House Inc. The success of the Tequila translates into benefits
for CWS, as CWS leverages LQR House Inc.&rsquo;s marketing initiatives to effectively sell this specific Tequila product. That being said, if
anything were to happen to Country Wine &amp; Spirits Inc. or Ssquared Spirits LLC, such as a bankruptcy or acquisition in which our agreement
and partnership is not respected, then such occurrence would have a material adverse effect on our business, revenue generating abilities,
and results of operations. Likewise, if any of our agreements with Country Wine &amp; Spirits Inc. and Ssquared Spirits LLC end and our
services are not engaged in a new agreement, then we will lose our only source of revenue. Such an occurrence would have a material adverse
effect on our business, revenue generating abilities, and results of operations and would make it unlikely that we could continue to operate
as a going concern. Nonetheless, in such an event the Company will pursue other relationships though it cannot guarantee a successful
outcome will result from pursuing such relationships.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
have a limited operating history, which may make it difficult to evaluate our business and prospects.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company is an early, startup stage entity with little operating history. The Company only has nominal cash as of the date of commencement
of this offering. The revenue and income potential of the Company&rsquo;s business and market are unproven. The Company&rsquo;s limited
operating history makes an evaluation of the Company and its prospects difficult and highly speculative. There can be no assurances that:
(a) the Company will be able to develop products or services on a timely and cost effective basis; (b) the Company will be able to generate
any increase in revenues; (c) the Company will have adequate financing or resources to continue operating its business and to provide
products and services to customers; (d) the Company will earn a profit; (e) the Company can raise sufficient capital to support operations
by attaining profitability; or (f) the Company can satisfy future liabilities.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern in its
report. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company&rsquo;s financial statements were prepared on a &ldquo;going concern&rdquo; basis. Certain matters, as described in the accompanying
financial statements, indicate there may be substantial doubt about the Company&rsquo;s ability to continue as a going concern. We had
minimal cash as of March 31, 2023 and December 31, 2022 of $23,581 and $7,565, respectively. During the three months ended March 31,
2023 and 2022, we had net losses of $322,074 and $701,128, respectively. We will seek to fund our operations through sales of our products,
services, and equity financing arrangements. Adequate additional financing may not be available to us on acceptable terms, or at all.
Our failure to raise capital as and when needed would impact our going concern status and would have a negative impact on our financial
condition and our ability to pursue our business strategy and continue as a going concern. Management&rsquo;s plans to address this need
for capital through this offering and through private placement offerings are discussed elsewhere in this prospectus. We cannot assure
you that our plans to raise sufficient capital will be successful. These factors, among others, raise substantial doubt about our ability
to continue as a going concern. The financial statements contained elsewhere in this prospectus do not include any adjustments that might
result from our inability to consummate this offering or our inability to continue as a going concern.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Company may need to raise additional capital to support its operations. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company may need to procure additional financing over time, the amount and timing of which will depend on a number of factors, including
the pace of expansion of the Company&rsquo;s opportunities and customer base, the scope of product development to be undertaken by the
Company, the need to respond to customer needs for improvement of product offerings, the services offered and development efforts, the
cash flow generated by its operations, the extent of losses, if any with respect to matters identified as risk factors herein and the
extent of other unanticipated areas or amounts of expenditure. The Company cannot fully predict the extent to which it will require additional
financing. There can be no assurance regarding the availability or terms of additional financing the Company may be able to procure over
time. Any new investor may require that any future debt financing or issuance of preferred equity by the Company could be senior to the
rights of stockholders, and any future issuance of equity could result in the dilution of the value of our shares.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Company may incur significant losses, and there can be no assurance that the Company will ever become a profitable business. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">During
the three months ended March 31, 2023 and 2022, we had net losses of $322,074 and $701,128, respectively. It is anticipated that the
Company may continue to sustain operating losses. Its ability to become and/or remain profitable depends in material part on success
in growing and expanding the Company&rsquo;s products and services. There can be no assurance that this will occur. Unanticipated problems
and expenses often encountered in offering new and unique products or services may impact whether the Company is successful. Furthermore,
the Company may encounter substantial delays and unexpected expenses related to development, technological changes, marketing, insurance,
legal or regulatory requirements and changes to such requirements or other unforeseen difficulties. There can be no assurance that the
Company will remain profitable. If the Company sustains losses over a period of time, it may be unable to continue in business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Company&rsquo;s future revenue and operating results are unpredictable and may fluctuate significantly. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">It
is difficult to accurately forecast the Company&rsquo;s revenues and operating results, and they could fluctuate in the future due to
several factors. These factors may include acceptance of the Company&rsquo;s products and services; the amount and timing of operating
costs and capital expenditures; competition from other market venues or services that may reduce market share and create pricing pressure;
and adverse changes in general economic, industry and regulatory conditions and requirements. The Company&rsquo;s operating results may
fluctuate from year to year due to the factors listed above and others not listed. At times, these fluctuations may be significant.</FONT></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>If demand for our products and services
does not develop as expected our projected revenues and profits will be 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">Our future profits are influenced by many factors,
including economics, world events and changing customer preferences. We believe that the markets in our product segment will continue
to grow, that we will be successful in marketing our products and services in these markets. If our expectations as to the size of these
markets and our ability to sell our products and services in this market are not correct, our revenue may not materialize, and our business
will 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>If we fail to acquire and retain new customers,
or fail to do so in a cost-effective manner, we may be unable to increase net revenues, improve margins and achieve 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">Our success depends on our ability to acquire
and retain new customers and to do so in a cost-effective manner. We must continue to acquire customers in order to increase net revenues,
improve margins, and achieve profitability. We intend to make significant investments related to customer acquisition and expect to continue
to spend significant amounts to acquire additional customers. We cannot assure you that the net revenues from the new customers we acquire
will ultimately exceed the cost of acquiring those customers. If we fail to deliver a quality shopping experience, or if consumers do
not perceive the products we offer to be of high value and quality, we may be unable to acquire or retain customers. If we are unable
to acquire or retain customers who purchase products in volumes sufficient to grow our business, we may be unable to generate the scale
necessary to achieve operational efficiency. Consequently, our prices may increase, or may not decrease to levels sufficient to generate
customer interest, our net revenues may decrease, and our margins and profitability may decline or not improve. As a result, our business,
financial condition, and results of operations may be materially and 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">We believe that many of our new customers will
originate from word-of-mouth and other non-paid referrals from our customers. Therefore, we must ensure that our customers remain loyal
to us to continue receiving those referrals. If our efforts to satisfy our customers are not successful, we may be unable to acquire new
customers in sufficient numbers to continue to grow our business, and we may be required to incur significantly higher marketing expenses
to acquire new 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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
rely on other third parties to provide services essential to the success of our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Third
parties provide a variety of essential business functions for us, including customer service, legal and distribution. It is possible
that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that
we will experience delays, errors, or other problems with their work that will materially impact our operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
particular, we rely on CWS for the distribution of products sold by our marketing clientele. In the event CWS were to lose their distribution
license, for any reason, including but not limited to, changes in state and federal regulations, we would have to seek alternative distribution
options immediately. The services we sell to our clients could be interrupted by the change in distribution provider and our business
and reputation could suffer. If our efforts to contract with another distributor are unsuccessful, the Company may be unable to achieve
or maintain profitability and may incur significant losses in the future. As a result, our business, financial condition, and results
of operations may be materially and adversely affected.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
value of our brand also depends on effective customer support to provide a high-quality customer experience, which requires significant
personnel expenses. If not managed properly, this expense could impact our profitability. Failure to manage or train our outsourced customer
support representatives properly could compromise our ability to handle customer complaints effectively.</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>Reduced consumer demand for alcoholic beverages
could harm our business.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">There have been periods in the past in which overall
per capita consumption of alcoholic beverages in the United States and other markets in which we participate has declined substantially.
A limited or general decline in consumption in one or more of our product categories could occur in the future due to a variety of factors,
including a general decline in economic conditions, increased concern about the health consequences of consuming alcoholic beverage products
and about drinking and driving, a trend toward a healthier diet including lighter, lower-calorie beverages such as diet soft drinks, juices
and water products, the increased activity of anti-alcohol groups and increased federal, state or foreign excise and other taxes on alcoholic
beverage products. The competitive position of the Company&rsquo;s products could also be affected adversely by any failure to achieve
consistent, reliable quality in the product or service levels to 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>The success of our business relies heavily
on brand image, reputation, and product quality. </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">It is important that we maintain and increase
the image and reputation of our existing brands and products. Concerns about product quality, even when unsubstantiated, could be harmful
to our image and reputation of our brands and products. While we have quality control programs in place, in the event we experienced an
issue with product quality, we may experience recalls or liability in addition to business disruption which could further negatively impact
brand image and reputation and negatively affect our sales. Our brand image and reputation may also be more difficult to protect due to
less oversight and control because of the outsourcing of some of our operations. We also could be exposed to lawsuits relating to product
liability or marketing or sales practices. Deterioration to our brand equity may be difficult to combat or reverse and could have a material
effect on our business and financial results.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, in recent years, there has been a
marked increase in the use of social media platforms and other forms of Internet-based communications that provide individuals with access
to broad audiences, and the availability of information on social media platforms is virtually immediate, as can be its impact. Many social
media platforms immediately publish the content their participants post, often without filters or checks on accuracy of the content posted.
Furthermore, other Internet-based or traditional media outlets may in turn reference or republish such social media content to an even
broader audience. Information concerning us, regardless of its accuracy, may be posted on such platforms at any time. Information posted
may be adverse to our interests or may be inaccurate, each of which may materially harm our brand, reputation, performance, prospects and business, and such harm may be immediate and we may have little or no opportunity to respond or to seek redress or a correction.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 consumer spending could have
a negative impact on our financial condition and business results.</I></B></P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Alcohol sales depend upon a number of factors
related to the level of consumer spending, including the general state of the economy, federal and state income tax rates, deductibility
of business entertainment expenses under federal and state tax laws, and consumer confidence in future economic conditions. Changes in
consumer spending in these and other areas can affect both the quantity and the price of wines that customers are willing to purchase
online, at restaurants or through retail outlets. Reduced consumer confidence and spending may result in reduced demand for our products,
limitations on our ability to increase prices and increased levels of selling and promotional expenses. This, in turn, may have a considerable
negative impact upon sales and gross margins.</P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to, or voluntarily comply with, a number of other laws and regulations relating to the payments we accept from our customers
and third parties, including with respect to money laundering, money transfers, privacy, and information security, and electronic fund
transfers. These laws and regulations could change or be reinterpreted to make it difficult or impossible for us to comply. If we were
found to be in violation of any of these applicable laws or regulations, we could be subject to civil or criminal penalties and higher
transaction fees or lose our ability to accept credit and debit card payments from our customers, process electronic funds transfers or
facilitate other types of online payments, which may make our services less convenient and less attractive to our customers and diminish
the customer experience.</P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Adverse public opinion about alcohol may
harm our business.</I></B></P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">While a number of research studies suggest that
moderate alcohol consumption may provide various health benefits, other studies conclude or suggest that alcohol consumption has no health
benefits and may increase the risk of stroke, cancer and other illnesses. An unfavorable report on the health effects of alcohol consumption
could significantly reduce the demand for wine, which could harm our business by reducing sales and increasing expenses.</P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In recent years, activist groups have used advertising
and other methods to inform the public about the societal harms associated with the consumption of alcoholic beverages. These groups have
also sought, and continue to seek, legislation to reduce the availability of alcoholic beverages, to increase the penalties associated
with the misuse of alcoholic beverages, or to increase the costs associated with the production of alcoholic beverages. Over time, these
efforts could cause a reduction in the consumption of alcoholic beverages generally, which could harm our business by reducing sales and
increasing expenses.</P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Increased
regulatory costs or taxes would harm our financial performance.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury, or the TTB, imposes excise taxes, and/or other taxes
on beverage alcohol products, and/or on certain raw materials used to produce our beverage alcohol products, in varying amounts. TTB
or other governmental bodies may propose changes to international trade agreements, tariffs, taxes and other government rules and regulations.
Significant increases in taxes on, or that impact, beverage alcohol products could have a material adverse effect on our business, liquidity,
financial condition and/or results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Changes
in the prices of supplies and raw materials could have a materially adverse effect on our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
have been changes in the cost of raw materials used in tequila production and especially raw spirits in recent years. The increases in
prices may also take place in the future and our inability to pass on increases to our customers could reduce our margins and profits
and have a material adverse effect on our business. We cannot assure you that shortages or increases in the prices of our supplies or
raw materials will not have a material adverse effect on our financial condition and results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are subject to, or voluntarily comply with, a number of other laws and regulations relating to the payments we accept from our customers
and third parties, including with respect to money laundering, money transfers, privacy, and information security, and electronic fund
transfers. These laws and regulations could change or be reinterpreted to make it difficult or impossible for us to comply. If we were
found to be in violation of any of these applicable laws or regulations, we could be subject to civil or criminal penalties and higher
transaction fees or lose our ability to accept credit and debit card payments from our customers, process electronic funds transfers
or facilitate other types of online payments, which may make our services less convenient and less attractive to our customers and diminish
the customer experience.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We are subject to risks associated with
payments to us from our customers and other third parties, including risks associated with fraud. </I></B></P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nearly all of our customers&rsquo; payments, for
marketing services, are made by credit card or debit card. We currently rely exclusively on one third party vendor to provide payment
processing services, including the processing of payments from credit cards and debit cards, and our business would be disrupted if this
vendor becomes unwilling or unable to provide these services to us and we are unable to find a suitable replacement on a timely basis.
We are also subject to payment brand operating rules, payment card industry data security standards and certification requirements, which
could change or be reinterpreted to make it more difficult or impossible for us to comply. If we fail to comply with these rules or requirements,
we may be subject to fines and higher transaction fees and lose our ability to accept credit and debit card payments from customers, which
would make our services less convenient and attractive to our customers and likely result in a substantial reduction in revenue. We may
also incur losses as a result of claims that the customer did not authorize given purchases, fraud, erroneous transmissions and customers
who have closed bank accounts or have insufficient funds in their accounts to satisfy payments owed to us.</P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to, or voluntarily comply with,
a number of other laws and regulations relating to the payments we accept from our customers and third parties, including with respect
to money laundering, money transfers, privacy, and information security, and electronic fund transfers. These laws and regulations could
change or be reinterpreted to make it difficult or impossible for us to comply. If we were found to be in violation of any of these applicable
laws or regulations, we could be subject to civil or criminal penalties and higher transaction fees or lose our ability to accept credit
and debit card payments from our customers, process electronic funds transfers or facilitate other types of online payments, which may
make our services less convenient and less attractive to our customers and diminish the customer experience.</P>

<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: 7pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may not be able to fully exploit newly acquired brands.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
we raise the maximum offering amount, we intend to use a portion of the net proceeds to acquire third-party brands. See &ldquo;<I>Use
of Proceeds</I>.&rdquo; In our experience, not every brand deployment is successful. We may incur significant costs acquiring and promoting
new brands only to have limited market acceptance and limited resulting sales. If this occurs, our financial results may be negatively
impacted, and we may determine it is in the best interest of the Company to no longer support that brand.&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
operate in highly competitive industries, and competitive pressures could have a material adverse effect on our business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
alcoholic beverage distribution industry in the United States is intensely competitive and highly fragmented. The principal competitive
factors in that industry include product range, pricing, distribution capabilities and responsiveness to consumer preferences, with varying
emphasis on these factors depending on the market and the product. With respect to individual customers, we face significant competition
from various regional distributors and brick and mortar stores, who compete principally on price. The effect of this competition could
adversely affect our results of operations.</FONT></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom could
adversely affect our business, operating results and financial condition.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
future performance depends on the continued services and contributions of our senior management and other key employees, including Sean
Dollinger, our founder, and Chief Executive Officer, and Darren Collins, our Chief Financial Officer and Jaclyn Hoffman, our Chief Marketing
Officer. Without these key executives and employees, we may not have the ability to execute on our business plans and to identify and
pursue new opportunities and product innovations. The loss of services of senior management or other key employees could significantly
delay or prevent the achievement of our development and strategic objectives. The loss of the services of our senior management or other
key employees for any reason could adversely affect our business, financial condition and operating results. We do not presently maintain
any key man life insurance policies.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
our business plans are successful, we may experience significant growth in a short period of time and potential scaling issues. Should
we grow rapidly, our financial, management and operating resources may not expand sufficiently to adequately manage our growth. If we
are unable to manage our growth, our costs may increase disproportionately, our future revenues may stop growing or decline and we may
face dissatisfied customers. Our failure to manage our growth may adversely impact our business and the value of your investment.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
the Company fails to develop or protect its intellectual property adequately, the Company&rsquo;s business could suffer. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company has attempted, and may attempt, to develop certain intellectual property of its own, but cannot assure that it will be able to
obtain exclusive rights in trade secrets, patents, trademark registrations and copyright registrations. At this time, the Company is
unsure of what types of intellectual property might be developed. The cost of developing, applying for and obtaining such enforceable
rights is expensive. Even after such enforceable rights are obtained, there are significant costs for maintaining and enforcing them.
The Company may lack the resources to put in place exclusive protection and enforcement efforts. Also, certain of the Company&rsquo;s
product or service offerings initially draws from publicly available technology in the marketplace. The Company&rsquo;s failure to obtain
or maintain adequate protection of its intellectual property rights for any reason could have a material adverse effect on its business,
financial condition and results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Company were to develop intellectual property, the Company may seek to enforce its intellectual property rights on others through
litigation. The Company&rsquo;s claims, even if meritorious, may be found invalid or inapplicable to a party the Company believes infringes
or has misappropriated its intellectual property rights. In addition, litigation can:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">be
                                            expensive and time consuming to prosecute or defend;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">result
                                            in a finding that the Company does not have certain intellectual property rights or that
                                            such rights lack sufficient scope or strength;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">divert
                                            management&rsquo;s attention and resources; or</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">require
                                            the Company to license its intellectual property.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company may rely on trademarks or service marks to establish a market identity for its products or services. To maintain the value of
the Company&rsquo;s trademarks or service marks, the Company might have to file lawsuits against third parties to prevent them from using
marks confusingly similar to or dilutive of the Company&rsquo;s registered or unregistered trademarks or service marks. The Company also
might not obtain registrations for its pending or future trademark or service marks applications and might have to defend its registered
trademark or service marks and pending applications from challenge by third parties. Enforcing or defending the Company&rsquo;s registered
and unregistered trademarks or service marks might result in significant litigation costs and damages, including the inability to continue
using certain marks.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
laws of foreign countries in which the Company may contemplate doing business in the future may not recognize intellectual property rights
or protect them to the same extent as do the laws of the United States. Adverse determinations in a judicial or administrative proceeding
could prevent the Company from offering or providing its products or services or prevent the Company from stopping others from offering
or providing competing services, and thereby have a material adverse effect on the Company&rsquo;s business, financial condition, and
results of operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Company&rsquo;s products, services or processes could be subject to claims of infringement of the intellectual property of others. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Claims
that the Company&rsquo;s products, services, business methods, or processes infringe upon the proprietary rights of others often are
not asserted until after commencement of commercial sales of a product. Significant litigation regarding intellectual property rights
exists in the Company&rsquo;s industry. Third parties may make claims of infringement against the Company in connection with the use
of its technology. Any claims, even those without merit, could:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">be
                                            expensive and time consuming to defend;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">cause
                                            the Company to cease making, licensing, or using services that incorporate the challenged
                                            intellectual property; or</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">divert
                                            management&rsquo;s attention and resources.</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                        </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company cannot be certain of the outcome of any litigation. Any royalty or licensing agreement, if required, may not be available to
the Company on acceptable terms or at all. The Company&rsquo;s failure to obtain the necessary licenses or other rights could prevent
the development, or distribution of the Company&rsquo;s marketing technology and, therefore, could have a material adverse effect on
the Company&rsquo;s business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows</I>. </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">One
of our suppliers is located in Mexico. Because of this we face exposure to adverse movements in foreign currency exchange rates. Our
primary exposures are expected to be related to pesos denominated operating expenses in Mexico. These exposures may change over time
as business practices evolve, and they could have a material adverse impact on our financial results and cash flows.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A failure or breach of our security systems
or infrastructure as a result of cyberattacks could disrupt our business, result in the disclosure or misuse of confidential or proprietary
information, damage our reputation, increase our costs and cause losses. </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">Information security risks for technology companies,
such as the Company, have significantly increased in recent years in part because of the proliferation of new technologies, the use of
the Internet and telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of
organized crime, hackers, terrorists and other external parties. These threats may derive from fraud or malice on the part of our employees
or third parties or may result from human error or accidental technological failure. These threats include cyberattacks, such as computer
viruses, malicious code, phishing attacks or information security 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">Our operations will, in part, rely on the secure
processing, transmission and storage of confidential proprietary and other information in our computer systems and networks. Our customers
will rely on digital technologies, computer, email and messaging systems, software and networks to conduct their operations or to utilize
our products or services. In addition, to access our products and services, our customers will use personal smartphones, tablet computers
and other mobile devices that may be beyond our 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">If a cyberattack or other information security
breach occurs, it could lead to security breaches of the networks, systems or devices that our customers use to access our products and
services which could result in the unauthorized disclosure, release, gathering, monitoring, misuse, loss or destruction of confidential,
proprietary and other information (including account data information) or data security compromises. Such events could also cause service
interruptions, malfunctions or other failures in the physical infrastructure or operations systems that will support our businesses and
customers, as well as the operations of our customers or other third parties. Any actual attacks could lead to damage to our reputation
with our customers and other parties and the market, additional costs to the Company (such as repairing systems, adding new personnel
or protection technologies or compliance costs), regulatory penalties, financial losses to both us and our customers and partners and
the loss of customers and business opportunities. If such attacks are not detected immediately, their effect could be compounded.</P>

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

<P STYLE="text-align: justify; margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Although we will attempt to mitigate these risks, there can be no assurance
that we will be immune to these risks and not suffer losses 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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Current
market conditions and recessionary pressures in one or more of the Company&rsquo;s markets could impact the Company&rsquo;s ability to
grow its business. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
U.S. economy faces continued concerns about the systemic impacts of adverse economic conditions such as the U.S. deficit, historically
high inflation, volatile energy costs, geopolitical issues, the continued availability and cost of credit in the face of expected interest
rate increases by the U.S. Federal Reserve, ongoing supply chain disruptions, the ongoing impact of the COVID-19 pandemic, and unstable
financial and real estate markets. Foreign countries, including those in the Euro zone, are affected by similar systemic impacts. Turbulence
in the United States and international markets and economic conditions may adversely affect the Company&rsquo;s liquidity and financial
condition, and the liquidity and financial condition of the Company&rsquo;s customers. If these market conditions occur, they may limit
the Company&rsquo;s ability, and the ability of the Company&rsquo;s customers, to replace maturing liabilities and to access the capital
markets to meet liquidity needs, which could have a material adverse effect on the Company&rsquo;s financial condition and results of
operations. There is no assurance that the Company&rsquo;s product and services will be accepted in the marketplace. To date, inflationary
pressures have not had a material impact on the Company&rsquo;s financial condition and results of operations, and we have not developed
any plans or taken any action to mitigate such inflationary pressures. However, there is no assurance the inflationary pressures will
not have a material effect on the Company&rsquo;s financial condition and results of operations in the future. If inflationary pressures
begin to have a material effect on the Company in the future, we may or may not develop plans to mitigate those pressures.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to Government Regulation and Being a Public Company</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
will face growing regulatory and compliance requirements which can be costly and time consuming.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">New
and evolving regulations and compliance standards for cyber security, data protection, privacy, and internal IT controls are often created
in response to the tide of cyberattacks and will increasingly impact organizations like our company. Existing regulatory standards require
that organizations implement internal controls for user access to applications and data. In addition, data breaches are driving a new
wave of regulation, such as the European Union&rsquo;s General Data Protection Regulation, with stricter enforcement and higher penalties.
Regulatory and policy-driven obligations require expensive and time-consuming compliance measures. The fear of non-compliance, failed
audits, and material findings has pushed organizations to spend more to ensure they are in compliance, often resulting in costly, one-off
implementations to mitigate potential fines or reputational damage. The high costs associated with failing to meet regulatory requirements,
combined with the risk of fallout from security breaches, has elevated this topic from the IT organization to the executive and board
level. We may need to spend additional time and money ensuring we will meet future regulatory requirements.</FONT></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
business could be negatively impacted by changes in the U.S. political environment.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
is significant ongoing uncertainty with respect to potential legislation, regulation and government policy at the federal, state and
local levels in the United States. Such uncertainty and any material changes in such legislation, regulation and government policy could
significantly impact our business as well as the markets in which we compete. Specific legislative and regulatory proposals that might
materially impact us include, but are not limited to, changes to liability rules for data privacy regulations, import and export regulations,
income tax regulations and the U.S. federal tax code and public company reporting requirements, immigration policies and enforcement,
healthcare law, minimum wage laws, climate and energy policies, foreign trade and relations with foreign governments, and pandemic response.
To the extent changes in the political environment have a negative impact on us or on our customers, our markets, our business, results
of operation and financial condition could be materially and adversely impacted in the future.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Failure
to comply with data privacy and security laws and regulations could adversely affect our operating results and business.&nbsp;</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the ordinary course of our business, we might collect and store in our internal and external data centers, cloud services and networks
sensitive data, including our proprietary business information and that of our customers, suppliers and business collaborators, as well
as personal information of our customers and employees. The secure processing, maintenance and transmission of this information is critical
to our operations and business strategy. The number and sophistication of attempted attacks and intrusions that companies have experienced
from third parties has increased over the past few years. Despite our security measures, it is impossible for us to eliminate this risk.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
number of U.S. states have enacted data privacy and security laws and regulations that govern the collection, use, disclosure, transfer,
storage, disposal, and protection of personal information, such as social security numbers, financial information and other sensitive
personal information. For example, all 50 states and several U.S. territories now have data breach laws that require timely notification
to affected individuals, and at times regulators, credit reporting agencies and other bodies, if a company has experienced the unauthorized
access or acquisition of certain personal information. Other state laws, such as the California Consumer Privacy Act, as amended, or
the CCPA, among other things, contain disclosure obligations for businesses that collect personal information about residents in their
state and affords those individuals new rights relating to their personal information that may affect our ability to collect and/or use
personal information. Effective January 1, 2023, we will also become subject to the California Privacy Rights Act, which expands upon
the consumer data use restrictions, penalties and enforcement provisions under the California Consumer Privacy Act, and Virginia&rsquo;s
Consumer Data Protection Act, another comprehensive data privacy law. Effective July 1, 2023, we will also become subject to the Colorado
Privacy Act and Connecticut&rsquo;s An Act Concerning Personal Data Privacy and Online Monitoring, which are also comprehensive consumer
privacy laws. Effective December 31, 2023, we will also become subject to the Utah Consumer Privacy Act, regarding business handling
of consumers&rsquo; personal data. Meanwhile, several other states and the federal government have considered or are considering privacy
laws like the CCPA. We will continue to monitor and assess the impact of these laws, which may impose substantial penalties for violations,
impose significant costs for investigations and compliance, allow private class-action litigation and carry significant potential liability
for our business.&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Outside
of the U.S., data protection laws, including the EU General Data Protection Regulation, or the GDPR, also might apply to some of our
operations or business collaborators. Legal requirements in these countries relating to the collection, storage, processing and transfer
of personal data/information continue to evolve. The GDPR imposes, among other things, data protection requirements that include strict
obligations and restrictions on the ability to collect, analyze and transfer EU personal data/information, a requirement for prompt notice
of data breaches to data subjects and supervisory authorities in certain circumstances, and possible substantial fines for any violations
(including possible fines for certain violations of up to the greater of 20 million Euros or 4% of total company revenue). Other governmental
authorities around the world have enacted or are considering similar types of legislative and regulatory proposals concerning data protection.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
interpretation and enforcement of the laws and regulations described above are uncertain and subject to change, and may require substantial
costs to monitor and implement and maintain adequate compliance programs. Failure to comply with U.S. and international data protection
laws and regulations could result in government enforcement actions (which could include substantial civil and/or criminal penalties),
private litigation and/or adverse publicity and could negatively affect our operating results and business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; 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><I>Our business depends on our customers&rsquo;
continued and unimpeded access to the Internet and the development and maintenance of Internet infrastructure. Internet access providers
may be able to block, degrade or charge for access to certain of our services, which could lead to additional expenses and the loss of
customers.</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 services depend on the ability of our customers,
and the customers of Country Wine &amp; Spirits Inc. to access the Internet. Currently, this access is provided by companies having significant
market power in the broadband and Internet access marketplace, including incumbent telephone companies, cable companies, mobile communications
companies and government-owned service providers. Some of these providers have the ability to take measures including legal actions, that
could degrade, disrupt or increase the cost of user access to certain of our services by restricting or prohibiting the use of their infrastructure
to support our services, charging increased fees to our users, or regulating online speech. Such interference could result in a loss of
existing users, advertisers and goodwill, could result in increased costs and could impair our ability to attract new users, thereby harming
our revenue and growth. Moreover, the adoption of any laws or regulations adversely affecting the growth, popularity or use of the Internet,
including laws impacting Internet neutrality, could decrease the demand for our services and increase our operating costs. The legislative
and regulatory landscape regarding the regulation of the Internet and, in particular, Internet neutrality, in the U.S. is subject to uncertainty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent any laws, regulations or rulings
permit Internet service providers to charge some users higher rates than others for the delivery of their content, Internet service providers
could attempt to use such law, regulation or ruling to impose higher fees or deliver our content with less speed, reliability or otherwise
on a non-neutral basis as compared to other market participants, and our business could be adversely impacted. Internationally, government
regulation concerning the Internet, and in particular, network neutrality, may be developing or non-existent. Within such a regulatory
environment, we could experience discriminatory or anticompetitive practices impeding both our and our customers&rsquo; domestic and international
growth, increasing our costs or adversely affecting our business. Additional changes in the legislative and regulatory landscape regarding
Internet neutrality, or otherwise regarding the regulation of the Internet, could harm our business, operating results and financial condition.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our business could be affected by
new governmental regulations regarding the Internet.</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">To date, government regulations have not materially
restricted use of the Internet in most parts of the world. However, the legal and regulatory environment relating to the Internet is uncertain,
and governments may impose regulation in the future. New laws may be passed, courts may issue decisions affecting the Internet, existing
but previously inapplicable or unenforced laws may be deemed to apply to the Internet or regulatory agencies may begin to more rigorously
enforce such formerly unenforced laws, or existing legal safe harbors may be narrowed, both by U.S. federal or state governments and by
governments of foreign jurisdictions. The adoption of any new laws or regulations, or the narrowing of any safe harbors, could hinder
growth in the use of the Internet and online services generally, and decrease acceptance of the Internet and online services as a means
of communications, e-commerce and advertising. In addition, such changes in laws could increase our costs of doing business or prevent
us from delivering our services over the Internet or in specific jurisdictions, which could harm our business and our results of operations.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Changes
in laws and government regulations to which we are currently subject, including changes to the method or approach of enforcement, may
increase our costs or limit our ability to market our alcohol brands and the brands of our clients, which could adversely affect our
operating results and business.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
complex multi-jurisdictional regime governs alcoholic beverage manufacturing, distribution, sales, and marketing in the United States.
The alcoholic beverages industry in which we operate is subject to extensive regulation by the TTB (and other federal agencies), each
state&rsquo;s liquor authority, and potentially local authorities depending on location. These regulations and laws dictate such matters
as licensing requirements, production, importation, ownership restrictions, trade, and pricing practices, permitted distribution channels,
delivery, and prohibitions on sales to minors, permitted, and required labeling, and advertising and relations with wholesalers and retailers.
These laws, regulations and licensing requirements may, and sometimes are, interpreted and applied in a manner that is inconsistent from
one jurisdiction to another and may conflict with other legal mandates or with the Company&rsquo;s business practices. Further, these
laws, rules, regulations, and interpretations are constantly changing because of litigation, legislation, and agency priorities, and
could result in increased regulation. The Company&rsquo;s actual or asserted non-compliance with any such law, regulation or requirement
could expose us to investigations, claims, litigation, injunctive proceedings and other criminal or civil proceedings by private parties
and regulatory authorities, as well as license suspension, license revocation, substantial fines, and negative publicity, any of which
could adversely affect our results of operations, financial condition, and business.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Government
laws and regulations may result in increased production and sales costs, including an increase on the applicable tax in various state,
federal and foreign jurisdictions in which we do business. The amount of alcohol that CWS can sell directly to consumers over the internet
is regulated, and in certain states CWS is not allowed to sell alcohol directly to consumers at all. Changes in these laws and regulations
that tighten current rules could have an adverse impact on sales or increase costs to produce, market, package or sell alcohol. Changes
in regulation that require significant additional source data for registration and sale, in the labelling or warning requirements, or
limitations on the permissibility of any component, condition or ingredient, in the places in which our alcohol can be legally sold could
inhibit sales of affected products in those markets. While we do not engage in the act of selling alcohol on the internet, our business
depends on the ability of CWS to continue selling alcohol online through the CWS Platform. If any regulation were to cause a negative
impact on the ability of CWS to sell alcohol online, such impact would have a negative effect on our business, results of operations,
and financial condition. If CWS were ever to become unable to sell alcohol online through the CWS Platform, we would lose a significant
source of our revenue, which would have a material adverse impact on our business, results of operations and financial condition.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
alcohol industry, and the &lsquo;sale&rsquo; of alcohol online, is subject to extensive regulation by a number of federal, state, and
local authorities. These regulations and laws dictate such matters as trade and pricing practices, permitted distribution channels, permitted
and required labeling, and advertising. New or updated regulations, requirements or licenses, particularly changes that impact CWS&rsquo;
ability to sell direct to customer and/or retain accounts in the states in which it operates, or new or increased excise taxes, income
taxes, sales taxes or international tariffs, could have an indirect, material adverse effect on our financial condition or results of
operations. From time to time, states consider proposals to increase state alcohol excise taxes. New or revised regulations or increased
licensing fees, requirements or taxes could have an indirect, material adverse effect on our business, financial condition, and results
of operations.</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"></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>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>The requirements
of being a public company may strain our resources.</I></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 a public company,
we will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley
Act of 2002, or the Sarbanes-Oxley Act, and the listing standards of Nasdaq. We expect that the requirements of these rules and regulations
will continue to increase our legal, accounting, and financial compliance costs, make some activities more difficult, time-consuming and
costly, and place significant strain on our personnel, systems and resources. Management&rsquo;s attention may be diverted from other
business concerns, which could adversely affect our business and operating results.</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">The Exchange Act requires that our company file annual, quarterly,
and current reports with respect to our business, financial condition, and results of operations. In addition, we must establish the corporate
infrastructure necessary for operating a public company, which may divert our management&rsquo;s attention from implementing our growth
strategy, which could delay or slow the implementation of our business strategies, and in turn negatively impact our company&rsquo;s 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; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce
timely and accurate financial statements or comply with applicable regulations could be impaired.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
current internal controls and any new controls that we develop may become inadequate because of changes in conditions in our business
or changes in the applicable laws, regulations and standards. Any failure to develop or maintain effective controls, or any difficulties
encountered in their implementation or improvement, could harm our operating results, cause us to fail to meet our reporting obligations,
result in a restatement of our financial statements for prior periods or adversely affect the results of management evaluations and independent
registered public accounting firm audits of our internal control over financial reporting that we will eventually be required to include
in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures and internal control over financial
reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative
effect on the trading price of our Common Stock. In addition, if we are unable to continue to meet these requirements, we may not be
able to remain listed on Nasdaq in the future.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
management team has limited experience managing a public company.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Most
members of our management team have limited experience managing a publicly traded company, interacting with public company investors
and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently
manage our transition to being a public company that is subject to significant regulatory oversight and reporting obligations under the
federal securities laws and the continuous scrutiny of securities analysts and investors. These new obligations and constituents will
require significant attention from our senior management and could divert their attention away from the day-to-day management of our
business, which could harm our business, financial condition and results of operations.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Industry
and other market data used in this prospectus or in periodic reports that we may in the future file with the SEC, including those undertaken
by us or our engaged consultants, may not prove to be representative of current and future market conditions or future results.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
prospectus includes or refers to, and periodic reports that we may in the future file with the SEC may include or refer to, statistical
and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third parties
and surveys and studies that we undertook ourselves regarding the market potential for our current products. Although we believe that
such information has been obtained from reliable sources, the sources of such data have not guaranteed the accuracy or completeness of
such information. While we believe these industry publications and third-party research, surveys and studies are reliable, we have not
independently verified such data. The results of this data represent various methodologies, assumptions, research, analysis, projections,
estimates, composition of respondent pool, presentation of data and adjustments, each of which may ultimately prove to be incorrect,
and cause actual results and market viability to differ materially from those presented in any such report or other materials.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Adverse
developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance
by financial institutions or transactional counterparties, could adversely affect our current and projected business operations and our
financial condition and results of operations.</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Actual
events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional
counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors
about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems.
For example, on March 10, 2023, Silicon Valley Bank, or SVB, was closed by the California Department of Financial Protection and Innovation,
which appointed the Federal Deposit Insurance Corporation, or the FDIC, as receiver. Similarly, on March 12, 2023, Signature Bank Corp.,
or Signature, and Silvergate Capital Corp. were each swept into receivership. Although a statement by the Department of the Treasury,
the Federal Reserve and the FDIC indicated that all depositors of SVB would have access to all of their money after only one business
day of closure, including funds held in uninsured deposit accounts, borrowers under credit agreements, letters of credit and certain
other financial instruments with SVB, Signature or any other financial institution that is placed into receivership by the FDIC may be
unable to access undrawn amounts thereunder. Although we are not a borrower under or party to any material letter of credit or any other
such instruments with SVB, Signature or any other financial institution currently in receivership, if we enter into any such instruments
and any of our lenders or counterparties to such instruments were to be placed into receivership, we may be unable to access such funds.
In addition, if any of our partners, suppliers or other parties with whom we conduct business are unable to access funds pursuant to
such instruments or lending arrangements with such a financial institution, such parties&rsquo; ability to pay their obligations to us
or to enter into new commercial arrangements requiring additional payments to us could be adversely affected. In this regard, counterparties
to credit agreements and arrangements with these financial institutions, and third parties such as beneficiaries of letters of credit
(among others), may experience direct impacts from the closure of these financial institutions and uncertainty remains over liquidity
concerns in the broader financial services industry. Similar impacts have occurred in the past, such as during the 2008-2010 financial
crisis.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Inflation
and rapid increases in interest rates have led to a decline in the trading value of previously issued government securities with interest
rates below current market interest rates. Although the U.S. Department of Treasury, FDIC and Federal Reserve Board have announced a
program to provide up to $25 billion of loans to financial institutions secured by certain of such government securities held by financial
institutions to mitigate the risk of potential losses on the sale of such instruments, widespread demands for customer withdrawals or
other liquidity needs of financial institutions for immediately liquidity may exceed the capacity of such program.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our current and projected future
business operations could be significantly impaired by factors that affect us, any financial institutions with which we enter into credit
agreements or arrangements directly, or the financial services industry or economy in general. These factors could include, among others,
events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity
agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative
expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions
or financial services industry companies with which we have financial or business relationships but could also include factors involving
financial markets or the financial services industry generally.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
results of events or concerns that involve one or more of these factors could include a variety of material and adverse impacts on our
current and projected business operations and our financial condition and results of operations. These risks include, but may not be
limited to, the following:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">delayed
                                            access to deposits or other financial assets or the uninsured loss of deposits or other financial
                                            assets;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">inability
                                            to enter into credit facilities or other working capital resources;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">potential
                                            or actual breach of contractual obligations that require us to maintain letters of credit
                                            or other credit support arrangements; or</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                     </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">termination
                                            of cash management arrangements and/or delays in accessing or actual loss of funds subject
                                            to cash management arrangements.</FONT></TD></TR></TABLE>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing
terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit
and liquidity sources, thereby making it more difficult for us to acquire financing on acceptable terms or at all. Any decline in available
funding or access to our cash and liquidity resources could, among other risks, adversely impact our ability to meet our operating expenses
or other obligations, financial or otherwise, result in breaches of our financial and/or contractual obligations, or result in violations
of federal or state wage and hour laws. Any of these impacts, or any other impacts resulting from the factors described above or other
related or similar factors, could have material adverse impacts on our liquidity and our current and/or projected business operations
and financial condition and results of operations.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
further deterioration in the macroeconomic economy or financial services industry could lead to losses or defaults by our partners, vendors
or suppliers, which in turn, could have a material adverse effect on our current and/or projected business operations and results of
operations and financial condition. For example, a partner may fail to make payments when due, default under their agreements with us,
become insolvent or declare bankruptcy, or a supplier may determine that it will no longer deal with us as a customer. In addition, a
vendor or supplier could be adversely affected by any of the liquidity or other risks that are described above as factors that could
result in material adverse impacts on us, including but not limited to delayed access or loss of access to uninsured deposits or loss
of the ability to draw on existing credit facilities involving a troubled or failed financial institution. The bankruptcy or insolvency
of any partner, vendor or supplier, or the failure of any partner to make payments when due, or any breach or default by a partner, vendor
or supplier, or the loss of any significant supplier relationships, could cause us to suffer material losses and may have a material
adverse impact on our business.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>An
active trading market for our Common Stock may not develop. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prior
to this offering, there has been no public market for our Common Stock. We have applied to list our Common Stock on Nasdaq under the
symbol &ldquo;LQR&rdquo;. The closing of this offering is contingent upon such listing. Although we anticipate our Common Stock being
approved for listing on Nasdaq, an active trading market for our Common Stock may never develop or be sustained following this offering.
The initial public offering price of our Common Stock will be based and determined through negotiations between us and the underwriters.
This initial public offering price may not be indicative of the market price of our Common Stock after this offering. In the absence
of an active trading market for our Common Stock, investors may not be able to sell their Common Stock at or above the initial public
offering price or at the time that they would like to sell. An inactive market may also impair our ability to raise capital to continue
to fund operations by selling Common Stock and may impair our ability to acquire other companies or assets by using our Common Stock
as consideration.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
market price of our Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to resell
your shares at or above the initial public offering price. </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">After
this offering, the market price for our Common Stock is likely to be volatile, in part because our shares have not been traded publicly.
In addition, the market price of our Common Stock may fluctuate significantly in response to several factors, most of which we cannot
control, including:</FONT></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">adverse
                                            publicity about us, the industries we participate in or individual scandals;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                         </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">announcements
                                            of new offerings or significant price reductions by us or our competitors;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                       </TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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 senior management or key personnel;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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 financial estimates by securities analysts;</FONT></TD></TR><TR STYLE="vertical-align: top">
<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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                                                                                                                                                                                                               </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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
                                            market&rsquo;s reaction to our reduced disclosure as a result of being an &ldquo;emerging
                                            growth company&rdquo; under the JOBS Act;</FONT></TD></TR><TR STYLE="vertical-align: top">
<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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">negative
                                            earnings or other announcements by us or our competitors;</FONT></TD></TR><TR STYLE="vertical-align: top">
<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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                                                                                                                                                                                                                           </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">defaults
                                            on indebtedness, incurrence of additional indebtedness, or issuances of additional capital
                                            stock;</FONT></TD></TR><TR STYLE="vertical-align: top">
<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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                                                                                                                                                                                                                                                                   </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">global
                                            economic, legal and regulatory factors unrelated to our performance; and</FONT></TD></TR><TR STYLE="vertical-align: top">
<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: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                                                                                                                                                                                                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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
                                            other factors listed in this &ldquo;<I>Risk Factors</I>&rdquo; section.</FONT></TD></TR></TABLE>

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

<P STYLE="margin-top: 0; margin-bottom: 0"></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 public offering price of our Common Stock
has been determined by us based upon many factors and may not be indicative of prices that will prevail following the closing of this
offering. Volatility in the market price of our Common Stock may prevent investors from being able to sell their shares at or above the
initial public offering price. As a result, you may suffer a loss on your investment.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Certain recent initial public offerings
of companies with relatively small public floats comparable to our anticipated public float have experienced extreme volatility that was
seemingly unrelated to the underlying performance of the respective company. Our Common Stock may potentially experience rapid and substantial
price volatility, which may make it difficult for prospective investors to assess the value of our Common Stock.&nbsp;</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 addition to the risks addressed above under
&ldquo;<I>&mdash; Our Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to
resell your shares at or above the initial public offering price</I>,&rdquo; our Common Stock may be subject to rapid and substantial
price volatility. Recently, companies with comparably small public floats and initial public offering sizes have experienced instances
of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was seemingly unrelated to the respective
company&rsquo;s underlying performance. Although the specific cause of such volatility is unclear, our anticipated public float may amplify
the impact the actions taken by a few stockholders have on the price of our stock, which may cause our stock price to deviate, potentially
significantly, from a price that better reflects the underlying performance of our business. Our Common Stock may experience run-ups and
declines that are seemingly unrelated to our actual or expected operating performance and financial condition or prospects, making it
difficult for prospective investors to assess the rapidly changing value of our Common Stock. In addition, investors of shares of our
Common Stock may experience losses, which may be material, if the price of our Common Stock declines after this offering or if such investors
purchase shares of our Common Stock prior to any price decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 maintain a listing
of our Common Stock on Nasdaq.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Assuming that our Common Stock is listed on Nasdaq,
we must meet certain financial and liquidity criteria to maintain such listing. If we violate Nasdaq&rsquo;s listing requirements, or
if we fail to meet any of Nasdaq&rsquo;s listing standards, our Common Stock may be delisted. In addition, our board of directors may
determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting
of our Common Stock from Nasdaq may materially impair our shareholders&rsquo; ability to buy and sell our Common Stock and could have
an adverse effect on the market price of, and the efficiency of the trading market for, our Common Stock. The delisting of our Common
Stock could significantly impair our ability to raise capital and the value of your investment.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</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 publish inaccurate or unfavorable research about our business, the market price for the shares and trading volume
could decline. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The trading market for our Common Stock will depend
in part on the research and reports that securities or industry analysts publish about us or our business. If research analysts do not
establish and maintain adequate research coverage or if one or more of the analysts who covers us downgrades our Common Stock or publishes
inaccurate or unfavorable research about our business, the market price for our Common Stock would likely decline. If one or more of these
analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets,
which, in turn, could cause the market price or trading volume for our Common Stock to decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>As our initial public offering price is
substantially higher than our net tangible book value per share, you will experience immediate and substantial dilution.</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 you purchase shares in this offering, you will
pay more for your shares of Common Stock than the amount paid by our existing stockholders for their shares on a per share basis. As a
result, you will experience immediate and substantial dilution in net tangible book value per share in relation to the price that you
paid for your shares. We expect the dilution as a result of the offering to be $4.65 per share to new investors purchasing our shares
in this offering if the maximum number of shares being offered are sold, assuming a public offering price of $5 per share, which is the
midpoint, of the estimated range of the initial public offering price shown on the cover page of this prospectus. In addition, you will
experience further dilution to the extent that our shares are issued upon the vesting of restrictive stock or exercise of stock options
under any stock incentive plans. All of the shares issuable under our then stock incentive plans will be issued at a purchase price on
a per share basis that is less than the assumed public offering price per share in this offering. See &ldquo;<I>Dilution</I>&rdquo; for
a more complete description of how the value of your investment in our shares will be diluted upon completion of this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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 broad discretion as to the use of
the net proceeds from this offering and our use of the offering proceeds may not yield a favorable return on your investment. Additionally,
we may use these proceeds in ways with which you may not agree or in the most effective way.</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 management will have substantial
discretion in applying the net proceeds to be received by the Company. See &ldquo;<I>Use of Proceeds</I>&rdquo; for a description of how
we plan to apply the net proceeds. However, based on unforeseen technical, commercial, or regulatory issues, we could spend the proceeds
in ways with which you may not agree. Moreover, the proceeds may not be invested effectively or in a manner that yields a favorable or
any return, and consequently, this could result in financial losses that could have a material adverse effect on our business, financial
condition and results of operations. There can be no assurance that the Company will utilize the net proceeds in a manner that enhances
the value of the Company. If the Company fails to spend the proceeds effectively, the Company&rsquo;s business and financial condition
could be harmed, and there may be the need to seek additional financing sooner than expected.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 never paid cash dividends on our
stock and do not intend to pay dividends for the foreseeable future. </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 paid no cash dividends on any class of
our stock to date, and we do not anticipate paying cash dividends in the near term. For the foreseeable future, we intend to retain any
earnings to finance the development and expansion of our business, and we do not anticipate paying any cash dividends on our Common Stock.
Accordingly, investors must be prepared to rely on sales of their Common Stock after price appreciation to earn an investment return,
which may never occur. Investors seeking cash dividends should not purchase our Common Stock. Any determination to pay dividends in the
future will be made at the discretion of our board of directors and will depend on our results of operations, financial condition, contractual
restrictions, restrictions imposed by applicable law and other factors our board deems relevant.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Raising additional capital may cause dilution
to our stockholders, including purchasers of Common Stock in this offering or restrict our 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 STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Until such time, if ever, as we can generate substantial
product revenues, we expect to finance our cash needs through a combination of equity and/or debt financing and collaborations, licensing
agreements or other strategic arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt
securities, your ownership interest will be diluted, and the terms of such securities may include liquidation or other preferences that
adversely affect your rights as a stockholder.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the extent that we raise additional capital
through debt financing, it would result in increased fixed payment obligations and a portion of our operating cash flows, if any, being
dedicated to the payment of principal and interest on such indebtedness. In addition, debt financing may involve agreements that include
restrictive covenants that impose operating restrictions, such as restrictions on the incurrence of additional debt, the making of certain
capital expenditures or the declaration of 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"><B><I>We may issue additional debt and equity
securities, which are senior to our Common Stock as to distributions and in liquidation, which could materially adversely affect the market
price of 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">In the future, we may attempt to increase our
capital resources by entering into additional debt or debt-like financing that is secured by all or up to all of our assets, or issuing
debt or equity securities, which could include issuances of commercial paper, medium-term notes, senior notes, subordinated notes or shares.
In the event of our liquidation, our lenders and holders of our debt securities would receive a distribution of our available assets before
distribution to our stockholders. In addition, any additional preferred stock, if issued by our company, may have a preference with respect
to distributions and upon liquidation, which could further limit our ability to make distributions to our stockholders. Because our decision
to incur debt and issue securities in our future offerings will depend on market conditions and other factors beyond our control, we cannot
predict or estimate the amount, timing or nature of our future offerings and debt financing.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Further, market conditions could require us to
accept less favorable terms for the issuance of our securities in the future. Thus, you will bear the risk of our future offerings reducing
the value of your Common Stock and diluting your interest in our company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Enforcing legal liability against our directors
and senior management might be difficult. </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 are organized under the laws of the
State of Nevada and investors are able to affect service of process in the United States upon us, most of the members of our board of
directors and senior management reside outside of the United States and all or a substantial portion of their assets are located outside
the United States. As a result, it may not be possible to serve process on these directors and senior management in the United States
or to enforce court judgments obtained in the United States against these individuals based on the civil liability provisions of the U.S.
federal or state securities laws. In addition, awards of punitive damages in actions brought in the United States or elsewhere may not
be enforceable outside the United States.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 offering price of the primary offering
and resale offering could differ.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
offering price of shares of our Common Stock in the initial public offering has been determined by negotiations between the Company and
the underwriter. </FONT>The offering price in the primary offering bears no relationship to our assets, earnings or book value, or any
other objective standard of value. Additionally, the estimated offering price in the primary offering of $5 per share, which is a midpoint
of the estimated range of the initial public offering price shown on the cover page of this prospectus, is substantially higher than the
prices at which certain selling stockholders acquired their shares ($1.00 per share), and we recently sold stock at prices ($1.00 per
share) substantially less than the primary offering price. Our recent share issuances at prices substantially less than the primary offering
price occurred while we were a non-public company, and the shares we issued were subject to transfer restrictions imposed by the Securities
Act of 1933, as amended, and by lock-up restrictions, whereas shares issued in the primary offering will be issued after we are a public
company and will be issued without restriction.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders may sell the resale shares
at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices
after the listing of our Common Stock on Nasdaq. Therefore, the offering prices of the initial public offering and resale offering could
differ. As a result, the purchasers in the resale offering could pay more or less than the offering price in the primary offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The resale by the selling stockholders may
cause the market price of our Common Stock to decline.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The resale of shares of our Common Stock by the
selling stockholders in the resale offering could result in resales of our Common Stock by our other shareholders concerned about selling
volume. In addition, the resale by the selling stockholders could have the effect of depressing the market price for our Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>We will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, and our stockholders
could receive less information than they might expect to receive from more mature public companies. </I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon the completion of this offering, we will
be required to publicly report on an ongoing basis as an &ldquo;emerging growth company&rdquo; (as defined in the JOBS Act) under the
reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain
exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth
companies, including but not limited to:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">being permitted to comply with reduced disclosure obligations regarding executive compensation in our
periodic reports and proxy statements; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder
approval of any golden parachute payments not previously approved.</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">In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We expect to take advantage of these reporting
exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, although
if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would
cease to be an emerging growth company as of the following December 31.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, our stockholders could
receive less information than they might expect to receive from more mature public companies. We cannot predict if investors will find
our Common Stock less attractive if we elect to rely on these exemptions, or if taking advantage of these exemptions would result in less
active trading or more volatility in the price of our Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>We are a smaller
reporting company within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements
available to smaller reporting companies, this could make our securities less attractive to investors and may make it more difficult to
compare our performance with other public companies.</I></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">Rule 12b-2 of the Exchange Act defines a &ldquo;smaller
reporting company&rdquo; as an issuer that is not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent
that is not a smaller reporting company and that:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">had a public float of less than $250 million as of the last business day of its most recently completed
second fiscal quarter, computed by multiplying the aggregate worldwide number of shares of its voting and non-voting common equity held
by non-affiliates by the price at which the common equity was last sold, or the average of the bid and asked prices of common equity,
in the principal market for the common equity; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">in the case of an initial registration statement under the Securities Act or the Exchange Act for shares
of its common equity, had a public float of less than $250 million as of a date within 30 days of the date of the filing of the registration
statement, computed by multiplying the aggregate worldwide number of such shares held by non-affiliates before the registration plus,
in the case of a Securities Act registration statement, the number of such shares included in the registration statement by the estimated
public offering price of the shares; or</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">in the case of an issuer whose public float as calculated under paragraph (1) or (2) of this definition
was zero or whose public float was less than $700 million, had annual revenues of less than $100 million during the most recently completed
fiscal year for which audited financial statements are available.</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">As a smaller reporting company, we will not be
required and may not include a Compensation Discussion and Analysis section in our proxy statements; we will provide only two years of
financial statements; and we need not provide the table of selected financial data. We also will have other &ldquo;scaled&rdquo; disclosure
requirements that are less comprehensive than issuers that are not smaller reporting companies which could make our Common Stock less
attractive to potential investors, which could make it more difficult for our stockholders to sell their 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"><B><I>As a &ldquo;smaller reporting company,&rdquo;
we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public shareholders</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">Under Nasdaq rules, a &ldquo;smaller reporting
company,&rdquo; as defined in Rule 12b-2 under the Exchange Act, is not subject to certain corporate governance requirements otherwise
applicable to companies listed on Nasdaq. For example, a smaller reporting company is exempt from the requirement of having a compensation
committee composed solely of directors meeting certain enhanced independence standards, as long as the compensation committee has at least
two members who do meet such standards. Although we have not yet determined to avail ourselves of this or other exemptions from Nasdaq
requirements that are or may be afforded to smaller reporting companies, while we will seek to maintain our shares on Nasdaq in the future
we may elect to rely on any or all of them. By electing to utilize any such exemptions, our company may be subject to greater risks of
poor corporate governance, poorer management decision-making processes, and reduced results of operations from problems in our corporate
organization. Consequently, our stock price may suffer, and there is no assurance that we will be able to continue to meet all continuing
listing requirements of Nasdaq from which we will not be exempt, including minimum stock price requirements.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Common Stock becomes subject to the
penny stock rules, it would become more difficult to trade our shares.</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems,
provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system.
If we do not retain a listing on Nasdaq or another national securities exchange and if the price per share of our Common Stock is less
than $5.00, our Common Stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny
stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition,
the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser&rsquo;s
written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks;
and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the
trading activity in the secondary market for our Common Stock, and therefore shareholders may have difficulty selling their shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_003"></A>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
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">This prospectus contains forward-looking statements
that are based on our management&rsquo;s beliefs and assumptions and on information currently available to us. All statements other than
statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in, but not limited
to, the sections entitled &ldquo;<I>Prospectus Summary</I>,&rdquo; &ldquo;<I>Risk Factors</I>,&rdquo; &ldquo;<I>Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations</I>&rdquo; and &ldquo;<I>Business</I>.&rdquo; These statements relate to
future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not
limited to, statements about:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to introduce new products and services;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to obtain additional funding to develop additional products, services and offerings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">compliance with obligations under intellectual property licenses with third parties;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">market acceptance of our new offerings;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">competition from existing online offerings or new offerings that may emerge;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to establish or maintain collaborations, licensing or other arrangements;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability and third parties&rsquo; abilities to protect intellectual property rights;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to adequately support future growth;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our goals and strategies;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our future business development, financial condition and results of operations;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">expected changes in our revenue, costs or expenditures;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">growth of and competition trends in our industry;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the accuracy and completeness of the data underlying our or third-party sources&rsquo; industry and market
analyses and projections;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our expectations regarding demand for, and market acceptance of, our products and services;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our expectations regarding our relationships with investors, institutional funding partners and other
parties with whom we collaborate;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our expectation regarding the use of proceeds from this offering;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">fluctuations in general economic and business conditions in the markets in which we operate;&nbsp;and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">relevant government policies and regulations relating to our industry.</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In some cases, you can identify forward-looking
statements by terms such as &ldquo;may,&rdquo; &ldquo;could,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;would,&rdquo; &ldquo;expect,&rdquo;
&ldquo;plan,&rdquo; &ldquo;intend,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;predict,&rdquo;
&ldquo;potential,&rdquo; &ldquo;project&rdquo; or &ldquo;continue&rdquo; or the negative of these terms or other comparable terminology.
These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and
unknown risks, uncertainties, and other factors, which are, in some cases, beyond our control and which could materially affect results.
Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the
heading &ldquo;<I>Risk Factors</I>&rdquo; and elsewhere in this prospectus. If one or more of these risks or uncertainties occur, or if
our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the
forward-looking statements. No forward-looking statement is a guarantee of future performance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The forward-looking statements made in this prospectus
relate only to events or information as of the date on which the statements are made in this prospectus. Although we will become a public
company after this offering and have ongoing disclosure obligations under United States federal securities laws, we do not intend to update
or otherwise revise the forward-looking statements in this prospectus, whether as a result of new information, future events or&nbsp;otherwise.</P>

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




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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_004"></A>USE OF PROCEEDS</P>

<P STYLE="font: bold 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">After deducting the estimated underwriters&rsquo;
discounts and commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $3,955,990 from this
offering (or approximately $4,638,490 if the underwriters exercise the over-allotment option in full), based on an assumed public offering
price of $5 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this
prospectus.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We plan to use the net proceeds of this offering
as follows:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">66.7% of the net proceeds (approximately $2,638,645, or approximately $3,093,872 if the underwriters exercise
the over-allotment option in full) for acquisitions of alcoholic beverage brands;</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%; border-collapse: collapse">
  <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">20% of the net proceeds (approximately $791,198, or approximately $927,698 if the underwriters exercise the over-allotment option in full) to invest in marketing of existing brands, including SWOL;</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 CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">10% of the net proceeds (approximately $395,599, or approximately $463,849 if the underwriters exercise
the over-allotment option in full) for working capital and general corporate purposes; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">3.3% of the net proceeds (approximately $130,547, or approximately $153,070 if the underwriters exercise
the over-allotment option in full) to compensate certain executive officers.</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"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each $1.00 increase or decrease in the assumed
initial public offering price of $5 per share, which is the midpoint of the estimated range of the initial public offering price shown
on the cover page, of this prospectus would increase or decrease the net proceeds that we receive from this offering by approximately
$910,000, respectively, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the
same and after deducting the estimated underwriting discounts and commissions payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing represents our current intentions
to use and allocate the net proceeds of this offering based upon our present plans and business conditions. Our management, however, will
have broad discretion in the way that we use the net proceeds of this offering. We have not identified nor developed any plans to acquire
any specific alcoholic beverage brand at this time. Pending the final application of the net proceeds of this offering, we intend to invest
the net proceeds of this offering in short-term, interest-bearing, investment-grade securities. See &ldquo;<I>Risk Factors &mdash; Risks
Related to This Offering and Ownership of Our Common Stock &mdash; We have broad discretion as to the use of the net proceeds from this
offering and our use of the offering proceeds may not yield a favorable return on your investment. Additionally, we may use these proceeds
in ways with which you may not agree or in the most effective way.</I>&rdquo;</P>

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




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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_005"></A>DIVIDEND POLICY</P>




<P STYLE="font: bold 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 never declared or paid cash dividends
on our capital stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business
and do not anticipate paying any cash dividends in the near future. We may also enter into credit agreements or other borrowing arrangements
in the future that will restrict our ability to declare or pay cash dividends. Any future determination to declare dividends will be made
at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, contractual
restrictions, general business conditions and other factors that our board of directors may deem relevant. <FONT STYLE="background-color: white">See
also &ldquo;<I>Risk Factors &mdash; </I></FONT><I>Risks Related to This Offering and Ownership of Our Common Stock <FONT STYLE="background-color: white">&mdash;
</FONT>We have never paid cash dividends on our stock and do not intend to pay dividends for the foreseeable future.</I><FONT STYLE="background-color: white">&rdquo;</FONT></P>

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




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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_006"></A>CAPITALIZATION</P>




<P STYLE="font: bold 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 capitalization
as of March 31, 2023:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">on an actual basis; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">on a pro forma basis to reflect the sale of 955,000 shares of Common Stock at a price of $1.00 per share
subsequent to March 31, 2023, in private placements; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">on a pro forma basis to reflect the issuance of 3,000,000 shares of Common Stock subsequent to March 31,
2023, in the form of advisor agreements; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">on a pro forma basis to reflect the cancellation of 3,000,000 shares of Common Stock subsequent to March
31, 2023, previously purchased by four entities pursuant to four stock purchase agreements; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">on a pro forma as adjusted basis to reflect the pro forma adjustment as described above and the sale of
1,000,000 shares by us in this offering at the estimated price to the public of $5 per share, which is the midpoint of the estimated range
of the initial public offering price shown on the cover page of this prospectus, resulting in estimated net proceeds to us of approximately
$3,955,990 after deducting (i) underwriter commissions, discounts, accountable and non-accountable expenses of $679,500 (assuming no exercise
of the over-allotment option) and (ii) our estimated other offering expenses of $364,509.26.</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">The pro forma information below is illustrative
only and our capitalization following the completion of this offering is subject to adjustment based on the initial public offering price
of our Common Stock and other terms of this offering determined at pricing. You should read this table together with our financial statements
and the related notes included elsewhere in this prospectus and the information under &ldquo;<I>Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations</I>.&rdquo;</P>


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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">As of March 31, 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">&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">Actual</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">Pro Forma</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; white-space: nowrap; font-weight: bold; text-align: center">Pro Forma<BR>
 As <BR>
Adjusted</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">$</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">$</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">$</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in; width: 64%; text-align: left">Cash and cash equivalents</TD><TD STYLE="padding-bottom: 4pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; width: 9%; text-align: right">23,581</TD><TD STYLE="padding-bottom: 4pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; width: 9%; text-align: right">978,581</TD><TD STYLE="padding-bottom: 4pt; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; width: 9%; text-align: right">5,249,081</TD><TD STYLE="padding-bottom: 4pt; width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">Common Stock, $0.0001 par
value, 350,000,000 shares authorized, 9,200,434 shares issued and outstanding, actual, 10,155,434 shares issued and outstanding, pro
forma, 11,155,434 shares issued and outstanding, pro forma as adjusted </FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">920</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,116</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">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,843,622</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,798,526</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,009,667</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: 0.25in; text-align: left">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,126,975</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">(4,126,975</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">(4,126,975</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total shareholder&rsquo;s equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,717,567</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,672,567</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">6,883,808</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total capitalization</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">1,717,567</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,672,567</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">6,883,808</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 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">Each $1.00 increase or decrease in the assumed
offering price per share of $5 per share, which is the midpoint of the estimated range of the initial public offering price shown on the
cover page, assuming no change in the number of shares to be sold, would increase or decrease the net proceeds that we receive in this
offering and each of total shareholders&rsquo; equity and total capitalization by approximately $910,000 after deducting (i) estimated
underwriter commissions and (ii) offering expenses, in each case, payable by us.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table above is based on 9,200,434 shares of
our Common Stock <FONT STYLE="font-family: Times New Roman, Times, Serif">outstanding </FONT>as of March 31, 2023, and excludes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">1,250,000 shares of Common Stock that are reserved for issuance to our directors, director nominees, and
officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">50,000 shares of Common Stock (57,500 shares of Common Stock if the underwriters exercise the over-allotment
option in full) issuable upon exercise of a warrant to be issued to the underwriters in connection with this offering; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">150,000 shares of Common Stock issuable upon the underwriters&rsquo; exercise of the over-allotment option
in full.</TD></TR></TABLE>

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

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

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




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_007"></A>DILUTION</P>




<P STYLE="font: bold 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">Dilution in net tangible book value per share
to new investors is the amount by which the offering price paid by the purchasers of the shares of our Common Stock sold in this offering
exceeds the pro forma net tangible book value per share of Common Stock after this offering. Net tangible book value per share is determined
at any date by subtracting our total liabilities from the total book value of our tangible assets and dividing the difference by the number
of shares of Common Stock deemed to be outstanding at that date.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our net tangible book value as of March 31, 2023,
was $(362,525), or approximately $(0.04) per share of Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pro forma as adjusted net tangible book value
dilution per share to new investors represents the difference between the amount per share paid by purchasers of our Common Stock in this
offering and the pro forma as adjusted net tangible book value per share of Common Stock immediately after completion of this offering.
Investors participating in this offering will incur immediate, substantial dilution. After giving effect to our sale of 1,000,000 shares
of our Common Stock in this offering at an assumed initial public offering price of $5 per share, which is the midpoint of the estimated
range of the initial public offering price shown on the cover page, and after deducting the estimated underwriting discounts and commissions
and estimated offering expenses, and adjusting for the change in our pro forma net tangible book value subsequent to March 31, 2023 due
to the sale of 955,000 shares of Common Stock at a price of $1 per share subsequent to March 31, 2023 in private placements and the issuance
of 3,000,000 shares of Common Stock pursuant to advisor agreements, our pro forma as adjusted net tangible book value as of March 31,
2023 would have been approximately $3,907,975, or approximately $0.35 per share of Common Stock. This amount represents an immediate increase
in pro forma net tangible book value of $0.39 per share of Common Stock to existing shareholders and an immediate dilution in pro forma
net tangible book value of $4.65 per share of Common Stock to purchasers of our Common Stock in this offering, as illustrated in the following
table.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&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; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Assumed public offering price per share of Common Stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Historical net tangible book value (deficit) per share as of March 31, 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.04</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="padding-left: 0.125in; padding-bottom: 1.5pt; text-align: left">Increase in pro forma net tangible book value per share attributable to the offering</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.39</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right"></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Pro forma as-adjusted net tangible book value (deficit) per share as of March 31, 2023</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">0.35</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-align: left">Dilution per share to new investors purchasing shares of Common Stock in this offering</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4.65</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the underwriters exercise their over-allotment
option in full, the pro forma as adjusted net tangible book value per share of Common Stock, as adjusted to give effect to this offering,
would be $0.41 per share, and the dilution in pro forma net tangible book value per share to new investors purchasing shares of Common
Stock in this offering would be $4.59 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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 following table sets forth, as of March 31,
2023, the total number of shares of Common Stock previously issued and sold to existing investors, the total consideration paid for the
foregoing and the average price per share of Common Stock paid, or to be paid, by existing owners and by the new investors. The calculation
below is based on the assumed initial public offering price of $5 per share, which is the midpoint of the estimated range of the initial
public offering price shown on the cover page, before deducting estimated underwriter commissions and offering expenses, in each case
payable by us, and assumes no exercise of the over-allotment option.</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 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="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares Purchased</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total Consideration</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">Average<BR> Price</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Number</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Percent</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Percent</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Per Share</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left">Existing Stockholders</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">9,200,434</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">90.2</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,035,472</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">44.7</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.44</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">New investors</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.8</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55.3</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,200,434</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,035,472</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.89</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 7pt">&nbsp;</FONT></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">The table above is based on 9,200,434 shares of
our Common Stock <FONT STYLE="font-family: Times New Roman, Times, Serif">outstanding </FONT>as of March 31, 2023, and excludes:</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 CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">1,250,000 shares of Common Stock that are reserved for issuance to our directors, director nominees, and
officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;</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 CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">50,000 shares of Common Stock (57,500 shares of Common Stock if the underwriters exercise the over-allotment
option in full) issuable upon exercise of a warrant to be issued to the underwriters in connection with this offering; and</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 CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">150,000 shares of Common Stock issuable upon the underwriters&rsquo; exercise of the over-allotment option
in full.</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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">To the extent
that any outstanding options or warrants are exercised, new options, restricted stock units or other securities are issued under our stock-based
compensation plans, or new shares of </FONT>Common Stock <FONT STYLE="background-color: white">in the future, there will be further dilution
to investors participating in this offering.</FONT></P>

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




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_008"></A>MANAGEMENT&rsquo;S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</P>




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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>The following discussion and analysis summarizes
the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the
periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related
notes thereto included elsewhere in this prospectus. The discussion contains forward-looking statements that are based on the beliefs
of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially
from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and elsewhere
in this prospectus, particularly in the sections titled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Statement Regarding Forward-Looking
Statements&rdquo;.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></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">Our company, LQR House Inc., intends to become
the full-service digital marketing and brand development face of the alcoholic beverage space. We also intend to integrate the supply,
sales, and marketing facets of the alcoholic beverage space into one easy to use platform and become the one-stop-shop for everything
related to alcohol. To date, our primary business includes the development of premium limited batch spirit brands, establishing an exclusive
wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. We believe that
the marketing and brand management services we provide to our wholly owned and third-party clients will increase brand recognition thereof,
and drive sales thereof through our e-commerce platform partner.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s independent registered public
accounting firm has expressed substantial doubt as to the Company&rsquo;s ability to continue as a going concern. As of March 31, 2023,
and December 31, 2022, and 2021, we had $23,581, $7,565 and $1,116,101 in cash, respectively. During the three months ended March 31,
2023 and 2022, we had net losses of $322,074 and $701,128, respectively. The Company&rsquo;s cash balance and revenues generated are not
currently sufficient and cannot be projected to cover its operating expenses and obligations for the next 12 months. The Company expects
to fund its operations for the next 12 months through equity financing arrangements and sales of its services. However, the Company may
not be able to raise adequate funds for capital expenditures, working capital and other cash requirements from capital markets on acceptable
terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company&rsquo;s failure to raise capital as
and when needed and generate significantly higher revenues than operating expenses to achieve profitability would impact its going concern
status and would have a negative impact on its financial condition and its ability to pursue its business strategy and continue as a going
concern. For further discussion, see &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations
&ndash; Liquidity and Capital Resources &ndash; Going Concern</I>&rdquo;.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 1, 2023, we conducted a private placement
of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in Section 2(a)(15)
of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons made in compliance
with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000 shares of Common
Stock at $1.00 per share for a total of $955,000.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our operating results are primarily affected by
the following factors:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to acquire new customers and users or retain existing customers and users;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to offer competitive pricing;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to broaden product or service offerings;</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 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">industry demand and competition;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to leverage technology and use and develop efficient processes;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to attract and maintain a network of influencers with a relevant audience;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">our ability to attract and retain talented employees and contractors; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">market conditions and our market position.</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"><B>Emerging Growth Company </B></P>

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

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

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

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

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

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

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">disclose certain executive compensation related items such as the correlation between executive compensation
and performance and comparisons of the chief executive officer&rsquo;s compensation to median employee compensation.</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">In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.235
billion, (ii) the date that we become a &ldquo;large accelerated filer&rdquo; as defined in Rule 12b-2 under the Exchange Act, which would
occur if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most
recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during
the preceding three year period.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Comparison of Three Months Ended March 31,
2023 and 2022</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth key components
of our results of operations during the three months ended March 31, 2023 and 2022.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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="14" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended 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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&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">$</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of<BR> Revenue</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">$</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">% of<BR> Revenue</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-bottom: 1.5pt">Revenue &ndash; services</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">150,563</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">100</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">28,250</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">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">100</TD><TD STYLE="width: 1%; 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">Total revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">150,563</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">28,250</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">Cost of revenue &ndash; services</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">102,997</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">68</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">312,955</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">1108</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">Total cost of revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">102,997</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">68</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">312,955</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">1108</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">Gross profit (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,566</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(284,705</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-1008</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,323</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">162,886</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">577</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">General and administrative</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">321,317</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">213</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">253,537</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">897</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">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">369,640</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">246</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,423</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1474</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(322,074</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-214</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(701,128</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-2482</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">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">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</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">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(322,074</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-214</TD><TD STYLE="padding-bottom: 4pt; text-align: left">%</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(701,128</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-2482</TD><TD STYLE="padding-bottom: 4pt; text-align: left">%</TD></TR>
  </TABLE>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended March 31, 2023 and
2022, service revenues were $150,565 and $28,250, respectively. Service revenues are earned as we contract with third-party alcoholic
beverage brands to utilize access to the CWS Platform, as well as vault memberships beginning in late 2022. Service revenues increased
by $122,313 as we grew our marketing customer base with beverage brands.</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>Cost of Revenue</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">For the three months ended March 31, 2023 and
2022, service cost of revenues were $102,997 and $312,995, respectively. Cost of revenues decreased by $209,958 in 2023 due to our ability
to support marketing campaigns via dedicated personnel and ceased certain digital ad costs to support campaigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Sales and Marketing</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">For the three months ended March 31, 2023 and
2022, sales and marketing expenses were $48,323 and $162,886, respectively. The decrease of $114,563 was primarily due to other cost-cutting
measures related to our marketing efforts in 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>General and Administrative</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">For the three months ended March 31, 2023 and
2022, general and administrative expenses were $321,317 and $253,537, respectively. The increase of $67,780 was primarily due to professional
fees incurred as our operations scaled.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Net Loss</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">Net loss for the three months ended March 31,
2023 and 2022 was $322,074 and $701,128, 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"><B><I>Comparison of Years Ended December 31, 2022
and 2021</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 following table sets forth key components
of our results of operations during the years ended December 31, 2022 and 2021.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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="14" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Years Ended 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="6" 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="6" 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 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">$</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of<BR> Revenue</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">$</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">% of<BR> Revenue</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Revenue &ndash; services</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">470,359</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">78</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">182,765</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">58</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Revenue &ndash; product</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">130,772</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">22</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">132,527</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">42</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">Total revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">601,131</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100</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">315,292</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cost of revenue &ndash; services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">668,654</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">111</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520,193</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">165</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">Cost of revenue &ndash; product</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">134,490</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">22</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">157,254</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">50</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total cost of revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">803,144</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">134</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">677,447</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">215</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">Gross (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(202,013</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-34</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(362,155</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-115</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">655,151</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">464,011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">147</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">General administrative</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">985,011</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">164</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,136,560</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">360</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">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,640,162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">273</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,600,571</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">508</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,842,175</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-306</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,962,726</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-623</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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">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">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</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">0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,842,175</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-306</TD><TD STYLE="padding-bottom: 4pt; text-align: left">%</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,962,726</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-623</TD><TD STYLE="padding-bottom: 4pt; text-align: left">%</TD></TR>
  </TABLE>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We derive our revenue primarily from marketing
services as well as distribution of our SWOL Tequila product to CWS. Revenue is reported net of discounts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the years ended December 31, 2022 and 2021,
service revenues were $470,359 and $182,764, or 78% and 58% of total revenues, all respectively. Service revenues are earned as we contract
with third-party alcoholic beverage brands to utilize access to the CWS Platform, as well as vault memberships beginning in late 2022.
Service revenues increased by $287,594 as we grew our marketing customer base with beverage brands.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 the years ended December 31, 2022 and 2021,
product revenues were $130,772 and $132,527, or 22% and 42% of total revenues, all respectively. Product revenues are earned as we facilitate
all efforts to get the SWOL product delivered to CWS for distribution in the United States, including advancing costs for production,
shipping and other importing and delivery charges. We receive a payment of cost plus an additional 20% on each bottle of SWOL Tequila
sold via the CWS Platform or in any CWS retail location. Product revenues decreased by $1,755 in 2022 due to less SWOL bottles sold. All
product revenues were to CWS, a related party of the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Total revenues for the years ended December 31,
2022 and 2021 were $601,131 and $315,292, 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"><I>Cost of Revenue</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">Cost of revenue consists of all direct costs attributable
to performing marketing services and our SWOL distribution efforts. Cost of revenue includes affiliate payouts and contracted marketing
services, product costs, packaging, shipping and other importing and delivery charges. Cost of revenue also includes customer service
personnel and amortization of our marketing license asset.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 the years ended December 31, 2022 and 2021,
service cost of revenues were $668,654 and $520,193, or 111% and 165% of total revenues, all respectively. Service cost of revenues includes
$250,000 and $166,667, respectively, in amortization of our marketing license asset. For the years ended December 31, 2022 and 2021, product
cost of revenues were $134,490 and $157,254, or 22% and 50% of total revenues, all respectively. Total cost of revenues for the years
ended December 31, 2022 and 2021 were $803,144 and $677,446, respectively. Cost of revenues increased by $125,597 in 2022 due to the amortization
of our marketing license asset, partially offset by lower marketing and product costs compared to 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">Gross loss was $(202,013) and $(362,155) for the
years ended December 31, 2022 and 2021, 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"><I>Sales and Marketing</I></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">Sales and marketing costs primarily consisted
of advertising, promotional expenses and marketing consulting and advisory services. Sales and marketing expenses was $655,151 and $464,011,
respectively, for the years ended December 31, 2022 and 2021. The increase of $191,140 in 2022 was primarily due to increased advertising
and commission expenses as we scaled up our marketing operations.</P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, 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>General and Administrative</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">General and administrative expenses primarily
consisted of payroll and consulting fees, including stock-based compensation, as well as legal and professional fees. General and administrative
expenses was $985,011 and $1,136,560, respectively, for the years ended December 31, 2022 and 2021. The decrease of $151,549 in 2022 was
primarily due to less consulting and legal fees. For the years ended December 31, 2022 and 2021, general and administrative expenses included
stock-based compensation of $301,875 and $300,875, 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"><I>Net Loss</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">Net loss for the years ended December 31, 2022
and 2021 was $1,842,175 and $1,962,726, 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"><B>Liquidity and Capital Resources</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">As of March 31, 2023 and December 31, 2022, we
had cash and cash equivalents of $23,581 and $7,565, respectively. To date, we have financed our operations primarily through contributed
capital and sales of our products and services. However, in order to meet our growth expectations, we will need to raise funds beyond
our current working capital balance in order to finance future development of services and meet any debt obligations until such time as
future profitable revenues are achieved. We will seek to fund our operations through public offerings, including this offering, private
equity offerings, debt financings, and government or other third-party funding. Adequate additional financing may not be available to
us on acceptable terms, or at all. Advances from an officer or stockholder may likewise be unavailable. Our failure to raise capital as
and when needed would impact our going concern status and would have a negative impact on our financial condition and our ability to pursue
our business strategy and continue as a going concern. We will need to generate significant revenues to achieve profitability, and we
may never do so.</P>

<P STYLE="font: 10pt Times 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>Going Concern</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">The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has not generated profits since inception, has sustained a net loss of $322,074 and $701,128 for the three months
ended March 31, 2023 and 2022, and $1,842,175 and $1,962,726 for the years ended December 31, 2022 and 2021, respectively. The Company
has had negative cash flows from operations for each period. As a result, there is 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">The Company&rsquo;s ability to continue as a going
concern is dependent upon its ability to generate profitable operations in the future and/or obtain the necessary financing to meet its
obligations and repay its liabilities arising from normal business operations when they come due. Management has plans to seek additional
capital through public offerings, including this offering, private equity offerings, debt financings, and government or other third-party
funding. These plans, if successful, will mitigate the factors which raise substantial doubt about&nbsp;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">The sale of additional equity securities could
result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require
us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms
acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability
to expand our business operations and could harm our overall business prospects.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2023, December 31, 2022, and 2021,
we had cash and cash equivalents of $23,581, $7,565 and $1,116,101, respectively, and working capital (deficit) of $(362,525), $(43,692)
and $1,230,608, 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">Since our inception, we have generated limited
revenues and have primarily funded our operations through the sale of our Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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 following table provides detailed information
about our net cash flow for all financial statement periods presented in this prospectus:</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Three Months Ended<BR>
 March 31,</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; font-weight: bold; text-align: center">Year Ended <BR> December 31,</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center">(Unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(233,433</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(617,028</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(918,197</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,479,014</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash provided by (used in) investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">308,708</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,658</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(190,339</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(124,427</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 cash provided by (used in) financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(59,259</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">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,719,542</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net change in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">16,016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(659.686</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,108,536</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,116,101</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"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net Cash Used in Operating Activities</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">Net cash used in operating activities for the
three months ended March 31, 2023 was $233,433, primarily due to our net loss of $322,074 partially offset by non-cash charges of $62,500
and changes in our operating assets and liabilities of $26,141.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities for the
three months ended March 31, 2022 was $617,028, primarily due to our net loss of $701,128 partially offset by non-cash charges of $128,125.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities for the
year ended December 31, 2022 was $918,197, primarily due to our net loss of $1,842,175 partially offset by non-cash charges of $567,875
and changes in our operating assets and liabilities of $356,103. Changes in our operating assets and liabilities was due to an increase
in accounts payable and related party accounts payable of $287,619 and an increase in accrued expenses of $199,256, partially offset by
an increase in accounts receivable of $130,772.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in operating activities for the
year ended December 31, 2021 was $1,479,014, primarily due to our net loss of $1,962,726 partially offset by non-cash charges of $473,792
and changes in our operating assets and liabilities of $9,920. Changes in our operating assets and liabilities was due to an increase
in accounts payable and related party accounts payable of $103,840 partially offset by an increase in accounts receivable of $93,920.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net Cash Provided by (Used in) Investing Activities</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">Net cash provided by (used in) investing activities
for the three months ended March 31, 2023 and 2022 were $308,708 and ($42,658), respectively, which was due to repayments from (advances
to) CWS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash used in investing activities for the
years ended December 31, 2022, and 2021 were $190,339 and $124,427, respectively, which was due to advances made to CWS.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Net Cash Provided By (Used in) Financing Activities</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">Net cash used in financing activities for the
three months ended March 31, 2023 and 2022 was $59,259 and $0, respectively, which included deferred offering costs in 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities for
the year ended December 31, 2022 was $0.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net cash provided by financing activities for
the year ended December 31, 2021 was $2,719,542, including $3,070,072 in proceeds from the sale of our Common Stock, $10,400 in proceeds
from the issuance of founders&rsquo; shares, partially offset by $360,930 in cash spent on our common control acquisitions of SWOL and
Soleil Vino.</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>Contractual Obligations</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2023 and
2022 and fiscal years ended December 31, 2022, and 2021, we had no significant cash requirements for capital expenditures or other cash
needs under any contractual or other obligations<I>.</I></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>Off-Balance Sheet Arrangements</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have no off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This discussion and analysis of our financial
condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted
accounting principles in the United States (&ldquo;GAAP&rdquo;). The preparation of these financial statements requires us to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at
the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based
on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are
described in more detail in the notes to our financial statements included elsewhere in this prospectus, we believe that the following
accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant
areas involving management&rsquo;s judgments and estimates. We believe our most critical accounting policies and estimates relate to the
following:</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Revenue Recognition</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 accordance with FASB ASC 606, <I>Revenue from
Contracts with Customers</I>, the Company determines revenue recognition through the following steps:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Identification of a contract with a customer;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                            </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Identification of the performance obligations in the contract;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                             </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Determination of the transaction price;</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Allocation of the transaction price to the performance obligations in the contract; and</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                                                                                                                                                                                      </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Recognition of revenue when or as the performance obligations are satisfied.</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">Revenue is recognized when performance obligations
are satisfied through the transfer of control of promised goods to our customers in an amount that reflects the consideration expected
to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability to direct
the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession,
the risks and rewards of ownership, and customer acceptance.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Service revenue is recognized over a period time,
as the marketing services are being continually provided on a daily and monthly basis over the life of an agreed upon campaign. Product
revenue is recognized at the point in the products are delivered to CWS, when LQR House has fulfilled its performance obligation.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Impairment of Long-Lived Assets</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 continually monitor events and changes in circumstances
that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present,
we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted
expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment
loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower
of the carrying amount or the fair value less costs to sell.</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>Variable Interest Entities</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 evaluate our relationships with other entities
to identify whether they are variable interest entities as defined by Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Accounting
Standards Codification (&ldquo;ASC&rdquo;) Topic 810, Consolidation (&ldquo;ASC 810&rdquo;), and to assess whether it is the primary beneficiary
of such entities. If the determination is made that we are the primary beneficiary, then that entity is consolidated. We evaluated whether
it was the primary beneficiary in its common control asset acquisitions and related party agreements and determined we are not the primary
beneficiary of any entities.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Related Parties</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">Related parties are any entities or individuals
that, through employment, ownership, or other means, possess the ability to direct or cause the direction of the management and policies
of the Company. We disclose related party transactions that are outside of normal compensatory agreements, such as salaries. We follow
ASC 850, <I>Related Party Disclosures</I>, for the identification of related parties and disclosure of related party transactions.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock-based compensation is accounted for in accordance
with ASC Topic 718-10, <I>Compensation-Stock Compensation</I> (&ldquo;ASC 718-10&rdquo;). The Company measures all equity-based awards
granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation
expense for those awards over the requisite service period, which is generally the vesting period of the respective award.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 classify stock-based compensation expense in
its statement of operations in the same manner in which the award recipient&rsquo;s payroll costs are classified or in which the award
recipient&rsquo;s service payments are classified.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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">We use the liability method of accounting for
income taxes as set forth in ASC 740, <I>Income Taxes</I>. Under the liability method, deferred taxes are determined based on the temporary
differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the
years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will
not be realized. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation
of the facts, circumstances, and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where
there is a greater than 50% likelihood that a tax benefit will be sustained, our policy will be to record the largest amount of tax benefit
that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information.
For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized
in the financial statements.</P>

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




<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: center"></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_009"></A>CORPORATE HISTORY AND STRUCTURE</P>




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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our company was incorporated in the State of Delaware on January 11,
2021, under the name LQR House Inc., which we refer to as LQR House Delaware. On February 3, 2023, we changed our state of incorporation
to the State of Nevada by converting into LQR House Inc., a Nevada corporation. On February 3, 2023, in accordance with our reincorporation
to Nevada, our authorized capital stock changed from 100,000,000 shares of Common Stock, $0.001 par value, to 350,000,000 shares, consisting
of 300,000,000 shares of Common Stock, par value $0.0001 per share, and 50,000,000 shares of &ldquo;blank check&rdquo; preferred stock,
par value $0.0001 per share. At the same time, we also completed a 1-for-6 reverse stock split of our outstanding Common Stock through
the merger by issuing one share of our Common Stock for every 6 previously outstanding shares of Common Stock of our predecessor Delaware
company. As a result, our issued and outstanding Common Stock decreased from 55,252,424 shares to 9,200,434 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"><B><I>Dual Class Share Structure</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 29, 2023, the Company amended its articles
of incorporation to institute a dual class share structure consisting of Class A Common Stock, and Class B Common Stock, and any number
of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes per share on proposals requiring or requesting shareholder
approval, and Class B Common Stock was entitled to one (1) vote on any such matter. A share of Class A Common Stock could have been voluntarily
converted into a share of Class B Common Stock. A transfer of a share of Class A Common Stock would have resulted in its automatic conversion
into Common Stock upon such transfer, subject to certain exceptions, including that the transfer of shares of Class A Common Stock to
another holder of Class A Common Stock would not have resulted in such automatic conversion. Class B Common Stock was not convertible.
Other than as to voting and conversion rights, Class A Common Stock and Class B Common Stock had the same rights and preferences and ranked
equally, shared ratably and were identical in all respects as to all matters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to this amendment, the Company&rsquo;s authorized
capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of Common Stock, par value $0.0001 per share, of which
20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and 280,000,000 shares were designated as Class B
Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock, $0.0001 par value per share. All 9,200,434 shares
of Common Stock issued and outstanding at the time of the amendment became shares of Class B Common Stock.</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>2023 Private Placement</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">On June 1, 2023, we conducted a private placement
of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in Section 2(a)(15)
of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons made in compliance
with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000 shares of Common
Stock at $1.00 per share for a total of $955,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Single Common Stock Structure</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 June 5, 2023, the Company further amended its
articles of incorporation to amend the share structure by (i) eliminating a dual class share structure consisting of the Class A Common
Stock and Class B Common Stock and establishing a single Common Stock structure consisting of shares of Common Stock only, with 350,000,000
authorized shares being all designated as Common Stock with a par value of $0.0001 per share, entitled to one (1) vote per share; and
by (ii) eliminating all authorized shares of preferred stock. All 13,155,434 shares of Class B Common Stock issued and outstanding at
the time of the amendment became shares of Common Stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following agreements and the partnerships
detailed therein are material to the operation of our business:</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>SWOL Branding.</I></B> On March 19, 2021,
we entered into an asset purchase agreement with Dollinger Innovations Inc., Dollinger Holdings LLC, and Sean Dollinger, our founder,
Chief Executive Officer and President, pursuant to which we acquired the assets related to the online or in-person sale of original and
other SWOL branded products, which we refer to as the SWOL Acquisition. Prior to the SWOL Acquisition, the SWOL brand activity was minimal
and consisted of product testing to gauge consumer preferences. The transaction included the assignment of various contracts to LQR House
Inc., including:</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR 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">Shared Responsibility &amp; Bonding Agreement dated March 19, 2021, by and between Dollinger Innovations and Leticia Hermosillo Raverero, which we refer to as Casa Cava de Oro S.A., relating to production of original SWOL tequila for exclusive importation into the United States by Dollinger Innovations or its assigns.</FONT></TD></TR>
  </TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Exclusive License Agreement dated May 18, 2020, by and between Dollinger Holdings and Dollinger Innovations
by which Dollinger Innovations licenses to Dollinger Holdings certain intellectual property, including trademarks for the brand SWOL,
awarded pursuant to and under the jurisdiction of Mexican law.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Product Distribution Agreement dated July 1, 2020, by and between Dollinger Holdings and Country Wine
&amp; Spirits Inc., or CWS, by which SWOL branded products may be marketed and sold through online channels including www.cwspirits.com,
or the CWS Platform, and through brick and mortar stores to the general public.</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">We also acquired all of the intellectual property
assets and registrations to conduct the business of selling SWOL products. See &ldquo;<I>Business &mdash; Intellectual Property</I>&rdquo;
for the complete list of intellectual property acquired.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Exclusive Marketing Agreement with Country
Wine &amp; Spirits Inc. and Ssquared Spirits, LLC.</I></B> On April 1, 2021, LQR House Delaware, CWS, and Ssquared Spirits, LLC, or Ssquared,
one of our affiliates, entered into an Exclusive Marketing Agreement. Pursuant to this agreement CWS and Ssquared granted us the exclusive
right to promote and market spirits and other beverage products through the CWS Platform for sale to customers located within the United
States. We also gained the sole right to manage and make decisions with regard to user facing content on the platform, including the placement
and removal of products and the creation and management of promotional initiatives. Neither CWS nor Ssquared will directly or indirectly,
promote or advertise any products on the platform themselves or grant to any third party any right to promote or advertise products on
the website.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Soleil Vino Wine Subscription Service.</I></B>
On May 31, 2021, LQR House Delaware and Dollinger Holdings entered into an Asset Purchase Agreement pursuant to which we became the successor
to all sourcing agreements with third party vendors, whether oral or written, for all Soleil Vino and related branded products. In addition,
we received all the intellectual property assets and registrations to conduct the business of selling Soleil Vino products. See &ldquo;<I>Business
&mdash; Intellectual Property</I>&rdquo; for the complete list of intellectual property acquired.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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>Advisor Agreements.</I></B> On June 1, 2023,
we entered into advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate advice in
connection with the Offering to the Company. In consideration for the advisor&rsquo;s services, the Company issued 500,000 shares of Common
Stock to six individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following diagram depicts our organizational structure following
the completion of this offering. This diagram includes the stockholders of Common Stock, as a group, and the public stockholders that
will receive shares of Common Stock in this offering, as a group. The shares of Common Stock held by public offering investors (including
selling stockholders) is based on an assumed public offering price of $5 per share, which is the midpoint of the estimated range of the
initial public offering price shown on the cover page, and assumes that the underwriters do not exercise the over-allotment option.</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: 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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_010"></A>BUSINESS</P>




<P STYLE="font: bold 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>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">Our company, LQR House Inc., intends to become
the full-service digital marketing and brand development face of the alcoholic beverage space. We also intend to integrate the supply,
sales, and marketing facets of the alcoholic beverage space into one easy to use platform and become the one-stop-shop for everything
related to alcohol. To date, our primary business includes the development of premium limited batch spirit brands, establishing an exclusive
wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. We believe that
the marketing and brand management services we provide to our wholly owned and third-party clients will increase brand recognition thereof,
and drive sales thereof through our e-commerce platform partner.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Key Partnerships with CWS and Ssquared</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have an exclusive marketing agreement with
Country Wine &amp; Spirits Inc. and Ssquared Spirits Inc., which we refer to as CWS and Ssquared, respectively, and which together own
and operate one of the largest online retailers of liquor in the United States, located at www.cwspirits.com, which we refer to as the
CWS Platform. In this three-way business relationship, Ssquared operates the CWS Platform on a day-to-day basis, for example, by ensuring
timely stocking of product and communicating with the CWS influencer network; Rilo Import &amp; Export Inc. by CWS provide import, fulfillment,
and distribution services for all products sold on the CWS Platform; and our company handles 100% of the promotion of the sale of spirits
and other beverage products via the CWS Platform through the internet and through various social media channels.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Specifically, our company obtained the sole right
to manage and make decisions regarding user-facing content on the CWS Platform, including the placement and removal of products and the
creation and management of promotional initiatives. The grant of rights to our company is exclusive such that, during the term of this
agreement, April 1, 2021, through April 1, 2031, Ssquared and CWS shall not grant to any third party any right to promote or advertise
products on the CWS Platform and shall not shall directly or indirectly promote or advertise any products themselves. This agreement may
be terminated upon a material breach by a party thereto that goes uncured for longer than 30 days or at any time by our company with thirty
days written notice to each of CWS and Ssquarred. For additional information about the consideration due under the agreement, please see
&ldquo;<I>Certain Relationships and Related Party Transactions </I>&ndash; <I>Transactions with Related Persons</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our relationship with CWS and Ssquared is the
cornerstone of our business. Under our agreement with CWS and Ssquared, we can focus on our competitive strengths, which include marketing
and brand promotion. Our relationship and agreement with CWS and Ssquared provide us access to approximately 241,000 customers via the
CWS mailing lists and recurring traffic on the CWS Platform. This agreement also allows us to market our brands on the CWS Platform and
have them sold and distributed by our partners, CWS and Ssquared. Moreover, any third-party brand seeking to have their products marketed
on the CWS Platform can only do so by becoming a client of the Company.</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Since our inception in January 2021, we have put
our business model to the test and believe it is our path towards future success. First, we create marketing content on the CWS Platform
for our brands and the brands of our marketing services clients. Second, when consumers purchase products on the CWS Platform like Tequila
with our SWOL brand, a subscription to Vault or to the Soleil Vino wine club, or the products of our marketing service clients, CWS will
perform the distribution services related to the sale of those products. Simultaneously, Ssquared will manage the backend e-commerce operations
related to the CWS Platform. Our company is the only authorized advertiser on the CWS Platform and will derive significant revenue from
all sales made to our marketing partners via the CWS Platform and subscriptions offered through the CWS Platform. Moreover, we will derive
significant revenue from the sale of alcohol that bears our SWOL trademark. The objective of these activities is to generate recurring
monthly revenue through subscriptions and product placements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that our business model will result
in multiple, highly sustainable revenue sources and an opportunity to capitalize on the growth in demand for liquor in the United States.
To date, sales of alcoholic beverages have been generated through our exclusive arrangement with CWS who sells these products. This includes
third-party brands hiring the Company to market their alcoholic beverage products, subscriptions through our membership programs, and
the product sale of tequila branded with our trademark, &ldquo;SWOL,&rdquo; bearing application number 2345291 and registration number
2141431. We intend to further diversify our revenue streams and anticipate that the diversity of our revenue streams will continue to
grow as our internal brands gain market recognition and penetration, our marketing services abilities become well known, and our subscription
services become popular.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s independent registered public
accounting firm has expressed substantial doubt as to the Company&rsquo;s ability to continue as a going concern. The Company has not
generated profits since inception, has sustained net losses of $1,842,175 and $1,962,726 for the periods ended December 31, 2022 and 2021,
and has negative cash flows from operations for the periods ended December 31, 2022 and 2021. The Company&rsquo;s cash balance and revenues
generated are not currently sufficient and cannot be projected to cover its operating expenses and obligations for the next 12 months.
The Company expects to fund its operations for the next 12 months through equity financing arrangements and sales of its services. However,
the Company may not be able to raise adequate funds for capital expenditures, working capital and other cash requirements from capital
markets on acceptable terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company&rsquo;s failure
to raise capital as and when needed and generate significantly higher revenues than operating expenses to achieve profitability would
impact its going concern status and would have a negative impact on its financial condition and its ability to pursue its business strategy
and continue as a going concern. For further discussion, see &ldquo;<I>Management&rsquo;s Discussion and Analysis of Financial Condition
and Results of Operations &ndash; Liquidity and Capital Resources &ndash; Going Concern</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Industry 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">We plan to address market demand by aligning with
key industry trends and by utilizing strategic relationships to source, brand, finance and distribute products. Specifically, we will
focus initially on tequila, wine, and other specialty products by utilizing e-commerce and technology to drive sales. The market for alcohol
includes beverages such as spirits, wines, and beer. Our focus is on the United States market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_003.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As set forth in the above chart, the United States,
which is estimated to consume a total of approximately $283.8 billion worth of alcoholic beverages in 2023, represents one of the largest
global markets for all alcoholic beverage category sales (Statista, <I>Alcoholic Drinks &ndash; Worldwide</I>, January 2023). This demonstrates
a considerable amount of consumption and a large and stable market that is continuing to evolve. Spirits and wine account for approximately
50.6% of total consumption as of January 2023, as set forth in the following chart (Statista, <I>Alcoholic Drinks &ndash; Revenue &ndash;
United States</I>, January 2023).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_004.jpg" ALT="">&nbsp;</P>

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

<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">Moreover, we believe e-commerce is increasingly
becoming a driver of demand for at-home consumption of alcoholic products, driven in part by the recent pandemic. Due to this shift, people
who used to go to a bar or a restaurant to consume alcohol are now buying products increasingly online or even going to the manufacturer
directly where the law permits, and we believe that this trend will continue even as the impact of the pandemic begins to lessen. We also
believe that this demonstrates a great potential for continued market expansion and the relevance of e-commerce platforms for alcohol.
In particular, the United States has shown a strong uptrend in the purchase of alcohol online, as set forth in the chart below (Vaimo,
Martin Hjalm, <I>Alcohol Ecommerce: Trends, Strategies, and Markets in 2023</I>, January 2023).</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_005.jpg" ALT="">&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">In addition to sustained demand for the largest
product categories (beer, wine and spirts) and increased prominence of e-commerce, the demand for quality and novel products continues
to increase as well (Forbes, Joseph Micallef, <I>The Top Ten Trends Shaping The Adult Beverage Market In 2021</I>, January 2021). Within
this market, the consumption of products is increasing due to several market trends, including the demand for new categories of beverages,
such as specialty spirits, flavored wines and sparkling wines, and premixed carbonated drinks. A survey of 1,600 adult U.S. consumers
by PwC Consumer Segment Survey sets forth this trend with 54% of those buying alcoholic beverages responding &ldquo;I am buying new brands
even when my usual brands are available&rdquo; (PwC, <I>M&amp;A breathes new life into brand portfolios for spirits companies</I>, 2021)
as opposed to only 47% of those buying non-alcoholic beverages.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_006.jpg" ALT="">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; 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">As seen in the following graph, the transactional
market for alcohol products has seen a considerable amount of activity with over $45 billion of transactions valued across 97 deals from
January 1, 2016, to December 31, 2020 (PwC, <I>M&amp;A breathes new life into brand portfolios for spirits companies</I>, 2021). We believe
this transactional activity within the alcoholic beverage space also represents a key market trend related to the emergence of new specialty
brands, as larger companies seek to gain access to new brands to continue to maintain their market position in a market of evolving consumer
preferences.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_007.jpg" ALT="">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe the following trends, as discussed
in a Forbes interview of the Head of Consumer Insights at Drizly (Forbes, Joseph Micallef, <I>The Top Ten Trends Shaping The Adult Beverage
Market In 2021</I>, January 2021), will continue to shape the alcoholic beverage market:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Consumers are likely to continue to shop more online for adult beverages.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Tequila and mezcal will continue to grow in popularity. Tequila surpassed bourbon in retailers&rsquo;
expectations for growth among best-selling spirits, while mezcal is ready for its own (smoky) spotlight.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Premiumization in the industry will accelerate as consumers reallocate funds from experiences to at-home
indulgences.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Craft seltzer will start to gain in market share, marked by more upscale ingredients, artisanal flavors
and elevated packaging.</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Consumers are likely to continue to be more conscious of brand ownership and values.</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">We anticipate all these market trends will positively
impact our business and present an opportunity to continue expanding. Specifically, we align with market trends by focusing our marketing
and distribution efforts online and we expect to bring new and exciting premium products to market across categories. In addition, we
generate online promotional activities around holidays and life events, while always being mindful of ethically sourcing products for
distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We provide marketing services with respect to the following products
and services. Marketing these brands constitutes the core elements of our business model and allow us to serve every type of customer
in the alcohol industry, including individual consumers, wholesalers, and third-party alcohol brands:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>SWOL </I>is a trademark, bearing application
number 2345291 and bearing registration number 2141431 that was granted by the Mexican Institute of Industrial Property (&ldquo;IMPI&rdquo;)
to Dollinger Innovations and which was later purchased by LQR House Inc. pursuant to the asset purchase agreement, dated March 19, 2021,
among LQR House Inc. and Dollinger Innovations Inc., Dollinger Holdings LLC and Sean Dollinger.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_007a.jpg" ALT="">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>SWOL Tequila</I></B> is a limited-edition
blend of A&ntilde;ejo Tequila made in exclusive batches of up to 10,000 bottles and represents the first installment under our &ldquo;SWOL&rdquo;
trademarked alcohol branding. Through our partnership with CWS, we market Tequila bearing the &ldquo;SWOL&rdquo; trademark, which we call
&ldquo;SWOL Tequila,&rdquo; on the CWS Platform, which distributes SWOL Tequila throughout the United States. SWOL Tequila is produced
by Casa Cava de Oro S.A., an authentic tequila distillery in Jalisco, Mexico, sold by LQR House Inc. to CWS before it is imported from
Mexico into the United States, and is imported into the United States through Rilo Import &amp; Export Inc. by CWS. All marketing and
branding for SWOL Tequila is led by our marketing team, who has led the way on all branding efforts from conceptualizing the bottle shape
and size, to overseeing the design of the labels. We also work with the producers in Mexico on all product development, including the
original SWOL A&ntilde;ejo and the additions of Peach and Cristalino.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When product testing was initiated for the label
with the trademark SWOL on it, which we call &ldquo;SWOL,&rdquo; a campaign was created around a &ldquo;Mystery Tequila&rdquo; where CWS&rsquo;s
network of influencers promoted SWOL without showing the bottle or label. We believe that this marketing tactic generated customer excitement
for the product and led to an increase in anticipation for its reveal. Since then, we have seen continuous growth in SWOL customer interest
and have taken steps to expand the product line to match that interest. With each product, we focus on creating unique labels, each with
the signature SWOL sew-on patch, which accompanies each hand-numbered bottle. The patch can be peeled off and sewn onto clothing or accessories.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We believe that our focus on our unique brand
identity and product innovation will allow us to continue generating consumer interest and hype for each addition to the product line
bearing the SWOL trademark. Moreover, SWOL has been developed to align with current consumer preferences and trends within the market.
Essentially, we generate SWOL products that maintain the high-quality ingredients from the Tequila region of Mexico and combine that tradition
of quality with new and exciting flavors. CWS is offering the following products bearing the SWOL trademark at competitive price points:</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_008.jpg" ALT="">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><U>SWOL A&ntilde;ejo Tequila</U> is an extremely limited-edition tequila that is bottled in glass blown
flasks inscribed with a unique ID number and adorned with our patch that displays a unique label specific to the A&ntilde;ejo Tequila
line. Each bottle contains a tequila produced using artisanal Mexican and modern techniques that impart each drink with a smoky, rich,
sweet flavor. The SWOL A&ntilde;ejo Tequila is currently priced at $89.99 (MRSP).</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"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_008a.jpg" ALT="">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><U>SWOL Peach Tequila</U> is an amber, dark coppery tequila that is bottled in glass blown flasks inscribed
with a unique ID number and adorned with our patch that displays a unique label specific to the Peach Tequila line. The production imparts
an authentic tequila taste with notes of peach, toasted nuts and oak. Through market analysis and sales data, our peach products are often
in high demand, and we expect this trend to continue. The SWOL Peach Tequila is currently priced at $79.99 (MRSP).</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-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_008b.jpg" ALT="">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><U>SWOL Cristalino Tequila</U> is a crystalline tequila bottled glass blown flasks, inscribed with a unique
ID number and adorned with our patch that displays a unique label specific to the Cristalino Tequila line. The tequila displays light
blue crystalline flashes and production imparts an authentic tequila taste with notes of fruity oak, toasted nuts and light spice. The
SWOL Cristalino Tequila is currently priced at $79.99 (MRSP).</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>Vault </I></B>is the exclusive membership
program for CWS customers. Through the CWS Platform, users can sign up for this exclusive membership where they will have access to all
products available through CWS combined with special membership benefits including: (i) 10% off all products site wide; (ii) free ground
shipping (2-5 business days) on orders over $50 (limited to three shipping addresses); (iii) access to special promotional offers; and
(iv) free mystery vault gifts in every shipment. The monthly membership costs customers $19.95 and requires an initial 3-month start-up
commitment. The objective is to create a loyal customer based that provide us with recurring monthly subscription revenue. Vault also
provides us with the means to provide customers special discounts to marketing partner brands, which we make solely available to Vault
members. We market this membership program on the CWS Platform and are entitled to 50% of the revenue from the subscriptions.</P>

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

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

<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><I>Soleil
Vino</I></B> will be a wine subscription service that is marketed on the CWS Platform and will offer a unique selection of vintage and
limited production wines. Through the CWS Platform, users will sign up for this exclusive membership where they will have access to curated
selections of wine from around the world. With Soleil Vino, we intend to create the premium wine subscription service on the market with
the highest quality, and diverse selections of wine offerings, which we refer to as our Wine Club. We expect our Wine Club to have three
membership options based on different wine quality and price. Within each membership, our customers will select whether they want to
receive two or four bottles each month, and whether they want white wine only, red wine only, or a variety box. Members will also get
access to a members-only dashboard, where they can access informational blogs written by in-house wine experts. They will also receive
monthly newsletters with additional information, and various discounts for other products on the CWS Platform. Membership fees for Soleil
Vino will be charged monthly and can be cancelled at any time after the initial three months of subscription service. We are responsible
for launching the Wine Club through a series of ads, social and email campaigns, and all exclusive content and wine selection for members
will be handled by in-house wine experts. We will market the Wine Club on the CWS Platform and are entitled to all the revenue from the
subscriptions. The Wine Club is expected to have three subscription membership options based on different wine quality, price, and quantity.</FONT></P>

<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">The
following table is representative of the Soleil Vino membership options:</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; width: 25%"><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;Membership
    Option</B></FONT></P></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; vertical-align: top; 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; white-space: nowrap; width: 24%; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Select
    Membership</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; vertical-align: top; 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; white-space: nowrap; width: 24%; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Classic
    Membership</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; white-space: nowrap; vertical-align: top; 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; white-space: nowrap; width: 24%; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Premier
    Membership</B></FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; white-space: nowrap; font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This package features, popular,
    value priced wines and consumer favorites.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This membership will feature
    quality vintage wine from well-known producers. </FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This membership includes hand-picked
    bottles of wine from award winning wineries</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fee
    for 2 bottles per month</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$45.00
    / month</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$55.00
    / month</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$75.00
    / month</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fee
    for 4 bottles per month</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$85.00
    / month</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$105.00
    / month</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; font-size: 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$145.00
    / month</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>LQR
House Marketing</I></B> is a marketing service in which we utilize our marketing expertise to help our wholly owned brands and third-party
clients market their products to consumers. For example, by engaging LQR House for its marketing services, our clients gain the ability
to advertise and sell their brand on the CWS Platform. We generally charge a monthly fee for our marketing services and often enter into
multi-month programs with clients. Monthly program costs generally range from $5,000 to $10,000 depending on the program options selected
by the client. Our services also include the creation of a creative marketing campaign strategy, and the development of promotional materials.
Key features of the marketing offering include:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Leveraging
                                            multiple advertising campaigns to bring affordability to advertising methods such as influencer
                                            marketing, incentive based sales, or product placement advertising.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Combining
                                            multiple campaigns into one media buy.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Leveraging
                                            specific assets available to LQR House such as the CWS Platform and email distribution list.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Advertising
                                            with targeted banners.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Leveraging
                                            LQR House online campaigns.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Creating
                                            branding and product placement campaigns that elevate a brand&rsquo;s reach to targeted demographics.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Creating
                                            a brand around an influencer&rsquo;s following and reach to leverage viewership and monetize
                                            their growth.</FONT></TD></TR></TABLE>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Central
to the business model, we offer access to an exclusive network of industry influencers or brand ambassadors. Engaging with us provides
clients with the opportunity to select a tailored list of influencers to promote their brand to an ideal target market. LQR House currently
has relationships with 327 influencers, which is a significant differentiator and underscores the uniqueness of our company as a marketing
platform. Influencers are provided a commission based on the number of products they sell and drive traffic to the CWS website. Commissions
paid are solely the responsibility of CWS. The more an influencer generates in sales for a brand, the more the influencer makes in commissions.
This directly aligns the objectives of the brand, influencer and LQR House. Key elements of a typical influencer program include:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Minimum
                                            of 100 posts per month from a minimum of 15 influencers.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Monthly
                                            posts will include content from an influencer list with a cumulative following of at least
                                            1.5 million followers. For example, a typical influencer mix would be as follows: (i) 2-3
                                            Major Influencers, influencers with more than 500,000 followers, (ii) 3-5 Top-Tier Influencers,
                                            influencers with more than 100,000 followers, (iii) 5-10 Micro Influencers, influencers with
                                            10,000 to 100,000 followers, and (iv) 3-5 Beginner Influencers, influencers with less than
                                            10,000 followers.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Posts
                                            presented on multiple social media platforms, including cross posting where the same video
                                            or content may be shared several times to capture many different audiences, targeting social
                                            media platforms such as Facebook and Facebook Reels, Instagram and Instagram Reels, YouTube
                                            and YouTube Shorts, Pinterest and Pinterest Idea Pins, Twitter, Khal Media, Clapper, LinkedIn,
                                            Reddit, Twitch, Tumblr, etc.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1-2
                                            email blasts per month from the influencer featuring the brand.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Placement
                                            of brand on the main sliding banner on the CWS Platform homepage or mobile app, in the category
                                            page and Spirits dropdown of the website, and in our holiday gift guide.</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"><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">Within
5 days of the end of the month, we will generate a summary report of the influencer program which includes the following types of data:
(i) the total sales of product on the CWS Platform with basic customer location data, (ii) a list of posts per influencers with links
to content across platforms, and (iii) a description of product placements on the CWS Platform.</FONT></P>

<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>Our
Relationships with Third-Party Alcohol Brands</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
date, we have engaged with over 11 brands to bring their product to our customer base. We have engaged with brands including, but not
limited to, Cocktail Caviar, Soda Jerk, Bake Sale and Just the Tipsy to market and sell their products on the CWS Platform. Our clients
generally include newer alcohol brands that produce small batch and craft spirits. Many customers return for additional marketing programs
after the initial engagement and elect to enter multiple month arrangements. The following graphics contain advertisements we created
for some of our clients, to be run on the CWS Platform.</FONT></P>

<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: 9pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_009.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Competition and Competitive Strengths </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
market for online sales and promotions of alcohol is competitive. This includes large online retailers such as Amazon, specialty e-commerce
sites and direct sales from producers. These companies are often larger than us, and have considerable financial, technical and human
capital resources. However, we believe that we have the following competitive strengths that will allow us to capitalize on the growing
alcoholic beverage industry and alcohol e-commerce:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Unique
                                            platform</I></B>. We believe that our branding style, and the branding services we provide
                                            to our clients, allow us to market directly to the millennial market demographic. We believe
                                            we accomplish this marketing through our ad campaigns and marketing materials that have a
                                            sleek and modern look and feel. By implementing this targeted approach, we provide a unique
                                            and modern customer experience that helps us capture a key market in the alcoholic beverage
                                            industry. Our search engine optimization, or SEO, has been developed over many years and
                                            provides customers with premium placement opportunities they often cannot source anywhere
                                            else.</FONT></TD></TR></TABLE>

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    <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"><B><I>Extensive influencer network</I></B>. We believe that our team has created one of the most extensive influencer relationship lists within the alcohol industry for small batch and exclusive brands. We have around 500 unique influencer relationships that differentiates us from many other online marketing channels available to brands.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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"><B><I>Extensive
                                            e-commerce and marketing expertise</I></B>. Our team has decades of experience in e-commerce
                                            and implementing online strategies to maximize the benefit of marketing campaigns. This includes
                                            unique online promotional campaigns that drive sales of products.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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"><B><I>Working
                                            with highly differentiated brands</I></B>. We vet the external brands we promote to ensure
                                            that all of the products we market align with our own brand and strategy. We believe our
                                            vetting process allows us to maximize the value we provide to our clients, while also allowing
                                            us to provide consumers with exclusive options not available from larger distributors.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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"><B><I>Strategic
                                            relationships</I></B>. We believe we have developed and solidified relationships with multiple
                                            groups that can deliver value to external brand customers, such as the exclusive marketing
                                            agreement with CWS and Ssquared. This includes marketing, import, storage and retail/wholesale
                                            distribution relationships.</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"><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">In
addition to online competition, we face competition from other emerging products, as the market can be characterized as highly fragmented
with many new brands coming to market. We believe we differentiate our wholly-owned brands in several ways:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Development
                                            of unique products</I></B>. We focus our product development on unique flavors and variations
                                            of products that are not generally available in the market. This differentiation aligns with
                                            current market trends and results in alignment with modern consumer preference for new and
                                            exciting brand products that expand the profile of legacy products. For example, SWOL Peach
                                            Tequila.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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"><B><I>Setting
                                            ideal price points</I></B>. We believe we set a competitive price point, which aligns with
                                            the uniqueness and quality of the products offered by the Company. This price point is important
                                            in the context of differentiating legacy or generic products in the industry. This comes
                                            from years of experience within the industry and significant data points about comparable
                                            products within 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: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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"><B><I>Focus
                                            on quality</I></B>. We believe all our products are sourced from the highest quality producers,
                                            and we vet our producers by visiting locations to verify quality and control procedures.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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"><B><I>Unique
                                            labelling and marketing promotions</I></B>. We have crafted unique labelling which aligns
                                            with our branding but also includes a removable patch that can be affixed to other items.
                                            This serves as continued marketing for our products, as the patch remains after the bottle
                                            has been consumed.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Growth Strategies</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Marketing</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have developed three primary methods for facilitating deals through our marketing division:</FONT></P>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Channel
                                            Partners/Influencers.</I> Our most successful service to date is the ability for liquor brands
                                            to have their product displayed by a social media influencer team via product placement,
                                            promotion and usage in advertorial collaborations. These influencers are often approached
                                            by new brands independently, which are then referred to us. We built up our own group (network)
                                            of influencers from scratch (bartenders, alcohol personalities, restaurateurs, social media
                                            personalities, alcohol representatives). These influencers have a direct line to qualified
                                            customers who are looking to buy products that they recommend. After signing a marketing
                                            client, we send their products to our influencers who then create client specific content
                                            that directs their followers to the CWS website to buy the product. The influencers are only
                                            paid on a percentage of sales.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Direct
                                            Inbound Lead Generation. </I>Due to the surge in demand for marketing companies that specialize
                                            in liquor and alcohol promotion, we have been contacted by an influx of new brands and medium-sized
                                            companies that are looking to scale via resources and available services. This is also being
                                            driven based on past successes with brands that refer their industry relationships to LQR
                                            House. For example, when we first launched the program, we contracted with four to five clients
                                            on a monthly basis. Since then, we have at least 8 clients utilizing our marketing services
                                            on a monthly basis. As we continue to grow our operations and increase our service offerings,
                                            we intend to increase the inbound marketing via Google Ads, social media promotion and search
                                            engine optimization to ensure new leads flowing in.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Liquor
                                            Brand Development. </I>Through our exclusive marketing agreements with external brands, we
                                            are developing a reputation as a premium marketer and advertiser for liquor brands, and one
                                            that offers efficient and cost-effective services. Brands that are looking to establish themselves
                                            often find the Company through web properties of those lines, such as swoltequila.com, which
                                            has proven to become a lead generation tool.</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"><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">We
believe that by continuing to develop leading brands for up-and-coming companies and, by aligning with celebrities and influencers with
significant followings, we will continue to offer quality work-product that will attract start-ups looking to establish an online marketing
presence. Moreover, we believe that we are developing a portfolio of successful marketing campaigns that will positively influence our
word-of-mouth and referral lead generation and overall reputation in the industry, such as Soda Jerk, which have referred Betini to us,
which has become our largest campaign to 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Brands</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We intend to continue expanding and developing
our existing brands, like those associated with our SWOL trademark, in two ways. First, we plan to purchase larger amounts of SWOL products,
which will allow us to sell to more customers and increase our brand recognition at a quicker rate. Second, we plan on increasing the
marketing presence for SWOL, as well as our Wine Club. Moreover, we will continue developing new flavors, like SWOL Cristalino and SWOL
Peach, that align us with current market trends and evolving consumer preferences.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to pursue opportunistic acquisitions of the following types of companies involved in the alcoholic beverage industry, or companies
that could be beneficial if integrated into our current business model:</FONT></P>

<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>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Existing
                                            Brands</I>. We intend to target up-and-coming unique alcohol brands with initial market penetration
                                            and the potential to expand with additional marketing and distribution expertise. Our focus
                                            will be on the spirits, wine and specialty mixed drink segments of the market. One potential
                                            source of acquisitions would include approaching existing marketing clients to gauge their
                                            interest in becoming a majority owned subsidiary of our company.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Technologies</I>.
                                            We will also seek to acquire applications, analytics and distribution tools that can be utilized
                                            to complement our existing operations. Our technology acquisitions will focus on platforms
                                            that we believe will gain additional market insights and advertising opportunities for internal
                                            and external brands that we are developing, or plan to develop in the future.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Distribution
                                            Licenses and Physical Storage Locations</I>. We intend to target companies with importation
                                            licenses and storage facilities that will allow us to physically import and store our brands
                                            and our clients&rsquo; brands.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect to utilize a formal acquisition process for the identification and analysis of targets in the context of strategic alignment to
our business objectives, approaching targets for solicitation of interest in a transaction, completing financial, legal and technical
due diligence, and negotiating the terms of a transaction and related legal documentation. The core objective of this process is to scale
our revenue and earnings and complement our existing operational activities. Each of our management team members has completed significant
financial transactions over the course of their careers, and has with experience working with corporate issuers, investment and merchant
banks, and law firms, and we believe that our management&rsquo;s experience will help us achieve our business goals. As of the date of
this offering, we do not have any acquisitions in progress, nor have we identified any potential acquisitions.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We consider intellectual property to be important to the operation
of our business, and critical to driving growth in our commercial revenue. We acquired trademarks pursuant to the Asset Purchase Agreement
in connection with SWOL between LQR House Inc. as the Buyer and Dollinger Innovations Inc., Dollinger Holdings LLC, and Sean Dollinger
as the Sellers dated as of March 19, 2021 and pursuant to the Asset Purchase Agreement in connection with Soleil Vino among LQR House
Inc. as the Buyer and Dollinger Holdings LLC as the Sellers dated as of May 31, 2021. We consider our intellectual property to be a key
business asset and therefore have rights to use and market the following portfolio of intellectual property in the United States:

<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><I>SWOL
Intellectual Property</I></B></FONT></P>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trademarks:
                                            SWOL and Design and all associated trade dress and intellectual property rights.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
                                            labels, logos and other branding bearing the SWOL and Design marks or any mark substantially
                                            similar to the same.</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"><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><I>Soleil
Vino Intellectual Property</I></B></FONT></P>

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

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trademarks
                                            regardless of registration status for Soleil Vino and all associated trade dress and intellectual
                                            property rights.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
                                            labels, logos and other branding bearing the Soleil Vino marks or any mark substantially
                                            similar to the same.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Website
                                            and all related digital and social media content including but not limited to influencer
                                            networks, http://www.soleilvino.com, and all related content, and all related sales channels.</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"><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">Enforcement
of our trademark rights is important in maintaining the value of each of our brands. While it would be cost-prohibitive to act in all
instances, our aim is to consistently reduce trademark infringements by carrying out coordinated, cost-effective enforcement actions
following investigation of suspected trademark infringements. Enforcement action takes a variety of forms, such as working with authorities
to seize counterfeit goods and stop the activities of unauthorized sellers to taking direct legal action against infringers, for example,
by issuing cease and desist letters. In relation to materials for which copyright protection is available, our current practice is generally
to secure copyright ownership where possible and appropriate.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of June 9, 2023, we had three full-time employees. We will add another full-time employee upon the consummation of this offering per
Sean Dollinger&rsquo;s employment agreement. See <I>Executive Compensation &ndash; Executive Employment and Consulting Agreements</I>.
Our independent contractors include third-party service providers who staff our organization and supplement our teams as needed. None
of our personnel are represented by labor unions, and we believe that we have an excellent relationship with everyone who works with
us. We operate the Company under remote-first principles.</FONT></P>

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

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

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<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>Seasonality</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Seasonality
has some impact on our business via the levels at which customers engage with our products and brand. For example, we have traditionally
seen lower total sales in the post-holiday and winter months. Our marketing strategies, which may be informed by these seasonal trends,
will also impact our quarterly results of operations. These trends may cause our cash requirements to vary from quarter to quarter depending
on the variability in the volume and timing of sales. We believe that these seasonal trends have affected and will continue to affect
our quarterly results.</FONT></P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company owns an office lease pursuant to a commercial lease agreement
between South Doll LLC and LQR House Inc at 6800 Indian Creek Dr., Suite 1E, Miami Beach, FL, 33141 (the &ldquo;premises&rdquo;). The
premises are used as a corporate office address and as the registered office address for the Company. The lease commenced on February
15, 2023 and will expire on February 28, 2025. Our total office space pursuant to this agreement is approximately [*] square feet. We
believe our office space is adequate for at least the next 12 months.</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"><B>Legal
Proceedings </B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However,
litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may
harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect
on our business, financial condition, or operating results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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>Key
Agreements with Suppliers</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">In accordance with a certain asset purchase agreement
dated March 19, 2021, by and between the Company, as buyer, and Dollinger Innovations Inc., Dollinger Holdings LLC, and Sean Dollinger,
our Chief Executive Officer, as sellers, the Company became assignee to that certain Shared Responsibility &amp; Bonding Agreement dated
March 19, 2021, between Leticia Hermosillo Ravelero and Dollinger Innovations Inc., which we refer to as the Shared Responsibility &amp;
Bonding Agreement. That agreement provides that Leticia Hermosillo Ravelero, who we refer to as the Producer, undertakes the production
of the alcoholic beverage denominated &ldquo;Tequila made 100% of agave,&rdquo; bottled and labeled at the factory located in Km 32 of
the International Highway Guadalajara-Nogales, El Arenal Municipality, Postal Code 45350, Jalisco, Mexico, supplied by the Producer in
accordance with the Shared Responsibility &amp; Bonding Agreement. That agreement also provides that Dollinger Innovations Inc., and Sean
Dollinger as the administrative manager of Dollinger Innovations Inc., who we refer to as the Distributor, undertakes to carry out the
activities of distribution and sale of that beverage in Mexico or overseas in compliance with the laws and regulations that are applicable
in the place where it will be marketed. The Producer is granted the exclusive right to produce tequila under the SWOL trademark, and that
any tequila produced by Supplier will qualify as &ldquo;Tequila 100% of Agave,&rdquo; as authorized by the General Directorate of Norms
from Secretary of Economy of Mexico, the Regulatory Council of Tequila A.C., and the Tequila Origin Denomination No. DOT-194 issued according
to applicable legislation of the Mexican Institute of Industrial Property, body belonging to Government of the Mexican United States.
The Shared Responsibility &amp; Bonding Agreement will terminate on March 19, 2026, unless terminated prior by either party with at least
30 days advance written notice. The cost and amount of each batch of tequila produced by Supplier will be determined in advance of the
production of each batch by agreement between Supplier and the Company.</P>
<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">Per the Packaging of Origin Co-Responsibility
Agreement, between Leticia Hermosillo Ravelero ( the &ldquo;Producer&rdquo;) and Dollinger Innovations Inc. and Sean Dollinger as the
legal representative of Dollinger Innovations Inc. (the &ldquo;Distributor&rdquo;), the Producer undertakes to supply to the Distributor,
bottled product of origin that strictly complies with the &ldquo;Official Standard of Tequila&rdquo; issued by the Conformity Assessment
Body in this case the Regulatory Council of Tequila, A.C. (&ldquo;CRT&rdquo;), the Producer undertakes to prepare for, and deliver exclusively
to the Distributor, the Aged Tequila bottle of origin that strictly complies with the Official Standard of Tequila, the Producer undertakes
to prepare for and deliver exclusively to the Distributor, Tequila flavored in the flavors that from time to time the Distributor orders,
and the Distributor undertakes to use the Appellation of Origin &ldquo;Tequila&rdquo; and to distribute the product of the same name,
supplied by the Producer exclusively in the containers bearing the trademark SWOL.</P>

<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>Government
Regulation </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
Alcohol Industry</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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">A
complex multi-jurisdictional regime governs alcoholic beverage manufacturing, distribution, sales, and marketing in the United States.
The alcoholic beverages industry in which we operate is subject to extensive regulation by the Alcohol and Tobacco Tax and Trade Bureau
(and other federal agencies), each state&rsquo;s liquor authority, and potentially local authorities depending on location. These regulations
and laws dictate such matters as licensing requirements, production, importation, ownership restrictions, trade, and pricing practices,
permitted distribution channels, delivery, and prohibitions on sales to minors, permitted, and required labeling, and advertising and
relations with wholesalers and retailers. These laws, regulations and licensing requirements may, and sometimes are, interpreted and
applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other legal mandates or with the Company&rsquo;s
business practices. Further, these laws, rules, regulations, and interpretations are constantly changing because of litigation, legislation,
and agency priorities, and could result in increased regulation. The Company&rsquo;s actual or asserted non-compliance with any such
law, regulation or requirement could expose us to investigations, claims, litigation, injunctive proceedings and other criminal or civil
proceedings by private parties and regulatory authorities, as well as license suspension, license revocation, substantial fines, and
negative publicity, any of which could adversely affect our results of operations, financial condition, and business.</FONT></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are subject to several laws and regulations that affect companies conducting business on the Internet, many of which are still evolving
and could be interpreted in ways that could harm our business. The way existing laws and regulations will be applied to the Internet
and how they will relate to our business are often unclear. For example, we often cannot be certain how existing laws will apply in the
e-commerce and online context, including with respect to such topics as privacy, defamation, pricing, credit card fraud, advertising,
taxation, sweepstakes, promotions, content regulation, quality of products and services, and intellectual property ownership and infringement.</FONT></P>

<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">Numerous
laws and regulatory schemes have been adopted at the national and state level in the United States, and in some cases internationally,
that have a direct impact on our business and operations. For example:</FONT></P>

<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">The
Credit Card Accountability Responsibility and Disclosure Act of 2009, or CARD Act, and similar laws and regulations adopted by several
states regulate credit card and gift certificate use fairness, including expiration dates and fees. Our business also requires that we
comply with payment card industry data security and other standards. We are subject to payment card association operating rules, certification
requirements, and rules governing electronic funds transfers, which could change or be reinterpreted to make it difficult or impossible
for us to comply. If we fail to comply with these rules or requirements, or if our data security systems are breached or compromised,
we may be liable for card issuing banks&rsquo; costs, subject to fines and higher transaction fees, and lose our ability to accept credit
and debit card payments from our customers, process electronic funds transfers, or facilitate other types of online payments, and our
business and results of operations could be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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">The
Digital Millennium Copyright Act (DMCA) provides relief for claims of circumvention of copyright protected technologies and includes
a safe harbor intended to reduce the liability of online service providers for hosting, listing, or linking to third-party content that
infringes copyrights of others.</FONT></P>

<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">The
California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020, provides consumers the right to know what personal
data companies collect, how it is used, and the right to access, delete, and opt out of the sale of their personal information to third
parties. It also expands the definition of personal information and gives consumers increased privacy rights and protections for that
information. The CCPA also includes special requirements for California consumers under the age of 16. In addition, the European Union
and United Kingdom have adopted the General Data Protection Regulation (GDPR), which likewise impose significant data protection obligations
on enterprises, including limitations on data uses and constraints on certain uses of sensitive data. Effective January 1, 2023, we will
also become subject to the California Privacy Rights Act, which expands upon the consumer data use restrictions, penalties and enforcement
provisions under the California Consumer Privacy Act, and Virginia&rsquo;s Consumer Data Protection Act, another comprehensive data privacy
law. Effective July 1, 2023, we will also become subject to the Colorado Privacy Act and Connecticut&rsquo;s An Act Concerning Personal
Data Privacy and Online Monitoring, which are also comprehensive consumer privacy laws. Effective December 31, 2023, we will also become
subject to the Utah Consumer Privacy Act, regarding business handling of consumers&rsquo; personal data.</FONT></P>

<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>COVID-19
Pandemic </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 11, 2020, the World Health Organization declared the novel coronavirus COVID-19 a global pandemic and recommended containment and
mitigation measures worldwide. From our founding, we have been a highly efficient remote-first company, which has been able to continue
to function as normal even with pandemic-related stay at home orders and other regulations. We have also exploited certain trends related
to the COVID-19 pandemic, including its acceleration of global growth in e-commerce. Additionally, the COVID-19 pandemic has had a far-reaching
impact on the alcoholic beverage industry. The closure of many bars and restaurants has meant that home consumption of alcoholic beverages
has skyrocketed. Some categories of wines and spirits have seen significant market share gains while others have stagnated. More importantly,
consumer trends that were expected to play out over the next decade were instead accelerated into a few months. While a return to some
measure of normalcy may reverse or modify some of those changes, most of the trends observed in the beverage market over 2022 and 2021
are expected to continue, although possibly at a reduced rate of growth. However, the COVID-19 pandemic has adversely impacted global
economic activity and has contributed to significant volatility and negative pressure in financial markets. The resulting global deterioration
in economic conditions and financial volatility may have an adverse impact on discretionary consumer spending or investing and could
also impact our business and demand for our services. We cannot predict the extent to which the ongoing COVID-19 pandemic or related
regulatory activity or legislative may impact us.</FONT></P>

<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>


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_011"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MANAGEMENT</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Directors
and Executive Officers </B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Set
forth below is information regarding our directors and executive officers as of the date of this prospectus.</FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 30%"><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></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>Name</B></FONT></P></TD>
    <TD STYLE="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; width: 6%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="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; width: 62%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Position</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sean Dollinger</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">42</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">Chief Executive Officer, Secretary, and Director</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kumar Abhishek</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">46</FONT></TD>
    <TD><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">Chief Financial Officer</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jaclyn Hoffman</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">33</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">Chief Marketing Officer</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alexandra Hoffman</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">34</FONT></TD>
    <TD><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">Director</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Darren Collins</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">39</FONT></TD>
    <TD><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">Director</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holiday Russell</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">57</FONT></TD>
    <TD><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">Director Nominee <SUP>(1)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Guy Dollinger</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">51</FONT></TD>
    <TD><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">Director Nominee <SUP>(1)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James Huber</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">54</FONT></TD>
    <TD><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">Director Nominee <SUP>(1)</SUP></FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James O&rsquo;Brien</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">37</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director
    Nominee <SUP>(1)</SUP></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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
be appointed to our board of directors immediately upon the effectiveness of the registration statement of which this prospectus forms
a part.</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Sean
Dollinger</I></B> has served as our Chief Executive Officer, Secretary, and as a member of our board of directors since January 2023,
and he founded our company in January 2021. Mr. Dollinger has also been on the board of directors of Veg House Holdings Inc. since December
2022 and has served as its Chief Executive Officer since January 2023. Since December 2019 to, Mr. Dollinger was involved in the founding
and development of PlantX Life Inc. (CSE: VEGA), an exchange listed and public company in Canada. From June 2015 to February 2019, Mr.
Dollinger acted as the Founder, Chief Executive Officer, and President of Lifeist Wellness Inc. (formerly Namaste Technologies Inc.,
or Namaste), a registered company under the Canadian securities laws that is a portfolio of wellness companies, where he oversaw the
day-to-day operations of the company and its growth strategies. In October 2018, Mr. Dollinger became a part of a British Columbia Securities
Commission compliance review of Namaste, a Canadian class action lawsuit, and a United States class action lawsuit, by way of his position
as Chief Executive Officer and President of Namaste. For more information, see the risk factor that starts &ldquo;<I>Our Chief Executive
Officer and Director, Sean Dollinger, has been the subject of a compliance review that was initiated by the British Columbia Securities
Commission, and has not formally been concluded...</I>&rdquo; Mr. Dollinger has a wealth of experience in e-commerce, where he has had
success across numerous different digital markets. We believe that Mr. Dollinger is qualified to serve on our board of directors due
to his extensive operational experience, background in ecommerce, and international capital markets experience.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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><I>Kumar
Abhishek</I></B> has served as our Chief Financial Officer since May 2023. Prior to joining our company as Chief Financial Officer, Mr.
Abhishek was the owner and director of Boston Crest Private Limited, a knowledge processing output company located in India, where he
simultaneously oversaw multiple companies&rsquo; financial and daily operations and was responsible for managing a team of 10+ accountants
who assisted controllers and auditors in ensuring the financial success of each company. Through his work at Boston Crest, Mr. Abhishek
served as our director of finance and operations from January 2021 to May 2023, as the director of finance and operations at PlantX Life
Inc., a publicly listed company in Canada, from January 2020 to May 2023. Moreover, at Aspen Communications Pvt LTD, another knowledge
processing output company in India, he served as director of finance and operations at Lifeist Wellness Inc. (formerly Namaste Technologies
Inc.) from January 2015 to January 2020. Mr. Abhishek holds a Bachelor of Computer Applications degree from Ranchi University, Ranchi,
Jharkhand, India.</FONT></P>

<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><I>Jaclyn
Hoffman</I></B> has served as the Chief Marketing Officer for LQR House since January 2021, where she oversees internal design projects,
as well as design projects for partnering brands. She is also responsible for brand development, brand communication, and digital campaigns.
Since October 2021, Jaclyn has worked as the Creative Director at PlantX Life Inc, where she oversees all creative projects for PlantX
and its subsidiaries. This role includes working closely with teams of graphic designers, copywriters, web developers, and email marketing
specialists to support the overall marketing strategy with creative content. From November 2019 until September 2021, Ms. Hoffman worked
as a Web Design and Development Manager for Falcon Marketing, LLC, a marketing and search engine optimization agency, where she worked
with graphic designers and web developers to create optimized websites for a wide range of clients. From October 2018 to November 2019,
Ms. Hoffman worked as a Branding Consultant for Joyva Corp, a specialty candy company founded in 1907, where she helped modernize the
brand&rsquo;s identity. From September 2016 to August 2018, Ms. Hoffman worked as a graphic designer for Lakeside Photoworks, a print,
photo and signage shop in New Orleans, LA, where she was responsible for building the brand identity of several local businesses. Ms.
Hoffman holds a Bachelor of Arts from McGill University in Montreal, QC, and an Associate in Graphic Design degree from Delgado Community
College in New Orleans, LA.</FONT></P>

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

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

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<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><I>Darren
Collins</I></B> has served as a member of our board of directors since January 2021. From January 2021 to August 2022 and from January
1, 2023 to May 1, 2023, Mr. Collins also served as our Chief Financial Officer. Prior to joining us, Mr. Collins was the Chief Financial
Officer and Advisor for Khiron Life Sciences Corp. from January 2017 to July 2020 and oversaw over $100 million in capital raises as
well as the listing of the company of the TSV Venture Exchange. In that position he was responsible for capital markets relationships,
budgeting, financial reporting and mergers and acquisitions. Since January 2022, Mr. Collins has worked as the Chief Executive Officer
and Director of US Critical Metals Corp, a Canadian publicly listed company. From January 2008 to present date, he has also served as
a director of Dalvay Capital, a merchant bank focused on early-stage companies. In this capacity, he has held several executive and board
appointments. Mr. Collins has a Bachelor of Commerce degree in Finance from Dalhousie University, located in Halifax, Nova Scotia, a
Province of Canada. We believe that Mr. Collins is qualified to serve on our board of directors due to his extensive managerial experience,
financial literacy and international capital markets and board experience.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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><I>Alexandra
Hoffman</I></B> has served as a member of our board of directors since April 2023. Additionally, on May 1, 2023, Ms. Hoffman entered
into an employment agreement with the Company as a Technical Writer. Since January 2023, she has served as the Chief Marketing Officer
of Veg House Holdings Inc. where she oversees all marketing activities from branding to web design and messaging both print and digital.
Since August 2020, Ms. Hoffman has served as Chief Marketing Officer and Director at PlantX Life Inc. (CSE: VEGA), where she oversees
all marketing activities, manages design &amp; development teams, digital marketing teams, and PlantX Life&rsquo;s overall branding and
messaging for all of its subsidiaries. Additionally, since July 2018, Ms. Hoffman has served as a Director of Marketing and Technical
Writer at Falcon Marketing LLC, a marketing and search engine optimization agency, where she oversees all marketing activities within
the agency and is responsible for Falcon Marketing&rsquo;s overall strategy as well as tailored strategies for its clients. From May
2017 to July 2018, Ms. Hoffman served as a technical Writer and Marketing Manager at Fabuwood Cabinetry Corporation, a kitchen cabinet
fabrication company, where she managed a team of designers and developers, wrote strategic content for marketing manuals and search engine
optimization. Ms. Hoffman holds a Bachelor of Commerce degree from Concordia University in Montreal, Quebec. We believe that Ms. Hoffman
is qualified to serve on our board of directors due to her background in branding and product / platform positioning as well as her previous
experience as a senior member of other public companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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><I>Holiday
Russell</I></B> has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Holiday Russell is an attorney licensed by The Florida Bar, who was admitted to practice
in 1992. With over 30 years of experience, Mr. Russell is the principal of Holiday Hunt Russell PLLC since forming that bespoke law firm
in 2017 and has represented hundreds of high-net-worth individuals and companies, both private and public, in many areas of the law.
These areas include complex commercial and business litigation, corporate and business architecture, intellectual property rights, real
estate transactions and litigation, and debtor/creditor rights including bankruptcy, to name a few. Mr. Russell is admitted to practice
law in all Florida courts, as well as in the United States District Courts for the Southern, Middle and Northern Districts of Florida,
the United States Bankruptcy Courts for the Southern and Middle Districts of Florida, the United States Bankruptcy Court for the District
of Colorado, and the United States Eleventh Circuit Court of Appeals. He received his Juris Doctor degree from Nova Southeastern University
in 1992 and was awarded the degree of Bachelor of Science in Biology from Florida International University in 1989. A native Floridian,
Mr. Russell resides in South Florida with his family. We believe that Mr. Russell is qualified to serve on our board of directors due
to his extensive corporate legal background.</FONT></P>

<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><I>Guy
Dollinger</I></B> has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Mr. Dollinger has served as Vice President and partner in DZD Hardwood Inc, a global
hardwood lumber business, since 1990. His responsibilities include overseeing operations, finance, exports, and the procurement of raw
materials. Mr. Dollinger&rsquo;s extensive knowledge of supply chains and manufacturing as well as his ability to build client relationships
has been paramount in DZD&rsquo;s growth. Mr. Dollinger attended Concordia University majoring in accounting. We believe that Mr. Dollinger
is qualified to serve on our board of directors due to his extensive managerial experience, financial literacy and shipping and logistics
expertise.</FONT></P>

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

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

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<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><I>James
Huber </I></B>has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Starting in October 2021, Mr. Huber has worked as a Senior Vice President of Strategic
Accounts at Siemens. From April 2014 to October 2021, Mr. Huber worked as a Vice President of Strategic Accounts at Siemens. From January
2012 to April 2014, Mr. Huber worked as an Executive VP of Major Accounts at Caradigm, a GE Healthcare and Microsoft Joint Venture. From
August 2009 to January 2012, Mr. Huber worked as a Vice President of National Accounts at Microsoft Health Solutions Group. From December
2006 &ndash; August 2009, Mr. Huber Worked as an Account executive at Microsoft Health Solutions Group. From April 2002 to November 2006,
Mr. Huber worked as a Vice President of Enterprise IT Sales at GE Healthcare IT. From November 2000 to April 2002, Mr. Huber Worked as
an Account Manager of Clinical Systems at GE Healthcare. From July 1999 to July 2004, Mr. Huber owned his own retail store in Vail, Colorado,
named Brighton Collectibles. From November 1993 to November 2000, Mr. Huber worked in the Western Territory Sales Department at Leegin
Leather. Mr. Huber has a Bachelor of Science in Marketing from DePaul University, located in Chicago, Illinois. We believe that Mr. Huber
is qualified to serve on our board of directors due to his experience in sales, marketing and strategy and business planning.</FONT></P>

<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><I>James
O&rsquo;Brien</I></B> has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Since January 2019, Mr. O&rsquo;Brien has been a partner at MLT Aikins LLP, one of Western
Canada&rsquo;s leading law firms, where he practices primarily in the areas of corporate and commercial law with a specific focus on
mergers and acquisitions and corporate finance and securities. Before that, he joined MLT Aikins LLP as an associate attorney in 2012.
Mr. O&rsquo;Brien received his Bachelor of Laws degree from the University of Manitoba in 2010. He also received his Bachelor of Science
degree from the University of Manitoba in 2007. Mr. O&rsquo;Brien is admitted to practice law in Manitoba, Canada and has passed Levels
1 and 2 of the Chartered Financial Analyst programs. We believe that Mr. O&rsquo;Brien is qualified to serve on our board of directors
due to the combination of his extensive legal and finance background.</FONT></P>

<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>Family
Relationships </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Guy
Dollinger, who is a nominee for our board of directors, and Sean Dollinger, our Chief Executive Officer, Secretary and a director, are
uncle and nephew, respectively. Additionally, Alexandra Hoffman, a member of our board of directors, and Jaclyn Hoffman, our Chief Marketing
Officer, are sisters.</FONT></P>

<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>Involvement
in Certain Legal Proceedings </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
the best of our knowledge, none of our directors or executive officers has, during the past ten years:</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">been
                                            convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding
                                            traffic violations and other minor offences);</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">had
                                            any bankruptcy petition filed by or against the business or property of the person, or of
                                            any partnership, corporation or business association of which he was a general partner or
                                            executive officer, either at the time of the bankruptcy filing or within two years prior
                                            to that time;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">been
                                            subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated,
                                            of any court of competent jurisdiction or federal or state authority, permanently or temporarily
                                            enjoining, barring, suspending or otherwise limiting, his involvement in any type of business,
                                            securities, futures, commodities, investment, banking, savings and loan, or insurance activities,
                                            or to be associated with persons engaged in any such activity;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">been
                                            found by a court of competent jurisdiction in a civil action or by the Securities and Exchange
                                            Commission or the Commodity Futures Trading Commission to have violated a federal or state
                                            securities or commodities law, and the judgment has not been reversed, suspended, or vacated;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">been
                                            the subject of, or a party to, any federal or state judicial or administrative order, judgment,
                                            decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement
                                            of a civil proceeding among private litigants), relating to an alleged violation of any federal
                                            or state securities or commodities law or regulation, any law or regulation respecting financial
                                            institutions or insurance companies including, but not limited to, a temporary or permanent
                                            injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent
                                            cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting
                                            mail or wire fraud or fraud in connection with any business entity; or</FONT></TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">been
                                            the subject of, or a party to, any sanction or order, not subsequently reversed, suspended
                                            or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange
                                            Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the
                                            Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity
                                            or organization that has disciplinary authority over its members or persons associated with
                                            a member.</FONT></TD></TR></TABLE>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Corporate
Governance</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
Board&rsquo;s Role in Risk Oversight </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
board of directors oversees that the assets of our company are properly safeguarded, that the appropriate financial and other controls
are maintained, and that our business is conducted wisely and in compliance with applicable laws and regulations and proper governance.
Included in these responsibilities is the board&rsquo;s oversight of the various risks facing our company. In this regard, our board
seeks to understand and oversee critical business risks. Our board does not view risk in isolation. Risks are considered in virtually
every business decision and as part of our business strategy. Our board recognizes that it is neither possible nor prudent to eliminate
all risk. Indeed, purposeful and appropriate risk-taking is essential for our company to be competitive on a global basis and to achieve
its objectives.</FONT></P>

<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">While
the board oversees risk management, company management is charged with managing risk. Management communicates routinely with the board
and individual directors on the significant risks identified and how they are being managed. Directors are free to, and indeed often
do, communicate directly with senior management.</FONT></P>

<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">Our
board administers its risk oversight function as a whole by making risk oversight a matter of collective consideration. Much of this
work has been delegated to committees, which will meet regularly and report back to the full board. The audit committee oversees risks
related to our financial statements, the financial reporting process, accounting and legal matters, the compensation committee evaluates
the risks and rewards associated with our compensation philosophy and programs, and the nominating and corporate governance committee
evaluates risk associated with management decisions and strategic direction.</FONT></P>

<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><I>Independent
Directors</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nasdaq&rsquo;s
rules generally require that a majority of an issuer&rsquo;s board of directors consist of independent directors. Our board of directors
currently consists of three (3) directors, Sean Dollinger, Darren Collins, and Alexandra Hoffman, none of whom are independent within
the meaning of Nasdaq&rsquo;s rules. We intend to enter into independent director agreements with James Huber, Guy Dollinger, Holiday
Russell, and James O&rsquo;Brien, pursuant to which they will be appointed to serve as independent directors effective immediately upon
the effectiveness of the registration statement of which this prospectus forms a part. As a result of these board changes, our board
of directors will consist of seven (7) directors, four (4) of whom will be independent within the meaning of Nasdaq&rsquo;s rules.</FONT></P>

<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><I>Committees
of the Board of Directors </I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board has established an audit committee, a compensation committee, and a nominating and corporate governance committee, each with its
own charter approved by the board. The committee charters have been filed as exhibits to the registration statement of which this prospectus
is a part. Upon completion of this offering, we intend to make each committee&rsquo;s charter available on our website at www.lqrhouse.com.</FONT></P>

<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">In
addition, our board of directors may, from time to time, designate one or more additional committees, which shall have the duties and
powers granted to it by our board of directors.</FONT></P>

<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"><I><U>Audit
Committee </U></I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James
Huber, Guy Dollinger, and Holiday Russell, each of whom satisfies the &ldquo;independence&rdquo; requirements of Rule&nbsp;10A-3 under
the Exchange Act and Nasdaq&rsquo;s rules, will serve on our audit committee upon their appointment to the board, with Guy Dollinger
serving as the chairman. Our board has determined that Guy Dollinger qualifies as an &ldquo;audit committee financial expert.&rdquo;
The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements of our company.</FONT></P>

<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">The
audit committee is responsible for, among other things: (i) retaining and overseeing our independent accountants; (ii) assisting the
board in its oversight of the integrity of our financial statements, the qualifications, independence and performance of our independent
auditors and our compliance with legal and regulatory requirements; (iii) reviewing and approving the plan and scope of the internal
and external audit; (iv) pre-approving any audit and non-audit services provided by our independent auditors; (v) approving the fees
to be paid to our independent auditors; (vi) reviewing with our chief executive officer and principal financial officer and independent
auditors the adequacy and effectiveness of our internal controls; (vii) reviewing hedging transactions; and (viii) reviewing and assessing
annually the audit committee&rsquo;s performance and the adequacy of its charter.</FONT></P>

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

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

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<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"><I><U>Compensation
Committee </U></I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James
Huber, Guy Dollinger, and Holiday Russell, each of whom satisfies the &ldquo;independence&rdquo; requirements of Rule&nbsp;10C-1 under
the Exchange Act and Nasdaq&rsquo;s rules, will serve on our compensation committee upon their appointment to the board, with James Huber
serving as the chairman. The members of the compensation committee are also &ldquo;outside directors&rdquo; as defined in Section 162(m)
of the Internal Revenue Code of 1986, as amended, or the Code, and &ldquo;non-employee directors&rdquo; within the meaning of Section
16 of the Exchange Act. The compensation committee assists the board in reviewing and approving the compensation structure, including
all forms of compensation, relating to our directors and executive officers.</FONT></P>

<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">The
compensation committee is responsible for, among other things: (i) reviewing and approving the remuneration of our executive officers;
(ii) making recommendations to the board regarding the compensation of our independent directors; (iii) making recommendations to the
board regarding equity-based and incentive compensation plans, policies and programs; and (iv) reviewing and assessing annually the compensation
committee&rsquo;s performance and the adequacy of its charter.</FONT></P>

<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"><I><U>Nominating
and Corporate Governance Committee </U></I></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James
Huber, Guy Dollinger, and Holiday Russell, each of whom satisfies the &ldquo;independence&rdquo; requirements of Nasdaq&rsquo;s rules,
will serve on our nominating and corporate governance committee upon their appointment to the board, with Holiday Russell, serving as
the chairman. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified to
become our directors and in determining the composition of the board and its committees.</FONT></P>

<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">The
nominating and corporate governance committee will be responsible for, among other things: (i) identifying and evaluating individuals
qualified to become members of the board by reviewing nominees for election to the board submitted by shareholders and recommending to
the board director nominees for each annual meeting of shareholders and for election to fill any vacancies on the board; (ii) advising
the board with respect to board organization, desired qualifications of board members, the membership, function, operation, structure
and composition of committees (including any committee authority to delegate to subcommittees), and self-evaluation and policies; (iii)
advising on matters relating to corporate governance and monitoring developments in the law and practice of corporate governance; (iv)
overseeing compliance with the our code of ethics; and (v) approving any related party transactions.</FONT></P>

<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">The
nominating and corporate governance committee&rsquo;s methods for identifying candidates for election to our board of directors (other
than those proposed by our shareholders, as discussed below) will include the solicitation of ideas for possible candidates from a number
of sources &ndash; members of our board of directors, our executives, individuals personally known to the members of our board of directors,
and other research. The nominating and corporate governance committee may also, from time-to-time, retain one or more third-party search
firms to identify suitable candidates.</FONT></P>

<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">In
making director recommendations, the nominating and corporate governance committee may consider some or all of the following factors:
(i) the candidate&rsquo;s judgment, skill, experience with other organizations of comparable purpose, complexity and size, and subject
to similar legal restrictions and oversight; (ii) the interplay of the candidate&rsquo;s experience with the experience of other board
members; (iii) the extent to which the candidate would be a desirable addition to the board and any committee thereof; (iv) whether or
not the person has any relationships that might impair his or her independence; and (v) the candidate&rsquo;s ability to contribute to
the effective management of our company, taking into account the needs of our company and such factors as the individual&rsquo;s experience,
perspective, skills and knowledge of the industry in which we operate.</FONT></P>

<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">A
shareholder may nominate one or more persons for election as a director at an annual meeting of shareholders if the shareholder complies
with the notice and information provisions contained in our bylaws. Such notice must be in writing to our company not later than the
close of business on the ninetieth (90<SUP>th</SUP>) day nor earlier than the close of business on the one-hundred-twentieth (120<SUP>th</SUP>)
day prior to the first anniversary of the preceding year&rsquo;s annual meeting; provided, however, that in the event that the date of
the annual meeting is advanced more than thirty (30) days prior to or delayed by more than thirty (30) days after the anniversary of
the preceding year&rsquo;s annual meeting, notice by the stockholder to be timely must be so delivered not earlier than the close of
business on the one hundred twentieth (120<SUP>th</SUP>) day prior to such annual meeting and not later than the close of business on
the later of the ninetieth (90<SUP>th</SUP>) day prior to such annual meeting or the tenth (10<SUP>th</SUP>) day following the day on
which public announcement of the date of such meeting is first made or as otherwise required by the Exchange Act. In addition, shareholders
furnishing such notice must be a holder of record on both (i)&nbsp;the date of delivering such notice and (ii)&nbsp;the record date for
the determination of shareholders entitled to vote at such meeting.</FONT></P>

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

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

<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>Code
of Ethics </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have adopted a code of ethics that applies to all of our directors, officers and employees, including our principal executive officer,
principal financial officer and principal accounting officer. Such code of ethics addresses, among other things, honesty and ethical
conduct, conflicts of interest, compliance with laws, regulations and policies, including disclosure requirements under the federal securities
laws, and reporting of violations of the code.</FONT></P>

<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">A
copy of the code of ethics has been filed as an exhibit to the registration statement of which this prospectus is a part. We are required
to disclose any amendment to, or waiver from, a provision of our code of ethics applicable to our principal executive officer, principal
financial officer, principal accounting officer, controller, or persons performing similar functions. We intend to use our website as
a method of disseminating this disclosure as well as by SEC filings, as permitted or required by applicable SEC rules. Any such disclosure
will be posted to our website within four (4) business days following the date of any such amendment to, or waiver from, a provision
of our code of ethics.</FONT></P>

<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>


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_012"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXECUTIVE
COMPENSATION</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Summary
Compensation Table - Years Ended December 31, 2022 and 2021</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="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to the named persons
for services rendered in all capacities during the noted periods.&nbsp;No other executive officers received total compensation in excess
of $100,000.</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="border-bottom: Black 1.5pt solid; padding: 0pt; text-indent: 0pt"><B>Name and Principal Position</B></TD>
    <TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Year</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>Salary <BR> ($)</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>Bonus <BR> ($)</B></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><B><SUP>&nbsp;</SUP></B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>Stock<BR> Awards<BR> ($) <SUP>(1)</SUP>&nbsp;</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>Option<BR> Awards <BR> ($)</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>All Other<BR> Compensation<BR>
    ($)</B></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><B><SUP>&nbsp;</SUP></B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>Total<BR> ($)</B></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 35.5%; text-align: left">Sean Dollinger,</TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: center">2022</TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">-</TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">-</TD>
    <TD STYLE="width: 0.5%; text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">-</TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">144,000</TD>
    <TD STYLE="width: 0.5%; text-align: left"><SUP>(2)</SUP></TD>
    <TD STYLE="width: 0.5%">&nbsp;</TD>
    <TD STYLE="width: 0.5%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 8%; text-align: right">144,000</TD>
    <TD STYLE="width: 0.5%; 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, Secretary and Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">100,000</TD>
    <TD STYLE="text-align: left"><SUP>(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">212,500</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">144,000</TD>
    <TD STYLE="text-align: left"><SUP>(2)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">456,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Kumar Abhishek,</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,400</TD>
    <TD STYLE="text-align: left"><SUP>(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,400</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,400</TD>
    <TD STYLE="text-align: left"><SUP>(3)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">62,400</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Jaclyn Hoffman,</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD STYLE="text-align: left"><SUP>(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</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; padding-left: 0.25in; text-align: left">Chief Marketing Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">25,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD STYLE="text-align: left"><SUP>(4)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">55,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Darren Collins,</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72,000</TD>
    <TD STYLE="text-align: left"><SUP>(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">Director and former Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">20,000</TD>
    <TD STYLE="text-align: left"><SUP>(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">72,000</TD>
    <TD STYLE="text-align: left"><SUP>(5)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">142,000</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; padding-left: 0.125in; text-align: left">Angela Kattoula,</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in; text-align: left">former Chief Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left"><SUP>&nbsp;</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">50,000</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">30,000</TD>
    <TD STYLE="text-align: left"><SUP>(6)</SUP></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">80,000</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><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: 0.25in"><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">Award
                                            amounts reflect the aggregate grant date fair value with respect to awards granted, as determined
                                            pursuant to FASB ASC Topic 718. The assumptions used to calculate the aggregate grant date
                                            fair value of option awards are set forth in the notes to the consolidated financial statements
                                            included in this Registration Statement. These amounts do not reflect actual compensation
                                            earned or to be earned by our named executive officers.</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"><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: 0.25in"><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">On
                                            January 1, 2021, Sean Dollinger and the Company entered into an independent contractor agreement,
                                            pursuant to which the Company pays Mr. Dollinger $12,000 per month for consulting services.
                                            This agreement is in effect until the consummation of this initial public offering. Mr. Dollinger
                                            also received a $100,000 signing bonus upon the signing of the agreement.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; 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; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            January 1, 2021, the Company entered into an independent contractor agreement with Boston
                                            Crest Pvt. Ltd, a private company limited organized under the laws of India owned by Kumar
                                            Abhishek our Chief Financial Officer as of May 2023, pursuant to which the Company paid Boston
                                            Crest $5,200 per month for its business management consulting services. This agreement was
                                            in effect until May 1, 2023.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; 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; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify">On January 1, 2021, Jaclyn Hoffman and the Company entered into an
independent contractor agreement, pursuant to which the Company paid Ms. Hoffman $2,500 per month for consulting services. This agreement
was in effect until May 1, 2023.</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"><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="vertical-align: top">
    <TD STYLE="width: 24px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On January 1, 2021, Darren Collins and the Company entered into an independent contractor agreement, pursuant to which the Company pays Mr. Collins $6,000 per month for consulting services. Mr. Collins also received a signing bonus of $20,000 upon the signing of the agreement. This agreement was terminated on August 24, 2022, when Darren Collins resigned as Chief Financial Officer of the Company. However, the Company and Darren Collins agreed that the provisions of Schedule 2 of the agreement shall survive termination of the agreement and the Company agreed to continue to pay Darren compensation of $6,000 per month until the date he enters into a non-independent director agreement, which agreement&rsquo;s effective date is expected to be the effective date of the S-1 registration statement.</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"><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: 0.25in"><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">On
                                            January 1, 2021, Angela Kattoula and the Company entered into an independent contractor agreement,
                                            pursuant to which the Company paid Ms. Kattoula $2,500 per month for consulting services.
                                            This agreement was in effect until July 5, 2022, when she resigned from the position of the
                                            CEO of the Company.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Executive
Employment and Consulting Agreements</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have executed the following employment agreements and consulting agreements with our named executive officers. The material terms of
each of those arrangements are summarized below. The summaries are not complete description of all provisions of the employment arrangements
and are qualified in their entirety by reference to the written employment arrangements, each filed as an exhibit to the registration
statement of which this prospectus is a part.</FONT></P>

<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">Under our employment agreement dated March 29, 2023 with our Chief
Executive Officer, Sean Dollinger, effective as of the date of the consummation of this initial public offering, we agreed that, for a
1-year term renewed automatically, unless terminated earlier in accordance with its terms, we will pay Mr. Dollinger an annual base salary
(the &ldquo;Base Salary&rdquo;) of $250,000, which will increase by no less than 5% on each anniversary of his employment. Mr. Dollinger
will also be entitled to an annual incentive bonus as determined by the Board of Directors within thirty (30) days of filing of the Company&rsquo;s
annual reports.</P>

<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">Mr.
Dollinger is entitled to 3 weeks of paid vacation for the first year of his employment and 4 weeks of paid vacation for the second and
third years of his employment. The Company will also provide standard indemnification and directors&rsquo; and officers&rsquo; insurance
as of the consummation of this offering in addition to the ability to participate in standard employee benefits, such as health, medical,
dental and visions insurance. Mr. Dollinger can be terminated without cause and upon death or disability. Mr. Dollinger is also subject
to certain confidentiality and non-competition provisions.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If Mr. Dollinger&rsquo;s employment agreement
is terminated by the Company without cause, all compensation payable to Mr. Dollinger shall cease as of the date of termination specified
in the Company&rsquo;s notice and the Company shall pay Mr. Dollinger, the following sums: (i) the Base Salary on the date of termination specified
in the Company&rsquo;s notice (the &ldquo;Termination Date&rdquo;) for the shorter of (x) six months and (y) the remainder of the term
of the employment agreement (the &ldquo;Term&rdquo;) (the applicable period being referred to as the &ldquo;Severance Period&rdquo;),
payable in monthly installments; (ii) benefits under group health and life insurance plans in which Mr. Dollinger participated prior to
termination through the Severance Period; (iii) all previously earned, accrued, and unpaid benefits from the Company and its employee
benefit plans, including any such benefits under the Company&rsquo;s pension, disability, and life insurance plans, policies, and programs;
and (iv) so long as the Company has achieved its budgeted EBITDA level for the period commencing with the end of the Company&rsquo;s immediately
previous fiscal year through the Termination Date, an amount equal to the product of the bonus paid to Mr. Dollinger in respect of the
immediately preceding fiscal year times the quotient obtained by dividing (x) the number of full calendar months occurring since the end
of the immediately previous fiscal year through the Termination Date, by (y) 12.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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, prior to the date on which the Company&rsquo;s
obligations to pay Mr. Dollinger the Base Salary on the Termination Date cease, Mr. Dollinger certain covenants as listed in his employment
agreement, then the Company shall have no obligation to make any of the payments that remain payable by the Company in the form of Base
Salary or benefits on or after the date of such violation. The payment of severance may be conditioned by the Company on the delivery
by Mr. Dollinger of a release of any and all claims that Mr. Dollinger may have against the Company.</P>

<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">If the Employment Agreement is terminated by the Company for cause,
death or disability, Mr. Dollinger (or his estate or representative as applicable) shall not receive the Base Salary but will receive
all other sums.</P>

<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">Under our employment agreement dated May 1, 2023 with our Chief Marketing
Officer, Jaclyn Hoffman effective as of May 1, 2023, we agreed that, for a 1-year term renewed automatically, unless terminated earlier
in accordance with its terms, we will pay Ms. Hoffman an annual base salary (the &ldquo;Base Salary&rdquo;) of $63,000, which will increase
by no less than 5% on each anniversary of her employment. Ms. Hoffman will be eligible to receive an annual incentive bonus as determined
by the Board of Directors within thirty (30) days of filing of the Company&rsquo;s annual reports. Ms. Hoffman is entitled to 3 weeks
of paid vacation for the first year of her employment and 4 weeks of paid vacation for the second and third years of her employment. The
Company will also provide standard indemnification and directors&rsquo; and officers&rsquo; insurance as of the consummation of this offering
in addition to the ability to participate in standard employee benefits, such as health, medical, dental and visions insurance. Ms. Hoffman
can be terminated without cause and upon death or disability. Ms. Hoffman will also be entitled to certain severance payments if her employment
is terminated with or without cause and on death or disability. Ms. Hoffman is also subject to certain confidentiality and non-competition
provisions.

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

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

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<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">If Ms. Hoffman&rsquo;s employment agreement is
terminated by the Company without cause, all compensation payable to Ms. Hoffman shall cease as of the date of termination specified in
the Company&rsquo;s notice (the &ldquo;Termination Date&rdquo;) and the Company shall pay Ms. Hoffman, the following sums: (i) the Base Salary
on the Termination Date for the shorter of (x) six months and (y) the remainder of the term of the employment agreement (the &ldquo;Term&rdquo;)
(the applicable period being referred to as the &ldquo;Severance Period&rdquo;), payable in monthly installments; (ii) benefits under
group health and life insurance plans in which Ms. Hoffman participated prior to termination through the Severance Period; (iii) all previously
earned, accrued, and unpaid benefits from the Company and its employee benefit plans, including any such benefits under the Company&rsquo;s
pension, disability, and life insurance plans, policies, and programs; and (iv) so long as the Company has achieved its budgeted EBITDA
level for the period commencing with the end of the Company&rsquo;s immediately previous fiscal year through the Termination Date, an amount
equal to the product of the bonus paid to Ms. Hoffman in respect of the immediately preceding fiscal year times the quotient obtained
by dividing (x) the number of full calendar months occurring since the end of the immediately previous fiscal year through the Termination
Date, by (y) 12.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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, prior to the date on which the Company&rsquo;s obligations
to pay Ms. Hoffman the Base Salary on the Termination Date cease, Ms. Hoffman certain covenants as listed in her Employment Agreement,
then the Company shall have no obligation to make any of the payments that remain payable by the Company in the form of Base Salary or
benefits on or after the date of such violation. The payment of severance may be conditioned by the Company on the delivery by Ms. Hoffman
of a release of any and all claims that Ms. Hoffman may have against the Company.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the employment agreement is terminated by the
Company for cause, death or disability, Ms. Hoffman (or her estate or representative as applicable) shall not receive the Base Salary
but will receive all other sums.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 our employment agreement dated May 1, 2023
with our Chief Financial Officer, Kumar Abhishek, effective as of May 1, 2023, we agreed that, for a 1-year term renewed automatically,
unless terminated earlier in accordance with its terms, we will pay Mr. Abhishek an annual base salary (the &ldquo;Base Salary&rdquo;)
of $72,000, which will increase by no less than 5% on each anniversary of his employment. Mr. Abhishek will be eligible to receive an
annual incentive bonus as determined by the Board of Directors within thirty (30) days of filing of the Company&rsquo;s annual reports.
Mr. Abhishek is entitled to 3 weeks of paid vacation for the first year of his employment and 4 weeks of paid vacation for the second
and third years of his employment. The Company will also provide standard indemnification and directors&rsquo; and officers&rsquo; insurance
as of the consummation of this offering in addition to the ability to participate in standard employee benefits, such as health, medical,
dental and visions insurance. Mr. Abhishek can be terminated without cause and upon death or disability. Mr. Abhishek will also be entitled
to certain severance payments if his employment is terminated with or without cause and on death or disability. Mr. Abhishek is also subject
to certain confidentiality and non-competition provisions. Mr. Abhishek&rsquo;s employment agreement with the Company is conditioned upon
him working at least 35 hours per week as our Chief Financial Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Mr. Abhishek&rsquo;s employment agreement
is terminated by the Company without cause, all compensation payable to Mr. Abhishek shall cease as of the date of termination specified
in the Company&rsquo;s notice and the Company shall pay Mr. Abhishek, the following sums: (i) the Base Salary on the date of termination specified
in the Company&rsquo;s notice (the &ldquo;Termination Date&rdquo;) for the shorter of (x) six months and (y) the remainder of the term
of the employment agreement (the &ldquo;Term&rdquo;) (the applicable period being referred to as the &ldquo;Severance Period&rdquo;),
payable in monthly installments; (ii) benefits under group health and life insurance plans in which Mr. Abhishek participated prior to
termination through the Severance Period; (iii) all previously earned, accrued, and unpaid benefits from the Company and its employee
benefit plans, including any such benefits under the Company&rsquo;s pension, disability, and life insurance plans, policies, and programs;
and (iv) so long as the Company has achieved its budgeted EBITDA level for the period commencing with the end of the Company&rsquo;s immediately
previous fiscal year through the Termination Date, an amount equal to the product of the bonus paid to Mr. Abhishek in respect of the
immediately preceding fiscal year times the quotient obtained by dividing (x) the number of full calendar months occurring since the
end of the immediately previous fiscal year through the Termination Date, by (y) 12.</P>

<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">If,
prior to the date on which the Company&rsquo;s obligations to pay Mr. Abhishek the Base Salary on the Termination Date cease, Mr. Abhishek
certain covenants as listed in his Employment Agreement, then the Company shall have no obligation to make any of the payments that remain
payable by the Company in the form of Base Salary or benefits on or after the date of such violation. The payment of severance may be
conditioned by the Company on the delivery by Mr. Abhishek of a release of any and all claims that Mr. Abhishek may have against the
Company.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the employment agreement is terminated by the Company for cause,
death or disability, Mr. Abhishek (or his estate or representative as applicable) shall not receive the Base Salary but will receive all
other sums.</P>

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

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

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<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">Under our employment agreement dated May 1, 2023
with our Technical Writer, Alexandra Hoffman effective as of May 1, 2023, we agreed that, for a 1-year term renewed automatically, unless
terminated earlier in accordance with its terms, we will pay Ms. Hoffman an annual base salary (the &ldquo;Base Salary&rdquo;) of $195,000,
which will increase by no less than 5% on each anniversary of her employment. Ms. Hoffman is also subject to certain confidentiality and
non-competition provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 termination of Ms. Hoffman&rsquo;s
employment, by either party or for any reason or by reason of her death or disability, the Company shall pay Ms. Hoffman (or her beneficiary
in the event of her death) any Base Salary or other compensation earned but not paid to her prior to the effective date of such termination.
All other benefits due Ms. Hoffman following her termination of employment shall be determined in accordance with the plans, policies
and practices of the Company. In the event of termination by the Company other than for cause, the Company shall pay Ms. Hoffman any additional
amount as provided by applicable law.</P>

<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">On
January 1, 2021, Sean Dollinger and the Company entered into an independent contractor agreement, pursuant to which the Company pays
Mr. Dollinger $12,000 per month for consulting services. This agreement is in effect until the consummation of this initial public offering.
Mr. Dollinger also received a $100,000 signing bonus upon the signing of the 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; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 1, 2021, the Company entered into an independent contractor agreement with Boston Crest Pvt. Ltd, a company formed under the
laws of India, that is owned by Kumar Abhishek. Pursuant to that agreement, the Company paid Boston Crest $5,200 per month for its business
management consulting services. This agreement was in effect until May 1, 2023.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 1, 2021, Jaclyn Hoffman and the Company entered into an
independent contractor agreement, pursuant to which the Company pays Ms. Hoffman $2,500 per month for consulting services. This agreement
was in effect until May 1, 2023.</P>

<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">On
January 1, 2021, Darren Collins and the Company entered into an independent contractor agreement, pursuant to which the Company pays
Mr. Collins $6,000 per month for consulting services. Mr. Collins also received a signing bonus of $20,000 upon the signing of the agreement.
This agreement was terminated on August 24, 2022, when Darren Collins resigned as CFO of the company. However, the Company and Darren
Collins agreed that the provisions of Schedule 2 of the agreement shall survive termination of the agreement and the Company agreed to
continue to pay Darren compensation of $6,000 per month until the date he enters into a non-independent director agreement, which agreement&rsquo;s
effective date is expected to be the effective date of the S-1 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
January 1, 2021, Angela Kattoula and the Company entered into an independent contractor agreement, pursuant to which the Company paid
Ms. Kattoula $2,500 per month for consulting services. This agreement was in effect until July 5, 2022.</FONT></P>

<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>Outstanding
Equity Awards at Fiscal Year-End </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
executive officer named above had any unexercised options, stock that has not vested or outstanding awards under the 2021 Plan as of
December 31, 2022.</FONT></P>

<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>Additional
Narrative Disclosure</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Retirement
Benefits</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have not maintained, and do not currently maintain, a defined benefit pension plan, nonqualified deferred compensation plan or other
retirement benefits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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><I>Potential
Payments Upon Termination or Change in Control</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">See
&ldquo;<I>&mdash;Executive Employment and Consulting Agreements</I>&rdquo; above.</FONT></P>

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

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

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<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>Independent
Director 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">None
of the directors of the Company received compensation for their service as a director during the fiscal year ended December 31, 2022.</FONT></P>

<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">Under
their independent director agreements with us, the four (4) director nominees, Guy Dollinger, Holiday Russel, James Huber, and James
O&rsquo;Brien, will receive an annual cash fee and an initial award of restricted Common Stock upon the effectiveness of the registration
statement of which this prospectus forms a part. We will pay the annual cash compensation fee to each director nominee in monthly installments
no later than the fifth business day following the end of each calendar month commencing in the month following the Effective Time of
the registration statement of which this prospectus forms a part. The cash fee to be paid to each director nominee will be $36,000 per
year. Under their agreements, pursuant to the 2021 Plan, following the effective date of the registration statement for the IPO and related
pricing of the IPO (the &ldquo;Effective Time&rdquo;), each director nominee shall be granted 50,000 Restricted Stock Units (&ldquo;RSUs&rdquo;),
with each RSU corresponding to one share of Common Stock. The RSUs will vest in eight (8) equal quarterly installments commencing in
the quarter following the Effective Time provided that the director nominee remains in continuous service on such dates. If this Agreement
is terminated by the Company or the director nominee prior to the Effective Date, then the RSUs shall automatically terminate in accordance
with its terms and the Director shall have no rights thereunder. We will also reimburse the director nominee for pre-approved reasonable
business-related expenses incurred in good faith in connection with the performance of the director&rsquo;s duties for us. As also required
under the non-independent director agreement, we have separately entered into standard indemnification agreements with the director nominees.</FONT></P>

<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>Non-Independent
Director Compensation</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Darren
Collins serves as our non-independent director.</FONT></P>

<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">Under
his non-independent director agreement with us, Mr. Collins will receive an annual cash fee and an initial award of restricted Common
Stock upon the effectiveness of the registration statement of which this prospectus forms a part. We will pay the annual cash compensation
fee to Mr. Collins in monthly installments no later than the fifth business day following the end of each calendar month commencing in
the month following the date of the Effective Time of the registration statement of which this prospectus forms a part. The cash fee
to be paid to Darren will be $36,000 per year. Under his agreement, pursuant to the 2021 Plan, following the Effective Time, Mr. Collins
shall be granted 50,000 RSUs, with each RSU corresponding to one share of Common Stock. The RSUs will vest in eight (8) equal quarterly
installments commencing in the quarter following the Effective Time provided that Mr. Collins remains in continuous service on such dates.
If this Agreement is terminated by the Company or the director nominee prior to the Effective Date, then the RSUs shall automatically
terminate in accordance with its terms and the Director shall have no rights thereunder. We will also reimburse Mr. Collins for pre-approved
reasonable business-related expenses incurred in good faith in connection with the performance of the director&rsquo;s duties for us.
As also required under the non-independent director agreement, we have separately entered into a standard indemnification agreement with
Mr. Collins.</FONT></P>

<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>2021
Stock Option and Incentive 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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 11, 2021, our board of directors approved, and our majority shareholders ratified, the LQR House Inc. 2021 Stock Option and
Incentive Plan, or the 2021 Plan. Under the 2021 Plan, 10,000,000 shares of Common Stock (on a pre-reverse stock-split basis) were reserved
and available for issuance under the 2021 Plan. On March 10, 2023, our board of directors approved, and our majority shareholders ratified,
Amendment No. 1 to the LQR House Inc. 2021 Stock Option and Incentive Plan, or Amendment No. 1 to the 2021 Plan, which increased the
maximum number of shares of Common Stock that may be issued pursuant to awards under the 2021 Plan from 1,666,667 shares of Common Stock
(on a post-reverse stock-split basis) to 2,850,000 shares of Common Stock in accordance with the Company&rsquo;s Plan of Conversion dated
February 3, 2023.</FONT></P>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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><I>Purpose
of the 2021 Plan</I></B>: The purpose of the 2021 Plan is to advance our interests and the interests of our shareholders by providing
an incentive to attract, retain and reward persons performing services for us and by motivating such persons to contribute to our growth
and profitability. The maximum number of shares of Common Stock that may be issued pursuant to awards granted under the 2021 Plan is
2,850,000 shares. As of the date of this prospectus, pursuant to Restricted Stock Unit Award Agreements entered into between the Company
and 11 individuals, we granted 350,000 shares of Common Stock on a post-reverse split basis (2,100,000 shares of Common Stock on a pre-reverse
split basis) in the form of Restricted Stock Awards and/or Restricted Stock Units under the 2021 Plan. All 350,000 shares vested in four
(4) installments, the last installment having vested on September 30, 2022. Prior to this offering, 2,500,000 shares of Common Stock
remain available for issuance under the 2021 Plan.</FONT></P>

<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">We expect to grant 1,000,000 RSUs to Sean Dollinger and 50,000 RSUs
each to Darren Collins, Guy Dollinger, Holiday Russell, James Huber, and James O&rsquo;Brien for a total of 1,250,000 RSUs as disclosed
elsewhere in this prospectus. These 1,250,000 shares of Common Stock in the form of RSUs shall be issued following the Effective Time
and will vest in eight (8) equal quarterly installments commencing in the quarter following the Effective Time. After the grant of these
1,250,000 shares of Common Stock under the 2021 Plan following the Effective Time, 1,250,000 shares of Common Stock will remain available
for issuance under the 2021 Plan.

<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">We
intend that awards granted under the 2021 Plan be exempt from or comply with Section 409A of the Internal Revenue Code, or the Code (including
any amendments or replacements of such section), and the 2021 Plan shall be so construed<B>.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following summary briefly describes the principal features of the 2021 Plan and is qualified in its entirety by reference to the full
text of the 2021 Plan.</FONT></P>

<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">Awards
that may be granted include: (a) Incentive Stock Options, (b) Non-Qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted
Stock Units, (e) Restricted Stock Awards, (f) Unrestricted Stock Awards, (g) Cash-Based Awards, and (h) Dividend Equivalent Rights. These
awards offer us and our shareholders the possibility of future value, depending on the long-term price appreciation of our Common Stock
and the award holder&rsquo;s continuing service with us. Awards shall be evidenced by an award certificate, which is a written or electronic
document setting forth the terms and provisions applicable to an award granted under the 2021 Plan. Each award certificate is subject
to the terms and conditions of the 2021 Plan.</FONT></P>

<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">Stock
options granted under the 2021 Plan may be either incentive stock options or non-qualified stock options. Incentive stock options may
be granted only to employees of the Company or any Subsidiary that is a &ldquo;subsidiary corporation&rdquo; within the meaning of Section
424(f) of the Internal Revenue Code. To the extent that any option does not qualify as an incentive stock option, it shall be deemed
a non-qualified stock option. Stock options granted pursuant to the 2021 Plan shall be subject to the terms and conditions that the administrator
of the plan deems desirable. If the administrator so determines, stock options may be granted in lieu of cash compensation at the optionee&rsquo;s
election, subject to such terms and conditions as the administrator may establish.</FONT></P>

<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">Stock
appreciation rights, or SARs, are a type of award entitling the recipient to receive shares of our Common Stock (or cash, to the extent
explicitly provided for in the applicable agreement) having a value equal to the excess of the fair market value of the Common Stock
on the date of exercise over the exercise price of the stock appreciation right multiplied by the number of shares of Common Stock with
respect to which the stock appreciation right shall have been exercised.</FONT></P>

<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">Restricted
stock awards are awards of a right to receive shares of our Common Stock on a future date. Restricted Stock Unit Awards are evidenced
by award agreements in such form as our board of directors shall from time to time establish. Restricted stock shares can take the form
of awards of restricted stock, which represent issued and outstanding shares of our Common Stock subject to vesting criteria, or restricted
stock units, which represent the right to receive shares of our Common Stock subject to satisfaction of the vesting criteria. Restricted
shares are forfeitable and non-transferable until the shares vest. The vesting date or dates and other conditions for vesting are established
when the shares are awarded.</FONT></P>

<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">A
restricted stock unit is an award of stock units that may be settled in shares of stock (or cash, to the extent explicitly provided for
in the award) upon the satisfaction of such restrictions and conditions at the time of grant. Conditions may be based on continuing employment
(or other service relationship) and/or achievement of pre-established performance goals and objectives. The terms and conditions of each
such award shall be determined by the administrator, and such terms and conditions may differ among individual awards and grantees.</FONT></P>

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

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

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

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<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">A
dividend equivalent right is an award entitling the grantee to receive credits based on cash dividends that would have been paid on the
shares of stock specified in the dividend equivalent right (or other award to which it relates) if such shares had been issued to the
grantee. A dividend equivalent right may be granted under the 2021 Plan to any grantee as a component of an award of restricted stock
units or as a freestanding award. The terms and conditions of dividend equivalent rights shall be specified in the award agreement. Dividend
equivalents credited to the holder of a dividend equivalent right may be paid currently or may be deemed to be reinvested in additional
shares of stock, which may thereafter accrue additional equivalents.</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="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
board of directors may grant Common Stock to any eligible recipient as a bonus, or to grant stock or other awards in lieu of obligations
to pay cash or deliver other property under the 2021 Plan or under other plans or compensatory arrangements.</FONT></P>

<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">The
2021 Plan also provides for unrestricted stock awards and cash-based awards, representing the right to receive a payment, which may be
in the form of cash, shares of Common Stock, or a combination, based on the attainment of pre-established goals.</FONT></P>

<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">All
of the permissible types of awards under the 2021 Plan are described in more detail below.</FONT></P>

<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><I>Administration
of the 2021 Plan:</I></B>&nbsp;The 2021 Plan is currently administered by our board of directors who shall have the power and authority
to grant awards consistent with the terms of the 2021 Plan, including the power and authority: (i) to select the individuals to whom
awards may from time to time be granted; (ii) to determine the time or times of grant, and the extent, if any, of incentive stock options,
non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards, cash-based
awards, and dividend equivalent rights, or any combination of the foregoing, granted to any one or more grantees; (iii) to determine
the number of shares of stock to be covered by any award; (iv) to determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the 2021 Plan, of any award, which terms and conditions may differ among individual
awards and grantees, and to approve the forms of award certificates; (v) to accelerate at any time the exercisability or vesting of all
or any portion of any award; (vi) subject to the provisions of the 2021 Plan to extend at any time the period in which stock options
may be exercised; and (vii) at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the 2021
Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the 2021 Plan and any
award (including related written instruments); to make all determinations it deems advisable for the administration of the 2021 Plan;
to decide all disputes arising in connection with the 2021 Plan; and to otherwise supervise the administration of the 2021 Plan. All
decisions and interpretations of the administrator shall be binding on all persons, including the Company and the 2021 Plan grantees.</FONT></P>

<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><I>Eligible
Recipients:</I></B>&nbsp;Persons eligible to receive awards under the 2021 Plan include full or part-time officers and other employees,
non-employee directors and consultants of the Company and its subsidiaries as are selected from time to time by the administrator in
its sole discretion.</FONT></P>

<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><I>Shares
Available Under the 2021 Plan:</I></B>&nbsp;The shares issuable under the 2021 Plan shall consist of authorized but unissued or reacquired
shares of Common Stock or any combination thereof, subject to adjustment for certain corporate changes affecting the shares, such as
stock splits, merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend. Shares subject
to an award under the 2021 Plan for which the award is canceled, forfeited or expires again become available for grants under the 2021
Plan.</FONT></P>

<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><I>Stock
Options:</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>General.</I></B>&nbsp;Stock
options and SARs shall be evidenced by award certificate specifying the number of shares of Common Stock covered thereby, in such form
as the board of directors shall from time to time establish. Stock options granted under the 2021 Plan may be either incentive stock
options or non-qualified stock options. Incentive stock options may be granted only to employees of the Company or any Subsidiary that
is a &ldquo;subsidiary corporation&rdquo; within the meaning of Section 424(f) of the Internal Revenue Code. To the extent that any option
does not qualify as an incentive stock option, it shall be deemed a non-qualified stock option. Stock options granted pursuant to the
2021 Plan shall be subject to the terms and conditions that the administrator of the plan deems desirable. If the administrator so determines,
stock options may be granted in lieu of cash compensation at the optionee&rsquo;s election, subject to such terms and conditions as the
administrator may establish.</FONT></P>

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

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

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

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<P STYLE="font: 10pt Times New Roman, Times, 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>Option Price.</I></B> The exercise price
for each stock option shall be established in the discretion of the board of directors; provided, however, that the exercise price per
share for the stock option shall be not less than the fair market value of a share of Common Stock on the effective date of grant of
the stock option. In the case of an incentive stock option that is granted to a ten percent or more owner of the Company, the option
price of such option shall be not less than one hundred ten percent (110%) of the fair market value on the grant date. Notwithstanding
the foregoing, a stock option may be granted with an exercise price lower than the minimum exercise price set forth above if such stock
option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section&nbsp;424(a)
of the Code.</P>



<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><I>Exercise
of Options.</I></B>&nbsp;Stock options shall become exercisable at such time or times, whether or not in installments, as shall be determined
by the administrator at or after the grant date. The administrator may at any time accelerate the exercisability of all or any portion
of any stock option. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a stock option
and not as to unexercised stock options. The term of each stock option shall be fixed by the administrator, but no stock option shall
be exercisable more than ten years after the date the stock option is granted. in the case of an incentive stock option that is granted
to a ten percent or more owner of the Company, the term of such stock option shall be no more than five years from the date of grant.
Stock options may be exercised in whole or in part, by giving written or electronic notice of exercise to the Company, specifying the
number of shares to be purchased, unless stated otherwise on the award certificate.</FONT></P>

<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><I>Stock
Appreciation Rights</I></B>: A stock appreciation right is an award entitling the recipient to receive shares of stock (or cash, to the
extent explicitly provided for in the applicable award certificate) having a value equal to the excess of the fair market value of a
share of stock on the date of exercise over the exercise price of the stock appreciation right multiplied by the number of shares of
Stock with respect to which the stock appreciation right shall have been exercised. The exercise price of a stock appreciation right
shall not be less than one hundred percent (100%) of the fair market value of the stock on the date of grant. stock appreciation rights
may be granted by the administrator independently of any stock option.</FONT></P>

<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><I>Restricted
Stock Awards:</I></B>&nbsp;A restricted stock award is any award of restricted shares subject to such restrictions and conditions as
the administrator may determine at the time of grant. Conditions may be based on continuing employment (or other service relationship)
and/or achievement of pre-established performance goals and objectives. Upon the grant of the restricted stock award and payment of any
applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the restricted shares and receipt
of dividends; provided that if the lapse of restrictions with respect to the restricted stock award is tied to the attainment of performance
goals, any dividends paid by the company during the performance period shall accrue and shall not be paid to the grantee until and to
the extent the performance goals are met with respect to the restricted stock award. Restricted Shares may not be sold, assigned, transferred,
pledged, or otherwise encumbered or disposed of except as specifically provided herein or in the restricted stock award certificate.
The administrator at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives,
and other conditions on which the non-transferability of the restricted shares and the company&rsquo;s right of repurchase or forfeiture
shall lapse. Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions,
the shares on which all restrictions have lapsed shall no longer be restricted shares and shall be deemed vested.</FONT></P>

<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><I>Restricted
Stock Units</I></B>:&nbsp;A restricted stock unit is an award of stock units that may be settled in shares of stock (or cash, to the
extent explicitly provided for in the award) upon the satisfaction of such restrictions and conditions at the time of grant. Conditions
may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives.
The terms and conditions of each such award shall be determined by the administrator, and such terms and conditions may differ among
individual awards and grantees. Except in the case of restricted stock units with a deferred settlement date that complies with Section
409A of the Internal Revenue Code, at the end of the vesting period, the restricted stock units, to the extent vested, shall be settled
in the form of shares of stock. restricted stock units with deferred settlement dates are subject to Section 409A and shall contain such
additional terms and conditions as the administrator shall determine in its sole discretion in order to comply with the requirements
of Section 409A. The administrator may, in its sole discretion, permit a grantee to elect to receive a portion of future cash compensation
otherwise due to such grantee in the form of an award of restricted stock units. Any such election shall be made in writing and shall
be delivered to the Company no later than the date specified by the administrator and in accordance with Section 409A and such other
rules and procedures established by the administrator. The administrator shall have the sole right to determine whether and under what
circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the administrator deems
appropriate. Any restricted stock units that are elected to be received in lieu of cash compensation shall be fully vested, unless otherwise
provided in the award certificate. A grantee&rsquo;s right in all restricted stock units that have not vested shall automatically terminate
upon the grantee&rsquo;s termination of employment (or cessation of service relationship) with the Company and its subsidiaries for any
reason.</FONT></P>

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

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

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<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><I>Unrestricted
Stock and Cash-Based Awards in Lieu of Obligations.&nbsp;</I></B>The board of directors may grant Common Stock to any eligible recipient
as a bonus, or to grant Common Stock or other awards in lieu of obligations to pay cash or deliver other property under the 2021 Plan
or under other plans or compensatory arrangements, or vice versa, provided that, in the case of participants subject to Section 16 of
the Exchange Act, the amount of such grants remains within the discretion of the board of directors to the extent necessary to ensure
that acquisitions of Common Stock or other awards are exempt from liability under Section 16(b) of the Exchange Act. Common Stock or
awards granted hereunder shall be subject to such other terms as shall be determined by the board of directors.</FONT></P>

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

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

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

<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><I>Dividend
Equivalent Rights:</I></B> a dividend equivalent right is an award entitling the grantee to receive credits based on cash dividends that
would have been paid on the shares of stock specified in the dividend equivalent right (or other award to which it relates) if such shares
had been issued to the grantee. A dividend equivalent right may be granted hereunder to any grantee as a component of an award of restricted
stock units or as a freestanding award. Dividend equivalents credited to the holder of a dividend equivalent right may be paid currently
or may be deemed to be reinvested in additional shares of stock, which may thereafter accrue additional equivalents. Any such reinvestment
shall be at fair market value on the date of reinvestment, or such other price as may then apply under a dividend reinvestment plan sponsored
by the Company, if any. Dividend equivalent rights may be settled in cash or shares of stock or a combination thereof, in a single installment
or installments. A dividend equivalent right granted as a component of an award of restricted stock units shall provide that such dividend
equivalent right shall be settled only upon settlement or payment of, or lapse of restrictions on, such other award, and that such dividend
equivalent right shall expire or be forfeited or annulled under the same conditions as such other award. Except as may otherwise be provided
by the administrator either in the award certificate or the plan, a grantee&rsquo;s rights in all dividend equivalent rights shall automatically
terminate upon the grantee&rsquo;s termination of employment (or cessation of service relationship) with the Company and its subsidiaries
for any reason.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Other
Material Provisions:</I></B>&nbsp;Awards will be evidenced by a written agreement, in such form as may be approved by the administrator.
In the event of various changes to the capitalization of our company, such as stock splits, stock dividends and similar re-capitalizations,
an appropriate adjustment will be made by the administrator to the number of shares covered by outstanding awards or to the exercise
price of such awards. The administrator is also permitted to include in the written agreement provisions that provide for certain changes
in the award in the event of a change of control of our company, including acceleration of vesting. Except as otherwise determined by
the administrator at the date of grant, awards will not be transferable, other than by will or the laws of descent and distribution.
Prior to any award distribution, we are permitted to deduct or withhold amounts sufficient to satisfy any employee withholding tax requirements.
Our board of directors also has the authority, at any time, to discontinue the granting of awards. The board also has the authority to
alter or amend the 2021 Plan or any outstanding award or may terminate the 2021 Plan as to further grants, provided that no amendment
will, without the approval of our stockholders, to the extent that such approval is required by law or the rules of an applicable exchange,
increase the number of shares available under the 2021 Plan, change the persons eligible for awards under the 2021 Plan, extend the time
within which awards may be made, or amend the provisions of the 2021 Plan related to amendments. No amendment that would adversely affect
any outstanding award made under the 2021 Plan can be made without the consent of the holder of such award.</FONT></P>

<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>


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_013"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Transactions
with Related Persons</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following includes a summary of transactions since the beginning of our 2022 fiscal year, or any currently proposed transaction, in which
we were or are to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of
our total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect
material interest (other than compensation described under &ldquo;<I>Executive Compensation</I>&rdquo; above). We believe the terms obtained
or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms
available or the amounts that would be paid or received, as applicable, in arm&rsquo;s-length transactions.</FONT></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: 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">We, as buyer, and Dollinger Holdings LLC, Dollinger Innovations Inc., and Sean Dollinger, our Chief Executive Officer, Secretary, and a director, as sellers, are parties to an asset purchase agreement, the SWOL Tequila Asset Purchase, dated March 19, 2021. Dollinger Holdings LLC and Dollinger Innovations Inc. are wholly owned by Sean Dollinger. Pursuant to the asset purchase agreement, the purchase price was equal to $4,000,000 (in addition to the assumption of assumed liabilities) consisting of (i) 16,000,000 shares of our Common Stock (2,666,667 shares of common stock on a post-split basis) and (ii) US$220,000 in cash payable to Dollinger Holdings, LLC, and we obtained ownership of the assets and liabilities that constitute the SWOL brand and SWOL Tequila Branding. The assets and liabilities constituting the SWOL Brand and SWOL Tequila Branding were held in part by Dollinger Holdings LLC and Dollinger Innovations Inc.</FONT></TD></TR>
  </TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We,
                                            CWS, and Ssquared are parties to an Exclusive Marketing Agreement dated April 1, 2021. Pursuant
                                            to that agreement, CWS and Ssquared granted us exclusive marketing rights regarding any of
                                            CWS and Ssquared&rsquo;s products. Pursuant to that agreement, Sean Dollinger, our Chief
                                            Executive Officer, Secretary and a director, and 50% owner of Ssquared, received 2,000,000
                                            shares of our Common Stock (333,333 shares of Common Stock on a post-split basis), and KBros,
                                            LLC, the owner of CWS and 50% owner of Ssquared, received 8,000,000 shares of our Common
                                            Stock (1,333,334 shares of Common Stock on a post-split basis).</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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
                                            and Dollinger Holdings LLC are parties to an asset purchase agreement, the Soleil Vino Asset
                                            Purchase Agreement, dated May 31, 2021. Pursuant to that agreement, we purchased the assets
                                            and liabilities associated with the Soleil Vino wine club and its products, and Dollinger
                                            Holding LLC, wholly owned by Sean Dollinger, received $100,000 in cash, Sean Dollinger received
                                            3,800,000 shares of our Common Stock (633,334 shares of Common Stock on a post-stock split
                                            basis), and Andrea Cooke received 200,000 shares of our Common Stock (33,334 shares of Common
                                            Stock on a post-stock split basis). In conjunction with the acquisition the Company entered
                                            into a finder&rsquo;s fee agreement with a third party in which 400,000 shares of our Common
                                            Stock were issued (66,667 shares of Common Stock on a post-stock split basis).</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Certain
                                            of the Company&rsquo;s directors, executive officers, and principal owners, including immediate
                                            family members, are users of the Company&rsquo;s services. Fees charged to these users are
                                            on terms no more favorable than terms generally available to an unaffiliated third party
                                            under the same or similar circumstances.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Ms.
                                            Alexandra Hoffman, the Company&rsquo;s Director, is also employed by the Company as a Technical
                                            Writer since May 1, 2023. See <I>Executive Compensation &ndash; Executive Employment and
                                            Consulting Agreements. </I></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></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: 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">Mr. Gregory Hoffman, a brother of Ms. Alexandra Hoffman, our director, has entered into an advisor agreement with the Company on June 1, 2023, pursuant to which the Company issued to Mr. Hoffman 500,000 shares of Common Stock.</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"><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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Private
Placement</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 1, 2023, we conducted a private placement of our Common Stock and entered into certain subscription agreements with a number of
(i) accredited investors as defined in Section 2(a)(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon
the exemption contained in Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable
state securities laws or (ii) non-U.S. persons made in compliance with the provisions of Regulation S promulgated under the Securities
Act. Pursuant to the agreements, we issued 955,000 shares of Common Stock at $1.00 per share for a total of $955,000.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></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></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>2023
Advisor Agreements</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 1, 2023, we entered into advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate
advice in connection with the Offering to the Company. In consideration for the advisor&rsquo;s services, the Company issued 500,000
shares of Common Stock to six individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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>Promoters
and Certain Control Persons </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sean
Dollinger, our Chief Executive Officer, Secretary, and a member of our board of directors, and Darren Collins, a member of our board
of directors, may be deemed &ldquo;promoters&rdquo; as defined by Rule 405 of the Securities Act. For information regarding compensation,
including items of value, that have been provided or that may be provided to these individuals, please refer to &ldquo;<I>Executive Compensation</I>&rdquo;
above.</FONT></P>

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

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

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

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

<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_014"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRINCIPAL
SHAREHOLDERS <FONT STYLE="font-weight: normal">&nbsp;</FONT></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth certain information with respect to the beneficial ownership of our Common Stock as of the date of this prospectus
for (i) each of our named executive officers, directors and director nominees; (ii) all of our executive officers and directors as a
group; and (iii) each other shareholder known by us to be the beneficial owner of more than 5% of any class of our outstanding voting
securities. The following table assumes that the underwriters have not exercised the over-allotment option.</FONT></P>

<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">Beneficial
ownership is determined in accordance with SEC rules and generally includes voting or investment power with respect to securities. For
purposes of this table, a person or group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of Common Stock
that such person or any member of such group has the right to acquire within sixty (60) days of the date of this prospectus. For purposes
of computing the percentage of outstanding shares of our Common Stock held by each person or group of persons named above, any shares
that such person or persons has the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding
for such person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion
herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.</FONT></P>

<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">Unless
otherwise indicated, the address of each beneficial owner listed in the table below is c/o our company, LQR House Inc., 6800 Indian Creek
Dr. Suite 1E, Miami Beach, FL 33141.</FONT></P>

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

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

<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; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Stock Beneficially Owned<BR> Prior to this Offering <SUP>(1)</SUP></B></P></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="10" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Stock Beneficially Owned<BR> After this Offering <SUP>(2)</SUP></B></P></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name 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">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percent of Common Stock<BR> (%)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Total<BR> Voting<BR> Power&nbsp;</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(%)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">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="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percent of Common Stock<BR> (%)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Total<BR> Voting<BR> Power</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(%)</B></P></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; text-align: left; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sean Dollinger, Chief Executive Officer, Secretary, and Director <SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,941,667</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">19.12</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">19.12</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">1,941,667</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">17.41</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">17.41</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: -9pt; padding-left: 9pt">Kumar Abhishek, Chief Financial Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,667</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><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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,667</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><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: left; text-indent: -9pt; padding-left: 9pt">Jaclyn Hoffman, Chief Marketing Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,334</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><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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">58,334</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><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; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Darren Collins, Director <SUP>(4)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.95</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.95</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">300,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.69</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.69</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: -9pt; padding-left: 9pt">Alexandra Hoffman, Director</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,334</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><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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,334</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;*</FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Guy Dollinger, Director Nominee <SUP>(5)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><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><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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD><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><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: left; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holiday Russell, Director Nominee <SUP>(6)</SUP></FONT></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><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><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; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James Huber, Director Nominee <SUP>(7)</SUP></FONT></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><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><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: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">James O&rsquo;Brien, Director Nominee <SUP>(8)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>All directors and executive officers as a group (9 persons) <SUP>(9)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,375,002</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">25.41</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">25.41</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,375,002</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">21.29</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">21.29</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">KBROS, LLC <SUP>(10)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,333,334</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.13</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.13</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">-</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><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joel Abbo<SUP>(11)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">816,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,667</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><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: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Index Equity US LLC<SUP>(12)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.39</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.39</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">-</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">Kiranjit Sidhu</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">5.91</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.91</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">-</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2200049 AB Inc. <SUP>(13)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">591,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.82</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.82</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">-</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>&nbsp;</P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 9pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less
than 1%.</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>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0%"></TD>
<TD STYLE="width: 0.25in">(1)<TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on 10,155,434 shares of Common Stock issued and outstanding as of the date of this prospectus. </FONT></TD>
</TR></TABLE>


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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: 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 0pt 0.5in; text-align: justify; 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; width: 100%; margin-top: 0pt; margin-bottom: 0pt">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0%">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based on 11,155,434 shares of Common Stock issued and outstanding after
this offering, assuming no exercise of the underwriters&rsquo; over-allotment option. Immediately after the consummation of this offering,
we will file a Registration Statement on Form S-8 with the SEC to register Common Stock and restricted stock that were issued or that
we plan to issue to certain of our employees, consultants, officers and directors pursuant to the 2021 Plan. See &ldquo;<I>Business&mdash;Our
Corporate History and Structure</I>&rdquo; and &ldquo;<I>Executive Compensation &mdash; 2021 Stock Option and Incentive Plan</I>&rdquo;.
For purposes of this table, a total of 1,250,000 shares of Common Stock which will be granted to certain directors and executive officers
of the Company shortly after the filing of the Registration Statement on Form S-8 is included in the number, percentage and voting power,
as applicable, of shares of Common Stock that are beneficially owned after this offering.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our board of directors determined it was in the best interest of the Company and its stockholders to grant Sean Dollinger an award of 1,000,000 RSUs, under the Company&rsquo;s 2021 Plan, to compensate him for his employment with the Company. Following the Effective Time, Mr. Dollinger shall be granted an award of 1,000,000 RSUs under the Company&rsquo;s 2021 Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will vest in eight (8) equal quarterly installments commencing in the quarter following the Effective Time provided that Mr. Dollinger remains in continuous service on such dates, and the grant is subject to forfeiture for termination without case. These 1,000,000 RSUs are not reflected in Mr. Dollinger&rsquo;s &ldquo;Common Stock Beneficially Owned After this Offering&rdquo; number as the RSUs are contingent on a vesting schedule.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
                                            the non-independent director agreement between Darren Collins and the Company, following
                                            the Effective Time, Mr. Collins shall be granted an award of 50,000 RSUs under the Company&rsquo;s
                                            2021 Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will
                                            vest in eight (8) equal quarterly installments commencing in the quarter following the Effective
                                            Time provided that Mr. Collins remains in continuous service on such dates, and the grant
                                            is subject to forfeiture for termination without case. These 50,000 RSUs are not reflected
                                            in Mr. Collins&rsquo; &ldquo;Common Stock Beneficially Owned After this Offering&rdquo; number
                                            as the RSUs are contingent on a vesting schedule.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
                                            the independent director agreement between Guy Dollinger and the Company, following the Effective
                                            Time, Mr. Dollinger shall be granted an award of 50,000 RSUs under the Company&rsquo;s 2021
                                            Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will vest
                                            in eight (8) equal quarterly installments commencing in the quarter following the Effective
                                            Time provided that Mr. Dollinger remains in continuous service on such dates, and the grant
                                            is subject to forfeiture for termination without case. These 50,000 RSUs are not reflected
                                            in Mr. Dollinger&rsquo;s &ldquo;Common Stock Beneficially Owned After this Offering&rdquo;
                                            number as the RSUs are contingent on a vesting schedule.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><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">Under
                                            the independent director agreement between Holiday Russell and the Company, following the
                                            Effective Time, Mr. Russell shall be granted an award of 50,000 RSUs under the Company&rsquo;s
                                            2021 Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will
                                            vest in eight (8) equal quarterly installments commencing in the quarter following the Effective
                                            Time provided that Mr. Russell remains in continuous service on such dates, and the grant
                                            is subject to forfeiture for termination without case. These 50,000 RSUs are not reflected
                                            in Mr. Russell&rsquo;s &ldquo;Common Stock Beneficially Owned After this Offering&rdquo;
                                            number as the RSUs are contingent on a vesting schedule.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><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">Under
                                            the independent director agreement between James Huber and the Company, following the Effective
                                            Time, Mr. Huber shall be granted an award of 50,000 RSUs under the Company&rsquo;s 2021 Plan,
                                            with one (1) RSU corresponding to one (1) share of common stock. The RSUs will vest in eight
                                            (8) equal quarterly installments commencing in the quarter following the Effective Time provided
                                            that Mr. Huber remains in continuous service on such dates, and the grant is subject to forfeiture
                                            for termination without case. These 50,000 RSUs are not reflected in Mr. Huber&rsquo;s &ldquo;Common
                                            Stock Beneficially Owned After this Offering&rdquo; number as the RSUs are contingent on
                                            a vesting schedule.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
                                            the independent director agreement between James O&rsquo;Brien and the Company, following
                                            the Effective Time, Mr. O&rsquo;Brien shall be granted an award of 50,000 RSUs under the
                                            Company&rsquo;s 2021 Plan, with one (1) RSU corresponding to one (1) share of common stock.
                                            The RSUs will vest in eight (8) equal quarterly installments commencing in the quarter following
                                            the Effective Time provided that Mr. O&rsquo;Brien remains in continuous service on such
                                            dates, and the grant is subject to forfeiture for termination without case. These 50,000
                                            RSUs are not reflected in Mr. O&rsquo;Brien&rsquo;s &ldquo;Common Stock Beneficially Owned
                                            After this Offering&rdquo; number as the RSUs are contingent on a vesting schedule.</FONT></TD></TR></TABLE>

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

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: 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; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            number of executive officers and directors will increase to 9 persons upon the consummation
                                            of this initial public offering.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shawn
                                            Kattoula is deemed the beneficial owner of the 1,333,334 shares of Common Stock held by KBros,
                                            LLC, a California limited liability company. Mr. Kattoula is the manager of KBros, LLC, and
                                            has sole voting and dispositive powers over the company. KBros, LLC&rsquo;s business address
                                            is 23658 San Vicente Road, Ramona, CA 92065.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; 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; width: 100%; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joel
                                            Abbo has beneficial ownership over 750,000 shares of Common Stock held in the name of Joel
                                            Abbo. Joel Abbo additionally has beneficial ownership over 66,667 shares of Common Stock
                                            held in the name of Jobel Foundation, a Panama corporation. Joel Abbo is deemed to beneficially
                                            own the shares of Common Stock owned by Jobel Foundation because he has sole voting and dispositive
                                            powers over the company. Jobel Foundation&rsquo;s business address is Punta Pacifica, Bellagio
                                            Tower, Apt 1-B Panama, Republic of Panama.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bjarne
                                            Borg owns Index Equity US LLC. Bjarne Borg is deemed to beneficially own the shares of Common
                                            Stock owned by Index Equity US LLC because he has sole voting and dispositive powers over
                                            the company. Index Equity US LLC&rsquo;s business address is 1000 N US Hwy One, Suite 902,
                                            Jupiter, FL 33477, United States.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><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%"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Greg
                                            Bealer owns 2200049 Alberta Inc., an Alberta Corporation. Greg Bealer is deemed to beneficially
                                            own the shares of Common Stock owned by 2200049 Alberta Inc. because he has sole voting and
                                            dispositive powers over the company. 2200049 Alberta Inc.&rsquo;s business address is 16
                                            Wolf Willow Point, Edmonton, AB T5T 1E3, Canada.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the commencement of this offering, there
will be 10,155,434 shares of Common Stock outstanding representing voting power of 10,155,434 votes. Following this offering, there will
be 11,155,434 shares of Common Stock outstanding representing voting power of 11,155,434 votes.</P>

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

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_015"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DESCRIPTION
OF SECURITIES</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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">The
Company&rsquo;s authorized capital stock is 350,000,000 shares of Common Stock, par value $0.0001 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-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following description summarizes important terms of our capital stock. This summary does not purport to be complete and is qualified
in its entirety by the provisions of our articles of incorporation, amendments thereto, and our bylaws which have been filed as exhibits
to the registration statement of which this prospectus is a part.</FONT></P>

<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">As
of the date of this prospectus, there are 10,155,434 shares of Common Stock issued and outstanding.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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">The
holders of our Common Stock are entitled to one (1) vote for each share of Common Stock held of record on all matters submitted to a
vote of the shareholders.</FONT></P>

<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">Under
our articles of incorporation, as amended, and bylaws, any corporate action to be taken by vote of shareholders other than for election
of directors shall be authorized by the affirmative vote of the majority of votes cast. Directors are elected by a plurality of votes.
Shareholders do not have cumulative voting rights.</FONT></P>

<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">Subject
to preferences that may be applicable to any then-outstanding preferred stock, holders of Common Stock are entitled to receive ratably
those dividends, if any, as may be declared from time to time by the Board of Directors out of legally available funds. In the event
of our liquidation, dissolution or winding up, holders of Common Stock will be entitled to share ratably in the net assets legally available
for distribution to shareholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation
preference granted to the holders of any then-outstanding shares of preferred stock.</FONT></P>

<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">Holders
of Common Stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable
to the Common Stock. The rights, preferences, and privileges of the holders of Common Stock are subject to, and may be adversely affected
by, the rights of the holders of shares of any series of preferred stock.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Representative&rsquo;s
Warrant</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
the closing of this offering, there will be up to 50,000 shares of Common Stock issuable upon exercise of the representative&rsquo;s
warrant (57,500 shares of Common Stock if the underwriters exercise the over-allotment option in full), assuming a public offering price
of $5 per, which is the midpoint of the estimated range of the initial public offering price shown on the cover page. See &ldquo;<I>Underwriting&mdash;Representative&rsquo;s
Warrants</I>&rdquo; below for a description of the representative&rsquo;s warrants.</FONT></P>

<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>Stock
Options</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 11, 2021, we adopted the 2021 Plan. The purpose of the 2021 Plan is to grant restricted stock and stock options to our officers,
employees, directors, advisors, and consultants. On March 10, 2023, our board of directors approved, and our majority shareholders ratified,
Amendment No. 1 to the 2021 Plan, which increased the maximum number of shares of Common Stock that may be issued pursuant to awards
under the 2021 Plan from 1,666,667 shares (on a post-reverse stock-split basis) to 2,850,000 shares. For further information, please
see &ldquo;<I>Executive Compensation &ndash; 2021 Stock Option and Incentive Plan</I>&rdquo;.</FONT></P>

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

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

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<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>Anti-Takeover
Provisions</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
provisions of the Nevada Revised Statutes, our articles of incorporation and our bylaws could have the effect of delaying or preventing
a third-party from acquiring us, even if the acquisition would benefit our stockholders. Such provisions of the Nevada Revised Statutes,
our articles of incorporation and our bylaws are intended to enhance the likelihood of continuity and stability in the composition of
our board of directors and in the policies formulated by the board of directors and to discourage certain types of transactions that
may involve an actual or threatened change of control of our company. These provisions are designed to reduce our vulnerability to an
unsolicited proposal for a takeover that does not contemplate the acquisition of all our outstanding shares, or an unsolicited proposal
for the restructuring or sale of all or part of our company.</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 29, 2023, the Company amended its articles of incorporation to institute a dual class share structure consisting of Class A Common
Stock, and Class B Common Stock, and any number of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes
per share on proposals requiring or requesting shareholder approval, and Class B Common Stock was entitled to one (1) vote on any such
matter. A share of Class A Common Stock could have been voluntarily converted into a share of Class B Common Stock. A transfer of a share
of Class A Common Stock would have resulted in its automatic conversion into Common Stock upon such transfer, subject to certain exceptions,
including that the transfer of shares of Class A Common Stock to another holder of Class A Common Stock would not have resulted in such
automatic conversion. Class B Common Stock was not convertible. Other than as to voting and conversion rights, Class A Common Stock and
Class B Common Stock had the same rights and preferences and ranked equally, shared ratably and were identical in all respects as to
all matters.</FONT></P>

<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">Due
to this amendment, the Company&rsquo;s authorized capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of Common
Stock, par value $0.0001 per share, of which 20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and
280,000,000 shares were designated as Class B Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock,
$0.0001 par value per share. All 9,200,434 shares of Common Stock issued and outstanding at the time of the amendment became shares of
Class B Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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">On
June 5, 2023, the Company further amended its articles of incorporation to amend the share structure by (i) eliminating a dual class
share structure consisting of the Class A Common Stock and Class B Common Stock and establishing a single Common Stock structure consisting
of shares of Common Stock only, with 350,000,000 authorized shares being all designated as Common Stock with a par value of $0.0001 per
share, entitled to one (1) vote per share; and by (ii) eliminating all authorized shares of preferred stock. All 13,155,434 shares of
Class B Common Stock issued and outstanding at the time of the amendment became shares of Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the commencement of this offering, there
will be 10,155,434 shares of Common Stock outstanding representing voting power of 10,155,434 votes. Following this offering, there will
be 11,155,434 shares of Common Stock outstanding representing voting power of 11,155,434 votes.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Nevada
Anti-Takeover Statutes</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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">Pursuant
to our articles of incorporation, we have elected not to be governed by the terms and provisions of Nevada&rsquo;s control share acquisition
laws (Nevada Revised Statutes 78.378 - 78.3793), which prohibit an acquirer, under certain circumstances, from voting shares of a corporation&rsquo;s
stock after crossing specific threshold ownership percentages, unless the acquirer obtains the approval of the issuing corporation&rsquo;s
stockholders. The first such threshold is the acquisition of at least one-fifth but less than one-third of the outstanding voting power.</FONT></P>

<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">Pursuant
to our articles of incorporation, we have also elected not to be governed by the terms and provisions of Nevada&rsquo;s combination with
interested stockholders statute (Nevada Revised Statutes 78.411 - 78.444) which prohibits an &ldquo;interested stockholder&rdquo; from
entering into a &ldquo;combination&rdquo; with the corporation, unless certain conditions are met. An &ldquo;interested stockholder&rdquo;
is a person who, together with affiliates and associates, beneficially owns (or within the prior two years, did beneficially own) 10%
or more of the corporation&rsquo;s voting stock, or otherwise has the ability to influence or control such corporation&rsquo;s management
or policies.</FONT></P>

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

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

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<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><I>Bylaws</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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">In
addition, various provisions of our bylaws may also have an anti-takeover effect. These provisions may delay, defer or prevent a tender
offer or takeover attempt of the Company that a stockholder might consider in his or her best interest, including attempts that might
result in a premium over the market price for the shares held by our stockholders. Our bylaws may be adopted, amended or repealed by
the affirmative vote of the holders of at least a majority of our outstanding shares of capital stock entitled to vote for the election
of directors, and except as provided by Nevada law, our board of directors shall have the power to adopt, amend or repeal the bylaws
by a vote of not less than a majority of our directors. Any bylaw provision adopted by the board of directors may be amended or repealed
by the holders of a majority of the outstanding shares of capital stock entitled to vote for the election of directors. Our bylaws also
contain limitations as to who may call special meetings as well as require advance notice of stockholder matters to be brought at a meeting.
Additionally, our bylaws also provide that no director may be removed by less than a two-thirds vote of the issued and outstanding shares
entitled to vote on the removal. Our bylaws also permit the board of directors to establish the number of directors and fill any vacancies
and newly created directorships. These provisions will prevent a shareholder from increasing the size of our board of directors and gaining
control of our board of directors by filling the resulting vacancies with its own nominees.</FONT></P>

<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">Our
bylaws establish an advance notice procedure for shareholder proposals to be brought before an annual meeting of our shareholders, including
proposed nominations of persons for election to the board of directors. Shareholders at an annual meeting will only be able to consider
proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors
or by a shareholder who was a shareholder of record on the record date for the meeting, who is entitled to vote at the meeting and who
has given us timely written notice, in proper form, of the shareholder&rsquo;s intention to bring that business before the meeting. Although
our bylaws do not give the board of directors the power to approve or disapprove shareholder nominations of candidates or proposals regarding
other business to be conducted at a special or annual meeting, our bylaws may have the effect of precluding the conduct of certain business
at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation
of proxies to elect its own slate of directors or otherwise attempting to obtain control of our company.</FONT></P>

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

<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">Our
authorized but unissued shares of Common Stock are available for our board of directors to issue without stockholder approval. We may
use these additional shares for a variety of corporate purposes, including raising additional capital, corporate acquisitions and employee
stock plans. The existence of our authorized but unissued shares of Common Stock could render it more difficult or discourage an attempt
to obtain control of the Company by means of a proxy context, tender offer, merger or other transaction since our board of directors
can issue large amounts of capital stock as part of a defense to a take-over challenge.</FONT></P>

<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><I>Supermajority
Voting Provisions</I></B>&nbsp;</FONT></P>

<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">Nevada
Law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation&rsquo;s
articles of incorporation or bylaws, unless a corporation&rsquo;s articles of incorporation or bylaws, as the case may be, require a
greater percentage. Although our articles of incorporation and bylaws do not currently provide for such a supermajority vote on any matters,
our board of directors can amend our bylaws and we can, with the approval of our stockholders, amend our articles of incorporation to
provide for such a super-majority voting provision.&nbsp;</FONT></P>

<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><I>Cumulative
Voting</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the holders of our Common Stock do not have cumulative voting rights in the election of our directors. The combination of the present
ownership by a few shareholders of a significant portion of our issued and outstanding Common Stock and lack of cumulative voting makes
it more difficult for other shareholders to replace our board of directors or for a third party to obtain control of our company by replacing
its board of directors.</FONT></P>

<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>Transfer
Agent and Registrar </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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have appointed VStock Transfer, LLC, 18 Lafayette Place, Woodmere, New York 11598, telephone 212-828-8436, as the transfer agent for
our Common Stock.</FONT></P>







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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_016"></A>SHARES ELIGIBLE FOR FUTURE SALE</P>

<P STYLE="font: bold 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">Before this offering, there has not been a public
market for shares of our Common Stock. Future sales of substantial amounts of shares of our Common Stock, including shares issued upon
the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this offering, or the
possibility of these sales occurring, could cause the prevailing market price for our Common Stock to fall or impair our ability to raise
equity capital in the future.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Immediately following the closing of this offering,
at an assumed initial public offering price of $5 per share, which is the midpoint of the estimated range of the initial public offering
price shown on the cover page of this prospectus, we will have 11,155,434 shares of Common Stock issued and outstanding. In the event
the underwriters exercise the over-allotment option in full, we will have 11,305,434 shares of Common Stock issued and outstanding. The
Common Stock sold in this offering will be freely tradable without restriction or further registration or qualification under the Securities
Act.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Previously issued shares of Common Stock that
were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee stock options,
are or will be upon issuance, &ldquo;restricted securities,&rdquo; as that term is defined in Rule 144 under the Securities Act. These
restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale
qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 144</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, a person who has beneficially owned
restricted shares of our Common Stock for at least twelve months, or at least six months in the event we have been a reporting company
under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person
is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90) days
preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person
would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1%
                                            of the number of shares of our Common Stock then outstanding; or</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1%
                                            of the average weekly trading volume of our Common Stock during the four calendar weeks preceding
                                            the filing by such person of a notice on Form 144 with respect to the sale;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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">provided that, in each case, we are subject to
the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the
manner of sale, notice and other provisions of Rule 144, to the extent applicable.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 701</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, Rule 701 allows a shareholder who
purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate
of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply
with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however,
are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not, without the prior written consent
of the representative, from the date of execution of the Underwriting Agreement and continuing for a period of six (6) months after the
close of the IPO (the &ldquo;Lock-Up Period&rdquo;), (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares
of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering
of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital
stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a
traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above
is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our officers, directors, and any holders of our
Common Stock have agreed to be locked up for a period of six (6) months during the Lock-Up Period. During the lock-up period, our officers,
directors, and holders of our Common Stock shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or
indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of
capital stock of the Company, subject to customary exceptions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the above, we and the underwriters
have agreed to waive the lock-up requirement for shares of Common Stock being offered for sale by the selling stockholders named in the
Resale Prospectus. See &ldquo;<I>Shares Eligible For Future Sale &ndash; Lock-Up Agreements</I>&rdquo;.</P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_017"></A>MATERIAL U.S. FEDERAL TAX CONSIDERATIONS
FOR NON-U.S. HOLDERS OF OUR COMMON STOCK</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 73.8pt 0pt 1in; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following is a summary of the material U.S.
federal income tax consequences of the ownership and disposition of our Common Stock that is being issued pursuant to this offering, but
does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and
gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This summary is based on provisions of the Internal
Revenue Code of 1986, as amended, or the Code, applicable U.S. Treasury Regulations and administrative and judicial interpretations, all
as in effect or in existence on the date of this prospectus. Subsequent developments in U.S. federal income tax law, including changes
in law or differing interpretations, which may be applied retroactively, could alter the U.S. federal income tax consequences of owning
and disposing of our Common Stock as described in this summary. There can be no assurance that the Internal Revenue Service, or IRS, will
not take a contrary position with respect to one or more of the tax consequences described herein and we have not obtained, nor do we
intend to obtain, a ruling from the IRS with respect to the U.S. federal income tax consequences of the ownership or disposition of our
Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This summary is limited to Non-U.S. Holders (as
defined below) that hold our Common Stock as a capital asset within the meaning of Section 1221 of the Code (generally, property held
for investment) for U.S. federal income tax purposes. This summary does not discuss all of the aspects of U.S. federal income taxation
that may be relevant to a Non-U.S. Holder in light of the Non-U.S. Holder&rsquo;s particular investment or other circumstances. Accordingly,
all prospective Non-U.S. Holders should consult their own tax advisors with respect to the U.S. federal, state, local and non-U.S. tax
consequences of the ownership and disposition of our Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This summary does not consider any specific facts
or circumstances that may apply to a Non-U.S. Holder and does not address any special tax rules that may apply to particular Non-U.S.
Holders, including, without limitation:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            Non-U.S. Holder that is a financial institution, insurance company, tax-exempt organization,
                                            pension plan, broker, dealer or trader in securities, dealer in currencies, U.S. expatriate,
                                            controlled foreign corporation, passive foreign investment company or a foreign trust with
                                            US person beneficiaries;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            Non-U.S. Holder holding our Common Stock as part of a conversion, constructive sale, wash
                                            sale or other integrated transaction or a hedge, straddle or synthetic security;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            Non-U.S. Holder that holds or receives our Common Stock pursuant to the exercise of any employee
                                            stock option or otherwise as compensation; or</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            Non-U.S. Holder that at any time owns, directly, indirectly or constructively, 5% or more
                                            of our outstanding Common Stock.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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">If an entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds our Common Stock, the tax treatment of a partner in such a partnership generally will depend
upon the status of the partner, the activities of the partnership and certain determinations made at the partner level. Partnerships,
and partners in partnerships, that hold our Common Stock should consult their own tax advisors as to the particular U.S. federal income
tax consequences of owning and disposing of our Common Stock that are applicable to them.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>THIS DISCUSSION IS NOT TAX ADVICE. INVESTORS
SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S.&nbsp;FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS
AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP, AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE U.S.&nbsp;FEDERAL ESTATE
OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR&nbsp;NON-U.S.&nbsp;TAXING&nbsp;JURISDICTION OR UNDER ANY APPLICABLE INCOME
TAX TREATY.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, 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">As used in this summary, the term &ldquo;Non-U.S.
Holder&rdquo; means a beneficial owner of our Common Stock that is not, for U.S. federal income tax purposes:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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
                                            individual who is a citizen or resident of the United States;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            corporation (or other entity classified as a corporation) created or organized in or under
                                            the laws of the United States, any state thereof, or the District of Columbia;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
                                            entity or arrangement treated as a partnership;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">an
                                            estate whose income is includible in gross income for U.S. federal income tax purposes regardless
                                            of its source; or</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            trust, if (1)&nbsp;a U.S. court is able to exercise primary supervision over the trust&rsquo;s
                                            administration and one or more &ldquo;United States persons&rdquo; (as defined in the Code)
                                            has the authority to control all of the trust&rsquo;s substantial decisions, or (2)&nbsp;the
                                            trust has a valid election in effect under applicable U.S. Treasury Regulations to be treated
                                            as a United States person.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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"><B>Each Non-U.S. Holder should consult its own
tax advisor regarding the U.S. federal, state, local and non-U.S. income and other tax consequences of owning and disposing of our Common
Stock.</B></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We do not currently expect to pay any cash dividends
on our Common Stock. If we make distributions of cash or property (other than certain pro rata distributions of our Common Stock) with
respect to our Common Stock, any such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax rules. If a distribution exceeds
our current and accumulated earnings and profits, the excess will be treated as a nontaxable return of capital to the extent of the Non-U.S.
Holder&rsquo;s adjusted tax basis in our Common Stock and will reduce (but not below zero) such Non-U.S. Holder&rsquo;s adjusted tax basis
in our Common Stock. Any remaining excess will be treated as gain from a disposition of our Common Stock subject to the tax treatment
described below in &ldquo;<I>&mdash; Dispositions of Our Common Stock</I>.&rdquo;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the discussion below on effectively
connected income, dividends paid to a&nbsp;Non-U.S.&nbsp;Holder&nbsp;will be subject to U.S.&nbsp;federal withholding tax at a rate of
30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the&nbsp;Non-U.S.&nbsp;Holder&nbsp;furnishes
a valid IRS&nbsp;Form&nbsp;W-8BEN&nbsp;or&nbsp;W-8BEN-E&nbsp;(or other applicable documentation) certifying qualification for the lower
treaty rate). A&nbsp;Non-U.S.&nbsp;Holder&nbsp;that does not timely furnish the required documentation, but that qualifies for a reduced
treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the&nbsp;IRS.&nbsp;Non-U.S.&nbsp;Holders&nbsp;should
consult their tax advisors regarding their entitlement to benefits under any applicable tax treaties.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Distributions on our Common Stock that are treated
as dividends and that are effectively connected with a Non-U.S. Holder&rsquo;s conduct of a trade or business in the United States will
be taxed on a net income basis at the regular graduated rates and in the manner applicable to United States persons. An exception may
apply if the Non-U.S. Holder is eligible for, and properly claims, the benefit of an applicable income tax treaty and the dividends are
not attributable to a permanent establishment maintained by the Non-U.S. Holder in the United States. In such case, the Non-U.S. Holder
may be eligible for a lower rate under an applicable income tax treaty between the United States and its jurisdiction of tax residence.
Dividends that are effectively connected with a Non-U.S. Holder&rsquo;s conduct of a trade or business in the United States will not be
subject to the U.S. withholding tax if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form W-8ECI
(or other applicable form) in accordance with the applicable certification and disclosure requirements. A Non-U.S. Holder treated as a
corporation for U.S. federal income tax purposes may also be subject to a &ldquo;branch profits tax&rdquo; at a 30% rate (unless the Non-U.S.
Holder is eligible for a lower rate under an applicable income tax treaty) on the Non-U.S. Holder&rsquo;s earnings and profits (attributable
to dividends on our Common Stock or otherwise) that are effectively connected with the Non-U.S. Holder&rsquo;s conduct of a trade or business
within the United States. The amount of taxable earnings and profits is generally reduced by amounts reinvested in the operations of the
U.S. trade or business and increased by any decline in its equity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The certifications described above must be provided
to the applicable withholding agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder may obtain a
refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. Non-U.S. Holders should
consult their own tax advisors regarding their eligibility for benefits under any relevant income tax treaty and the manner of claiming
such benefits.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing discussion is subject to the discussions
below under &ldquo;<I>&mdash;Backup Withholding and Information Reporting</I>&rdquo; and &ldquo;<I>&mdash;FATCA Withholding</I>.&rdquo;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subject to the discussion below regarding backup
withholding, a Non-U.S. Holder generally will not be subject to U.S. federal income tax (including U.S. withholding tax) on gain recognized
on any sale or other disposition of our Common Stock unless:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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
                                            gain is effectively connected with the Non-U.S. Holder&rsquo;s conduct of a trade or business
                                            in the United&nbsp;States (and, if required by an applicable income tax treaty, is attributable
                                            to a permanent establishment maintained by the Non-U.S. Holder in the United&nbsp;States);
                                            in such case, the gain would be subject to U.S. federal income tax on a net income basis
                                            at the regular graduated rates and in the manner applicable to United&nbsp;States&nbsp;persons
                                            (unless an applicable income tax treaty provides otherwise) and, if the Non-U.S. Holder is
                                            treated as a corporation for U.S. federal income tax purposes, the &ldquo;branch profits
                                            tax&rdquo; described above may also apply;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Non-U.S. Holder is an individual who is present in the United&nbsp;States for 183&nbsp;days
                                            or more in the taxable year of the disposition and meets certain other requirements; or</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; 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 or have been a &ldquo;United States real property holding corporation,&rdquo; or USRPHC,
                                            for U.S. federal income tax purposes at any time during the shorter of (i) the five-year
                                            period ending on the date of disposition and (ii) the period that the Non-U.S. Holder held
                                            our Common Stock.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><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">Generally, a corporation is a USRPHC if the fair
market value of its &ldquo;United States real property interests&rdquo; equals or exceeds 50% of the sum of the fair market value of its
worldwide real property interests plus its other assets used or held for use in a trade or business. We believe that we are not currently,
and we do not anticipate becoming in the future, a USRPHC. However, because the determination of whether we are a USRPHC is made from
time to time and depends on the relative fair market values of our assets, there can be no assurance in this regard. If we were a USRPHC,
the tax relating to disposition of stock in a USRPHC generally will not apply to a Non-U.S. Holder whose holdings, direct, indirect and
constructive, constituted 5% or less of our Common Stock at all times during the applicable period, provided that our Common Stock is
&ldquo;regularly traded on an established securities market&rdquo; (as provided in applicable U.S. Treasury Regulations) at any time during
the calendar year in which the disposition occurs. However, no assurance can be provided that our Common Stock will be regularly traded
on an established securities market for purposes of the rules described above. Non-U.S.&nbsp;Holders should consult their own tax advisors
regarding any possible adverse U.S. federal income tax consequences to them if we are, or were to become, a USRPHC.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing discussion is subject to the discussions
below under &ldquo;<I>&mdash;Backup Withholding and Information Reporting</I>&rdquo; and &ldquo;<I>&mdash;FATCA Withholding</I>.&rdquo;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding (currently at a rate of 24%)
may apply to dividends paid by U.S. corporations in some circumstances, but will not apply to payments of dividends on our Common Stock
to a Non-U.S. Holder if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form&nbsp;W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United&nbsp;States person or is otherwise
entitled to an exemption. However, the applicable withholding agent generally will be required to report to the IRS (and to such Non-U.S.
Holder) payments of dividends on our Common Stock and the amount of U.S. federal income tax, if any, withheld from those payments. In
accordance with applicable treaties or agreements, the IRS may provide copies of such information returns to the tax authorities in the
country in which the Non-U.S. Holder resides.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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 gross proceeds from sales or other dispositions
of our Common Stock may be subject, in certain circumstances discussed below, to U.S. backup withholding and information reporting. If
a Non-U.S. Holder sells or otherwise disposes of any of our Common Stock outside the United States through a non-U.S. office of a non-U.S.
broker and the disposition proceeds are paid to the Non-U.S. Holder outside the United States, the U.S. backup withholding and information
reporting requirements generally will not apply to that payment. However, U.S. information reporting, but not U.S. backup withholding,
will apply to a payment of disposition proceeds, even if that payment is made outside the United States, if a Non-U.S. Holder sells our
Common Stock through a non-U.S. office of a broker that is a United States person or has certain enumerated connections with the United
States, unless the broker has documentary evidence in its files that the Non-U.S. Holder is not a United States person and certain other
conditions are met or the Non-U.S. Holder otherwise qualifies for an exemption.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If a Non-U.S. Holder receives payments of the
proceeds of a disposition of our Common Stock to or through a U.S. office of a broker, the payment will be subject to both U.S. backup
withholding and information reporting unless the Non-U.S. Holder provides to the broker a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person, or the Non-U.S.
Holder otherwise qualifies for an exemption.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Backup withholding is not an additional tax. Any
amounts withheld under the backup withholding rules may be credited against the Non-U.S. Holder&rsquo;s U.S. federal income tax liability
(which may result in the Non-U.S. Holder being entitled to a refund), provided that the required information is timely furnished to the
IRS.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Foreign Account Tax Compliance Act and related
Treasury guidance (commonly referred to as FATCA) impose U.S. federal withholding tax at a rate of 30% on payments to certain foreign
entities of (i)&nbsp;U.S.-source dividends (including dividends paid on our Common Stock) and (ii)&nbsp;the gross proceeds from the sale
or other disposition of property that produces U.S.-source dividends (including sales or other dispositions of our Common Stock). This
withholding tax applies to a foreign entity, whether acting as a beneficial owner or an intermediary, unless such foreign entity complies
with (i)&nbsp;certain information reporting requirements regarding its U.S. account holders and its U.S. owners and (ii)&nbsp;certain
withholding obligations regarding certain payments to its account holders and certain other persons. Accordingly, the entity through which
a Non-U.S. Holder holds its Common Stock will affect the determination of whether such withholding is required. While withholding under
FATCA would have also applied to payments of gross proceeds from the sale or other disposition of our Common Stock on or after January
1, 2019, U.S. Treasury Regulations proposed in December 2018 eliminate such withholding on payments of gross proceeds entirely. Taxpayers
generally may rely on these proposed U.S. Treasury Regulations until final U.S. Treasury Regulations are issued. Non-U.S. Holders are
encouraged to consult their tax advisors regarding FATCA.</P>

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


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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_018"></A>UNDERWRITING</P>

<P STYLE="font: bold 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">In connection with this offering, we expect to
enter into an underwriting agreement with EF Hutton, division of Benchmark Investments, LLC, as the representative of the underwriters
named in this prospectus, with respect to the Common Stock in this offering. Under the terms and subject to the conditions contained in
the underwriting agreement, the representative will agree to purchase from us on a firm commitment basis the respective number of shares
of Common Stock at the public price less the underwriting discounts set forth on the cover page of this prospectus, and each of the underwriters
has severally and not jointly agreed to purchase, and we have agreed to sell to the underwriters, at the public offering price per shares
less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of Common Stock listed next to its
name in the following table:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">Underwriter</TD><TD STYLE="font-weight: bold; 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</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">EF Hutton, division of Benchmark Investments, LLC</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Total</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">1,000,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of Common Stock sold by the underwriters
to the public will initially be offered at the initial public offering price range set forth on the cover page of this prospectus. Any
shares of Common Stock sold by the underwriters to securities dealers may be sold at a discount from the initial public offering price
not to exceed $[*] per share. If all of the shares are not sold at the initial offering price, the representative may change the offering
price and the other selling terms. The representative has advised us that the underwriters do not intend to make sales to discretionary
accounts.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the underwriters sell more shares of Common
Stock than the total number set forth in the table above, we have granted to the representative an option, exercisable for 45 days from
the date of this prospectus, to purchase up to 150,000 additional shares of Common Stock at the public offering price less the underwriting
discount, constituting 15% of the total number of shares of Common Stock to be offered in this offering (excluding shares subject to this
option). The representative may exercise this option solely for the purpose of covering over-allotments in connection with this offering.
This offering is being conducted on a firm commitment basis.&nbsp; Any shares of Common Stock issued or sold under the option will be
issued and sold on the same terms and conditions as the other shares of Common Stock that are the subject of this offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with this offering, the underwriters
may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids in compliance with
Regulation M under the Exchange Act, as described below:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stabilizing
                                            transactions permit bids to purchase securities so long as the stabilizing bids do not exceed
                                            a specified maximum.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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">Over-allotment
                                            transactions involve sales by the underwriters of securities in excess of the number of securities
                                            the underwriters are obligated to purchase, which creates a syndicate short position. The
                                            short position may be either a covered short position or a naked short position. In a covered
                                            short position, the number of securities over-allotted by the underwriters is not greater
                                            than the number of securities that they may purchase in the over-allotment option. In a naked
                                            short position, the number of securities involved is greater than the number of securities
                                            in the over-allotment option. The underwriters may close out any covered short position by
                                            either exercising their over-allotment option and/or purchasing securities in the open market.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Syndicate
                                            covering transactions involve purchases of securities in the open market after the distribution
                                            has been completed in order to cover syndicate short positions. In determining the source
                                            of securities to close out the short position, the underwriters will consider, among other
                                            things, the price of securities available for purchase in the open market as compared to
                                            the price at which they may purchase securities through the over-allotment option. A naked
                                            short position occurs if the underwriters sell more securities than could be covered by the
                                            over-allotment option. This position can only be closed out by buying securities in the open
                                            market. A naked short position is more likely to be created if the underwriters are concerned
                                            that there could be downward pressure on the price of the securities in the open market after
                                            pricing that could adversely affect investors who purchase in this offering.</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Penalty
                                            bids permit the underwriters to reclaim a selling concession from a syndicate member when
                                            securities originally sold by the syndicate member are purchased in a stabilizing or syndicate
                                            covering transaction to cover syndicate short positions.</FONT></TD></TR></TABLE>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These stabilizing transactions, syndicate covering
transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing or retarding
a decline in the market price of the securities. As a result, the price of our shares of Common Stock may be higher than the price that
might otherwise exist in the open market. These transactions may be discontinued at any time.&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>Discounts and Expenses</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table shows the underwriting discounts
payable to the underwriters by us in connection with this offering (assuming both the exercise and non-exercise of the over-allotment
option that we have granted to the representative), based on the assumed initial public offering price of $5 per share, which is the midpoint
of the estimated range of the initial public offering price shown on the cover page of this prospectus:</P>

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

<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">Per Share</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total Without<BR> Over-Allotment<BR> Option</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Total With<BR> Entire Over-<BR> Allotment<BR> Option</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Assumed initial public offering price</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5.00</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,000,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,750,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Underwriting discounts and commissions (8%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">400,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">460,000</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">Proceeds, before expenses, to us</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4.60</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,600,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,290,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Non-accountable expense allowance (1%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.05</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">57,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to pay a non-accountable expense
allowance to the representative equal to 1% of the gross proceeds received at the closing 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">We will be also responsible for and will pay all
expenses relating to the offering, including, without limitation, (a) all filing fees and expenses relating to the registration of the
securities with the Commission; (b) all fees and expenses relating to the listing of the Company&rsquo;s Common Stock; (c) all fees, expenses
and disbursements relating to the registration or qualification of the securities under the &ldquo;blue sky&rdquo; securities laws of
such states and other jurisdictions as the representative may reasonably designate (including, without limitation, all filing and registration
fees, and the reasonable fees and disbursements of the Company&rsquo;s &ldquo;blue sky&rdquo; counsel, which will be the underwriters&rsquo;
counsel) unless such filings are not required in connection with the Company&rsquo;s proposed listing on a national exchange, if applicable;
(d) all fees, expenses and disbursements relating to the registration, qualification or exemption of the securities under the securities
laws of such foreign jurisdictions as the representative may reasonably designate; (e) the costs of all mailing and printing of the offering
documents; (f) transfer and/or stamp taxes, if any, payable upon the transfer of securities from the Company to the underwriters; and
(g) the fees and expenses of the Company&rsquo;s accountants; (h) all filing fees and communication expenses associated with the review
of this offering by FINRA; (i)a maximum of $229,500 for fees and expenses including &ldquo;road show,&rdquo; diligence, and reasonable
legal fees and disbursements for the underwriters&rsquo; counsel. The Company shall be responsible for underwriters&rsquo; external counsel
legal costs irrespective of whether or not the offering is consummated, subject to a maximum of $50,000 in the event that it is not consummated.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additionally, the Company shall provide the representative
an expense advance (the &ldquo;Advance&rdquo;) of $50,000 upon execution of the letter of engagement with the representative. The Advance
shall be applied towards out-of-pocket accountable expense set forth herein and any portion of the Advance shall be returned to the Company
to the extent not actually incurred in compliance with FINRA Rule 5110(g)(4)(A).</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to issue a warrant to the representative
to purchase a number of shares of Common Stock equal to 5% of the aggregate number of shares sold in this offering at an exercise price
per share equal to 100.0% of the public offering price per share sold in this offering. The underwriters&rsquo; warrants will be exercisable
at any time and from time to time, in whole or in part, during the four and a half-year period commencing six (6) months from the effective
date of the Offering. The underwriters&rsquo; warrants also provide for registration rights (including a one-time demand registration
right and unlimited piggyback rights) and customary anti-dilution provisions (for stock dividends and splits and recapitalizations) and
anti-dilution protection (adjustment in the number and price of such warrants and the shares underlying such warrants) resulting from
corporate events (which would include dividends, reorganizations, mergers, etc.) and future issuance of Common Stock or Common Stock equivalents
at prices (or with exercise and/or conversion prices) below the Offering price as permitted under FINRA Rule 5110(f)(2)(G).</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 underwriters&rsquo; warrant and the underlying
shares may be deemed to be compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule
5110(e)(1), neither the underwriters&rsquo; warrant nor any of our shares of Common Stock issued upon exercise of the underwriters&rsquo;
warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or
call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately
following the commencement date of sales in this offering, subject to certain exceptions. The underwriters&rsquo; warrant to be received
by the Representative and related persons in connection with this offering: (i) fully comply with lock-up restrictions pursuant to FINRA
Rule 5110(e)(1); and (ii) fully comply with transfer restrictions pursuant to FINRA Rule 5110(e)(2).</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In determining the initial public offering price,
we and the representative have considered a number of factors, including:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><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
                                            information set forth in this prospectus and otherwise available to the representative;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                            prospects and the history and prospects for the industry in which we compete;</FONT></TD></TR></TABLE>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                            prospects for future revenue and earnings;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            general condition of the securities markets at the time of this offering;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            recent market prices of, and demand for, publicly traded securities of generally comparable
                                            companies; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">other
                                            factors deemed relevant by the Representative and us.</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The estimated initial public offering price set
forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither
we nor the representative can assure investors that an active trading market will develop for our shares of Common Stock, or that the
shares will trade in the public market at or above the initial public offering price. We have agreed to indemnify the representative and
the other underwriters against certain liabilities, including liabilities under the Securities Act. If we are unable to provide this indemnification,
we will contribute to payments that the representative and the other underwriters may be required to make for these liabilities.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have agreed to provide the representative the
right of first refusal for 12 months after the date the Offering is completed or the termination or expiration of the engagement with
the representative to act as financial advisor or to act as sole investment banker, sole book-runner, and/or sole placement agent, at
EF Hutton&rsquo;s sole discretion, for each and every future public and private equity and debt offering, including all equity linked
financings (each, a &ldquo;Subject Transaction&rdquo;), during such twelve (12) month period, of the Company, or any successor to or any
current or future subsidiary of the Company, on terms and conditions customary to EF Hutton for such Subject Transactions. EF Hutton shall
have the sole right to determine whether any other broker dealer shall have the right to participate in a Subject Transaction and the
economic terms of such participation. For the avoidance of any doubt, the Company shall not retain, engage or solicit any additional investment
banker, book-runner, financial advisor, underwriter and/or placement agent in a Subject Transaction without the express written consent
of EF Hutton. In the event that we engage the representative to provide such services, the representative will be compensated consistent
with our engagement agreement with the representative, unless we mutually agree otherwise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Tail Rights</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">During the Engagement Period as defined in the
Engagement letter between the Company and EF Hutton or within the twelve (12) month period following the termination or expiration of
our engagement agreement with the representative, the representative shall be entitled to success fees, equal to 8% of gross proceeds
received, in accordance with our engagement agreement if the Company completes a transaction with a party who became aware of the Company
or who became known to the Company and the Company has direct knowledge of such party&rsquo;s participation in the offering during the
Engagement Period or within the twelve (12) month period following the termination or expiration of our engagement agreement with the
representative.</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not, without the prior written consent
of the representative, from the date of execution of the Underwriting Agreement and continuing for a period of six (6) months after the
close of the IPO (the &ldquo;Lock-Up Period&rdquo;), (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares
of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering
of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital
stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a
traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above
is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our officers, directors, and any holders of our
Common Stock have agreed to be locked up for a period of six (6) months during the Lock-Up Period. During the lock-up period, our officers,
directors, and holders of our Common Stock shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or
indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of
capital stock of the Company, subject to customary exceptions.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding the above, we and the underwriters
have agreed to waive the lock-up requirement for shares of Common Stock being offered for sale by the selling stockholders named in the
Resale Prospectus. See &ldquo;<I>Shares Eligible For Future Sale &ndash; Lock-Up Agreements</I>&rdquo;.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Electronic Offer, Sale, and Distribution of
Shares of Common Stock</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A prospectus in electronic format may be made
available on the websites maintained by the representative. In addition, shares of Common Stock may be sold by the representative to securities
dealers who resell shares of Common Stock to online brokerage account holders. Other than the prospectus in electronic format, the information
on the representative&rsquo;s website and any information contained in any other website maintained by the representative is not part
of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or
the representative in its capacity as representative and should not be relied upon by investors.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">No action has been taken in any jurisdiction (except
in the United States) that would permit a public offering of the shares of Common Stock, or the possession, circulation or distribution
of this prospectus or any other material relating to us or the shares of Common Stock, where action for that purpose is required. Accordingly,
the shares of Common Stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material
or advertisements in connection with the shares of Common Stock may be distributed or published, in or from any country or jurisdiction
except in compliance with any applicable rules and regulations of any such country or jurisdiction.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Other than in the United States, no action has
been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and
regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe
any restrictions relating to this offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell
or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation
is unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_019"></A>LEGAL MATTERS</P>

<P STYLE="font: bold 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">Nauth LPC, Ontario, Canada, has acted as our counsel
in connection with the preparation of this prospectus.&nbsp;Certain legal matters with respect to the validity of the securities being
offered by this prospectus will be passed upon by Sherman &amp; Howard LLC, Phoenix, Arizona. Carmel, Milazzo &amp; Feil LLP, New York,
New York, is acting as counsel for the representative of the underwriters with respect to this offering.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_020"></A>EXPERTS</P>

<P STYLE="font: bold 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 financial statements of our company appearing
elsewhere in this prospectus have been included herein in reliance upon the report of dbb<I>mckennon</I>, an independent registered public
accounting firm, appearing elsewhere herein (which contains an explanatory paragraph describing conditions that raise substantial doubt
about our ability to continue as a going concern as described in Note 2 to the financial statements), and upon the authority of said firm
as experts in accounting and auditing.</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_021"></A>WHERE YOU CAN FIND MORE INFORMATION</P>

<P STYLE="font: bold 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 SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities we are offering by this prospectus. This prospectus does not contain
all of the information included in the registration statement. For further information about us and our securities, you should refer to
the registration statement and the exhibits and schedules filed with the registration statement. Whenever we make reference in this prospectus
to any of our contracts, agreements or other documents, the references are materially complete but may not include a description of all
aspects of such contracts, agreements or other documents, and you should refer to the exhibits attached to the registration statement
for copies of the actual contract, agreement or other document.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Upon completion of this offering, we will be subject
to the information requirements of the Exchange Act and will file annual, quarterly and current event reports, proxy statements and other
information with the SEC. You can read our SEC filings, including the registration statement, over the Internet at the SEC&rsquo;s website
at www.sec.gov.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_022"></A>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; text-align: center"><B>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">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 90%"><FONT STYLE="font-size: 10pt"><B>Unaudited Financial Statements for the Three Months Ended March 31, 2023 and 2022</B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 9%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#f_001"><FONT STYLE="font-size: 10pt">Balance Sheets (Unaudited)</FONT></A></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">F-2</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><A HREF="#f_002"><FONT STYLE="font-size: 10pt">Statements of Operations (Unaudited)</FONT></A></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">F-3</FONT></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="vertical-align: top"><A HREF="#f_003"><FONT STYLE="font-size: 10pt">Statement of Changes in Stockholders&rsquo; Equity (Unaudited)</FONT></A></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center"><FONT STYLE="font-size: 10pt">F-4</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><A HREF="#f_004"><FONT STYLE="font-size: 10pt">Statements of Cash Flows (Unaudited)</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-5</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#f_005"><FONT STYLE="font-size: 10pt">Notes to Unaudited Financial Statements</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-6</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: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 90%"><FONT STYLE="font-size: 10pt"><B>Financial Statements for the Year Ended December 31, 2022 and Period from January 11, 2021 (inception) to December 31, 2021</B></FONT></TD>
    <TD STYLE="white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 9%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#f_006"><FONT STYLE="font-size: 10pt">Report of Independent Registered Public Accounting Firm (PCAOB ID #3501)</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-<FONT>14</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><A HREF="#f_007"><FONT STYLE="font-size: 10pt">Balance Sheets</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-<FONT>15</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#f_008"><FONT STYLE="font-size: 10pt">Statements of Operations</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-<FONT>16</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><A HREF="#f_009"><FONT STYLE="font-size: 10pt">Statement of Stockholders&rsquo; Equity</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-<FONT>17</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD><A HREF="#f_010"><FONT STYLE="font-size: 10pt">Statements of Cash Flows</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-<FONT>18</FONT></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><A HREF="#f_011"><FONT STYLE="font-size: 10pt">Notes to Financial Statements</FONT></A></TD>
    <TD STYLE="white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">F-<FONT>19</FONT></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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_001"></A><B>LQR HOUSE INC.</B></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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">March 31, 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December&nbsp;31, 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>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-align: left; text-indent: -9pt; padding-left: 0.25in">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">23,581</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,565</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: 0.25in">Accounts receivable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,794</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">224,692</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Advances to related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,058</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">314,766</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: -9pt; padding-left: 0.25in">Prepaid 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">31,579</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 27pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,012</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,023</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">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,020,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,083,333</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">Deferred offering costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">59,259</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="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 27pt">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,150,104</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,630,356</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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: -9pt; padding-left: 9pt">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">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: -9pt; padding-left: 0.25in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">290,967</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">287,457</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accounts payable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,214</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">104,002</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: -9pt; padding-left: 0.25in">Accrued 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">72,356</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">199,256</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: -9pt; padding-left: 27pt">Total 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">432,537</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">590,715</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: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Stockholders&rsquo; equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -9pt; padding-left: 0.25in">Preferred stock, $0.0001 par value, 50,000,000 shares authorized, no shares issued or outstanding as of March 31, 2023 and December 31, 2022</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-indent: -9pt; padding-left: 0.25in">Class A Common Stock, $0.0001 par value, 20,000,000 shares authorized, no shares issued or outstanding as of March 31, 2023 and December 31, 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Class B Common Stock, $0.0001 par value, 280,000,000 shares authorized, 9,200,434 and 0 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">920</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: 0.25in">Common stock, $0.0001 par value, no shares and 300,000,000 authorized, 0 and 9,200,405 shares issued and outstanding as of March 31, 2023 and December 31, 2022, 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">920</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,843,622</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,843,622</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: 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">(4,126,975</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,804,901</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: -9pt; padding-left: 27pt">Total stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,717,567</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,039,641</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 27pt">Total liabilities and stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,150,104</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,630,356</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></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><A NAME="f_002"></A>LQR HOUSE INC</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-bottom: 1.5pt">Revenue - services</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">150,563</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 9%; text-align: right">28,250</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Total revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,563</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,250</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Cost of revenue - services</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">102,997</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">312,955</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; padding-left: 9pt">Total cost of revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">102,997</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">312,955</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-left: 0.25in">Gross profit (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,566</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(284,705</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">321,317</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">253,537</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">Sales and marketing</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">48,323</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">162,886</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">369,640</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">416,423</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">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">(322,074</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">(701,128</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(322,074</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(701,128</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted average common shares outstanding - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,200,406</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,950,544</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per common share - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.04</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.08</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_003"></A><B>LQR HOUSE INC.</B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B>&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; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Class
    A</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="6" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt"><B>Class B</B></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Additional</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Total</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Preferred
    Stock</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Common
    Stock</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Common
    Stock</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Common
    Stock</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Paid-in</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Accumulated</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Stockholders&rsquo;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Shares</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Amount</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Capital</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Deficit</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">Deficit</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; width: 17.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Balance
    at December 31, 2021</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">8,937,905</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">894</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">5,525,773</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(1,962,726</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="width: 6%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">3,563,941</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Vesting
    of restricted stock units</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">87,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">9</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">65,616</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">65,625</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Net
    loss</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">(701,128</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">(701,128</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Balances
    at March 31, 2022</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">9,025,405</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">903</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">5,591,389</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(2,663,854</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2,928,438</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Balances
    at December 31, 2022</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">9,200,405</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">920</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">5,843,622</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(3,804,901</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">2,039,641</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Recapitalization
    (Note 5)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">9,200,434</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">920</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(9,200,405</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(920</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Net
    loss</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">(322,074</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&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: 9pt">&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: 9pt">(322,074</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">Balances
    at March 31, 2023</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">9,200,434</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">920</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">-</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">5,843,622</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">(4,126,975</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">)</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">1,717,567</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 9pt">&nbsp;</FONT></TD></TR>
  </TABLE>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></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"><A NAME="f_004"></A><B>LQR HOUSE INC.</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Three Months
Ended &nbsp;<BR> March 31,</B> &nbsp;</FONT></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; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2023</B></FONT></TD><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; text-align: center; font-weight: bold">2022</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Cash flows from operating activities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 80%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(322,074</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(701,128</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Amortization</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">62,500</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">Vesting of restricted stock units</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">65,625</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.375in; text-align: left">Accounts receivable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">215,898</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,421</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.375in; text-align: left">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31,579</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(56,865</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.375in; text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,510</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,075</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.375in; text-align: left">Accounts payable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34,788</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,813</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.375in; text-align: left">Accrued 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">(126,900</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(233,433</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">(617,028</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">Cash flows from investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Net repayments from (advances to) 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">308,708</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">(42,658</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Net cash provided by (used in) investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">308,708</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">(42,658</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">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="padding-bottom: 1.5pt; text-align: left">Deferred offering costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(59,259</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.25in; text-align: left">Net cash used in financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(59,259</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net change in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(659,686</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Cash and cash equivalents at beginning of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">7,565</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">1,116,101</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-align: left">Cash and cash equivalents at end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">23,581</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">456,415</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Supplemental disclosure of cash flow information:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cash paid for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash paid for interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_005"></A><B>LQR HOUSE INC.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>1.</B> <B>NATURE OF OPERATIONS</B></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LQR House Inc. (&ldquo;LQR&rdquo; or the &ldquo;Company&rdquo;)
was incorporated on January 11, 2021, in the state of Delaware. The Company operates primarily in the beverage alcohol industry owning
specialty brands, providing marketing and distribution services.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2023, the Company has not achieved
its planned level of operations. The Company&rsquo;s activities since inception have been limited and consisted of formation activities,
commencement of operations and capital raising activities. The Company has preparations to further raise capital and increase its operational
activity. To date, the Company has only generated limited amounts of revenue subsequent to the asset acquisitions and it has just begun
to scale its marketing revenue related efforts. The Company is dependent upon additional capital resources for the scaling of its planned
principal operations and is subject to significant risks and uncertainties; including failing to secure additional funding to operationalize
the Company&rsquo;s planned operations or failing to profitably operate the business.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 3, 2023, the Company changed its state
of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation. On February 3, in accordance with our reincorporation
to Nevada, the Company&rsquo;s authorized capital stock changed from 100,000,000 shares of common stock, $0.001 par value, to 350,000,000
shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value
$0.0001 per share. At the same time, the Company also completed a 6-for-1 reverse stock split of our outstanding common stock through
the merger by issuing one share of common stock for every six previously outstanding shares of common stock of the predecessor Delaware
company. The accompanying financial statements and related disclosures have been presented to retroactively reflect the Reorganization.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>2.</B> <B>GOING CONCERN</B></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has evaluated whether there are certain
conditions and events, considered in the aggregate, that raise substantial doubt about the Company&rsquo;s ability to continue as a going
concern within one year after the date that the financial statements are issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has not generated profits since inception, has sustained net losses of $322,074 and $701,128 for the three months
ended March 31, 2023 and 2022, and has negative cash flows from operations for the three months ended March 31, 2023 and 2022. The Company&rsquo;s
cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses and obligations
for the next 12 months from the date of these financial statements. These factors among others raise substantial doubt about the Company&rsquo;s
ability to continue as a going concern for a reasonable period of time.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s ability to continue as a going
concern is dependent upon its ability to obtain the necessary financing and generate future profitable operations to meet its obligations
and repay its liabilities arising from normal business operations when they come due. Management has in the past, and is expected to in
the future, arrange additional equity or debt financing and grow revenues that may assist in addressing these issues. No assurance can
be given that management&rsquo;s actions will result in additional financing or profitable operations or the resolution of its liquidity
problems. The accompanying financial statements do not include any adjustments that might result should the Company be unable to continue
as a going concern.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>3.</B> <B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</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"><B><I>Basis of Presentation</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 accounting and reporting policies of the Company
conform to accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;). The Company&rsquo;s fiscal year
end is December 31.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 an emerging growth company as the
term is used in The Jumpstart Our Business Startups Act and has elected to comply with certain reduced public company reporting requirements,
however, the Company may adopt accounting standards based on the effective dates for public entities when early adoption is permitted.</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"><B><I>Unaudited Interim Financial Information</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 unaudited interim financial statements and
related notes have been prepared in accordance with U.S. GAAP for interim financial information, within the rules and regulations of the
United States Securities and Exchange Commission (the &ldquo;SEC&rdquo;). Certain information and disclosures normally included in the
annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion
of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results
for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the
other information disclosed in these notes to the interim financial statements related to the three-month periods are unaudited. Unaudited
interim results are not necessarily indicative of the results for the full fiscal year. These unaudited interim financial statements should
be read in conjunction with the financial statements of the Company for the periods ended December 31, 2022 and 2021 and notes thereto
that are included in the Company&rsquo;s Registration Statement.</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>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">The preparation of the Company&rsquo;s financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include,
but are not limited to, revenue recognition, related party and common control transactions and valuations of common stock. The Company
bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be
reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts
and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.</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>Significant Risks and Uncertainties</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 Company is subject to customary risks and
uncertainties including, but not limited to, the need for protection of proprietary technology, dependence on key personnel, costs of
services provided by third parties, the need to obtain additional financing, and limited operating history.</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>Variable Interest Entities</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 Company evaluates its relationships with other
entities to identify whether they are variable interest entities as defined by Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
Accounting Standards Codification (&ldquo;ASC&rdquo;) Topic 810, Consolidation (&ldquo;ASC 810&rdquo;), and to assess whether it is the
primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated.
The Company evaluated whether it was the primary beneficiary in its common control asset acquisitions (Note 4) and related party agreements
(Note 5) and determined it is not the primary beneficiary of any entities.</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>Concentrations of Credit Risk</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 Company&rsquo;s ability to derive revenue
from marketing services is reliant on its relationship and marketing license agreement with <FONT STYLE="font-family: Times New Roman, Times, Serif">Ssquared
Spirits LLC, a related party entity, and Country Wine &amp; Spirits (&ldquo;CWS&rdquo;) who fulfills sales for the products sold by clientele
using our marketing services. The discontinuance of such relationships or termination of the marketing license agreement would have a
material negative impact on the Company&rsquo;s operations.</FONT></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>Concentrations</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 Company&rsquo;s ability to derive revenue
from marketing services is reliant on its relationship and marketing license agreement with <FONT STYLE="font-family: Times New Roman, Times, Serif">Ssquared
Spirits LLC, a related party entity, and CWS who fulfills sales for the products sold by clientele using our marketing services. The discontinuance
of such relationships or termination of the marketing license agreement would have a material negative impact on the Company&rsquo;s operations.</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">Furthermore, the Company relies and expects to
continue to rely on a small number of vendors. The loss of one of these vendors may have a negative short-term impact on the Company&rsquo;s
operations. However, the Company believes there are acceptable substitute vendors that can be utilized longer term.</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"><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">The Company considers all highly liquid investments
with maturities of three months or less at the date of purchase to be cash equivalents.</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>Fair Value Measurements</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">Certain assets and liabilities of the Company
are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs
and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed
in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered
unobservable:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
                                            1&mdash;Quoted prices in active markets for identical assets or liabilities.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
                                            2&mdash;Observable inputs (other than Level 1 quoted prices), such as quoted prices in active
                                            markets for similar assets or liabilities, quoted prices in markets that are not active for
                                            identical or similar assets or liabilities, or other inputs that are observable or can be
                                            corroborated by observable market data.</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
                                            3&mdash;Unobservable inputs that are supported by little or no market activity that are significant
                                            to determining the fair value of the assets or liabilities, including pricing models, discounted
                                            cash flow methodologies and similar techniques.</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The carrying values of the Company&rsquo;s accounts
receivable and accounts payable approximate their fair values due to the short maturity of these instruments. The Company believes the
carrying amount of its advances to related parties approximate fair value due to its short-term maturity.</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>Accounts Receivable</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">Accounts receivable are derived from services
and products delivered to customers and are stated at their net realizable value. Each month, the Company reviews its receivables on a
customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection
issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have
been exhausted and the potential for recovery is considered remote.</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>Intangible Assets</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 Company capitalized the value of stock issued
related to the Company&rsquo;s April 2021 exclusive marketing agreement with CWS (see Note 4). The license is amortized on a straight-line
basis over the life of the agreement, which is ten years.</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>Impairment of Long-Lived Assets</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 Company continually monitors events and changes
in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances
are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will
be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of
those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. The Company did not record
any impairment losses on its long-lived assets as of March 31, 2023 or December 31, 2022.</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>Related Parties</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">Related parties are any entities or individuals
that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies
of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries.
The Company follows ASC 850, <I>Related Party Disclosures</I>, for the identification of related parties and disclosure of related party
transactions.</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>Revenue Recognition</I></B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with FASB ASC 606, <I>Revenue from
Contracts with Customers</I>&cedil; the Company determines revenue recognition through the following steps:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Identification
                                            of a contract with a customer;</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Allocation
                                            of the transaction price to the performance obligations in the contract; 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: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recognition
                                            of revenue when or as the performance obligations are satisfied.</FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenue is recognized when performance obligations
are satisfied through the transfer of control of promised goods to the Company&rsquo;s customers in an amount that reflects the consideration
expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability
to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical
possession, the risks and rewards of ownership, and customer acceptance.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 derives its revenue from marketing
services and distribution of its SWOL Tequila product to CWS, and subscription-based membership revenue. Revenue is reported net of discounts.</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>Marketing Services</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company contracts with third-party alcoholic
beverage brands to utilize access to the CWS alcoholic beverage website (the &ldquo;CWS Platform). The Company and the brands enter into
a commercial relationship. The Company performs services such as creating a marketing campaign strategy, developing promotional materials
and advertising promotional materials through the CWS Platform. Revenue is recognized over a period time, as the marketing services are
being continually provided on a daily and monthly basis over the life of an agreed upon campaign. Marketing campaigns generally range
from one to three months.</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>Product Sales</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company wholly owns SWOL Tequila, a tequila
made in limited batches from a third-party producer located in Mexico. The Company facilitates all efforts to get the product delivered
to CWS for retail distribution in the United States, including advancing costs for production, shipping and other importing and delivery
charges. The Company is entitled to payment of cost plus an additional 20% on each bottle of SWOL Tequila sold to CWS. Revenue is recognized
at the point in which the products are delivered to CWS, when LQR has fulfilled its performance obligation. Due to certain restrictions
on the delivery and custodianship of alcoholic beverage, CWS is required to take ownership of the product at time of delivery, and there
is no recourse or right of return. The Company records gross revenue as it&rsquo;s the primary obligor in the transaction.</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>Vault</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">Vault is the exclusive membership program for
CWS customers. Through the CWS Platform, users can sign up for membership where they will have access to all products available through
CWS combined with special membership benefits including discounted products, free shipping and promotional offers.&nbsp; The Company markets
this membership program on the CWS Platform and is entitled to 50% of the revenue from the subscriptions.&nbsp; Members are charged monthly
membership fees, and the Company recognizes the 50% fee it is entitled to from CWS as net revenue.&nbsp;The Company records revenue on
transactions when the user initially subscribes or renews their membership, as the Company is the agent of the transaction and do not
typically provide significant post transaction services to the user or bear responsibility for the promised goods or services included
in the membership.&nbsp; The Company records a reserve for chargebacks and cancellations at the time of the transaction based on historical
experience.&nbsp;During the three months ended March 31, 2023, revenue from Vault memberships totaled $8,794.</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>Contract Balances</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">Accounts receivable represent amounts owed from
marketing and product sales invoiced, but not yet received,</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Contract liabilities represent obligations to
transfer services to a customer for which the Company has already received consideration. Payments for marketing services are generally
received upfront in advance of the Company satisfying the related performance obligation and are recorded as a deferred revenue liability.
The deferred revenue is reduced as the services are performed and the revenue is recognized. As of March 31, 2023 and December 31, 2022,
the Company had $0 in deferred revenue.</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>Cost of Revenue</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">Cost of revenue consists of all direct costs attributable
to performing marketing services and the Company&rsquo;s product sales. Cost of revenue includes affiliate payouts, contracted marketing
services, direct advertising costs for marketing campaigns, product costs, packaging, shipping and other importing and delivery charges.
Cost of revenue also includes customer service personnel and amortization of the Company&rsquo;s marketing license asset (see Note 4).</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 and Marketing </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">Sales and marketing costs primarily consist of
advertising, promotional expenses and marketing consulting and advisory services. Sales and marketing costs also include sales commissions.</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>Deferred Offering 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">The Company complies with the requirements of FASB ASC 340-10-S99-1
with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are
charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the
offering is not completed. As of March 31, 2023, the Company had capitalized $59,259 in deferred offering costs.</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>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">Stock-based compensation is accounted for in accordance
with ASC Topic 718-10, <I>Compensation-Stock Compensation</I> (&ldquo;ASC 718-10&rdquo;). The Company measures all equity-based awards
granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation
expense for those awards over the requisite service period, which is generally the vesting period of the respective award.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 classifies equity-based compensation
expense in its statement of operations in the same manner in which the award recipient&rsquo;s payroll or contractor costs are classified
or in which the award recipient&rsquo;s service payments are classified.</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>Net Loss per Share</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">Net earnings or loss per share is computed by
dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to
redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share
reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities
outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would
be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of March 31, 2023 and 2022, diluted net loss per share is
the same as basic net loss per share for each year. Potentially dilutive common stock equivalents outstanding as of March 31, 2022 include
175,000 unvested restricted stock units, which vested in 2022 (see Note 6).</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>Recently Issued and Adopted Accounting Pronouncements</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">Management does not believe that any other recently
issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting
pronouncements are issued, the Company will adopt those that are applicable under the circumstances.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>4.</B> <B>INTANGIBLE ASSETS</B></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>CWS Exclusive Marketing Agreement</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">On April 1, 2021, the Company, CWS, and another
related entity, Ssquared Spirits LLC (&ldquo;Ssquared&rdquo;), entered into an exclusive marketing agreement (the &ldquo;CWS Agreement&rdquo;).
Pursuant to this agreement, CWS and Ssquared granted the Company the exclusive right to promote and market spirits and other beverage
products through the CWS website (cwspirtis.com) for sale to customers located within Canada, Mexico and the United States. The Company
has the sole right to manage and make decisions with regard to user facing content on the website, including the placement and removal
of products and the creation and management of promotional initiatives. The term of the CWS Agreement is ten years. Pursuant to the agreement,
the Company issued 1,666,667 shares of common stock to the members of Ssquared.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Company capitalized the fair value of the
consideration transferred, $2,500,000 (or $1.50 per share), as an intangible asset which will be amortized over the term agreement of
ten (10) years. During the three months ended March 31, 2023 and 2022, the Company amortized $62,500 and $62,500, respectively which is
included in cost of revenue &ndash; services in the statement of operations. As of March 31, 2023 and December 31, 2022, the unamortized
balance was $2,020,833 and $2,083,333, respectively. Annual amortization expense is expected to be $250,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>5.</B> <B>STOCKHOLDERS&rsquo; EQUITY</B></P>



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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Reorganization described in Note 1, the Company was authorized
to issue up to 100,000,000 shares of common stock, par value $0.001 per share. Upon the Reorganization in February 2023, the Company was
authorized to issue 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.0001 per share, as further
described below.</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>Amendments to Articles of Incorporation</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>Dual Class Share Structure</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 March 29, 2023, the Company amended its articles
of incorporation to institute a dual class share structure consisting of Class A Common Stock, and Class B Common Stock, and any number
of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes per share on proposals requiring or requesting shareholder
approval, and Class B Common Stock was entitled to one (1) vote on any such matter. A share of Class A Common Stock could have been voluntarily
converted into a share of Class B Common Stock. A transfer of a share of Class A Common Stock would have resulted in its automatic conversion
into Common Stock upon such transfer, subject to certain exceptions, including that the transfer of shares of Class A Common Stock to
another holder of Class A Common Stock would not have resulted in such automatic conversion. Class B Common Stock was not convertible.
Other than as to voting and conversion rights, Class A Common Stock and Class B Common Stock had the same rights and preferences and ranked
equally, shared ratably and were identical in all respects as to all matters.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to this amendment, the Company&rsquo;s authorized
capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of common stock, par value $0.0001 per share, of which
20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and 280,000,000 shares were designated as Class B
Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock, $0.0001 par value per share. All 9,200,434 shares
of common stock issued and outstanding at the time of the amendment became shares of Class B Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Single Common Stock Structure</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 June 5, 2023, the Company further amended its
articles of incorporation to amend the share structure by (i) eliminating a dual class share structure consisting of the Class A Common
Stock and Class B Common Stock and establishing a single common stock structure consisting of shares of common stock only, with 350,000,000
authorized shares being all designated as common stock with a par value of $0.0001 per share (the &ldquo;Single Common Stock Structure&rdquo;),
entitled to one (1) vote per share; and by (ii) eliminating all authorized shares of preferred stock. All shares of Class B Common Stock
issued and outstanding at the time of the amendment became shares of common stock.</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>Restricted Stock Units</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">On March 18, 2021, the Company implemented its
2021 Stock Option and Incentive Plan (the &ldquo;Plan&rdquo;). The maximum number of shares of common Stock issuable under The Plan is
1,666,667. In March 2021, the Company granted 350,000 restricted stock units (&ldquo;RSUs&rdquo;) to certain key employees, directors,
consultants, and advisors of the Company pursuant to the Company&rsquo;s 2021 Stock Option and Incentive Plan (the &ldquo;Plan&rdquo;).
Each unit was to vest in 25% increments every six months for a period of two years from the date of issuance. The RSUs had a grant-date
fair value of $525,000.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2022,
an additional 87,500 RSUs vested for total stock-based compensation expense of $65,625, of which $62,500 was included in general and administrative
expenses and $3,125 was included in sales and marketing expenses in the statement of operations.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In September 2022, the Company accelerated the
vesting of the remaining 87,500 unvested restricted stock units and therefore an aggregate of 262,500 shares were vested during 2022.
Upon this, all 350,000 RSUs granted in 2021 were vested and outstanding shares of common stock. <FONT STYLE="font-family: Times New Roman, Times, Serif">As
of December 31, 2022, all restricted stock units were vested.</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>Regulation A Offering</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2022, the Company received its notice
of qualification from the Securities and Exchange Commission under Regulation A. The offering was terminated in June 2022. No securities
were sold under the offering.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>6.</B> <B>RELATED PARTY TRANSACTIONS</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>CWS and Ssquared Spirits LLC</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 Company&rsquo;s founder and controlling stockholder
has an economic interest in Ssquared Spirits LLC, the e-commerce affiliate of CWS. The spouse of the Company&rsquo;s former Chief Executive
Officer and director is the President and controlling stockholder of CWS and the managing member and director of Ssquared Spirits LLC.
In 2022, the former Chief Executive Officer resigned from the Company.</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>SWOL Tequila</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">As of December 31, 2022, the Company had $224,692
in accounts receivable with CWS pertaining to SWOL product revenues. This amount was collected in the three months ended March 31, 2023.</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>Vault</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2023,
revenue from Vault memberships totaled $8,794, which is included in accounts receivable as of March 31, 2023.</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>Advances to CWS</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2023 and 2022, the Company
paid certain costs pertaining to alcoholic products on behalf of CWS in order finance the purchase of brand product for which the Company
was promoting through marketing services. The advances totaled $6,058 and $42,658, respectively, during the three months ended March 31,
2023 and 2022. As of March 31, 2023 and December 31, 2022, $6,058 and $314,766, respectively, remained unpaid and outstanding from CWS.
The advances are non-interest bearing, unsecured and due on demand. The advances owed as of December 31, 2022 was collected in the three
months ended March 31, 2023.</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>Dollinger Holdings LLC</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">Dollinger Holdings LLC is an entity under common
control with the Company&rsquo;s founder and controlling stockholder.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of March 31, 2023 and December 31, 2022, the
Company had accounts payable of $69,214 and $101,250, respectively, with this entity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">See Note 4 for acquisition of assets from Dollinger
Holdings, LLC.</P>

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

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

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

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">See Note 8 for disclosure related to a private sale of shares held
by the Company&rsquo;s founder, Sean Dollinger, and subsequent cancellation of such shares.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>7.</B> <B>COMMITMENTS AND CONTINGENCIES</B></P>



<P STYLE="font: 10pt Times New Roman, Times, 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 may be subject to pending legal proceedings
and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the
Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its
business, financial condition or results of operations.</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>Warrant</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">In February 2022, the Company granted a warrant
to an advisor in connection with Company&rsquo;s potential Regulation A financing. The number of warrants granted equals $2,000,000 (&ldquo;Equity
Value&rdquo;) divided by the Regulation A offering price. The warrant was to vest immediately upon qualification of the Form 1-A filing
in connection with the Regulation A financing. The warrant was to terminate on the earliest of five years or the termination of the advisory
agreement. In March 2022, the Company was qualified under its Form 1-A filing. On March 17, 2023, the Company and advisor entered into
a Warrant Surrender Agreement whereby the advisor agreed to the cancellation of the warrants and to the surrender of all of its right
for no consideration. As there was no derived value related to these warrants based on subsequent cancellation, no expense was recognized.</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><B>8. SUBSEQUENT EVENTS</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Engagement Agreements</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">On December 1, 2022, the Company entered into
an engagement agreement with Boustead Securities, LLC to assist in the private placement of securities (&ldquo;pre-IPO Financing&rdquo;)
and the initial public offering or other registered securities offerings (&ldquo;IPO&rdquo;) in the United States listing on NASDAQ. This
agreement was terminated on May 23, 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 24, 2023, the Company entered into an engagement
agreement with EF Hutton, division of Benchmark Investments, LLC (&ldquo;EF Hutton&rdquo;), to assist in the initial public offering or
other registered securities offerings (&ldquo;IPO&rdquo;). The agreement is for the earlier of (i) twelve (12) months from May 24, 2023,
or (ii) the final closing, in an IPO transaction, if any, subject to certain termination clauses as defined by the agreement. The Company
has agreed to compensate EF Hutton with an underwriting discount in an IPO transaction, warrants, and compensation for advisory services.
EF Hutton is also entitled to Tail Financing, a Right of First Refusal, and Lock-Up Agreements as defined in the agreement.</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>2023 Private Placement</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">Subsequent to March 31, 2023, we conducted a private
placement of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in
Section 2(a)(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2)
of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons
made in compliance with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000
shares of Common Stock at $1.00 per share for a total of $955,000.</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>2023 Advisor Agreements</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">Subsequent to March 31, 2023, we entered into
advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate advice in connection with
the Offering to the Company. In consideration for the advisor&rsquo;s services, the Company issued 500,000 shares of Common Stock to six
individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Single Common Stock Structure</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">See Note 5 for amendments to the Company&rsquo;s
authorized, issued and outstanding shares subsequent to March 31, 2023.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Cancellation of 3,000,000 Shares of Common
Stock</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Subsequent to March 31, 2023, the Company entered
into a Cancellation Agreement with four stockholders, who each owned 750,000 shares of Common Stock or an aggregate of 3,000,000 shares
of Common Stock. The stockholders purchased these shares from Mr. Dollinger pursuant to a stock purchase agreement on January 12, 2023,
between Mr. Dollinger and each of these four stockholders. As of the date these financial statements were available to be issued these
shares were either cancelled or pending cancellation with the transfer agent.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management has evaluated subsequent events through
June 12, 2023, the date the financial statements were available to be issued. Based on this evaluation, no additional material events
were identified which require adjustment or disclosure in these financial statements.</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: justify"><B>&nbsp;</B></P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="f_006"></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; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Board of Directors and Stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">LQR House, Inc.</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>Opinion on the Financial Statements</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">We have audited the accompanying
balance sheets of LQR House, Inc., (the &ldquo;Company&rdquo;) as of December 31, 2022 and 2021, and the related statements of operations,
stockholders&rsquo; equity, and cash flows for the year ended December 31, 2022 and the period from January 11, 2021 (Inception) to December
31, 2021, and the related notes (collectively referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and
the results of its operations and its cash flows for the year ended December 31, 2022 and the period from Inception to December 31, 2021,
in conformity with accounting principles generally accepted in the United States of America</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Going Concern</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 accompanying financial
statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the financial statements,
the Company has sustained net losses and negative cash flow from operations since Inception which raises substantial doubt about its ability
to continue as a going concern. Management&rsquo;s plans in regard to these matters are also described in Note 2. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Basis for Opinion</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">These financial statements
are the responsibility of the Company&rsquo;s management. Our responsibility is to express an opinion on these financial statements based
on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">We conducted our audits
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the 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 audit we are required to obtain
an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of
the Company&rsquo;s internal control over financial reporting. Accordingly, we express no such opinion.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for
our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; 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="width: 40%; font-style: italic">/s/ <FONT STYLE="font-style: normal; font-weight: normal">dbb</FONT>mckennon</TD>
    <TD STYLE="width: 60%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD COLSPAN="2">We have served as the Company&rsquo;s auditor since 2021</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Newport Beach, California</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>April 5, 2023</TD>
    <TD>&nbsp;</TD></TR>
  </TABLE>


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


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_007"></A>LQR HOUSE INC.</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&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>&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">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">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>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-align: left; text-indent: -9pt; padding-left: 0.25in">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,565</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,116,101</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: 0.25in">Accounts receivable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">224,692</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93,920</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: 0.25in">Advances to 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">314,766</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">124,427</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: -9pt; padding-left: 27pt">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">547,023</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,334,448</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">Intangible assets, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,083,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,333,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 27pt">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,630,356</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,667,781</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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: -9pt; padding-left: 9pt">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">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: -9pt; padding-left: 0.25in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">287,457</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">70,175</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Accounts payable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">104,002</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,665</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: -9pt; padding-left: 0.25in">Accrued 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">199,256</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 27pt">Total 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">590,715</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">103,840</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: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Stockholders&rsquo; equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Common stock, $0.0001 par value, 300,000,000 shares authorized, 9,200,405 and 8,937,905 shares issued and outstanding as of December 31, 2022 and 2021, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">920</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">894</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,843,622</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,525,773</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: -9pt; 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">(3,804,901</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">(1,962,726</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; text-indent: -9pt; padding-left: 27pt">Total stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,039,641</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,563,941</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 27pt">Total liabilities and stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,630,356</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,667,781</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</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: center"><A NAME="f_008"></A><B>LQR HOUSE INC.</B></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="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">Year Ended<BR> December&nbsp;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">For the<BR> Period from<BR> January 11,<BR> 2021<BR> (inception) to<BR> December&nbsp;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">Revenue - services</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">470,359</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">182,765</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Revenue - product</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">130,772</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">132,527</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Total revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">601,131</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">315,292</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cost of revenue - services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">668,654</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520,193</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">Cost of revenue - product</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">134,490</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">157,254</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; padding-left: 9pt">Total cost of revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">803,144</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">677,447</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-left: 0.25in">Gross profit (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(202,013</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(362,155</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">655,151</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">464,011</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 9pt">General and administrative</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">985,011</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">1,136,560</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.25in">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,640,162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,600,571</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,842,175</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,962,726</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">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: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,842,175</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(1,962,726</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted average common shares outstanding - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,015,023</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,443,489</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per common share - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.20</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.26</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>

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

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

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


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_009"></A>LQR HOUSE INC.</B></P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Additional</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Total</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="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="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt; 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="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Stockholders&rsquo;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="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">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">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="font-weight: bold">Balances at January 11, 2021 (inception)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%; text-align: left; text-indent: -9pt; padding-left: 9pt">Issuance of founders&rsquo; stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,733,333</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">173</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">10,227</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">10,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Issuance of common stock for cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,050,404</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">205</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,069,867</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">3,070,072</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">Issuance of common stock and other consideration pursuant to common control asset acquisitions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,333,334</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(361,263</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">(360,930</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: -9pt; padding-left: 9pt">Issuance of common stock pursuant to marketing license agreement</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,666,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">167</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,499,833</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">2,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Common shares issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">99,993</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Vesting of restricted stock units</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">207,116</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">207,125</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: -9pt; padding-left: 9pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,962,726</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">(1,962,726</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-indent: -9pt; padding-left: 9pt">Balances at December 31, 2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,937,905</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">894</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,525,773</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,962,726</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,563,941</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">Vesting of restricted stock units</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">262,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">317,849</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">317,875</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">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,842,175</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">(1,842,175</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; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Balances at December 31, 2022</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">9,200,405</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">920</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,843,622</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(3,804,901</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,039,641</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>The accompanying notes are an integral part
of these financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="f_010"></A>LQR HOUSE INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Statements of Cash Flows&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; 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">Year Ended<BR> December&nbsp;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">For the<BR> Period from<BR> January 11,<BR> 2021<BR> (inception) to<BR> December&nbsp;31,<BR> 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">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -9pt; padding-left: 9pt">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,842,175</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,962,726</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: -9pt; padding-left: 9pt">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 0.25in">Amortization</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">166,667</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Common shares issued for services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">Vesting of restricted stock units</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">317,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">207,125</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.25in">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: -9pt; padding-left: 0.5in">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(130,772</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(93,920</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.5in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">217,282</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,175</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 0.5in">Accounts payable, related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,337</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,665</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: -9pt; padding-left: 0.5in">Accrued 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">199,256</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 27pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(918,197</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">(1,479,014</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; text-indent: -9pt; padding-left: 9pt">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; padding-bottom: 1.5pt; text-indent: -9pt; padding-left: 9pt">Advances to 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">(190,339</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">(124,427</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: -9pt; padding-left: 27pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(190,339</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">(124,427</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; text-indent: -9pt; padding-left: 9pt">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: -9pt; padding-left: 9pt">Issuance of founders&rsquo; 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">10,400</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">Issuance of common stock for cash</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">3,070,072</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: -9pt; padding-left: 9pt">Common control acquisitions</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <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">(360,930</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; text-indent: -9pt; padding-left: 27pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,719,542</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: -9pt; padding-left: 9pt">Net change in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,108,536</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,116,101</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">Cash and cash equivalents at beginning of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,116,101</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="text-align: left; padding-bottom: 4pt; text-indent: -9pt; padding-left: 9pt">Cash and cash equivalents at end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,565</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,116,101</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -9pt; padding-left: 9pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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: -9pt; padding-left: 9pt">Supplemental disclosure of cash flow information:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Cash paid for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Cash paid for interest</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></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: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&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: -9pt; padding-left: 9pt">Supplemental disclosure of non-cash investing and financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Intangible assets acquired for stock from related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -9pt; padding-left: 9pt">Liabilities assumed in common control asset acquisition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">40,930</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>The accompanying notes are an integral part
of these financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>&nbsp;</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_011"></A>LQR HOUSE INC.<BR>
Notes to Financial Statements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>1.</B> <B>NATURE OF OPERATIONS</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">LQR House Inc. (&ldquo;LQR&rdquo; or the &ldquo;Company&rdquo;)
was incorporated on January 11, 2021, in the state of Delaware. The Company operates primarily in the beverage alcohol industry owning
specialty brands, providing marketing and distribution services.</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">As of December 31, 2022, the Company has not achieved
its planned level of operations. The Company&rsquo;s activities since inception have been limited and consisted of formation activities,
commencement of operations and capital raising activities. The Company has preparations to further raise capital and increase its operational
activity. To date, the Company has only generated limited amounts of revenue subsequent to the asset acquisitions disclosed in Note 4
related to product sales, and it has just begun to scale its marketing revenue related efforts. The Company is dependent upon additional
capital resources for the scaling of its planned principal operations and is subject to significant risks and uncertainties; including
failing to secure additional funding to operationalize the Company&rsquo;s planned operations or failing to profitably operate the business.</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">On February 3, 2023, the Company changed its state
of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation (the &ldquo;Reorganization&rdquo;). On February
3, 2023, in accordance with our reincorporation to Nevada, the Company&rsquo;s authorized capital stock changed from 100,000,000 shares
of common stock, $0.001 par value, to 350,000,000 shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share,
and 50,000,000 shares of preferred stock, par value $0.0001 per share. At the same time, the Company also completed a 6-for-1 reverse
stock split of our outstanding common stock through the merger by issuing one share of common stock for every six previously outstanding
shares of common stock of the predecessor Delaware company (See Note 10). Accordingly, all share and per share amounts of the Company
for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable,
to reflect this stock split. See Note 10 for additional amendments in 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>2.</B> <B>GOING CONCERN</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has evaluated whether there are certain
conditions and events, considered in the aggregate, that raise substantial doubt about the Company&rsquo;s ability to continue as a going
concern within one year after the date that the financial statements are issued.</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">The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has not generated profits since inception, has sustained net losses of $1,842,175 and $1,962,726 for the periods
ended December 31, 2022 and 2021, and has negative cash flows from operations for the periods ended December 31, 2022 and 2021. The Company&rsquo;s
cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses and obligations
for the next 12 months from the date of these financial statements. These factors among others raise substantial doubt about the Company&rsquo;s
ability to continue as a going concern for a reasonable period of time.</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">The Company&rsquo;s ability to continue as a going
concern is dependent upon its ability to obtain the necessary financing and generate future profitable operations to meet its obligations
and repay its liabilities arising from normal business operations when they come due. Management has in the past, and is expected to in
the future, arrange additional equity or debt financing and grow revenues that may assist in addressing these issues. No assurance can
be given that management&rsquo;s actions will result in additional financing or profitable operations or the resolution of its liquidity
problems. The accompanying financial statements do not include any adjustments that might result should the Company be unable to continue
as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>3.</B> <B>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Basis of Presentation</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 accounting and reporting policies of the Company
conform to accounting principles generally accepted in the United States of America (&ldquo;GAAP&rdquo;). The Company&rsquo;s fiscal year
end is December 31.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Company is an emerging growth company as the
term is used in The Jumpstart Our Business Startups Act and has elected to comply with certain reduced public company reporting requirements,
however, the Company may adopt accounting standards based on the effective dates for public entities when early adoption is permitted.</P>

<P STYLE="font: 10pt Times 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>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">The preparation of the Company&rsquo;s financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include,
but are not limited to, revenue recognition, related party and common control transactions and valuations of common stock. The Company
bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be
reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts
and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times 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>Significant Risks and Uncertainties</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">The Company is subject to customary risks and
uncertainties including, but not limited to, the need for protection of proprietary technology, dependence on key personnel, costs of
services provided by third parties, the need to obtain additional financing, and limited operating history.</P>

<P STYLE="font: 10pt Times 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>Variable Interest Entities</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">The Company evaluates its relationships with other
entities to identify whether they are variable interest entities as defined by Financial Accounting Standards Board (&ldquo;FASB&rdquo;)
Accounting Standards Codification (&ldquo;ASC&rdquo;) Topic 810, Consolidation (&ldquo;ASC 810&rdquo;), and to assess whether it is the
primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated.
The Company evaluated whether it was the primary beneficiary in its common control asset acquisitions (Note 4) and related party agreements
(Note 5) and determined it is not the primary beneficiary of any entities.</P>

<P STYLE="font: 10pt Times 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>Concentrations of Credit Risk</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">The Company maintains its cash with a major financial
institution located in the United States of America which it believes to be credit worthy. Balances are insured by the Federal
Deposit Insurance Corporation up to&nbsp;$250,000.&nbsp;At times, the Company maintains balances in excess of the federally insured limits.</P>

<P STYLE="font: 10pt Times 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>Concentrations</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 significant portion of the Company&rsquo;s revenue
generating activities were with a related party customer, Country Wine &amp; Spirts (&ldquo;CWS&rdquo;). During the periods ended December
31, 2022 and 2021, 25% and 42% of the Company&rsquo;s revenue, respectively, was with CWS, including all product related revenues. As
of December 31, 2022 and 2021, CWS accounted for 100% of the Company&rsquo;s account receivable.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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&rsquo;s ability to derive revenue
from marketing services is reliant on its relationship and marketing license agreement with <FONT STYLE="font-family: Times New Roman, Times, Serif">Ssquared
Spirits LLC, a related party entity, and CWS who fulfills sales for the products sold by clientele using our marketing services. The discontinuance
of such relationships or termination of the marketing license agreement would have a material negative impact on the Company&rsquo;s operations.
</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">Furthermore, the Company relies and expects to
continue to rely on a small number of vendors. The loss of one of these vendors may have a negative short-term impact on the Company&rsquo;s
operations. However, the Company believes there are acceptable substitute vendors that can be utilized longer-term.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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><I>Cash and Cash Equivalents</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">The Company considers all highly liquid investments
with maturities of three months or less at the date of purchase to be 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"><B><I>Fair Value Measurements</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">Certain assets and liabilities of the Company
are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs
and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed
in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered
unobservable:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Level 1&mdash;Quoted prices in active markets for identical
assets or liabilities.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Level 2&mdash;Observable inputs (other than Level 1 quoted
prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for
identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Level 3&mdash;Unobservable inputs that are supported by little
or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted
cash flow methodologies and similar techniques.</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 carrying values of the Company&rsquo;s accounts
receivable and accounts payable approximate their fair values due to the short maturity of these instruments. &nbsp;The Company believes
the carrying amount of its advances to related parties approximate fair value due to its short-term maturity.</P>

<P STYLE="font: 10pt Times 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>Accounts Receivable</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">Accounts receivable are derived from services
and products delivered to customers and are stated at their net realizable value. Each month, the Company reviews its receivables on a
customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection
issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have
been exhausted and the potential for recovery is considered remote.</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>Intangible Assets</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 Company capitalized the value of stock issued
related to the Company&rsquo;s April 2021 exclusive marketing agreement with CWS (see Note 5). The license is amortized on a straight-line
basis over the life of the agreement, which is ten years.</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>Impairment of Long-Lived Assets</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 Company continually monitors events and changes
in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances
are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will
be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of
those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. The Company did not record
any impairment losses on its long-lived assets as of December 31, 2022 or 2021.</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>Related Parties</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">Related parties are any entities or individuals
that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies
of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries.
The Company follows ASC 850, <I>Related Party Disclosures</I>, for the identification of related parties and disclosure of related party
transactions.</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></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>Revenue Recognition</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with FASB ASC 606, <I>Revenue from
Contracts with Customers</I>&cedil; the Company determines revenue recognition through the following steps:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Identification of a contract with a customer;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Identification of the performance obligations in the contract;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Determination of the transaction price;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Allocation of the transaction price to the performance obligations
in the contract; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Recognition of revenue when or as the performance obligations
are satisfied.</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">Revenue is recognized when performance obligations
are satisfied through the transfer of control of promised goods to the Company&rsquo;s customers in an amount that reflects the consideration
expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability
to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical
possession, the risks and rewards of ownership, and customer acceptance.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 derives its revenue from marketing
services, distribution of its SWOL Tequila product to CWS, and subscription-based membership revenue. Revenue is reported net of discounts.</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>Marketing Services</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company contracts with third-party alcoholic
beverage brands to utilize access to the CWS alcoholic beverage website (the &ldquo;CWS Platform). The Company and the brands enter into
a commercial relationship. The Company performs services such as creating a marketing campaign strategy, developing promotional materials
and advertising promotional materials through the CWS Platform. Revenue is recognized over a period time, as the marketing services are
being continually provided on a daily and monthly basis over the life of an agreed upon campaign. Marketing campaigns generally range
from one to three months.</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>Product Sales</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company wholly owns SWOL Tequila, a tequila
made in limited batches from a third-party producer located in Mexico. The Company facilitates all efforts to get the product delivered
to CWS for retail distribution in the United States, including advancing costs for production, shipping and other importing and delivery
charges. The Company is entitled to payment of cost plus an additional 20% on each bottle of SWOL Tequila sold to CWS. Revenue is recognized
at the point in which the products are delivered to CWS, when LQR has fulfilled its performance obligation. Due to certain restrictions
on the delivery and custodianship of alcoholic beverage, CWS is require to take ownership of the product at time of delivery, and there
is no recourse or right of return. The Company records gross revenue as it&rsquo;s the primary obligor in the transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the periods ended December 31, 2022 and
2021, all SWOL Tequila product revenue was earned with CWS, a related party which makes up all product sales in the accompanying statement
of operations.</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>Vault</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">Vault is the exclusive membership program for
CWS customers. Through the CWS Platform, users can sign up for membership where they will have access to all products available through
CWS combined with special membership benefits including discounted products, free shipping and promotional offers.&nbsp; The Company markets
this membership program on the CWS Platform and is entitled to 50% of the revenue from the subscriptions.&nbsp; Members are charged monthly
membership fees, and the Company recognizes the 50% fee it is entitled to from CWS as net revenue.&nbsp;The Company records revenue on
transactions when the user initially subscribes or renews their membership, as the Company is the agent of the transaction and do not
typically provide significant post transaction services to the user or bear responsibility for the promised goods or services included
in the membership.&nbsp; The Company records a reserve for chargebacks and cancellations at the time of the transaction based on historical
experience.&nbsp;During the year ended December 31, 2022, revenue from Vault memberships totaled $20,524, which was earned with a related
party CWS.&nbsp; Such amounts were included in advances to related party as a receivable, and collected subsequent to December 31, 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"></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>Contract Balances</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Accounts receivable represent amounts owed from
marketing and product sales invoiced, but not yet received,</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">Contract liabilities represent obligations to
transfer services to a customer for which the Company has already received consideration. Payments for marketing services are generally
received upfront in advance of the Company satisfying the related performance obligation and are recorded as a deferred revenue liability.
The deferred revenue is reduced as the services are performed and the revenue is recognized. As of December 31, 2022 and 2021, the Company
had $0 in deferred revenue.</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>Cost of Revenue</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">Cost of revenue consists of all direct costs attributable
to performing marketing services and the Company&rsquo;s product sales. Cost of revenue includes affiliate payouts, contracted marketing
services, direct advertising costs for marketing campaigns, product costs, packaging, shipping and other importing and delivery charges.
Cost of revenue also includes customer service personnel and amortization of the Company&rsquo;s marketing license asset (see Note 5).</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 and Marketing </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">Sales and marketing costs primarily consist of
advertising, promotional expenses and marketing consulting and advisory services. Sales and marketing costs also include sales commissions.</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>Deferred Offering Costs</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company complies with the requirements of
FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred
offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or
to expense if the offering is not completed.</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>Stock-Based Compensation&#9;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Stock-based compensation is accounted for in accordance
with ASC Topic 718-10, <I>Compensation-Stock Compensation</I> (&ldquo;ASC 718-10&rdquo;). The Company measures all equity-based awards
granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation
expense for those awards over the requisite service period, which is generally the vesting period of the respective award.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 classifies equity based compensation
expense in its statement of operations in the same manner in which the award recipient&rsquo;s payroll or contractor costs are classified
or in which the award recipient&rsquo;s service payments are classified.</P>

<P STYLE="font: 10pt Times 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>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">The Company uses the liability method of accounting
for income taxes as set forth in ASC 740, Income Taxes. Under the liability method, deferred taxes are determined based on the temporary
differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the
years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will
not be realized. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation
of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where
there is a greater than 50% likelihood that a tax benefit will be sustained, our policy will be to record the largest amount of tax benefit
that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information.
For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized
in the financial statements.</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>Net Loss per Share</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net earnings or loss per share is computed by
dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to
redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share
reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities
outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would
be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2022 and 2021, diluted net loss per share
is the same as basic net loss per share for each year. Potentially dilutive common stock equivalents outstanding as of December 31, 2021
include 262,500 unvested restricted stock units, which vested in 2022 (see Note 6).</P>

<P STYLE="font: 10pt Times New Roman, Times, 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><I>Recently Issued and Adopted Accounting Pronouncements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the Financial Accounting Standards
Board (&ldquo;FASB&rdquo;) issued Accounting Standard Update (&ldquo;ASU&rdquo;) 2016-02, <I>Leases</I> (ASC 842). This ASU requires a
lessee to recognize a right-of-use asset and a lease liability under most operating leases in its balance sheet. The ASU is effective
for annual and interim periods beginning after December 15, 2021. Early adoption is permitted. The Company elected to early adopt ASC
842 upon inception. The Company does not have any long-term leases that are recorded in accordance with ASC 842.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management does not believe that any other recently
issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting
pronouncements are issued, the Company will adopt those that are applicable under the circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>4.</B> <B>COMMON CONTROL ASSET ACQUISITIONS</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>SWOL Asset Acquisition</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">On March 19, 2021, the Company entered into an
agreement (the &ldquo;SWOL Agreement&rdquo;) with Dollinger Holdings LLC, a company under common control, pursuant to which the Company
acquired assets related to the online or in-person sale of original tequila and other products branded SWOL (the &ldquo;SWOL Division&rdquo;).
Prior to the acquisition, the SWOL Division activity was minimal and consisted of test runs to determine viability. The SWOL Agreement
included the assignment of contracts relating to production of original tequila for exclusive importation into the United States and a
distribution agreement by which SWOL branded products are marketed and sold through online channels by the Company. In addition, the Company
received all the intellectual property assets and registrations to conduct the business of selling SWOL products. Pursuant to the terms
of the agreement, the Company paid Dollinger Holdings LLC $220,000 in cash and 2,666,667 shares of common stock of the Company. Additionally,
the Company paid $40,930 in cash pursuant to SWOL&rsquo;s existing liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company determined that the SWOL Agreement
should be accounted for as an asset acquisition under common control, and therefore the transaction should be recognized at carrying value
and prospectively applied. The Company determined there was no carrying value associated with the assets acquired under the SWOL Agreement.
The total consideration issued was $261,197, consisting of the cash payments and the par value of the common shares issued. This amount
was recorded as a reduction in additional paid-in capital on the statement of stockholders&rsquo; equity.</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>Soleil Vino Asset Acquisition</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">On May 31, 2021, the Company entered into an agreement
(the &ldquo;Soleil Agreement&rdquo;) with Dollinger Holdings LLC, a company under common control, pursuant to which the Company received
(a) all sourcing agreements with third party vendors for all Soleil Vino and related branded products, (b) all trademarks for Soleil Vino
and all associated trade dress and intellectual property rights, (c) all labels, logos and other branding bearing the Soleil Vino marks
and (d) website and all related digital and social media content including but not limited to influencer networks, domain and all related
content and all related sales channels. Prior to the acquisition, Soleil Vino had no business activity. Pursuant to the terms of the agreement,
the Company paid Dollinger Holding LLC $100,000 in cash and issued 666,667 common shares of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company determined that the Soleil Agreement
should be accounted for as an asset acquisition under common control, and therefore the transaction should be recognized at carrying value
and prospectively applied. The Company determined there was no carrying value associated with the assets acquired under the Soleil Agreement.
The total consideration issued was $100,067, consisting of the cash payments and the par value of the common shares issued. This amount
was recorded as a reduction in additional paid-in capital on the statement of stockholders&rsquo; equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>5.</B> <B>INTANGIBLE ASSETS</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>CWS Exclusive Marketing Agreement</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">On April 1, 2021, the Company, CWS, and another
related entity, Ssquared Spirits LLC (&ldquo;Ssquared&rdquo;), entered into an exclusive marketing agreement (the &ldquo;CWS Agreement&rdquo;).
Pursuant to this agreement, CWS and Ssquared granted the Company the exclusive right to promote and market spirits and other beverage
products through the CWS website (cwspirtis.com) for sale to customers located within Canada, Mexico and the United States. The Company
has the sole right to manage and make decisions with regard to user facing content on the website, including the placement and removal
of products and the creation and management of promotional initiatives. The term of the CWS Agreement is ten years. Pursuant to the agreement,
the Company issued 1,666,667 shares of common stock to the members of Ssquared.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 Company capitalized the fair value of the
consideration transferred, $2,500,000 (or $1.50 per share), as an intangible asset which will be amortized over the term agreement of
ten (10) years. During the periods ended December 31, 2022 and 2021, the Company amortized $250,000 and $166,667, respectively which is
included in cost of revenue &ndash; services in the statement of operations. As of December 31, 2022 and 2021, the unamortized balance
was $2,083,333 and $2,333,333, respectively. Annual amortization expense is expected to be $250,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the CWS Agreement, the Company
paid finders&rsquo; fees of $150,000, which was included in general and administrative expenses in the statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>6.</B> <B>STOCKHOLDERS&rsquo; EQUITY</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to the Reorganization described in Note 1, the Company was authorized
to issue up to 100,000,000 shares of common stock, par value $0.001 per share. Upon the Reorganization described in Note 1, the Company
is authorized to issue 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.0001 per share (see Note
10).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, there were 9,200,405
and 8,937,905 shares of common stock issued and outstanding, respectively, after the 1-for-6 reverse stock split in connection with the
Reorganization. The accompanying financial statements and related disclosures have been presented to retroactively reflect the Reorganization.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The holders of outstanding shares of common stock
are entitled to one vote for each share of Common stock held at all meetings of 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">In January 2021, the Company issued 1,733,333
shares to its founders for $10,400 in proceeds, which was the original par value of the issuances.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 February 2021, the Company entered into several
stock purchase and subscription agreements and issued 2,033,737 shares of common stock at a price of $1.50 per share for a total amount
of $3,020,072, net of transaction costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the SWOL Agreement in March 2021,
the Company issued 2,666,667 shares to Dollinger Holdings LLC in a common control transaction (see Note 4).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the CWS Agreement in April 2021, the
Company issued 1,666,667 shares to the members of Squared, which includes our Chief Executive Officer, for a fair value of $2,500,000,
or $1.50 per share (see Note 4).</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 2021, the Company entered two stock purchase
and subscription agreements and issued 16,667 shares of common stock at a price of $3.00 per share for a total amount of $50,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the Soleil Vino acquisition in May
2021, the Company issued 666,667 shares to Dollinger Holdings LLC (see Note 4). In conjunction with the Soleil Vino Agreement, the Company
entered into a finder&rsquo;s fee agreement with a third-party whereby Company issued 66,667 shares of common stock valued at $100,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The fair value of common stock issued in 2021
equity-based transactions was determined based on the predominate selling price of shares to third parties during the period.</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>Restricted Stock Units</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 18, 2021, the Company implemented its
2021 Stock Option and Incentive Plan (the &ldquo;Plan&rdquo;). The maximum number of shares of common Stock issuable under The Plan is
1,666,667. In March 2021, the Company granted 350,000 restricted stock units (&ldquo;RSUs&rdquo;) to certain key employees, directors,
consultants, and advisors of the Company pursuant to the Company&rsquo;s 2021 Stock Option and Incentive Plan (the &ldquo;Plan&rdquo;).
Each unit was to vest in 25% increments every six months for a period of two years from the date of issuance. As of December 31, 2021,
87,500 RSUs vested and were issued and outstanding shares of common stock, and 262,500 remained unvested. The RSUs had a grant-date fair
value of $525,000. During the period ended December 31, 2021, the Company recognized $207,813 in stock-based compensation, of which $197,917
was included in general and administrative expenses and $9,896 was included in sales and marketing expenses in the statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In September 2022, the Company accelerated the
vesting of the remaining 87,500 unvested restricted stock units and therefore an aggregate of 262,500 shares were vested during 2022.
Upon this, all 350,000 RSUs granted in 2021 were vested and outstanding shares of common stock. <FONT STYLE="font-family: Times New Roman, Times, Serif">During
the year ended December 31, 2022, the Company recognized $317,875 in stock-based compensation, of which $301,875 was included in general
and administrative expenses and $16,000 was included in sales and marketing expenses in the statement of operations. </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">As of December 31, 2022, all restricted stock
units were vested.</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>Regulation A Offering</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2022, the Company received its notice
of qualification from the Securities and Exchange Commission under Regulation A. The offering was terminated in June 2022. No securities
were sold under the offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>7.</B> <B>RELATED PARTY TRANSACTIONS</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>CWS and Ssquared Spirits LLC</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 Company&rsquo;s founder and controlling stockholder
has an economic interest in Ssquared Spirits LLC, the e-commerce affiliate of CWS. The spouse of the Company&rsquo;s former Chief Executive
Officer and director, is the President and controlling stockholder of CWS and the managing member and director of Ssquared Spirits LLC.
In 2022, the former Chief Executive Officer resigned from the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the terms of the CWS Agreement, the
Company issued an aggregate of 1,666,667 shares of common stock, consisting of 333,333 shares to our founder who is the Chief Executive
Officer and a Director of the Company, and 1,333,334 shares of common stock to an entity owned by the CWS President and managing member
of Ssquared Spirits LLC.</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>SWOL Tequila</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the periods ended December 31, 2022 and
2021, the Company earned product revenues of $130,772 and $132,527, respectively from CWS. As of December 31, 2022 and 2021, the Company
had $224,692 and $93,920, respectively, in accounts receivable with CWS. Such amounts were collected subsequent to December 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Vault</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the year ended December 31, 2022, the Company
earned service revenues of $20,524 pertaining to Vault memberships from CWS.</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>Advances to CWS</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the periods ended December 31, 2022 and
2021, the Company paid certain costs pertaining to alcoholic products on behalf of CWS in order finance the purchase of brand product
for which the Company was promoting through marketing services. The advances totaled $190,340 and $124,427, respectively, during the periods
ended December 31, 2022 and 2021. As of December 31, 2022 and 2021, $314,766 and $124,427, respectively, remained unpaid and outstanding
from CWS. The advances are non-interest bearing, unsecured and due on demand. All advances were collected subsequent to December 31, 2022.</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>Dollinger Holdings LLC</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">Dollinger Holdings LLC is an entity under common
control with the Company&rsquo;s founder and controlling stockholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 31, 2022 and 2021, the Company
had accounts payable of $101,250 and $33,665, respectively, with this entity.</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; text-indent: 0.25in">See Note 4 for acquisition
of assets from Dollinger Holdings, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>8.</B> <B>INCOME TAXES</B></P>



<P STYLE="font: 10pt Times New Roman, Times, 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 the periods ended December&nbsp;31, 2022 and
2021, the Company did not record a current or deferred income tax expense or benefit due to current and historical losses incurred by
the Company. The Company&rsquo;s losses before income taxes consist solely of losses from domestic 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">Deferred taxes are recognized for temporary differences
between the basis of assets and liabilities for financial statement and income tax purposes. The following table presents the deferred
tax assets and liabilities by source:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="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 STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Deferred tax assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-left: 9pt">Net operating loss carryforwards</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">765,808</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">409,616</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">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">(765,808</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">(409,616</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 9pt">Net deferred tax assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company recognizes deferred tax assets to
the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers
all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable
income, tax-planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance against its
net deferred tax assets and determined a full valuation allowance is required due, cumulative losses through December 31, 2022, and no
history of generating taxable income. Therefore, valuation allowances of $765,808 and $409,616, respectively, were recorded as of December
31, 2022. Valuation allowance increased by $356,192 during the year ended December 31, 2022. Deferred tax assets were calculated using
the Company&rsquo;s combined effective tax rate, which it estimated to be approximately 28.0%. The effective rate is reduced to 0% for
2022 and 2021 due to the full valuation allowance on its net deferred tax assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s ability to utilize net operating
loss carryforwards will depend on its ability to generate adequate future taxable income. At December 31, 2022 and 2021, the Company had
net operating loss carryforwards available to offset future taxable income in the amounts of approximately $2,740,000 and $1,465,000,
respectively, which can be carried forward indefinitely. Certain changes in ownership can result in a limitation on the amount of net
operating loss and tax credit carryovers that can be utilized each year. As of December 31, 2022, management has not determined the extent
of any such limitations, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 evaluated its income tax positions
and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any
uncertain tax positions through its income tax expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 taxation in the U.S.
and various state jurisdictions. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though all tax
years from 2021 on remain open to examination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>9.</B> <B>COMMITMENTS AND CONTINGENCIES</B></P>



<P STYLE="font: 10pt Times New Roman, Times, 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 may be subject to pending legal proceedings
and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the
Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its
business, financial condition or results of operations.</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>Warrant</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">In February 2022, the Company granted a warrant
to an advisor in connection with Company&rsquo;s potential Regulation A financing. The number of warrants granted equals $2,000,000 (&ldquo;Equity
Value&rdquo;) divided by the Regulation A offering price. The warrant was to vest immediately upon qualification of the Form 1-A filing
in connection with the Regulation A financing. The warrant was to terminate on the earliest of five years or the termination of the advisory
agreement. In March 2022, the Company was qualified under its Form 1-A filing. On March 17, 2023, the Company and advisor entered into
a Warrant Surrender Agreement whereby the advisor agreed to the cancellation of the warrants and to the surrender of all of its right
for no consideration. As there was no derived value related to these warrants based on subsequent cancellation, no expense was recognized.</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>Engagement Letter</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">On December 1, 2022, the Company entered into
an engagement letter with Boustead Securities, LLC to assist in the private placement of securities (&ldquo;pre-IPO Financing&rdquo;)
and the initial public offering or other registered securities offerings (&ldquo;IPO&rdquo;) in the United States listing on NASDAQ. Boustead
will act as exclusive financial advisor, placement agent and underwriter in connection with the Company&rsquo;s pre-IPO Financing and
IPO. The Company has agreed to pay Boustead certain commissions based on future financings as defined in the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"> <B>10.</B> <B>SUBSEQUENT EVENTS</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Conversion to Nevada Corporation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 3, 2023, the Company changed its state
of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation. On February 3, in accordance with our reincorporation
to Nevada, the Company&rsquo;s authorized capital stock changed from 100,000,000 shares of common stock, $0.001 par value, to 350,000,000
shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value
$0.0001 per share. At the same time, the Company also completed a 6-for-1 reverse stock split of our outstanding common stock through
the merger by issuing one share of common stock for every six previously outstanding shares of common stock of the predecessor Delaware
company. <FONT STYLE="font-family: Times New Roman, Times, Serif">The accompanying financial statements and related disclosures have been
presented to retroactively reflect the Reorganization.</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>Amendment to Articles of Incorporation</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">On March 29, 2023, the Company amended its articles
of incorporation to institute a dual class share structure consisting of Class A Common Stock, and Class B Common Stock, and any number
of classes of Preferred Stock. Class A Common Stock is entitled to twenty (20) votes per share on proposals requiring or requesting shareholder
approval, and Class B Common Stock is entitled to one (1) vote on any such matter. A share of Class A Common Stock may be voluntarily
converted into a share of Class B Common Stock. A transfer of a share of Class A Common Stock will result in its automatic conversion
into Class B Common Stock upon such transfer, subject to certain exceptions, including that the transfer of shares of Class A Common Stock
to another holder of Class A Common Stock will not result in such automatic conversion. Class B Common Stock is not convertible. Other
than as to voting and conversion rights, Class A Common Stock and Class B Common Stock have the same rights and preferences and rank equally,
share ratably and are identical in all respects as to all matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to this amendment, the Company&rsquo;s authorized
capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of common stock, par value $0.0001 per share, of which
20,000,000 shares are designated Class A Common Stock, $0.0001 par value per share, and 280,000,000 shares are designated Class B Common
Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of &ldquo;blank check&rdquo; preferred stock, $0.0001 par value per share.
All shares of common stock issued and outstanding at the time of the amendment became shares of Class B 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">Management has evaluated subsequent events through
April 5, 2023, the date the financial statements were available to be issued. Based on this evaluation, no additional material events
were identified which require adjustment or disclosure in these financial statements.</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: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_010.jpg" ALT=""></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>LQR House Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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"><B>&nbsp;</B></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; text-indent: 27pt"><FONT STYLE="font-size: 12pt"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><B>,
2023</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 27pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Until and including &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 (the 25th day after
the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering,
may be required to deliver a prospectus. This is in addition to a dealer&rsquo;s obligation to deliver a prospectus when acting as an
underwriter and with respect to an unsold allotment or subscription.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt; 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="color: Red"><B>The
information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not
soliciting offers to buy these securities in any state where the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>SUBJECT
TO COMPLETION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="color: Red"><B>PRELIMINARY
PROSPECTUS DATED June 14, 2023</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="image_010.jpg" ALT="">&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>LQR House Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">5,381,668 Shares of Common Stock</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">This prospectus relates to 5,381,668 shares of
Common Stock, $0.0001 par value per share, or the Common Stock, of LQR House Inc. that may be sold from time to time by the selling stockholders
named in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not receive any proceeds from the sales
of outstanding common stock by the selling stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prior to this offering, there has been no public
market for our shares. We are in the process of applying to list our shares of Common Stock on the Nasdaq Capital Market tier operated
by The Nasdaq Stock Market LLC, or Nasdaq, under the symbol &ldquo;LQR&rdquo;. Nasdaq might not approve such application, and if our application
is not approved, this offering cannot be completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are an &ldquo;emerging growth company&rdquo;,
as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal securities laws, and are eligible for reduced
public company reporting requirements. See &ldquo;<I>Risk Factors&mdash;Risks Related to This Offering and Ownership of Common Stock&mdash;We
will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging
growth companies, and our stockholders could receive less information than they might expect to receive from more mature public companies</I>.&rdquo;
for more information.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders may offer and sell the
Common Stock being offered by this prospectus from time to time in public or private transactions, or both. These sales will occur at
a fixed price of $5 per share until our Common Stock is listed on Nasdaq. Thereafter, these sales will occur at fixed prices, at market
prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. The selling stockholders
may sell shares to or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions
or commissions from the selling stockholders, the purchasers of the shares, or both. Any participating broker-dealers and any selling
stockholders who are affiliates of broker-dealers may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities
Act of 1933, as amended, and any commissions or discounts given to any such broker-dealer or affiliates of a broker-dealer may be regarded
as underwriting commissions or discounts under the Securities Act of 1933, as amended. The selling stockholders have informed us that
they do not have any agreement or understanding, directly or indirectly, with any person to distribute their common stock. See &ldquo;<I>Plan
of Distribution</I>&rdquo; for a more complete description of the ways in which the shares may be sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investing in our securities is highly speculative
and involves a high degree of risk.&nbsp; See &ldquo;<I>Risk Factors</I>&rdquo; beginning on page <FONT STYLE="background-color: White">11
</FONT>for a discussion of information that should be considered in connection with an investment in our 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"><B>Neither the U.S. Securities and Exchange Commission
nor any state or provincial securities commission has approved or disapproved of these securities or determined if this prospectus is
truthful or complete.&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: 0pt 0; text-align: justify"><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: center"><B>The date of this prospectus is [&nbsp;&nbsp;&nbsp;].</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><B>[Alternate
Page for Resale Prospectus]</B></FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>The
Offering</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 30%">Common stock offered by the selling stockholders:</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 68%; text-align: justify">This prospectus relates to 5,381,668 shares of Common Stock that may be sold from time to time by the selling stockholders named in this prospectus.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Shares outstanding as of the date of this prospectus: </TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">10,155,434 shares of Common Stock.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Shares outstanding after the offering: (1)</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">11,155,434 shares of Common Stock (or 11,305,434 shares if the underwriters exercise the over-allotment option in full).</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Use of proceeds:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We will not receive any proceeds from the sales of outstanding Common Stock by the selling stockholders.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Risk factors:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Investing in our Common Stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the &ldquo;Risk Factors&rdquo; section beginning on page&nbsp;11 before deciding to invest in our Common Stock.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Trading market and symbol:</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">We have applied to list our Common Stock on Nasdaq under the symbol &ldquo;LQR&rdquo;.&nbsp;&nbsp;We believe that upon the completion of this offering, we will meet the standards for listing on Nasdaq.&nbsp;&nbsp;The closing of this offering is contingent upon the successful listing of our Common Stock on Nasdaq.</TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">The number of shares of common stock outstanding immediately
following this offering is based on 10,155,434 shares of Common Stock <FONT STYLE="font-family: Times New Roman, Times, Serif">outstanding
</FONT>as of the date of this prospectus, and excludes:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify">1,250,000 shares of Common Stock that are reserved for issuance
to our directors, director nominees, and officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">50,000 shares of Common Stock (57,500 shares of Common Stock
if the underwriters exercise the over-allotment option in full) issuable upon exercise of a warrant to be issued to the underwriters
in connection with this offering; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">150,000 shares of Common Stock issuable upon the underwriters&rsquo;
exercise of the over-allotment option in full.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not receive any proceeds from the sale
of Common Stock by the selling stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders will pay any underwriting
discounts and commissions and expenses incurred by them for brokerage, accounting, tax or legal services or any other expenses incurred
by them in disposing of the shares. We will bear all other costs, fees and expenses incurred in effecting the registration of the shares
covered by this prospectus, including, without limitation, all registration and filing fees and fees and expenses of our counsel and our
accountants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>[Alternate Page for Resale
Prospectus]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SELLING STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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. Except for the ownership of these securities
or as otherwise disclosed below, the selling stockholders have not had any position, office, or other material relationship with us or
any of our predecessors or affiliates within the past three years, and based on the information provided to us by the selling stockholders,
no selling stockholder is a broker-dealer or an affiliate of a broker-dealer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Beneficial ownership is determined in accordance
with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities.
For purposes of this table, a person or group of persons is deemed to have &ldquo;beneficial ownership&rdquo; of any shares of common
stock that such person or any member of such group has the right to acquire within sixty (60) days of the date of this prospectus. For
purposes of computing the percentage of outstanding shares of our common stock held by each person or group of persons named below, any
shares that such person or persons has the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding
for such person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion
herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table below lists the selling stockholders
and other information regarding the beneficial ownership of the shares of common stock by each of the selling stockholders. The second
column lists the number of shares of Common Stock beneficially owned by each selling stockholder. The third column lists the shares of
Common Stock being offered by this prospectus by the selling stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders can offer all, some or
none of their shares of Common Stock. See &ldquo;<I>Plan of Distribution</I>.&rdquo; We therefore have no way of determining the number
of shares of Common Stock each selling Stockholder will hold after this offering. Therefore, the fourth and fifth columns assume that
each selling stockholder will sell all shares of Common Stock covered by this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&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">Common&nbsp;Stock<BR>
Beneficially&nbsp;Owned <BR>
Prior to this Offering</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="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Number of<BR>
 Shares&nbsp;Being<BR>
 Offered&nbsp;in&nbsp;this</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="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Common Stock<BR>
 Beneficially Owned <BR>
After this Offering</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">Name of Selling Stockholder</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">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent <SUP>(1)</SUP></B></FONT></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">Offering</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">Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent <SUP>(2)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">KBROS, LLC <SUP>(3)</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,333,334</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">13.13</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">1,333,334</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">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Index Equity US LLC <SUP>(4)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.39</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joel Abbo <SUP>(5)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">816,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.04</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">750,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,667</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.95</TD><TD STYLE="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">Kiranjit Sidhu <SUP>(6)</SUP></FONT></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">5.91</TD><TD STYLE="text-align: left">%</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><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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2200049 AB Inc. <SUP>(7)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">591,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.82</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">591,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1000038756 Ontario Inc. <SUP>(8)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.92</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gregory Hoffman <SUP>(9)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.92</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14847156 Canada Inc. <SUP>(10)</SUP></FONT></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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.46</TD><TD STYLE="text-align: left">%</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><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"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lorne Rapkin <SUP>(11)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">123,334</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.21</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,334</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.33</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Myron Rapkin <SUP>(12)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">7,334</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">0.07</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">7,334</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold">Total</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,471,669</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">53.87</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">%</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,381,668</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">90,001</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1.28</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 34px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Applicable
percentage ownership is based on 10,155,434 shares of Common Stock deemed to be outstanding as of the date of this prospectus.</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%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 34px; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Applicable
percentage ownership is based on 11,155,434 shares of Common Stock which will be deemed to be outstanding following this offering.</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 0pt 27pt; text-align: justify; text-indent: -27pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>[Alternate Page for Resale
Prospectus]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.35in; text-align: left">(3)</TD><TD STYLE="text-align: justify">KBROS, LLC is owned by Shawn Kattoula. Shawn Kattoula is
deemed to beneficially own the shares of Common Stock owned by KBROS, LLC because he has voting and investment control over the shares.
KBROS, LLC&rsquo;s address is 1771 Burwell Ln El Cajon, CA 92019, United States.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(4)</TD><TD STYLE="text-align: justify">Index Equity US LLC is owned by Bjarne Borg. Bjarne Borg
is deemed to beneficially own the shares of Common Stock owned by Index Equity US LLC because he has voting and investment control over
the shares. Index Equity US LLC&rsquo;s address is 1000 North US Highway One, Ste 902, Jupiter, FL 33477, United States.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(5)</TD><TD STYLE="text-align: justify">Consists of 750,000 shares of Common Stock held in the name
of Joel Abbo, which are being offered in this offering, and 66,667 shares of Common Stock held in the name of Jobel Foundation. Jobel
Foundation, a Panama corporation, is owned by Joel Abbo. Joel Abbo is deemed to beneficially own the shares of Common Stock owned by
Jobel Foundation because he has voting and investment control over the shares. Jobel Foundation&rsquo;s business address is Punta Pacifica,
Bellagio Tower, Apt 1-B Panama, Republic of Panama.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(6)</TD><TD STYLE="text-align: justify">The Selling Stockholder has voting and investment control
over the shares. The address of the Selling Stockholder is 130 West Clark Street, Medford, OR 97501, United States.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(7)</TD><TD STYLE="text-align: justify">2200049 AB Inc. is owned by Greg Bealer. Greg Bealer is deemed
to beneficially own the shares of Common Stock owned by 2200049 AB Inc. because he has voting and investment control over the shares.
2200049 AB Inc.&rsquo;s address is 16 Wolf Willow Point, Edmonton AB, T5T 1E3, Canada.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(8)</TD><TD STYLE="text-align: justify">1000038756 Ontario Inc. is owned by Kristen Kiernander. Kristen
Kiernander is deemed to beneficially own the shares of Common Stock owned by 1000038756 Ontario Inc. because she has voting and investment
control over the shares. 1000038756 Ontario Inc.&rsquo;s address is 217 Queen St. W, Toronto, ON, M5V 0R2, Canada.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(9)</TD><TD STYLE="text-align: justify">The Selling Stockholder has voting and investment control
over the shares. The address of the Selling Stockholder is 1945 S Ocean Dr Suite 805, Hallandale Beach, FL 33009, United States.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(10)</TD><TD STYLE="text-align: justify">Consists of 250,000 shares of Cmmon Stock held in the name
of 14847156 Canada Inc., which are being offered in this offering. 14847156 Canada Inc. is owned by Carla Kavalec and Wendy Nickless,
each owning 50% of the company. Carla Kavalec and Wendy Nickless are deemed to beneficially own the shares of Common Stock owned by 14847156
Canada Inc. because, each of them owning 50% of the company, together have 100% voting and investment control over the shares. 14847156
Canada Inc.&rsquo;s address is 450 Roland Godard, St. Jerome, QB, J7Y 4G8, Canada. Not included are the 16,667 shares of Common Stock
owned solely by Carla Kavalec. Not included are the 16,667 shares of Common Stock owned solely by Wendy Nickless.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(11)</TD><TD STYLE="text-align: justify">Consists of 100,000 shares of Common Stock held in the name
of Lorne Rapkin, which are being offered in this offering, and 23,334 shares of Common Stock held in the name of BSL Consulting Inc.
Lorne Rapkin owns BSL Consulting Inc, an Ontario Corporation. Lorne Rapkin is deemed to beneficially own the shares of Common Stock owned
by BSL Consulting Inc. because he has voting and investment control over the shares. BSL Consulting Inc.&rsquo;s business address is
28 Northmount Avenue, Toronto, ON, M3H 1N4, Canada.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&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: 0.35in; text-align: left">(12)</TD><TD STYLE="text-align: justify">The Selling Stockholder has voting and investment control
over the shares. The address of the Selling Stockholder is 217 Ridley Blvd., Suite 706, Toronto, ON, M5M 4N1, Canada.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; text-indent: -27pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>[Alternate Page for Resale
Prospectus]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: center"><B>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">Each selling stockholder and any of
their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on any
stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales will occur at fixed
prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. A selling
stockholder may use any one or more of the following methods when selling securities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">ordinary
                                            brokerage transactions and transactions in which the broker-dealer solicits purchasers;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">block
                                            trades in which the broker-dealer will attempt to sell the securities as agent but may position
                                            and resell a portion of the block as principal to facilitate the transaction;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">purchases
                                            by a broker-dealer as principal and resale by the broker-dealer for its account;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">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 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">privately
                                            negotiated transactions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">settlement
                                            of short sales;</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"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">in
                                            transactions through broker-dealers that agree with the selling stockholders to sell a specified
                                            number of such securities at a stipulated price per security;</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"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">through
                                            the writing or settlement of options or other hedging transactions, whether through an options
                                            exchange or otherwise;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">a
                                            combination of any such methods of sale; or</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">any
                                            other method permitted pursuant to applicable law.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Notwithstanding anything to the contrary stated
above, until trading of the Common Stock commences on Nasdaq, sales by the selling stockholders will occur at a fixed price, which will
be the assumed offering price of $5.00 per share. The selling stockholders may also sell securities under Rule 144 or any other exemption
from registration under the Securities Act of 1933, as amended, or the Securities Act, if available, rather than under 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">Broker-dealers engaged by the selling stockholders
may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders
(or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except
as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission
in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">In connection with the sale of the
securities or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling stockholders
may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities to broker-dealers
that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers
or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other
financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>[Alternate Page for Resale
Prospectus]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">The selling stockholders and any broker-dealers
or agents that are involved in selling the securities may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities
Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale
of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each selling stockholder
has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute
the securities. Each selling stockholder has represented and warranted to us that it acquired the securities subject to this prospectus
in the ordinary course of such selling stockholder&rsquo;s business and, at the time of its purchase of such securities such selling stockholder
had no agreements or understandings, directly or indirectly, with any person to distribute any such securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.35pt; text-align: justify">We are required to pay certain fees
and expenses incurred by us incident to the registration of the securities, but we will not receive any proceeds from the sale of our
Common Stock. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The resale securities covered hereby will be sold
only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states,
the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or
an exemption from the registration or qualification requirement is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 applicable rules and regulations under
the Securities Exchange Act of 1934, as amended, or the Exchange Act, any person engaged in the distribution of the resale securities
may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined
in Regulation M, prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales
of the common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling
stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the
sale (including by compliance with Rule 172 under the Securities Act).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>[Alternate Page for Resale
Prospectus]</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nauth LPC has acted as our counsel in connection
with the preparation of this prospectus.&nbsp;The validity of the securities covered by this prospectus will be passed upon by Sherman
&amp; Howard L.L.C., Phoenix, Arizona.</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"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>PART&nbsp;II</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>INFORMATION NOT REQUIRED IN THE PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 13. Other Expenses of Issuance and Distribution</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">The following table sets forth the costs and expenses,
other than underwriting discounts and commissions, payable by us in connection with the sale of shares of Common Stock being registered.
All amounts, other than the SEC registration fee, Nasdaq listing fee and FINRA filing fee, are estimates. We will pay all these expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">SEC registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,356.76</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Nasdaq listing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">50,000.00</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">FINRA filing fee</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">6,430.25</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">100,000.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">198,542.25</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Transfer agent fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,000.00</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">Printing and related fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,000.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Miscellaneous</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</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></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">364,509.26</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">To be filed by amendment.</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 14. Indemnification of Directors and Officers </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">We are a Nevada corporation. The Nevada Revised
Statutes and certain provisions of our bylaws under certain circumstances provide for indemnification of our officers, directors and controlling
persons against liabilities which they may incur in such capacities. A summary of the circumstances in which such indemnification is provided
for is contained herein, but this description is qualified in its entirety by reference to our bylaws and to the statutory provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In general, any officer, director, employee or
agent may be indemnified against expenses, fines, settlements or judgments arising in connection with a legal proceeding to which such
person is a party, if that person&rsquo;s actions were in good faith, were believed to be in our best interest, and were not unlawful.
Unless such person is successful upon the merits in such an action, indemnification may be awarded only after a determination by independent
decision of our board of directors, by legal counsel, or by a vote of our stockholders, that the applicable standard of conduct was met
by the person to be indemnified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The circumstances under which indemnification
is granted in connection with an action brought on our behalf is generally the same as those set forth above; however, with respect to
such actions, indemnification is granted only with respect to expenses actually incurred in connection with the defense or settlement
of the action. In such actions, the person to be indemnified must have acted in good faith and in a manner believed to have been in our
best interest, and have not been adjudged liable for negligence or misconduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indemnification may also be granted pursuant to
the terms of agreements which may be entered in the future or pursuant to a vote of stockholders or directors. The Nevada Revised Statutes
also grant us the power to purchase and maintain insurance which protects our officers and directors against any liabilities incurred
in connection with their service in such a position, and such a policy may be obtained by us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To the maximum extent permitted by law, our articles
of incorporation eliminate or limit the liability of our directors to us or our shareholders for monetary damages for breach of a director&rsquo;s
fiduciary duty as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have entered or intend to enter into separate
indemnification agreements with our directors and officers. Each indemnification agreement will provide, among other things, for indemnification
to the fullest extent permitted by law and our articles of incorporation and bylaws against any and all expenses, judgments, fines, penalties
and amounts paid in settlement of any claim. The indemnification agreements will provide for the advancement or payment of all expenses
to the indemnitee and for reimbursement to us if it is found that such indemnitee is not entitled to such indemnification under applicable
law and our articles of incorporation and bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are in the process of obtaining standard policies
of insurance under which coverage is provided (a)&nbsp;to our directors and officers against loss rising from claims made by reason of
breach of duty or other wrongful act, and (b)&nbsp;to us with respect to payments which we may make to such officers and directors pursuant
to the above indemnification provision or otherwise as a matter of&nbsp;law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The underwriting agreement, filed as Exhibit&nbsp;1.1
to this registration statement, will provide for indemnification, under certain circumstances, by the underwriter of us and our officers
and directors for certain liabilities arising under the Securities Act or&nbsp;otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been
informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore
unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 15. Recent Sales of Unregistered Securities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the past three years, we issued the following
securities, which were not registered under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2021 Formation Transactions</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 March 19, 2021, we, as buyer, and Dollinger
Holdings LLC, Dollinger Innovations Inc., and Sean Dollinger, our Chief Executive Officer and Secretary, as sellers, engaged in an asset
purchase agreement, the SWOL Tequila Asset Purchase. Pursuant to that agreement, Dollinger Holdings LLC, which is wholly owned by Sean
Dollinger, received $220,000 in cash, Sean Dollinger received 16,000,000 shares of our common stock, (2,666,667 shares of common stock
on a post-stock split basis) and we obtained ownership of the assets and liabilities that constitute the SWOL brand and SWOL Tequila Branding.
The assets and liabilities constituting the SWOL Brand and SWOL Tequila Branding were held in part by Dollinger Holdings LLC and Dollinger
Innovations.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 April 1, 2021, we, CWS, and Ssquared entered
into an Exclusive Marketing Agreement. Pursuant to that agreement, CWS and Ssquared granted us exclusive marketing rights regarding any
of CWS and Ssquared&rsquo;s products, and Sean Dollinger, our Chief Executive Officer and 50% owner of Ssquared received 2,000,000 shares
of our common stock (333,334 shares of common stock on a post-stock split basis), and KBros, LLC, the owner of CWS and 50% owner of Ssquared,
received 8,000,000 shares of our common stock. (1,333,334 shares of common stock on a post-stock 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">On May 31, 2021, we engaged in an asset purchase
agreement, the Soleil Vino Asset Purchase Agreement, with Dollinger Holdings LLC. Pursuant to that agreement, we purchased the assets
and liabilities associated with the Soleil Vino wine club and its products, and Dollinger Holding LLC, wholly owned by Sean Dollinger,
received $100,000 in cash and Sean Dollinger, or Chief Executive Officer, received 3,800,000 shares of our common stock (633,334 shares
of common stock on a post-stock split basis), and Andrea Cooke received 200,000 shares of our common stock (33,334 shares of common stock
on a post-stock split basis). In conjunction with the acquisition the Company entered into a finder&rsquo;s fee agreement with a third
party which 400,000 shares of our common stock were issued (66,667 shares of common stock on a post-stock 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"><B><I>2021 Private Placements</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">On January 20, 2021, we issued 10,400,000 shares
of our common stock (1,733,334 shares of common stock on a post-stock split basis) at a price of $0.001 per share, for a total of $10,400.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 12, 2021, we issued 10,148,424 shares
of our common stock (1,691,404 shares of common stock on a post-stock split basis) at a price of $0.25 per share, for a total of $2,537,106.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 19, 2021, we issued 1,800,000 shares
of our common stock (300,000 shares of common stock on a post-stock split basis) at a price of $0.25 per share, for a total of $450,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 22, 2021, we issued 254,000 shares
of our common stock (42,334 shares of common stock on a post-stock split basis) at a price of $0.25 per share, for a total of $63,500.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 April 26, 2021, we issued 100,000 shares of
our common stock (16,667 shares of common stock on a post-stock split basis) at a price of $0.50 per share, for a total of $50,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></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>Equity Award Conversions</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">On September 18, 2021, 525,000 of our restricted
stock units (87,500 restricted stock units on a post-stock split basis), which were issued on March 18, 2021, were converted into 525,000
shares of our common stock (87,500 shares of common stock on a post-stock split basis).</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 July 11, 2022, 525,000 of our restricted stock
units (87,500 restricted stock units on a post-stock split basis), which were issued on March 18, 2021, were converted into 525,000 shares
of our common stock (87,500 shares of common stock on a post-stock split basis).</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 September 30, 2022, 1,050,000 of our restricted
stock units (175,000 restricted stock units on a post-stock split basis), which were issued on March 18, 2021, were converted into 1,050,000
shares of our common stock (175,000 shares of common stock on a post-stock split basis).<B><I>&nbsp;</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>2023 Private Placement</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">On June 1, 2023, we conducted a private placement
of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in Section 2(a)(15)
of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons made in compliance
with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000 shares of Common
Stock at $1.00 per share for a total of $955,000.</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>2023 Advisor Agreements</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">On June 1, 2023, we entered into advisor agreements
with certain advisors, pursuant to which the advisors will provide business and corporate advice in connection with the Offering to the
Company. In consideration for the advisor&rsquo;s services, the Company issued 500,000 shares of Common Stock to six individuals and entities,
for an aggregate of 3,000,000 shares of Common Stock.</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>Other</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2022, we issued a contingent warrant
to Issuance Inc. pursuant to a consulting agreement, dated September 27, 2021, between Issuance Inc. and the Company. The warrant was
exercisable on a cashless basis for a number of shares of our common stock equaling $2,000,000, based on the offering price of a proposed
Regulation A offering which was qualified on March 7, 2022, and withdrawn on June 27, 2022. The term of the warrant is five years. However,
because the Regulation A offering was withdrawn, and no securities were sold thereunder, the warrant was cancelled.</P>

<P STYLE="font: 10pt Times New Roman, Times, 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 otherwise stated above, the issuances of
these securities were made in reliance upon exemptions provided by Section&nbsp;4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation
D thereunder for the offer and sale of securities not involving a public 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">No underwriter was engaged in connection with
the foregoing sales of securities. The Company has reason to believe that all of the foregoing purchasers were familiar with or had access
to information concerning the operations and financial condition of the Company, and all of those individuals or entities purchasing securities
represented that they were accredited investors, acquiring the shares for investment and without a view to the distribution thereof. At
the time of issuance, all of the foregoing securities were deemed to be restricted securities for purposes of the Securities Act and the
certificates representing such securities bore legends to that effect.</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></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"><B>Item 16. Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a) Exhibits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-bottom: black 1.5pt solid; vertical-align: top; width: 9%">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Exhibit No.</B></P></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; vertical-align: bottom; width: 90%"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">1.1*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Form of Underwriting Agreement</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">2.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex2-1_lqr.htm"><FONT STYLE="font-size: 10pt">Plan of Conversion of LQR House Inc., dated as of January 26, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex3-1_lqr.htm"><FONT STYLE="font-size: 10pt">Articles of Incorporation of LQR House Inc. filed on February 3, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex3-2_lqr.htm"><FONT STYLE="font-size: 10pt">Certificate of Amendment to Articles of Incorporation of LQR House Inc. filed on March 29, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">3.3</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex3-3_lqr.htm"><FONT STYLE="font-size: 10pt">Certificate of Amendment to Articles of Incorporation of LQR House Inc. filed on June 5, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">3.4</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex3-4_lqr.htm"><FONT STYLE="font-size: 10pt">Certificate of Correction to the Certificate of Amendment to Articles of Incorporation filed on April 11, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">3.5</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex3-5_lqr.htm"><FONT STYLE="font-size: 10pt">Bylaws of LQR House Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">4.1*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Form of Representative&rsquo;s Warrant (included in Exhibit 1.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">4.2*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Form of Placement Agent&rsquo;s Warrant</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">5.1*</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Opinion of Sherman &amp; Howard LLC</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-1_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Private Placement Subscription Agreement 2021</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-2_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Private Placement Subscription Agreement 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-3_lqr.htm"><FONT STYLE="font-size: 10pt">Packaging of Origin Co-Responsibility Agreement dated July 6, 2020, between Leticia Hermosillo Ravelero and Sean Dollinger</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-4_lqr.htm"><FONT STYLE="font-size: 10pt">Shared Responsibility &amp; Bonding Agreement dated March 19, 2021, between Leticia Hermosillo Ravelero and Dollinger Innovations Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-5_lqr.htm">Exclusive License Agreement dated May 18, 2020 by and between Dollinger Holdings and Dollinger Innovations</A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-6_lqr.htm"><FONT STYLE="font-size: 10pt">Product Distribution Agreement, dated July 1, 2020, between Dollinger Holdings and Country Wine &amp; Spirits Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-7_lqr.htm"><FONT STYLE="font-size: 10pt">Asset Purchase Agreement, dated May 31, 2021, between LQR House Inc. and Dollinger Holdings LLC</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-8_lqr.htm">Asset Purchase Agreement, dated March 19, 2021, among LQR House Inc. and Dollinger Innovations Inc., Dollinger Holdings LLC and Sean Dollinger</A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-9_lqr.htm"><FONT STYLE="font-size: 10pt">Exclusive Marketing Agreement, dated April 1, 2021, by and among Country Wine &amp; Spirits, Inc., Ssquared Spirits, LLC, and LQR House, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.10&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-10_lqr.htm"><FONT STYLE="font-size: 10pt">Employment Agreement between LQR House Inc. and Sean Dollinger, dated March 29, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.11&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-11_lqr.htm"><FONT STYLE="font-size: 10pt">Employment Agreement between LQR House Inc. and Kumar Abhishek, dated May 1, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.12&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-12_lqr.htm"><FONT STYLE="font-size: 10pt">Employment Agreement between LQR House Inc. and Jaclyn Hoffman, dated May 1, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.13</FONT>&dagger;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-13_lqr.htm"><FONT STYLE="font-size: 10pt">Employment Agreement between LQR House Inc. and Alexandra Hoffman, dated May 1, 2023</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.14</FONT>&dagger;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-14_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Independent Director Agreement between LQR House Inc. and each director nominee</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.15&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-15_lqr.htm">Form of Non-Independent Director Agreement between LQR House Inc. and Non-Independent Director</A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.16</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-16_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Director and Officer Indemnification Agreement between LQR House Inc. and each officer or director</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.17&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">LQR House Inc. 2021 Stock Option and Incentive Plan</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.18&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-18_lqr.htm"><FONT STYLE="font-size: 10pt">Amendment No. 1 to the LQR House Inc. 2021 Stock Option and Incentive Plan</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.19&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Incentive Stock Option Agreement (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.20&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Non-Qualified Stock Option Agreement for Non-Employee Directors (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.21&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Non-Qualified Stock Option Agreement for Company Employees (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.22&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Non-Qualified Stock Option Agreement for Non-Employee Consultants (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.23&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Restricted Stock Award Agreement (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.24&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Restricted Stock Unit Award Agreement for Non-Employee Directors (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.25&dagger;</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex10-17_lqr.htm"><FONT STYLE="font-size: 10pt">Form of Restricted Stock Unit Award Agreement for Company Employees (included in Exhibit 10.17)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">10.26</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea179659ex10-26_lqr.htm">Form of Advisor Agreement</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.27</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea179659ex10-27_lqr.htm">Commercial Lease Agreement</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">14.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex14-1_lqr.htm"><FONT STYLE="font-size: 10pt">Code of Ethics and Business Conduct</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">21.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex21-1_lqr.htm"><FONT STYLE="font-size: 10pt">List of Subsidiaries</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex23-1_lqr.htm"><FONT STYLE="font-size: 10pt">Consent of dbb<I>mckennon</I></FONT></A></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">23.2*</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">Consent of&nbsp;Sherman &amp; Howard LLC (included in Exhibit 5.1)</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">24.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="#a_023"><FONT STYLE="font-size: 10pt">Power of Attorney (included on the signature page of this registration statement)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">99.1</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-1_lqr.htm"><FONT STYLE="font-size: 10pt">Audit Committee Charter</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">99.2</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-2_lqr.htm"><FONT STYLE="font-size: 10pt">Compensation Committee Charter</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">99.3</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-3_lqr.htm"><FONT STYLE="font-size: 10pt">Nominating and Corporate Governance Committee Charter</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">99.4</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-4_lqr.htm"><FONT STYLE="font-size: 10pt">Consent of Guy Dollinger to be named as a director nominee</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">99.5</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-5_lqr.htm"><FONT STYLE="font-size: 10pt">Consent of Holiday Russell to be named as a director nominee</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">99.6</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-6_lqr.htm"><FONT STYLE="font-size: 10pt">Consent of James Huber to be named as a director nominee</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">99.7</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex99-7_lqr.htm"><FONT STYLE="font-size: 10pt">Consent of James O&rsquo;Brien to be named as a director nominee</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 10pt">107</FONT></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea179659ex-fee_lqr.htm"><FONT STYLE="font-size: 10pt">Filing Fee Table</FONT></A></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</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: 25%"><DIV STYLE="border-top: Black 1.5pt solid; font-size: 1pt">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">To be filed by amendment.</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: 0.25in; text-align: left">&dagger;</TD><TD STYLE="text-align: justify">Executive compensation plan or arrangement.</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) Financial Statement Schedules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All financial statement schedules are omitted
because the information called for is not required or is shown either in the financial statements or in the notes thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 17. Undertakings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned registrant hereby undertakes to
provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered
in such names as required by the underwriters to permit prompt delivery to each purchaser.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(a)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933 (the &ldquo;Act&rdquo;);</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">To reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in this registration statement; notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent
no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table
in the effective registration statement; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(iii)</TD><TD STYLE="text-align: justify">To include any material information with respect to the plan of distribution not previously disclosed
in this registration statement or any material change to such information in this registration statement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">That, for the purpose of determining any liability under
the Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein,
and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(3)</TD><TD STYLE="text-align: justify">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.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(4)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability under the Act to any purchaser, each prospectus filed pursuant
to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or
other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of
the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement
or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement
or made in any such document immediately prior to such date of first use.</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 0pt 0.5in; text-align: justify; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">(5)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability of the registrant under the Act to any purchaser in the
initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will
be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(i)</TD><TD STYLE="text-align: justify">Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required
to be filed pursuant to Rule 424;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant
or used or referred to by the undersigned registrant;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(iii)</TD><TD STYLE="text-align: justify">The portion of any other free writing prospectus relating to the offering containing material information
about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(iv)</TD><TD STYLE="text-align: justify">Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(b)</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities arising under the Act may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 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.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(c)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes that:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(i)</TD><TD STYLE="text-align: justify">For purposes of determining any liability under the Act, the information omitted from the form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Act shall be deemed to be part of this registration statement as of the time it
was declared effective.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(ii)</TD><TD STYLE="text-align: justify">For purposes of determining any liability under the Act, each post-effective amendment that contains a
form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering thereof.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; 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_023"></A>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Vancouver, Province of British Columbia, on June 14, 2023.</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>&nbsp; &nbsp;</TD>
    <TD COLSPAN="3"><B>LQR House Inc.</B></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>By:</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid">/s/ Sean Dollinger</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; width: 60%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 4%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%">Name:&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 31%">Sean Dollinger</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">Title:</TD>
    <TD STYLE="vertical-align: bottom"> Chief Executive Officer and Secretary</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>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Each person whose signature appears below constitutes
and appoints each of Sean Dollinger and Kumar Abhishek as his or her true and lawful attorneys-in-fact and agents with full power of substitution
and resubstitution, for him and his name, place and stead, in any and all capacities, to sign any or all amendments (including post-effective
amendments) to this registration statement and to file a new registration statement under Rule 461, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact
and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the
foregoing, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or their substitutes, may lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 36%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SIGNATURE</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 50%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>TITLE</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 12%; border-bottom: black 1.5pt solid; 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>&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/ Sean Dollinger</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Executive Officer </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 14, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sean Dollinger</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal Executive Officer), Secretary and Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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/ Kumar Abhishek</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">June 14, 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Kumar Abhishek</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Principal Financial and Accounting Officer)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&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/ Alexandra Hoffman</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 14, 2023</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Alexandra Hoffman</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
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  <TR>
    <TD STYLE="vertical-align: top; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Darren Collins</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><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 14, 2023</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Darren Collins</FONT></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
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As
filed with the Securities and Exchange Commission on June 14, 2023
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-1
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
LQR
House Inc.
(Exact
name of registrant as specified in its charter)
Nevada
2080
86-1604197
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
6800
Indian Creek Dr. Suite 1E
Miami
Beach, FL 33141
(786)
389-9771
(Address,
including zip code, and telephone number, including area code, of registrant's principal executive offices)
Sean
Dollinger
Chief
Executive Officer
6800
Indian Creek Dr. Suite 1E
Miami
Beach, FL 33141
(786)
389-9771
(Names,
address, including zip code, and telephone number, including area code, of agent for service)
Copies
    to:
Daniel
                           Nauth
Nauth
    LPC
217
    Queen St. W., #401
Toronto,
    ON M5V 0R2
Canada
(416)
    477-6031
Ross
                           Carmel, Esq.
Carmel,
    Milazzo & Feil LLP
55
    West 39th Street, 4th Floor
New
    York, NY 10018
(212)
    658-0458
Approximate
date of commencement of proposed sale to the public:
As soon as practicable after this Registration Statement becomes effective.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, check the following box. ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company,
or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer ☒
Smaller reporting company ☒
Emerging growth company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for comply
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ☐
The registrant
hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant
shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance
with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission,
acting pursuant to such Section 8(a), may determine.
EXPLANATORY
NOTE
This
registration statement contains two prospectuses, as set forth below.
●
Public
                                            Offering Prospectus
. A prospectus to be used for the public offering of 1,000,000
                                            shares of Common Stock through the underwriter named on the cover page of this prospectus,
                                            which we refer to as Public Offering Prospectus.
●
The
                                            Resale Prospectus
. A prospectus to be used for the resale by selling stockholders
                                            of 5,381,668 shares of Common Stock, which we refer to as the Resale Prospectus.
The
Resale Prospectus is substantively identical to the Public Offering Prospectus, except for the following principal points:
●
they
                                            contain different front covers;
●
they
                                            contain different Offering sections in the Prospectus Summary;
●
they
                                            contain different Use of Proceeds sections;
●
the
                                            Capitalization and Dilution sections are deleted from the Resale Prospectus;
●
a
                                            Selling Stockholders section is included in the Resale Prospectus;
●
the
                                            Underwriting section from the Public Offering Prospectus is deleted from the Resale
                                            Prospectus and a Plan of Distribution section is inserted in its place; and
●
the
                                            Legal Matters section in the Resale Prospectus deletes the reference to counsel for the underwriters.
The
registrant has included in this registration statement a set of alternate pages after the back cover page of the Public Offering Prospectus,
which we refer to as the Alternate Pages, to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering
Prospectus. The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant.
The Resale Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the
Alternate Pages and will be used for the resale offering by the selling stockholders.
The
information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not
soliciting offers to buy these securities in any state where the offer or sale is not permitted.
SUBJECT
TO COMPLETION
PRELIMINARY
PROSPECTUS DATED June 14, 2023
LQR
House Inc.
1,000,000
Shares of Common Stock
This
is an initial public offering ("IPO," "offering," or "initial public offering") of our shares of
Common Stock, $0.0001 par value per share ("Common Stock"). We are offering 1,000,000 of our shares of Common Stock. We currently
estimate that the initial public offering price of our Common Stock will be between $4 and $6 per share.
Prior
to this offering, there has been no public market for our shares. We are in the process of applying to list our shares of Common Stock
on the Nasdaq Capital Market tier operated by The Nasdaq Stock Market LLC, or Nasdaq, under the symbol "LQR". Nasdaq might
not approve such an application, and if our application is not approved, this offering cannot be completed.
We
are an "emerging growth company", as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal
securities laws, and are eligible for reduced public company reporting requirements. See "
Risk Factors—Risks Related to
This Offering and Ownership of Common Stock—We will be subject to ongoing public reporting requirements that are less rigorous
than Exchange Act rules for companies that are not emerging growth companies, and our stockholders could receive less information than
they might expect to receive from more mature public companies.
" for more information.
Investing
in our securities is highly speculative and involves a high degree of risk.  See "
Risk Factors
" beginning on
page 11 for a discussion of information that should be considered in connection with an investment in our Common
Stock.
Neither
the U.S. Securities and Exchange Commission nor any state or provincial securities commission has approved or disapproved of these securities
or determined if this prospectus is truthful or complete.  Any representation to the contrary is a criminal offense.
Per Share
Total
Assumed initial public offering price
$
5.00
$
5,000,000
Underwriting discounts and
    commissions
(1)
$
0.40
$
400,000
Proceeds to us, before expenses
$
4.60
$
4,600,000
(1)
Does
                                            not include the following additional compensation payable to the underwriters. In addition
                                            to the compensation referenced above, we have agreed to pay to EF Hutton, division of Benchmark
                                            Investments, LLC, ("EF Hutton"), the representative of the underwriters (the
                                            "Representative"), a non-accountable expense allowance equal to one percent (1.00%)
                                            of the gross proceeds raised and to reimburse the underwriters for certain expenses incurred
                                            relating to this Offering. In addition, we will issue to the Representative a warrant to
                                            purchase up to that number of shares of our Common Stock equal to five percent (5.00%) of
                                            the number of shares of Common Stock sold in this Offering. The registration statement of
                                            which this prospectus forms a part also registers the issuance of the shares of Common Stock
                                            issuable upon exercise of the representative's warrants. See "
Underwriting
"
                                            for additional disclosure regarding underwriters' compensation and offering expenses.
This
offering is being conducted on a firm commitment basis. The underwriters are obligated to take and purchase all of the shares of Common
Stock offered under this prospectus if any such shares are taken.
We
have granted the underwriters an option for a period of 45 days after the closing of this IPO to purchase up to 15% of the total number
of our shares to be offered by us pursuant to this offering (excluding shares subject to this option), solely for the purpose of covering
over-allotments, at the initial public offering price less the underwriting discount. If the underwriters exercise the option in full,
the total underwriting discount and commissions, not including other offering expenses, will be $460,000 based on the assumed initial
public offering price of $5 per share, which is the midpoint of the estimated range of the initial public offering shown on the cover
page of this prospectus, and the total gross proceeds to us, before underwriting discounts, commissions and expenses, will be $5,750,000.
Net proceeds will be delivered to us on the closing date.
The
underwriters expect to deliver the shares of Common Stock to purchasers in the offering on or about [*].
EF
Hutton
division
of Benchmark Investments, LLC
The
date of this prospectus is
[          ]
, 2023.
TABLE
OF CONTENTS
Page
Prospectus Summary
1
Risk Factors
11
Cautionary Statement Regarding Forward-Looking Statements
27
Use of Proceeds
28
Dividend Policy
29
Capitalization
30
Dilution
31
Management's Discussion and Analysis of Financial Condition and Results of Operations
32
Corporate History and Structure
40
Business
42
Management
55
Executive Compensation
60
Certain Relationships and Related Party Transactions
69
Principal Shareholders
70
Description of Securities
73
Shares Eligible for Future Sale
76
Material U.S. Federal Tax Considerations for Non-U.S. Holders of Our Common Stock
78
Underwriting
82
Legal Matters
86
Experts
86
Where You Can Find More Information
86
Financial Statements
F-1
Please
read this prospectus carefully. It describes our business, financial condition, results of operations and prospects, among other things.
We are responsible for the information contained in this prospectus and in any free-writing prospectus we have authorized. Neither we
nor the underwriter have authorized anyone to provide you with different information, and neither we nor the underwriter take responsibility
for any other information others may give you. Neither we nor the underwriter are making an offer to sell these securities in any jurisdiction
where the offer or sale is not permitted. The information contained in this prospectus is accurate only as of the date on the front of
this prospectus, regardless of the time of delivery of this prospectus or any sale of shares of our Common Stock. You should not assume
that the information contained in this prospectus is accurate as of any date other than its date.
INDUSTRY
AND MARKET DATA
We
are responsible for the information contained in this prospectus. This prospectus includes industry data and forecasts that we obtained
from industry publications and surveys as well as public filings and internal company sources. Industry publications, surveys and forecasts
generally state that the information contained therein has been obtained from sources believed to be reliable. Statements as to our ranking,
market position and market estimates are based on third-party forecasts, management's estimates and assumptions about our markets
and our internal research. We have not independently verified such third-party information, nor have we ascertained the underlying economic
assumptions relied upon in those sources. While we believe that all such information contained in this prospectus is accurate and complete,
nonetheless such data involve uncertainties and risks, including risks from errors, and is subject to change based on various factors,
including those discussed under "
Risk Factors
" and "
Cautionary Statement Regarding Forward-Looking Statements
."
i
PROSPECTUS
SUMMARY
This
summary highlights selected information contained elsewhere in this prospectus. This summary is not complete and does not contain all
of the information that you should consider before deciding whether to invest in our Common Stock. You should carefully read the entire
prospectus, including the risks associated with an investment in our company discussed in the "Risk Factors" section of this
prospectus, before making an investment decision. Some of the statements in this prospectus are forward-looking statements. See the section
titled "Cautionary Statement Regarding Forward-Looking Statements."
In
this prospectus, unless the context indicates otherwise, "we," "us," "our," "LQR House,"
"the Company," "our company" and similar references refer to the operations of LQR House Inc., a Nevada corporation.
Our
Company
Overview
Our company, LQR House Inc., intends to become
the full-service digital marketing and brand development face of the alcoholic beverage space.. Currently, LQR has a key partnership
with Country Wine & Spirits Inc. ("CWS"). LQR House holds the rights for all marketing elements for CWS allowing significant
support for emerging brands, whilst their exclusive influencer network serves as affiliates for LQR House directing traffic to www.cwspirits.com
as explained below. It is important to note that we do not engage in the sale or distribution of any alcoholic products. Currently, the
importation of alcoholic beverage products is handled by Rilo Import & Export Inc. and all alcoholic beverage products are distributed
to customers through our agreement with CWS, a licensed distributor. Our business includes the development through marketing of premium
limited batch spirit brands, which includes establishing an exclusive wine club, and marketing internal and external brands through an
exclusive agreement with a U.S.-based e-commerce portal, CWS Platform as explained below. We believe that the marketing and brand management
services we provide to our wholly owned and third-party clients will increase the brand recognition thereof, and drive sales thereof
through our e-commerce platform partner.
Our
Key Partnerships with CWS and Ssquared
We have an exclusive marketing agreement with
Country Wine & Spirits Inc. and Ssquared Spirits Inc., which we refer to as CWS and Ssquared, respectively, and which together own
and operate one of the largest online retailers of liquor in the United States, located at www.cwspirits.com, which we refer to as the
CWS Platform. In this three-way business relationship, Ssquared operates the CWS Platform on a day-to-day basis, for example, by ensuring
timely stocking of product and communicating with the CWS influencer network; CWS provides import, fulfillment, and distribution services
for all products sold on the CWS Platform; and our company handles 100% of the promotion of spirits and other beverage products through
the internet and through various social media channels.
Specifically,
our company obtained the sole right to manage and make decisions regarding user-facing content on the CWS Platform, including the placement
and removal of products and the creation and management of promotional initiatives. The grant of rights to our company is exclusive such
that, during the term of this agreement, April 1, 2021, through April 1, 2031, Ssquared and CWS shall not grant to any third party any
right to promote or advertise products on the CWS Platform and shall not shall directly or indirectly promote or advertise any products
themselves. This agreement may be terminated upon a material breach by a party thereto that goes uncured for longer than 30 days or at
any time by our company with thirty days written notice to each of CWS and Ssquared. For additional information about the consideration
due under the agreement, please see "
Certain Relationships and Related Party Transactions
–
Transactions with Related
Persons
".
Our
relationship with CWS and Ssquared is the cornerstone of our business. Under our agreement with CWS and Ssquared, we can focus on our
competitive strengths, which include marketing and brand promotion. Our relationship and agreement with CWS and Ssquared provide us access
to approximately 241,000 customers via the CWS mailing lists and recurring traffic on the CWS Platform. This agreement also allows us
to market our brands on the CWS Platform and have them sold and distributed by our partners, CWS and Ssquared. Moreover, any third-party
brands seeking to have their products marketed on the CWS Platform can only do so by becoming a client of the Company.
Our
Historical Performance
The
Company's independent registered public accounting firm has expressed substantial doubt as to the Company's ability to continue
as a going concern. We had minimal cash as of March 31, 2023 and December 31, 2022 of $23,581 and $7,565, respectively. During the three
months ended March 31, 2023 and 2022, we had net losses of $322,074 and $701,128, respectively. For the years ended December 31, 2022
and 2021, our net loss was $1,842,175 and $1,962,726, respectively. The Company's cash balance and revenues generated are not currently
sufficient and cannot be projected to cover its operating expenses and obligations for the next 12 months. The Company expects to fund
its operations for the next 12 months through equity financing arrangements and sales of its services. However, the Company may not be
able to raise adequate funds for capital expenditures, working capital and other cash requirements from capital markets on acceptable
terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company's failure to raise capital as
and when needed and generate significantly higher revenues than operating expenses to achieve profitability would impact its going concern
status and would have a negative impact on its financial condition and its ability to pursue its business strategy and continue as a
going concern. For further discussion, see "
Management's Discussion and Analysis of Financial Condition and Results of
Operations – Liquidity and Capital Resources – Going Concern
".
1
The
Services and Brands We Market
The
following products and services constitute the core elements of our business model and allow us to serve various types of customers in
the alcohol industry, including individual consumers, wholesalers, and third-party alcohol brands:
●
SWOL
                                            Tequila
is a limited-edition blend of Añejo Tequila made in exclusive batches
                                            of up to 10,000 bottles and represents the first installment under our "SWOL"
                                            trademark with application number 2345291 and registration number 2141431 which was originally
                                            owned by Dollinger Innovations and transferred over to LQR House Inc. pursuant to an asset
                                            purchase agreement dated March 19, 2021, among LQR House Inc. and Dollinger Innovations Inc.,
                                            Dollinger Holdings LLC and Sean Dollinger. Pursuant to the asset purchase agreement, LQR
                                            House Inc. purchased all of the right, title and interest in the trademarks SWOL and all
                                            associated trade dress and intellectual property rights and all labels, logos and other branding
                                            bearing the SWOL marks or any mark substantially similar to the same. Tequila bearing the
                                            "SWOL" trademark is produced by Casa Cava de Oro S.A., an authentic tequila distillery
                                            in Jalisco, Mexico, imported into the United States through Rilo Import & Export Inc.
                                            by CWS and sold to retail customers in the United States via the CWS Platform and in CWS's
                                            physical locations.
●
Vault
is the exclusive membership program for the CWS Platform, which is offered and managed
                                            by the Company. We receive the subscriptions fees generated by this program. Through the
                                            CWS Platform, users can sign up for this exclusive membership where they will have access
                                            to all products available through CWS combined with special membership benefits.
●
Soleil
                                            Vino
will be a wine subscription service marketed on the CWS Platform that will offer
                                            a unique selection of vintage and limited production wines. Through the CWS Platform, users
                                            will be able to sign up for this exclusive membership where they will have access to curated
                                            selections of wine from around the world. With Soleil Vino, we intend to create the premium
                                            wine subscription service on the market with high qualities and diverse selections of wine
                                            offerings. Pursuant to an asset purchase agreement, dated May 31, 2021, between LQR House
                                            Inc. and Dollinger Holdings LLC, LQR House Inc. purchased all of the right, title and interest
                                            in all trademarks regardless of registration status for Soleil Vino and all associated trade
                                            dress and intellectual property rights, all labels, logos and other branding bearing the
                                            Soleil Vino marks or any mark substantially similar to the same, and all website and all
                                            related digital and social media content including but not limited to influencer networks,
                                            http://www.soleilvino.com, and all related content, and all related sales channels was transferred.
●
LQR
                                            House Marketing
is a marketing service in which we utilize our marketing expertise
                                            to help our wholly owned brands and third-party clients market their products to consumers.
                                            For example, by engaging us for our marketing services, our clients gain the ability to advertise
                                            and sell their brand on the CWS Platform.
Our
Industry
We
plan to address market demand by aligning with key industry trends and by utilizing strategic relationships to source, brand, finance
and distribute products. Specifically, we will focus initially on tequila, wine, and other specialty products by utilizing e-commerce
and technology to drive sales. Our focus is on the United States alcohol market, which is expected to consume a total of approximately
$283.8 billion of alcoholic beverages in 2023 and represents one of the largest global markets for all alcoholic beverage category sales
(Statista,
Alcoholic Drinks – Worldwide
, January 2023). With the growing online alcohol market and the move towards premiumization
of alcohol brands, we believe that LQR House can become the leading digital marketing and brand development face of the United States
alcoholic beverage space.
Our
Competitive Strengths
We
believe that we have the following competitive strengths that will allow us to capitalize on the growing alcoholic beverage industry
and alcohol e-commerce:
●
Unique
                                            Platform
. We believe that our branding style, and the branding services we provide
                                            to our clients, allow us to market directly to the millennial market demographic.
●
Extensive
                                            Influencer Network
. We believe that our team has created one of the most extensive
                                            influencer relationship lists within the alcohol industry for small batch and exclusive brands.
●
Extensive
                                            E-commerce and Marketing Expertise
. Our team has decades of experience in e-commerce
                                            and implementing online strategies to maximize the benefit of marketing campaigns.
●
External
                                            Vetting Process
. We vet the external brands we promote to ensure that all of the
                                            products we market align with our own brand and strategy.
●
Strategic
                                            Relationships
. We believe we have developed and solidified relationships with multiple
                                            groups that can deliver value to external brand customers.
●
Development
                                            of Unique Products
. We focus our product development on unique flavors and variations
                                            of products that are not generally available in the market.
2
●
Setting
                                            Ideal Price Points
. We believe we set a competitive price point, which aligns with
                                            the uniqueness and quality of the products offered by the Company.
●
Focus
                                            on Quality
. We believe all our products are sourced from the highest quality producers,
                                            and we vet our producers by visiting locations to verify quality and control procedures.
●
Unique
                                            Labelling and Marketing Promotions
. We have crafted unique labelling which aligns
                                            with our branding but also includes a removable patch that can be affixed to other items.
Our
Growth Strategies
The
key elements of our strategy to expand our business include the following:
●
Collaborative
                                            Marketing
. We intend to develop leading brands for up-and-coming companies and start-ups
                                            and align with celebrities and influencers with significant followings to enhance their online
                                            marketing presence.
●
Expand
                                            Our Brand
. We intend to continue expanding and developing our existing SWOL brand
                                            by purchasing and selling larger amounts of SWOL products to accelerate brand recognition
                                            and increasing our marketing presence.
●
Opportunistic
                                            Acquisitions
. We intend to pursue opportunistic acquisitions with existing alcohol
                                            brands and companies that have distribution licenses and physical storage locations and acquire
                                            technology that complements our business.
Implications
of Being an Emerging Growth Company
Upon
the completion of this offering, we will qualify as an "emerging growth company" under the Jumpstart Our Business Startups
Act of 2012, or the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements.
For so long as we are an emerging growth company, we will not be required to:
●
have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act;
●
comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor's report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis);
●
submit
                                            certain executive compensation matters to shareholder advisory votes, such as "say-on-pay"
                                            and "say-on-frequency;" and
●
disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer's compensation to median
                                            employee compensation.
In
addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting
standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would
otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial
statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.
We
will remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which
our total annual gross revenues exceed $1.235 billion, (ii) the date that we become a "large accelerated filer" as defined
in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our
Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal
quarter, or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period.
3
Our
Corporate History and Structure
Our company was incorporated in the State of Delaware on January 11,
2021, under the name LQR House Inc. On February 3, 2023, we changed our state of incorporation to the State of Nevada by converting into
LQR House Inc., a Nevada corporation. On February 3, 2023, in accordance with our reincorporation to Nevada, our authorized capital stock
changed from 100,000,000 shares of Common Stock, $0.001 par value, to 350,000,000 shares, consisting of 300,000,000 shares of Common Stock,
par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value $0.0001 per share. At the same time, we also completed
a 1-for-6 reverse stock split of our outstanding Common Stock through the merger by issuing one (1) share of our Common Stock for every
six (6) previously outstanding shares of Common Stock of our predecessor Delaware company. As a result, our issued and outstanding Common
Stock decreased from 55,252,424 shares to 9,200,434 shares.
On
March 29, 2023, the Company amended its articles of incorporation to institute a dual class share structure consisting of Class A Common
Stock, and Class B Common Stock, and any number of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes
per share on proposals requiring or requesting shareholder approval, and Class B Common Stock was entitled to one (1) vote on any such
matter. A share of Class A Common Stock could have been voluntarily converted into a share of Class B Common Stock. A transfer of a share
of Class A Common Stock would have resulted in its automatic conversion into Common Stock upon such transfer, subject to certain exceptions,
including that the transfer of shares of Class A Common Stock to another holder of Class A Common Stock would not have resulted in such
automatic conversion. Class B Common Stock was not convertible. Other than as to voting and conversion rights, Class A Common Stock and
Class B Common Stock had the same rights and preferences and ranked equally, shared ratably and were identical in all respects as to
all matters.
Due
to this amendment, the Company's authorized capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of Common
Stock, par value $0.0001 per share, of which 20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and
280,000,000 shares were designated as Class B Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock,
$0.0001 par value per share. All 9,200,434 shares of Common Stock issued and outstanding at the time of the amendment became shares of
Class B Common Stock.
On
June 1, 2023, we conducted a private placement of our Common Stock and entered into certain subscription agreements with a number of
(i) accredited investors as defined in Section 2(a)(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon
the exemption contained in Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable
state securities laws or (ii) non-U.S. persons made in compliance with the provisions of Regulation S promulgated under the Securities
Act. Pursuant to the agreements, we issued 955,000 shares of Common Stock at $1.00 per share for a total of $955,000.
On
June 1, 2023, we entered into advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate
advice in connection with the Offering to the Company. In consideration for the advisor's services, the Company issued 500,000
shares of Common Stock to six individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.
On
June 5, 2023, the Company further amended its articles of incorporation to amend the share structure by (i) eliminating a dual class
share structure consisting of the Class A Common Stock and Class B Common Stock and establishing a single Common Stock structure consisting
of shares of Common Stock only, with 350,000,000 authorized shares being all designated as common stock with a par value of $0.0001 per
share (the "Single Common Stock Structure"), entitled to one (1) vote per share; and by (ii) eliminating all authorized shares
of preferred stock. All 13,155,434 shares of Class B Common Stock issued and outstanding at the time of the amendment became shares of
Common Stock.
Prior to the commencement of this offering, there
will be 10,155,434 shares of Common Stock outstanding representing voting power of 10,155,434 votes. Following this offering, there will
be 11,155,434 shares of Common Stock outstanding representing voting power of 11,155,434 votes.
Our
principal executive offices are located at 6800 Indian Creek Dr. Suite 1E, Miami Beach, FL 33141, and our telephone number is (786) 389-9771.
We maintain a website at https://www.lqrhouse.com. Information available on our website is not incorporated by reference in and is not
deemed a part of this prospectus.
4
The
Offering
Shares being offered:
1,000,000 shares
    of Common Stock (or 1,150,000 shares if the underwriters exercise the over-allotment option in full).
Offering price:
We currently estimate that
    the initial public offering price will be $5 per share (which is the midpoint of the estimated range of the initial public offering
    price shown on the cover page of this prospectus).
Shares outstanding as of the date
of this prospectus:
10,155,434 shares of Common
    Stock.
Shares outstanding after the
offering:
(1)
11,155,434 shares of Common
    Stock (or 11,305,434 shares if the underwriters exercise the over-allotment option in full).
Over-allotment option:
We have granted to the
    underwriters a 45-day option to purchase from us up to an additional 15% of the shares sold in the offering (150,000 additional shares)
    at the initial public offering price, less the underwriting discounts and commissions.
Representative's warrant:
We have agreed to issue
    to the representative a warrant to purchase a number of shares of Common Stock equal in the aggregate to 5% of the total number of
    shares issued in this offering. The representative's warrant will be exercisable at a per share exercise price equal to the
    public offering price per share of Common Stock sold in this offering. The representative's warrant will be exercisable at
    any time and from time to time, in whole or in part, during the five-year period commencing on the effective date of this offering.
    The registration statement of which this prospectus forms a part also registers the shares of Common Stock issuable upon exercise
    of the representative's warrant. See "
Underwriting
" for more information.
Use of proceeds:
We expect to receive net
    proceeds of approximately $3,955,990 from this offering (or approximately $4,638,490 if the underwriters exercise their over-allotment
    option in full), assuming an initial public offering price of $5 per share (which is the midpoint of the estimated range of the initial
    public offering price shown on the cover page of this prospectus), and after deducting estimated underwriting discounts and commissions
    and estimated offering expenses payable by us. We plan to use the net proceeds of this offering for acquisitions, marketing, working
    capital, and as compensation for certain executive officers. See "
Use of Proceeds
" for more information on the
    use of proceeds.
Risk factors:
Investing in our Common
    Stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully
    consider the information set forth in the "
Risk Factors
" section beginning on page 11 before deciding to
    invest in our Common Stock.
Lock-up Agreements
We,
        all of our directors and officers and all of our shareholders have agreed with the underwriters, subject to certain exceptions,
        not to sell, transfer or dispose of, directly or indirectly, any of our Common Stock or securities convertible into or exercisable
        or exchangeable for our Common Stock for six (6) months after the close of the IPO (the "Lock-Up Period"). See "
Underwriting—Lock-Up
        Agreements
".
Notwithstanding
    the above, we and the underwriters have agreed to waive the lock-up requirement for shares of Common Stock being offered for sale
    by the selling stockholders named in the Resale Prospectus. See "
Shares Eligible For Future Sale—Lock-Up Agreements
".
5
Proposed trading market and
symbol
We have applied to list
    our Common Stock on Nasdaq under the symbol "LQR".  We believe that upon the completion of this offering, we
    will meet the standards for listing on Nasdaq.  The closing of this offering is contingent upon such listing.
(1)
The
                                            number of shares of Common Stock outstanding immediately following this offering is based
                                            on 10,155,434 shares of Common Stock outstanding as of the date of this prospectus, and excludes:
●
1,250,000
                                            shares of Common Stock that are reserved for issuance to our directors, director nominees,
                                            and officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;
●
50,000
shares of Common Stock (57,500 shares of Common Stock if the underwriters exercise the over-allotment option in full) issuable upon exercise
of a warrant to be issued to the underwriters in connection with this offering; and
●
150,000
shares of Common Stock issuable upon the underwriters' exercise of the over-allotment option in full.
Unless
otherwise indicated, this prospectus reflects and assumes no exercise by the underwriters of their over-allotment option.
6
Summary
Financial Information
The
following tables summarize certain financial data regarding our business and should be read in conjunction with our financial statements
and related notes contained elsewhere in this prospectus and the information under "
Management's Discussion and Analysis
of Financial Condition and Results of Operations
."
Our
summary financial data as of and for the three months ended March 31, 2023 and 2022 are derived from our interim financial statements
included elsewhere in this prospectus. Our summary financial data as of and for the fiscal years ended December 31, 2022, and period
from inception (January 11, 2021) to December 31, 2021, are derived from our audited financial statements included elsewhere in this
prospectus. All financial statements included in this prospectus are prepared and presented in accordance with generally accepted accounting
principles in the United States, or GAAP. The summary financial information is only a summary and should be read in conjunction with
the historical financial statements and related notes contained elsewhere herein. The financial statements contained elsewhere fully
represent our financial condition and operations; however, they are not indicative of our future performance.
Three Months Ended
March 31,
Year ended
December 31,
Inception (January 11,
2021) to
December 31,
2023
2022
2022
2021
Statements of Operations Data
(Unaudited)
(Unaudited)
Revenue
$
150,563
$
28,250
$
601,131
$
315,292
Cost of revenue
102,997
312,955
803,144
677,447
Gross profit (loss)
47,566
(284,705
)
(202,013
)
(362,155
)
Operating expenses:
Sales and marketing
48,323
162,886
655,151
464,011
General and administrative
321,317
253,537
985,011
1,136,560
Total operating expenses
$
369,640
$
416,423
$
1,640,162
$
1,600,571
Loss from operations
(322,074
)
(701,128
)
(1,842,175
)
(1,962,726
)
Provision for income taxes
-
-
-
-
Net loss
$
(322,074
)
$
(701,128
)
$
(1,842,175
)
$
(1,962,726
)
Weighted average common shares outstanding basic and diluted
9,200,406
8,950,544
9,015,023
7,443,489
Net loss per common share – basic and diluted
$
(0.04
)
$
(0.08
)
$
(0.20
)
$
(0.26
)
March 31,
March 31,
December 31,
2023
2023
2022
2021
Balance Sheet Data
Actual
(unaudited)
Pro Forma
As Adjusted
Cash and cash equivalents
23,581
5,249,081
7,565
1,116,101
Total current assets
70,012
5,295,512
547,022
1,334,448
Intangible assets
2,020,833
2,020,833
2,083,333
2,333,333
Total assets
2,150,104
7,316,345
2,630,356
3,667,781
Total liabilities
432,537
432,537
590,715
103,841
Total stockholders' equity
1,717,567
6,883,808
2,039,641
3,563,941
Total liabilities and stockholders' equity
$
2,150,104
$
7,316,345
$
2,630,356
$
3,667,781
7
Summary
of Risk Factors
An
investment in our Common Stock involves a high degree of risk. You should carefully consider the risks summarized below. These risks
are discussed more fully in the "
Risk Factors
" section immediately following this Prospectus Summary. These risks
include, but are not limited to, the following:
Risks
Related to Our Business and Industry
●
Our
Chief Executive Officer, Sean Dollinger, has been the subject of a compliance review that was initiated by the British Columbia Securities
Commission, and has not formally been concluded, in connection with the sale of a subsidiary by Namaste Technologies Inc. when Mr. Dollinger
was the Chief Executive Officer there, and if the British Columbia Securities Commission or any other regulatory agency takes additional
action against Mr. Dollinger, our business could be materially adversely affected.
●
Our
                                            business, revenue, and operations depend on our continuing relationship with Country Wine
                                            & Spirits Inc. and Ssquared Spirits LLC.
●
We
have a limited operating history, which may make it difficult to evaluate our business and prospects.
●
Our
                                            independent registered public accounting firm has expressed substantial doubt as to our ability
                                            to continue as a going concern in its report.
●
The
Company may need to raise additional capital to support its operations.
●
The
Company may incur significant losses, and there can be no assurance that the Company will ever become a profitable business.
●
We
rely on other third parties to provide services essential to the success of our business.
●
Increased
regulatory costs or taxes would harm our financial performance.
●
Changes
in the prices of supplies and raw materials could have a materially adverse effect on our business.
8
●
We
are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom could
adversely affect our business, operating results and financial condition.
●
If
the Company fails to develop or protect its intellectual property adequately, the Company's business could suffer.
●
The
Company's products, services or processes could be subject to claims of infringement of the intellectual property of others.
●
We
are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows.
Risks
Related to Government Regulation and Being a Public Company
●
We
                                            will face growing regulatory and compliance requirements which can be costly and time consuming.
●
Failure
                                            to comply with data privacy and security laws and regulations could adversely affect our
                                            operating results and business.
●
Changes
                                            in laws and government regulations to which we are currently subject, including changes to
                                            the method or approach of enforcement, may increase our costs or limit our ability to market
                                            our alcohol brands and the brands of our clients, which could adversely affect our operating
                                            results and business.
●
If
                                            we fail to maintain an effective system of disclosure controls and internal control over
                                            financial reporting, our ability to produce timely and accurate financial statements or comply
                                            with applicable regulations could be impaired.
●
Our
                                            management team has limited experience managing a public company.
●
Industry
                                            and other market data used in this prospectus or in periodic reports that we may in the future
                                            file with the SEC, including those undertaken by us or our engaged consultants, may not prove
                                            to be representative of current and future market conditions or future results.
●
Adverse
                                            developments affecting the financial services industry, such as actual events or concerns
                                            involving liquidity, defaults, or non-performance by financial institutions or transactional
                                            counterparties, could adversely affect our current and projected business operations and
                                            our financial condition and results of operations.
9
Risks
Related to This Offering and Ownership of Our Common Stock
●
An
                                            active trading market for our Common Stock may not develop.
●
The
                                            market price of our Common Stock may be volatile or may decline regardless of our operating
                                            performance, and you may not be able to resell your shares at or above the initial public
                                            offering price.
●
Certain
                                            recent initial public offerings of companies with relatively small public floats comparable
                                            to our anticipated public float have experienced extreme volatility that was seemingly unrelated
                                            to the underlying performance of the respective company. Our Common Stock may potentially
                                            experience rapid and substantial price volatility, which may make it difficult for prospective
                                            investors to assess the value of our Common Stock.
●
We
                                            may not be able to maintain a listing of our Common Stock on Nasdaq.
●
As
                                            our initial public offering price is substantially higher than our net tangible book value
                                            per share, you will experience immediate and substantial dilution.
●
We
                                            have broad discretion as to the use of the net proceeds from this offering and our use of
                                            the offering proceeds may not yield a favorable return on your investment. Additionally,
                                            we may use these proceeds in ways with which you may not agree or in the most effective way.
●
We
                                            have never paid cash dividends on our stock and do not intend to pay dividends for the foreseeable
                                            future.
●
Raising
                                            additional capital may cause dilution to our stockholders, including purchasers of Common
                                            Stock in this offering or restrict our operations.
●
Enforcing legal liability against our directors and senior management might be difficult.
●
The offering price of the primary offering and resale offering could differ.
●
The resale by the selling stockholders may cause the market price of our Common Stock to decline.
●
We will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, and our stockholders could receive less information than they might expect to receive from more mature public companies.
10
RISK
FACTORS
An
investment in our Common Stock involves a high degree of risk. You should carefully consider the following risk factors, together with
the other information contained in this prospectus, before purchasing our Common Stock. We have listed below (not necessarily in order
of importance or probability of occurrence) what we believe to be the most significant risk factors applicable to us, but they do not
constitute all of the risks that may be applicable to us. Any of the following factors could harm our business, financial condition,
results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this prospectus,
including statements in the following risk factors, constitute forward-looking statements. Please refer to the section titled "Cautionary
Statement Regarding Forward-Looking Statements".
Risks
Related to Our Business and Industry
Our
Chief Executive Officer, Sean Dollinger, has been the subject of a compliance review that was initiated by the British Columbia Securities
Commission, and has not formally been concluded, in connection with the sale of a subsidiary by Namaste Technologies Inc. when Mr. Dollinger
was the Chief Executive Officer there, and if the British Columbia Securities Commission or any other regulatory agency takes additional
action against Mr. Dollinger, our business could be materially adversely affected.
Sean
Dollinger, our Chief Executive Officer, was the Chief Executive Officer of Namaste Technologies Inc., or Namaste, a Canadian public company,
from June 2015 to February 2019. In October 2017, Namaste sought to list its securities on the TSX Venture Exchange, or TSXV. During
that time, the TSXV and the Toronto Stock Exchange, or TXV, advised their listed issuers that they could not hold interests in any entities
engaging in activities related to cannabis in the United States. After receiving the TSXV Notice, Namaste sought to divest one of its
subsidiaries who would be the subject of the TSXV's notice, Dollinger Enterprises US Inc., or Dollinger US. On November 28, 2017,
in a transaction approved by the Namaste board of directors, Namaste sold Dollinger US to ESC Hughes Holdings Ltd, or ESC Hughes, a company
owned by David Hughes, who was acting as Chief Marketing Officer of Namaste through his wholly owned consulting firm, ORH Marketing Ltd.
In an Investor call on November 29, 2017, Mr. Dollinger affirmed that the $400,000.00 purchase price for Dollinger US was fair market
value and that the deal was conducted at arm's length.
On
September 13, 2018, and October 4, 2018, Citron Research, a company controlled by US-based short-seller Andrew Left, released two reports
on Namaste. In those reports, Citron Research made allegations of securities fraud relating to the sale of Dollinger US. On October 9,
2018, and October 10, 2018, the British Columbia Securities Commission's ("BCSC") compliance department, which is a
separate and distinct group from the BCSC's enforcement department, issued comment letters to Namaste containing requests for information
regarding the allegations in Citron Research's report. Namaste responded to the letter and stated that neither ESC Hughes nor David
Hughes was then, or is now, a "related party" to the Company (as defined in Multilateral Instrument 61-101,
Protection
of Minority Security Holders in Special Transactions
) as neither ESC Hughes nor David Hughes individually, or in aggregate, held
then, or hold now, greater than 10% of the outstanding securities of Namaste. Mr. Dollinger departed from Namaste in February 2019 but
has offered his full cooperation to the BCSC in all requests. The BCSC has not filed an action against Mr. Dollinger, or Namaste, because
of the Dollinger US transaction.
In
connection with the sale of Dollinger US, on October 19, 2018, a class action complaint was filed in the Ontario Superior Court of Justice
against Namaste and its former CEO, Sean Dollinger, and COO, Philip Van Den Berg on behalf of those who acquired securities of Namaste
during certain time periods, alleging that the Defendants made misrepresentations of material facts relating to Namaste's business,
operations, and finances by omitting from core documents, non-core documents and statements, material facts about the sale of Dollinger
US. The complaint asserted causes of action for misrepresentations with respect to securities under Section 138.3 of Ontario Securities
Act (imposing liability "Where a responsible issuer or a person or company with actual, implied or apparent authority to act on
behalf of a responsible issuer releases a document that contains a misrepresentation …") and common law claims for secondary
market negligent and fraudulent misrepresentations. The Ontario Court approved a settlement agreement on July 22, 2019, in which the
plaintiffs received $2,150,000.00, paid out by Namaste's insurance policy, and the defendants, including Mr. Dollinger, did not
make any admissions of guilt, liability, or wrongdoing. We do not believe that Mr. Dollinger's involvement in this class action,
which was settled without any admissions of guilt or wrongdoing or liability, will have any effect on our ability to operate our business,
the price of our stock, or the results of our operations.
11
Additionally,
on November 19, 2018, a class action complaint was filed in the United States District Court for the Southern District of New York against
Namaste, Sean Dollinger, Philip Van Den Berg, and former CFO, Kenneth Ngo, on behalf of persons and entities who or which purchased or
otherwise acquired shares of Namaste common stock traded on the over-the-counter market between November 29, 2017, and March 6, 2019.
In that claim, plaintiffs alleged violations of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 based on allegations that
the defendants made false or misleading statements or failed to disclose that Namaste did not disclose that it had sold Dollinger US
to Namaste executives and, consequently, Namaste did not sell Dollinger US in an arm's length transaction, and as a result, Namaste's
public statements were materially false and misleading at all relevant times relating to the sale of Dollinger US. The District Court
in this case approved a settlement agreement on March 11, 2020, in which the plaintiffs were awarded $2,750,000.00, paid out by Namaste's
insurance policy, and the defendants, including Mr. Dollinger, did not make any admissions of guilt, liability, or wrongdoing. We do
not believe that Mr. Dollinger's involvement in this class action, which was settled without any admissions of guilt or wrongdoing
or liability, will have any effect on our ability to operate our business, the price of our stock, or the results of our operations.
Regarding
the BCSC compliance review and correspondence with Mr. Dollinger, we believe that it is reasonable to infer from the length of time that
has passed since the last contact from the BCSC, though not a certainty, that the BCSC compliance department has concluded its review
into Mr. Dollinger. Additionally, we believe it is reasonable to infer that, had the BCSC enforcement department, which has a six-year
statute of limitations as to actionable securities fraud, found wrongdoing involving the matter described above, the BCSC enforcement
department likely would have contacted Mr. Dollinger or his lawyer by now, though, again, that inference is by no means a certainty.
We do not believe that there is an ongoing BCSC investigation or review in which Mr. Dollinger is a subject, however, we have not received
formal confirmation to that effect, and we will likely never receive formal confirmation of that fact since the BCSC does not make public
their confidential investigations. If there is an active investigation or review of Mr. Dollinger by the BCSC or any other enforcement
division of a regulatory agency, and that review results in an enforcement action against him by the BCSC or any other regulatory agency,
then the filing of that action or the result thereof could cause a diversion of the time that Mr. Dollinger has to spend on our business
and otherwise may have a have a material adverse impact on the price of our securities and the results of our operations.
Our
business, revenue, and operations depend on our continuing relationship with Country Wine & Spirits Inc. and Ssquared Spirits LLC.
In the three months ended
March 31, 2023 and years ended December 31, 2022 and 2021, all revenue was derived from or directly related to contractual relationship
with Country Wine & Spirits Inc. and Ssquared Spirits LLC. We have an exclusive marketing agreement with Country Wine & Spirits
Inc. and Ssquared and our relationship with them is the cornerstone of our business. While our relationship with those two entities is
ongoing and is expected to continue, we cannot be certain that Country Wine & Spirits Inc. and Ssquared Spirits LLC will maintain
their relationship with us at the expiry of our exclusive marketing agreement, dated April 1, 2021, with them on April 1, 2031. That being
said, this marketing approach is adaptable to other alcohol e-commerce platforms and the Company will pursue such relationships though
it cannot guarantee a successful outcome will result from pursuing such relationships. As much as LQR House Inc. is dependent upon its
symbiotic relationship with Country Wine & Spirits Inc., Country Wine & Spirits Inc. is equally dependent on LQR House Inc. LQR
House Inc. is responsible for managing the marketing aspects of CWS, which includes providing substantial support for emerging brands.
Through its exclusive influencer network, LQR House Inc. serves as an affiliate for CWS, directing traffic to the www.cwspirits.com website.
As a result, CWS relies on LQR House Inc. to attract customers who have a strong intention to purchase alcohol online. As an example,
one of the products sold on www.cwspirits.com is Tequila with the trademark "SWOL," a trademark owned by LQR House Inc. This
Tequila has gained viral popularity because of the marketing efforts of LQR House Inc. The success of the Tequila translates into benefits
for CWS, as CWS leverages LQR House Inc.'s marketing initiatives to effectively sell this specific Tequila product. That being said, if
anything were to happen to Country Wine & Spirits Inc. or Ssquared Spirits LLC, such as a bankruptcy or acquisition in which our agreement
and partnership is not respected, then such occurrence would have a material adverse effect on our business, revenue generating abilities,
and results of operations. Likewise, if any of our agreements with Country Wine & Spirits Inc. and Ssquared Spirits LLC end and our
services are not engaged in a new agreement, then we will lose our only source of revenue. Such an occurrence would have a material adverse
effect on our business, revenue generating abilities, and results of operations and would make it unlikely that we could continue to operate
as a going concern. Nonetheless, in such an event the Company will pursue other relationships though it cannot guarantee a successful
outcome will result from pursuing such relationships.
We
have a limited operating history, which may make it difficult to evaluate our business and prospects.
The
Company is an early, startup stage entity with little operating history. The Company only has nominal cash as of the date of commencement
of this offering. The revenue and income potential of the Company's business and market are unproven. The Company's limited
operating history makes an evaluation of the Company and its prospects difficult and highly speculative. There can be no assurances that:
(a) the Company will be able to develop products or services on a timely and cost effective basis; (b) the Company will be able to generate
any increase in revenues; (c) the Company will have adequate financing or resources to continue operating its business and to provide
products and services to customers; (d) the Company will earn a profit; (e) the Company can raise sufficient capital to support operations
by attaining profitability; or (f) the Company can satisfy future liabilities.
12
Our
independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern in its
report.
The
Company's financial statements were prepared on a "going concern" basis. Certain matters, as described in the accompanying
financial statements, indicate there may be substantial doubt about the Company's ability to continue as a going concern. We had
minimal cash as of March 31, 2023 and December 31, 2022 of $23,581 and $7,565, respectively. During the three months ended March 31,
2023 and 2022, we had net losses of $322,074 and $701,128, respectively. We will seek to fund our operations through sales of our products,
services, and equity financing arrangements. Adequate additional financing may not be available to us on acceptable terms, or at all.
Our failure to raise capital as and when needed would impact our going concern status and would have a negative impact on our financial
condition and our ability to pursue our business strategy and continue as a going concern. Management's plans to address this need
for capital through this offering and through private placement offerings are discussed elsewhere in this prospectus. We cannot assure
you that our plans to raise sufficient capital will be successful. These factors, among others, raise substantial doubt about our ability
to continue as a going concern. The financial statements contained elsewhere in this prospectus do not include any adjustments that might
result from our inability to consummate this offering or our inability to continue as a going concern.
The
Company may need to raise additional capital to support its operations.
The
Company may need to procure additional financing over time, the amount and timing of which will depend on a number of factors, including
the pace of expansion of the Company's opportunities and customer base, the scope of product development to be undertaken by the
Company, the need to respond to customer needs for improvement of product offerings, the services offered and development efforts, the
cash flow generated by its operations, the extent of losses, if any with respect to matters identified as risk factors herein and the
extent of other unanticipated areas or amounts of expenditure. The Company cannot fully predict the extent to which it will require additional
financing. There can be no assurance regarding the availability or terms of additional financing the Company may be able to procure over
time. Any new investor may require that any future debt financing or issuance of preferred equity by the Company could be senior to the
rights of stockholders, and any future issuance of equity could result in the dilution of the value of our shares.
The
Company may incur significant losses, and there can be no assurance that the Company will ever become a profitable business.
During
the three months ended March 31, 2023 and 2022, we had net losses of $322,074 and $701,128, respectively. It is anticipated that the
Company may continue to sustain operating losses. Its ability to become and/or remain profitable depends in material part on success
in growing and expanding the Company's products and services. There can be no assurance that this will occur. Unanticipated problems
and expenses often encountered in offering new and unique products or services may impact whether the Company is successful. Furthermore,
the Company may encounter substantial delays and unexpected expenses related to development, technological changes, marketing, insurance,
legal or regulatory requirements and changes to such requirements or other unforeseen difficulties. There can be no assurance that the
Company will remain profitable. If the Company sustains losses over a period of time, it may be unable to continue in business.
The
Company's future revenue and operating results are unpredictable and may fluctuate significantly.
It
is difficult to accurately forecast the Company's revenues and operating results, and they could fluctuate in the future due to
several factors. These factors may include acceptance of the Company's products and services; the amount and timing of operating
costs and capital expenditures; competition from other market venues or services that may reduce market share and create pricing pressure;
and adverse changes in general economic, industry and regulatory conditions and requirements. The Company's operating results may
fluctuate from year to year due to the factors listed above and others not listed. At times, these fluctuations may be significant.
13
If demand for our products and services
does not develop as expected our projected revenues and profits will be affected.
Our future profits are influenced by many factors,
including economics, world events and changing customer preferences. We believe that the markets in our product segment will continue
to grow, that we will be successful in marketing our products and services in these markets. If our expectations as to the size of these
markets and our ability to sell our products and services in this market are not correct, our revenue may not materialize, and our business
will be adversely affected.
If we fail to acquire and retain new customers,
or fail to do so in a cost-effective manner, we may be unable to increase net revenues, improve margins and achieve profitability.
Our success depends on our ability to acquire
and retain new customers and to do so in a cost-effective manner. We must continue to acquire customers in order to increase net revenues,
improve margins, and achieve profitability. We intend to make significant investments related to customer acquisition and expect to continue
to spend significant amounts to acquire additional customers. We cannot assure you that the net revenues from the new customers we acquire
will ultimately exceed the cost of acquiring those customers. If we fail to deliver a quality shopping experience, or if consumers do
not perceive the products we offer to be of high value and quality, we may be unable to acquire or retain customers. If we are unable
to acquire or retain customers who purchase products in volumes sufficient to grow our business, we may be unable to generate the scale
necessary to achieve operational efficiency. Consequently, our prices may increase, or may not decrease to levels sufficient to generate
customer interest, our net revenues may decrease, and our margins and profitability may decline or not improve. As a result, our business,
financial condition, and results of operations may be materially and adversely affected.
We believe that many of our new customers will
originate from word-of-mouth and other non-paid referrals from our customers. Therefore, we must ensure that our customers remain loyal
to us to continue receiving those referrals. If our efforts to satisfy our customers are not successful, we may be unable to acquire new
customers in sufficient numbers to continue to grow our business, and we may be required to incur significantly higher marketing expenses
to acquire new customers.
We
rely on other third parties to provide services essential to the success of our business.
Third
parties provide a variety of essential business functions for us, including customer service, legal and distribution. It is possible
that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that
we will experience delays, errors, or other problems with their work that will materially impact our operations.
In
particular, we rely on CWS for the distribution of products sold by our marketing clientele. In the event CWS were to lose their distribution
license, for any reason, including but not limited to, changes in state and federal regulations, we would have to seek alternative distribution
options immediately. The services we sell to our clients could be interrupted by the change in distribution provider and our business
and reputation could suffer. If our efforts to contract with another distributor are unsuccessful, the Company may be unable to achieve
or maintain profitability and may incur significant losses in the future. As a result, our business, financial condition, and results
of operations may be materially and adversely affected.
The
value of our brand also depends on effective customer support to provide a high-quality customer experience, which requires significant
personnel expenses. If not managed properly, this expense could impact our profitability. Failure to manage or train our outsourced customer
support representatives properly could compromise our ability to handle customer complaints effectively.
Reduced consumer demand for alcoholic beverages
could harm our business.
There have been periods in the past in which overall
per capita consumption of alcoholic beverages in the United States and other markets in which we participate has declined substantially.
A limited or general decline in consumption in one or more of our product categories could occur in the future due to a variety of factors,
including a general decline in economic conditions, increased concern about the health consequences of consuming alcoholic beverage products
and about drinking and driving, a trend toward a healthier diet including lighter, lower-calorie beverages such as diet soft drinks, juices
and water products, the increased activity of anti-alcohol groups and increased federal, state or foreign excise and other taxes on alcoholic
beverage products. The competitive position of the Company's products could also be affected adversely by any failure to achieve
consistent, reliable quality in the product or service levels to customers.
The success of our business relies heavily
on brand image, reputation, and product quality.
It is important that we maintain and increase
the image and reputation of our existing brands and products. Concerns about product quality, even when unsubstantiated, could be harmful
to our image and reputation of our brands and products. While we have quality control programs in place, in the event we experienced an
issue with product quality, we may experience recalls or liability in addition to business disruption which could further negatively impact
brand image and reputation and negatively affect our sales. Our brand image and reputation may also be more difficult to protect due to
less oversight and control because of the outsourcing of some of our operations. We also could be exposed to lawsuits relating to product
liability or marketing or sales practices. Deterioration to our brand equity may be difficult to combat or reverse and could have a material
effect on our business and financial results.
In addition, in recent years, there has been a
marked increase in the use of social media platforms and other forms of Internet-based communications that provide individuals with access
to broad audiences, and the availability of information on social media platforms is virtually immediate, as can be its impact. Many social
media platforms immediately publish the content their participants post, often without filters or checks on accuracy of the content posted.
Furthermore, other Internet-based or traditional media outlets may in turn reference or republish such social media content to an even
broader audience. Information concerning us, regardless of its accuracy, may be posted on such platforms at any time. Information posted
may be adverse to our interests or may be inaccurate, each of which may materially harm our brand, reputation, performance, prospects and business, and such harm may be immediate and we may have little or no opportunity to respond or to seek redress or a correction.
14
Changes in consumer spending could have
a negative impact on our financial condition and business results.
Alcohol sales depend upon a number of factors
related to the level of consumer spending, including the general state of the economy, federal and state income tax rates, deductibility
of business entertainment expenses under federal and state tax laws, and consumer confidence in future economic conditions. Changes in
consumer spending in these and other areas can affect both the quantity and the price of wines that customers are willing to purchase
online, at restaurants or through retail outlets. Reduced consumer confidence and spending may result in reduced demand for our products,
limitations on our ability to increase prices and increased levels of selling and promotional expenses. This, in turn, may have a considerable
negative impact upon sales and gross margins.
We are subject to, or voluntarily comply with, a number of other laws and regulations relating to the payments we accept from our customers
and third parties, including with respect to money laundering, money transfers, privacy, and information security, and electronic fund
transfers. These laws and regulations could change or be reinterpreted to make it difficult or impossible for us to comply. If we were
found to be in violation of any of these applicable laws or regulations, we could be subject to civil or criminal penalties and higher
transaction fees or lose our ability to accept credit and debit card payments from our customers, process electronic funds transfers or
facilitate other types of online payments, which may make our services less convenient and less attractive to our customers and diminish
the customer experience.
Adverse public opinion about alcohol may
harm our business.
While a number of research studies suggest that
moderate alcohol consumption may provide various health benefits, other studies conclude or suggest that alcohol consumption has no health
benefits and may increase the risk of stroke, cancer and other illnesses. An unfavorable report on the health effects of alcohol consumption
could significantly reduce the demand for wine, which could harm our business by reducing sales and increasing expenses.
In recent years, activist groups have used advertising
and other methods to inform the public about the societal harms associated with the consumption of alcoholic beverages. These groups have
also sought, and continue to seek, legislation to reduce the availability of alcoholic beverages, to increase the penalties associated
with the misuse of alcoholic beverages, or to increase the costs associated with the production of alcoholic beverages. Over time, these
efforts could cause a reduction in the consumption of alcoholic beverages generally, which could harm our business by reducing sales and
increasing expenses.
Increased
regulatory costs or taxes would harm our financial performance.
The
Alcohol and Tobacco Tax and Trade Bureau of the U.S. Department of the Treasury, or the TTB, imposes excise taxes, and/or other taxes
on beverage alcohol products, and/or on certain raw materials used to produce our beverage alcohol products, in varying amounts. TTB
or other governmental bodies may propose changes to international trade agreements, tariffs, taxes and other government rules and regulations.
Significant increases in taxes on, or that impact, beverage alcohol products could have a material adverse effect on our business, liquidity,
financial condition and/or results of operations.
Changes
in the prices of supplies and raw materials could have a materially adverse effect on our business.
There
have been changes in the cost of raw materials used in tequila production and especially raw spirits in recent years. The increases in
prices may also take place in the future and our inability to pass on increases to our customers could reduce our margins and profits
and have a material adverse effect on our business. We cannot assure you that shortages or increases in the prices of our supplies or
raw materials will not have a material adverse effect on our financial condition and results of operations.
We
are subject to, or voluntarily comply with, a number of other laws and regulations relating to the payments we accept from our customers
and third parties, including with respect to money laundering, money transfers, privacy, and information security, and electronic fund
transfers. These laws and regulations could change or be reinterpreted to make it difficult or impossible for us to comply. If we were
found to be in violation of any of these applicable laws or regulations, we could be subject to civil or criminal penalties and higher
transaction fees or lose our ability to accept credit and debit card payments from our customers, process electronic funds transfers
or facilitate other types of online payments, which may make our services less convenient and less attractive to our customers and diminish
the customer experience.
We are subject to risks associated with
payments to us from our customers and other third parties, including risks associated with fraud.
Nearly all of our customers' payments, for
marketing services, are made by credit card or debit card. We currently rely exclusively on one third party vendor to provide payment
processing services, including the processing of payments from credit cards and debit cards, and our business would be disrupted if this
vendor becomes unwilling or unable to provide these services to us and we are unable to find a suitable replacement on a timely basis.
We are also subject to payment brand operating rules, payment card industry data security standards and certification requirements, which
could change or be reinterpreted to make it more difficult or impossible for us to comply. If we fail to comply with these rules or requirements,
we may be subject to fines and higher transaction fees and lose our ability to accept credit and debit card payments from customers, which
would make our services less convenient and attractive to our customers and likely result in a substantial reduction in revenue. We may
also incur losses as a result of claims that the customer did not authorize given purchases, fraud, erroneous transmissions and customers
who have closed bank accounts or have insufficient funds in their accounts to satisfy payments owed to us.
We are subject to, or voluntarily comply with,
a number of other laws and regulations relating to the payments we accept from our customers and third parties, including with respect
to money laundering, money transfers, privacy, and information security, and electronic fund transfers. These laws and regulations could
change or be reinterpreted to make it difficult or impossible for us to comply. If we were found to be in violation of any of these applicable
laws or regulations, we could be subject to civil or criminal penalties and higher transaction fees or lose our ability to accept credit
and debit card payments from our customers, process electronic funds transfers or facilitate other types of online payments, which may
make our services less convenient and less attractive to our customers and diminish the customer experience.
We
may not be able to fully exploit newly acquired brands.
If
we raise the maximum offering amount, we intend to use a portion of the net proceeds to acquire third-party brands. See "
Use
of Proceeds
." In our experience, not every brand deployment is successful. We may incur significant costs acquiring and promoting
new brands only to have limited market acceptance and limited resulting sales. If this occurs, our financial results may be negatively
impacted, and we may determine it is in the best interest of the Company to no longer support that brand.
15
We
operate in highly competitive industries, and competitive pressures could have a material adverse effect on our business.
The
alcoholic beverage distribution industry in the United States is intensely competitive and highly fragmented. The principal competitive
factors in that industry include product range, pricing, distribution capabilities and responsiveness to consumer preferences, with varying
emphasis on these factors depending on the market and the product. With respect to individual customers, we face significant competition
from various regional distributors and brick and mortar stores, who compete principally on price. The effect of this competition could
adversely affect our results of operations.
We
are dependent on the continued services and performance of our senior management and other key employees, the loss of any of whom could
adversely affect our business, operating results and financial condition.
Our
future performance depends on the continued services and contributions of our senior management and other key employees, including Sean
Dollinger, our founder, and Chief Executive Officer, and Darren Collins, our Chief Financial Officer and Jaclyn Hoffman, our Chief Marketing
Officer. Without these key executives and employees, we may not have the ability to execute on our business plans and to identify and
pursue new opportunities and product innovations. The loss of services of senior management or other key employees could significantly
delay or prevent the achievement of our development and strategic objectives. The loss of the services of our senior management or other
key employees for any reason could adversely affect our business, financial condition and operating results. We do not presently maintain
any key man life insurance policies.
We
may not be able to manage future growth effectively.
If
our business plans are successful, we may experience significant growth in a short period of time and potential scaling issues. Should
we grow rapidly, our financial, management and operating resources may not expand sufficiently to adequately manage our growth. If we
are unable to manage our growth, our costs may increase disproportionately, our future revenues may stop growing or decline and we may
face dissatisfied customers. Our failure to manage our growth may adversely impact our business and the value of your investment.
If
the Company fails to develop or protect its intellectual property adequately, the Company's business could suffer.
The
Company has attempted, and may attempt, to develop certain intellectual property of its own, but cannot assure that it will be able to
obtain exclusive rights in trade secrets, patents, trademark registrations and copyright registrations. At this time, the Company is
unsure of what types of intellectual property might be developed. The cost of developing, applying for and obtaining such enforceable
rights is expensive. Even after such enforceable rights are obtained, there are significant costs for maintaining and enforcing them.
The Company may lack the resources to put in place exclusive protection and enforcement efforts. Also, certain of the Company's
product or service offerings initially draws from publicly available technology in the marketplace. The Company's failure to obtain
or maintain adequate protection of its intellectual property rights for any reason could have a material adverse effect on its business,
financial condition and results of operations.
If
the Company were to develop intellectual property, the Company may seek to enforce its intellectual property rights on others through
litigation. The Company's claims, even if meritorious, may be found invalid or inapplicable to a party the Company believes infringes
or has misappropriated its intellectual property rights. In addition, litigation can:
●
be
                                            expensive and time consuming to prosecute or defend;
●
result
                                            in a finding that the Company does not have certain intellectual property rights or that
                                            such rights lack sufficient scope or strength;
●
divert
                                            management's attention and resources; or
●
require
                                            the Company to license its intellectual property.
The
Company may rely on trademarks or service marks to establish a market identity for its products or services. To maintain the value of
the Company's trademarks or service marks, the Company might have to file lawsuits against third parties to prevent them from using
marks confusingly similar to or dilutive of the Company's registered or unregistered trademarks or service marks. The Company also
might not obtain registrations for its pending or future trademark or service marks applications and might have to defend its registered
trademark or service marks and pending applications from challenge by third parties. Enforcing or defending the Company's registered
and unregistered trademarks or service marks might result in significant litigation costs and damages, including the inability to continue
using certain marks.
The
laws of foreign countries in which the Company may contemplate doing business in the future may not recognize intellectual property rights
or protect them to the same extent as do the laws of the United States. Adverse determinations in a judicial or administrative proceeding
could prevent the Company from offering or providing its products or services or prevent the Company from stopping others from offering
or providing competing services, and thereby have a material adverse effect on the Company's business, financial condition, and
results of operations.
16
The
Company's products, services or processes could be subject to claims of infringement of the intellectual property of others.
Claims
that the Company's products, services, business methods, or processes infringe upon the proprietary rights of others often are
not asserted until after commencement of commercial sales of a product. Significant litigation regarding intellectual property rights
exists in the Company's industry. Third parties may make claims of infringement against the Company in connection with the use
of its technology. Any claims, even those without merit, could:
●
be
                                            expensive and time consuming to defend;
●
cause
                                            the Company to cease making, licensing, or using services that incorporate the challenged
                                            intellectual property; or
●
divert
                                            management's attention and resources.
The
Company cannot be certain of the outcome of any litigation. Any royalty or licensing agreement, if required, may not be available to
the Company on acceptable terms or at all. The Company's failure to obtain the necessary licenses or other rights could prevent
the development, or distribution of the Company's marketing technology and, therefore, could have a material adverse effect on
the Company's business.
We
are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows
.
One
of our suppliers is located in Mexico. Because of this we face exposure to adverse movements in foreign currency exchange rates. Our
primary exposures are expected to be related to pesos denominated operating expenses in Mexico. These exposures may change over time
as business practices evolve, and they could have a material adverse impact on our financial results and cash flows.
A failure or breach of our security systems
or infrastructure as a result of cyberattacks could disrupt our business, result in the disclosure or misuse of confidential or proprietary
information, damage our reputation, increase our costs and cause losses.
Information security risks for technology companies,
such as the Company, have significantly increased in recent years in part because of the proliferation of new technologies, the use of
the Internet and telecommunications technologies to conduct financial transactions, and the increased sophistication and activities of
organized crime, hackers, terrorists and other external parties. These threats may derive from fraud or malice on the part of our employees
or third parties or may result from human error or accidental technological failure. These threats include cyberattacks, such as computer
viruses, malicious code, phishing attacks or information security breaches.
Our operations will, in part, rely on the secure
processing, transmission and storage of confidential proprietary and other information in our computer systems and networks. Our customers
will rely on digital technologies, computer, email and messaging systems, software and networks to conduct their operations or to utilize
our products or services. In addition, to access our products and services, our customers will use personal smartphones, tablet computers
and other mobile devices that may be beyond our control.
If a cyberattack or other information security
breach occurs, it could lead to security breaches of the networks, systems or devices that our customers use to access our products and
services which could result in the unauthorized disclosure, release, gathering, monitoring, misuse, loss or destruction of confidential,
proprietary and other information (including account data information) or data security compromises. Such events could also cause service
interruptions, malfunctions or other failures in the physical infrastructure or operations systems that will support our businesses and
customers, as well as the operations of our customers or other third parties. Any actual attacks could lead to damage to our reputation
with our customers and other parties and the market, additional costs to the Company (such as repairing systems, adding new personnel
or protection technologies or compliance costs), regulatory penalties, financial losses to both us and our customers and partners and
the loss of customers and business opportunities. If such attacks are not detected immediately, their effect could be compounded.
Although we will attempt to mitigate these risks, there can be no assurance
that we will be immune to these risks and not suffer losses in the future.
Current
market conditions and recessionary pressures in one or more of the Company's markets could impact the Company's ability to
grow its business.
The
U.S. economy faces continued concerns about the systemic impacts of adverse economic conditions such as the U.S. deficit, historically
high inflation, volatile energy costs, geopolitical issues, the continued availability and cost of credit in the face of expected interest
rate increases by the U.S. Federal Reserve, ongoing supply chain disruptions, the ongoing impact of the COVID-19 pandemic, and unstable
financial and real estate markets. Foreign countries, including those in the Euro zone, are affected by similar systemic impacts. Turbulence
in the United States and international markets and economic conditions may adversely affect the Company's liquidity and financial
condition, and the liquidity and financial condition of the Company's customers. If these market conditions occur, they may limit
the Company's ability, and the ability of the Company's customers, to replace maturing liabilities and to access the capital
markets to meet liquidity needs, which could have a material adverse effect on the Company's financial condition and results of
operations. There is no assurance that the Company's product and services will be accepted in the marketplace. To date, inflationary
pressures have not had a material impact on the Company's financial condition and results of operations, and we have not developed
any plans or taken any action to mitigate such inflationary pressures. However, there is no assurance the inflationary pressures will
not have a material effect on the Company's financial condition and results of operations in the future. If inflationary pressures
begin to have a material effect on the Company in the future, we may or may not develop plans to mitigate those pressures.
17
Risks
Related to Government Regulation and Being a Public Company
We
will face growing regulatory and compliance requirements which can be costly and time consuming.
New
and evolving regulations and compliance standards for cyber security, data protection, privacy, and internal IT controls are often created
in response to the tide of cyberattacks and will increasingly impact organizations like our company. Existing regulatory standards require
that organizations implement internal controls for user access to applications and data. In addition, data breaches are driving a new
wave of regulation, such as the European Union's General Data Protection Regulation, with stricter enforcement and higher penalties.
Regulatory and policy-driven obligations require expensive and time-consuming compliance measures. The fear of non-compliance, failed
audits, and material findings has pushed organizations to spend more to ensure they are in compliance, often resulting in costly, one-off
implementations to mitigate potential fines or reputational damage. The high costs associated with failing to meet regulatory requirements,
combined with the risk of fallout from security breaches, has elevated this topic from the IT organization to the executive and board
level. We may need to spend additional time and money ensuring we will meet future regulatory requirements.
Our
business could be negatively impacted by changes in the U.S. political environment.
There
is significant ongoing uncertainty with respect to potential legislation, regulation and government policy at the federal, state and
local levels in the United States. Such uncertainty and any material changes in such legislation, regulation and government policy could
significantly impact our business as well as the markets in which we compete. Specific legislative and regulatory proposals that might
materially impact us include, but are not limited to, changes to liability rules for data privacy regulations, import and export regulations,
income tax regulations and the U.S. federal tax code and public company reporting requirements, immigration policies and enforcement,
healthcare law, minimum wage laws, climate and energy policies, foreign trade and relations with foreign governments, and pandemic response.
To the extent changes in the political environment have a negative impact on us or on our customers, our markets, our business, results
of operation and financial condition could be materially and adversely impacted in the future.
Failure
to comply with data privacy and security laws and regulations could adversely affect our operating results and business.
In
the ordinary course of our business, we might collect and store in our internal and external data centers, cloud services and networks
sensitive data, including our proprietary business information and that of our customers, suppliers and business collaborators, as well
as personal information of our customers and employees. The secure processing, maintenance and transmission of this information is critical
to our operations and business strategy. The number and sophistication of attempted attacks and intrusions that companies have experienced
from third parties has increased over the past few years. Despite our security measures, it is impossible for us to eliminate this risk.
A
number of U.S. states have enacted data privacy and security laws and regulations that govern the collection, use, disclosure, transfer,
storage, disposal, and protection of personal information, such as social security numbers, financial information and other sensitive
personal information. For example, all 50 states and several U.S. territories now have data breach laws that require timely notification
to affected individuals, and at times regulators, credit reporting agencies and other bodies, if a company has experienced the unauthorized
access or acquisition of certain personal information. Other state laws, such as the California Consumer Privacy Act, as amended, or
the CCPA, among other things, contain disclosure obligations for businesses that collect personal information about residents in their
state and affords those individuals new rights relating to their personal information that may affect our ability to collect and/or use
personal information. Effective January 1, 2023, we will also become subject to the California Privacy Rights Act, which expands upon
the consumer data use restrictions, penalties and enforcement provisions under the California Consumer Privacy Act, and Virginia's
Consumer Data Protection Act, another comprehensive data privacy law. Effective July 1, 2023, we will also become subject to the Colorado
Privacy Act and Connecticut's An Act Concerning Personal Data Privacy and Online Monitoring, which are also comprehensive consumer
privacy laws. Effective December 31, 2023, we will also become subject to the Utah Consumer Privacy Act, regarding business handling
of consumers' personal data. Meanwhile, several other states and the federal government have considered or are considering privacy
laws like the CCPA. We will continue to monitor and assess the impact of these laws, which may impose substantial penalties for violations,
impose significant costs for investigations and compliance, allow private class-action litigation and carry significant potential liability
for our business.
Outside
of the U.S., data protection laws, including the EU General Data Protection Regulation, or the GDPR, also might apply to some of our
operations or business collaborators. Legal requirements in these countries relating to the collection, storage, processing and transfer
of personal data/information continue to evolve. The GDPR imposes, among other things, data protection requirements that include strict
obligations and restrictions on the ability to collect, analyze and transfer EU personal data/information, a requirement for prompt notice
of data breaches to data subjects and supervisory authorities in certain circumstances, and possible substantial fines for any violations
(including possible fines for certain violations of up to the greater of 20 million Euros or 4% of total company revenue). Other governmental
authorities around the world have enacted or are considering similar types of legislative and regulatory proposals concerning data protection.
The
interpretation and enforcement of the laws and regulations described above are uncertain and subject to change, and may require substantial
costs to monitor and implement and maintain adequate compliance programs. Failure to comply with U.S. and international data protection
laws and regulations could result in government enforcement actions (which could include substantial civil and/or criminal penalties),
private litigation and/or adverse publicity and could negatively affect our operating results and business.
18
Our business depends on our customers'
continued and unimpeded access to the Internet and the development and maintenance of Internet infrastructure. Internet access providers
may be able to block, degrade or charge for access to certain of our services, which could lead to additional expenses and the loss of
customers.
Our services depend on the ability of our customers,
and the customers of Country Wine & Spirits Inc. to access the Internet. Currently, this access is provided by companies having significant
market power in the broadband and Internet access marketplace, including incumbent telephone companies, cable companies, mobile communications
companies and government-owned service providers. Some of these providers have the ability to take measures including legal actions, that
could degrade, disrupt or increase the cost of user access to certain of our services by restricting or prohibiting the use of their infrastructure
to support our services, charging increased fees to our users, or regulating online speech. Such interference could result in a loss of
existing users, advertisers and goodwill, could result in increased costs and could impair our ability to attract new users, thereby harming
our revenue and growth. Moreover, the adoption of any laws or regulations adversely affecting the growth, popularity or use of the Internet,
including laws impacting Internet neutrality, could decrease the demand for our services and increase our operating costs. The legislative
and regulatory landscape regarding the regulation of the Internet and, in particular, Internet neutrality, in the U.S. is subject to uncertainty.
To the extent any laws, regulations or rulings
permit Internet service providers to charge some users higher rates than others for the delivery of their content, Internet service providers
could attempt to use such law, regulation or ruling to impose higher fees or deliver our content with less speed, reliability or otherwise
on a non-neutral basis as compared to other market participants, and our business could be adversely impacted. Internationally, government
regulation concerning the Internet, and in particular, network neutrality, may be developing or non-existent. Within such a regulatory
environment, we could experience discriminatory or anticompetitive practices impeding both our and our customers' domestic and international
growth, increasing our costs or adversely affecting our business. Additional changes in the legislative and regulatory landscape regarding
Internet neutrality, or otherwise regarding the regulation of the Internet, could harm our business, operating results and financial condition.
Our business could be affected by
new governmental regulations regarding the Internet.
To date, government regulations have not materially
restricted use of the Internet in most parts of the world. However, the legal and regulatory environment relating to the Internet is uncertain,
and governments may impose regulation in the future. New laws may be passed, courts may issue decisions affecting the Internet, existing
but previously inapplicable or unenforced laws may be deemed to apply to the Internet or regulatory agencies may begin to more rigorously
enforce such formerly unenforced laws, or existing legal safe harbors may be narrowed, both by U.S. federal or state governments and by
governments of foreign jurisdictions. The adoption of any new laws or regulations, or the narrowing of any safe harbors, could hinder
growth in the use of the Internet and online services generally, and decrease acceptance of the Internet and online services as a means
of communications, e-commerce and advertising. In addition, such changes in laws could increase our costs of doing business or prevent
us from delivering our services over the Internet or in specific jurisdictions, which could harm our business and our results of operations.
Changes
in laws and government regulations to which we are currently subject, including changes to the method or approach of enforcement, may
increase our costs or limit our ability to market our alcohol brands and the brands of our clients, which could adversely affect our
operating results and business.
A
complex multi-jurisdictional regime governs alcoholic beverage manufacturing, distribution, sales, and marketing in the United States.
The alcoholic beverages industry in which we operate is subject to extensive regulation by the TTB (and other federal agencies), each
state's liquor authority, and potentially local authorities depending on location. These regulations and laws dictate such matters
as licensing requirements, production, importation, ownership restrictions, trade, and pricing practices, permitted distribution channels,
delivery, and prohibitions on sales to minors, permitted, and required labeling, and advertising and relations with wholesalers and retailers.
These laws, regulations and licensing requirements may, and sometimes are, interpreted and applied in a manner that is inconsistent from
one jurisdiction to another and may conflict with other legal mandates or with the Company's business practices. Further, these
laws, rules, regulations, and interpretations are constantly changing because of litigation, legislation, and agency priorities, and
could result in increased regulation. The Company's actual or asserted non-compliance with any such law, regulation or requirement
could expose us to investigations, claims, litigation, injunctive proceedings and other criminal or civil proceedings by private parties
and regulatory authorities, as well as license suspension, license revocation, substantial fines, and negative publicity, any of which
could adversely affect our results of operations, financial condition, and business.
Government
laws and regulations may result in increased production and sales costs, including an increase on the applicable tax in various state,
federal and foreign jurisdictions in which we do business. The amount of alcohol that CWS can sell directly to consumers over the internet
is regulated, and in certain states CWS is not allowed to sell alcohol directly to consumers at all. Changes in these laws and regulations
that tighten current rules could have an adverse impact on sales or increase costs to produce, market, package or sell alcohol. Changes
in regulation that require significant additional source data for registration and sale, in the labelling or warning requirements, or
limitations on the permissibility of any component, condition or ingredient, in the places in which our alcohol can be legally sold could
inhibit sales of affected products in those markets. While we do not engage in the act of selling alcohol on the internet, our business
depends on the ability of CWS to continue selling alcohol online through the CWS Platform. If any regulation were to cause a negative
impact on the ability of CWS to sell alcohol online, such impact would have a negative effect on our business, results of operations,
and financial condition. If CWS were ever to become unable to sell alcohol online through the CWS Platform, we would lose a significant
source of our revenue, which would have a material adverse impact on our business, results of operations and financial condition.
The
alcohol industry, and the 'sale' of alcohol online, is subject to extensive regulation by a number of federal, state, and
local authorities. These regulations and laws dictate such matters as trade and pricing practices, permitted distribution channels, permitted
and required labeling, and advertising. New or updated regulations, requirements or licenses, particularly changes that impact CWS'
ability to sell direct to customer and/or retain accounts in the states in which it operates, or new or increased excise taxes, income
taxes, sales taxes or international tariffs, could have an indirect, material adverse effect on our financial condition or results of
operations. From time to time, states consider proposals to increase state alcohol excise taxes. New or revised regulations or increased
licensing fees, requirements or taxes could have an indirect, material adverse effect on our business, financial condition, and results
of operations.
19
The requirements
of being a public company may strain our resources.
As a public company,
we will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley
Act of 2002, or the Sarbanes-Oxley Act, and the listing standards of Nasdaq. We expect that the requirements of these rules and regulations
will continue to increase our legal, accounting, and financial compliance costs, make some activities more difficult, time-consuming and
costly, and place significant strain on our personnel, systems and resources. Management's attention may be diverted from other
business concerns, which could adversely affect our business and operating results.
The Exchange Act requires that our company file annual, quarterly,
and current reports with respect to our business, financial condition, and results of operations. In addition, we must establish the corporate
infrastructure necessary for operating a public company, which may divert our management's attention from implementing our growth
strategy, which could delay or slow the implementation of our business strategies, and in turn negatively impact our company's financial
condition and results of operations.
If
we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce
timely and accurate financial statements or comply with applicable regulations could be impaired.
Our
current internal controls and any new controls that we develop may become inadequate because of changes in conditions in our business
or changes in the applicable laws, regulations and standards. Any failure to develop or maintain effective controls, or any difficulties
encountered in their implementation or improvement, could harm our operating results, cause us to fail to meet our reporting obligations,
result in a restatement of our financial statements for prior periods or adversely affect the results of management evaluations and independent
registered public accounting firm audits of our internal control over financial reporting that we will eventually be required to include
in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures and internal control over financial
reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative
effect on the trading price of our Common Stock. In addition, if we are unable to continue to meet these requirements, we may not be
able to remain listed on Nasdaq in the future.
Our
management team has limited experience managing a public company.
Most
members of our management team have limited experience managing a publicly traded company, interacting with public company investors
and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently
manage our transition to being a public company that is subject to significant regulatory oversight and reporting obligations under the
federal securities laws and the continuous scrutiny of securities analysts and investors. These new obligations and constituents will
require significant attention from our senior management and could divert their attention away from the day-to-day management of our
business, which could harm our business, financial condition and results of operations.
20
Industry
and other market data used in this prospectus or in periodic reports that we may in the future file with the SEC, including those undertaken
by us or our engaged consultants, may not prove to be representative of current and future market conditions or future results.
This
prospectus includes or refers to, and periodic reports that we may in the future file with the SEC may include or refer to, statistical
and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third parties
and surveys and studies that we undertook ourselves regarding the market potential for our current products. Although we believe that
such information has been obtained from reliable sources, the sources of such data have not guaranteed the accuracy or completeness of
such information. While we believe these industry publications and third-party research, surveys and studies are reliable, we have not
independently verified such data. The results of this data represent various methodologies, assumptions, research, analysis, projections,
estimates, composition of respondent pool, presentation of data and adjustments, each of which may ultimately prove to be incorrect,
and cause actual results and market viability to differ materially from those presented in any such report or other materials.
Adverse
developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults, or non-performance
by financial institutions or transactional counterparties, could adversely affect our current and projected business operations and our
financial condition and results of operations.
Actual
events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional
counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors
about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems.
For example, on March 10, 2023, Silicon Valley Bank, or SVB, was closed by the California Department of Financial Protection and Innovation,
which appointed the Federal Deposit Insurance Corporation, or the FDIC, as receiver. Similarly, on March 12, 2023, Signature Bank Corp.,
or Signature, and Silvergate Capital Corp. were each swept into receivership. Although a statement by the Department of the Treasury,
the Federal Reserve and the FDIC indicated that all depositors of SVB would have access to all of their money after only one business
day of closure, including funds held in uninsured deposit accounts, borrowers under credit agreements, letters of credit and certain
other financial instruments with SVB, Signature or any other financial institution that is placed into receivership by the FDIC may be
unable to access undrawn amounts thereunder. Although we are not a borrower under or party to any material letter of credit or any other
such instruments with SVB, Signature or any other financial institution currently in receivership, if we enter into any such instruments
and any of our lenders or counterparties to such instruments were to be placed into receivership, we may be unable to access such funds.
In addition, if any of our partners, suppliers or other parties with whom we conduct business are unable to access funds pursuant to
such instruments or lending arrangements with such a financial institution, such parties' ability to pay their obligations to us
or to enter into new commercial arrangements requiring additional payments to us could be adversely affected. In this regard, counterparties
to credit agreements and arrangements with these financial institutions, and third parties such as beneficiaries of letters of credit
(among others), may experience direct impacts from the closure of these financial institutions and uncertainty remains over liquidity
concerns in the broader financial services industry. Similar impacts have occurred in the past, such as during the 2008-2010 financial
crisis.
Inflation
and rapid increases in interest rates have led to a decline in the trading value of previously issued government securities with interest
rates below current market interest rates. Although the U.S. Department of Treasury, FDIC and Federal Reserve Board have announced a
program to provide up to $25 billion of loans to financial institutions secured by certain of such government securities held by financial
institutions to mitigate the risk of potential losses on the sale of such instruments, widespread demands for customer withdrawals or
other liquidity needs of financial institutions for immediately liquidity may exceed the capacity of such program.
Our
access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our current and projected future
business operations could be significantly impaired by factors that affect us, any financial institutions with which we enter into credit
agreements or arrangements directly, or the financial services industry or economy in general. These factors could include, among others,
events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity
agreements or arrangements, disruptions or instability in the financial services industry or financial markets, or concerns or negative
expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions
or financial services industry companies with which we have financial or business relationships but could also include factors involving
financial markets or the financial services industry generally.
The
results of events or concerns that involve one or more of these factors could include a variety of material and adverse impacts on our
current and projected business operations and our financial condition and results of operations. These risks include, but may not be
limited to, the following:
●
delayed
                                            access to deposits or other financial assets or the uninsured loss of deposits or other financial
                                            assets;
●
inability
                                            to enter into credit facilities or other working capital resources;
●
potential
                                            or actual breach of contractual obligations that require us to maintain letters of credit
                                            or other credit support arrangements; or
●
termination
                                            of cash management arrangements and/or delays in accessing or actual loss of funds subject
                                            to cash management arrangements.
21
In
addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing
terms, including higher interest rates or costs and tighter financial and operating covenants, or systemic limitations on access to credit
and liquidity sources, thereby making it more difficult for us to acquire financing on acceptable terms or at all. Any decline in available
funding or access to our cash and liquidity resources could, among other risks, adversely impact our ability to meet our operating expenses
or other obligations, financial or otherwise, result in breaches of our financial and/or contractual obligations, or result in violations
of federal or state wage and hour laws. Any of these impacts, or any other impacts resulting from the factors described above or other
related or similar factors, could have material adverse impacts on our liquidity and our current and/or projected business operations
and financial condition and results of operations.
Any
further deterioration in the macroeconomic economy or financial services industry could lead to losses or defaults by our partners, vendors
or suppliers, which in turn, could have a material adverse effect on our current and/or projected business operations and results of
operations and financial condition. For example, a partner may fail to make payments when due, default under their agreements with us,
become insolvent or declare bankruptcy, or a supplier may determine that it will no longer deal with us as a customer. In addition, a
vendor or supplier could be adversely affected by any of the liquidity or other risks that are described above as factors that could
result in material adverse impacts on us, including but not limited to delayed access or loss of access to uninsured deposits or loss
of the ability to draw on existing credit facilities involving a troubled or failed financial institution. The bankruptcy or insolvency
of any partner, vendor or supplier, or the failure of any partner to make payments when due, or any breach or default by a partner, vendor
or supplier, or the loss of any significant supplier relationships, could cause us to suffer material losses and may have a material
adverse impact on our business.
Risks
Related to This Offering and Ownership of Our Common Stock
An
active trading market for our Common Stock may not develop.
Prior
to this offering, there has been no public market for our Common Stock. We have applied to list our Common Stock on Nasdaq under the
symbol "LQR". The closing of this offering is contingent upon such listing. Although we anticipate our Common Stock being
approved for listing on Nasdaq, an active trading market for our Common Stock may never develop or be sustained following this offering.
The initial public offering price of our Common Stock will be based and determined through negotiations between us and the underwriters.
This initial public offering price may not be indicative of the market price of our Common Stock after this offering. In the absence
of an active trading market for our Common Stock, investors may not be able to sell their Common Stock at or above the initial public
offering price or at the time that they would like to sell. An inactive market may also impair our ability to raise capital to continue
to fund operations by selling Common Stock and may impair our ability to acquire other companies or assets by using our Common Stock
as consideration.
The
market price of our Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to resell
your shares at or above the initial public offering price.
After
this offering, the market price for our Common Stock is likely to be volatile, in part because our shares have not been traded publicly.
In addition, the market price of our Common Stock may fluctuate significantly in response to several factors, most of which we cannot
control, including:
●
quarterly
                                            variations in our operating results compared to market expectations;
●
adverse
                                            publicity about us, the industries we participate in or individual scandals;
●
announcements
                                            of new offerings or significant price reductions by us or our competitors;
●
stock
                                            price performance of our competitors;
●
fluctuations
                                            in stock market prices and volumes;
●
changes
                                            in senior management or key personnel;
●
changes
                                            in financial estimates by securities analysts;
●
the
                                            market's reaction to our reduced disclosure as a result of being an "emerging
                                            growth company" under the JOBS Act;
●
negative
                                            earnings or other announcements by us or our competitors;
●
defaults
                                            on indebtedness, incurrence of additional indebtedness, or issuances of additional capital
                                            stock;
●
global
                                            economic, legal and regulatory factors unrelated to our performance; and
●
the
                                            other factors listed in this "
Risk Factors
" section.
22
The public offering price of our Common Stock
has been determined by us based upon many factors and may not be indicative of prices that will prevail following the closing of this
offering. Volatility in the market price of our Common Stock may prevent investors from being able to sell their shares at or above the
initial public offering price. As a result, you may suffer a loss on your investment.
Certain recent initial public offerings
of companies with relatively small public floats comparable to our anticipated public float have experienced extreme volatility that was
seemingly unrelated to the underlying performance of the respective company. Our Common Stock may potentially experience rapid and substantial
price volatility, which may make it difficult for prospective investors to assess the value of our Common Stock.
In addition to the risks addressed above under
"
— Our Common Stock may be volatile or may decline regardless of our operating performance, and you may not be able to
resell your shares at or above the initial public offering price
," our Common Stock may be subject to rapid and substantial
price volatility. Recently, companies with comparably small public floats and initial public offering sizes have experienced instances
of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was seemingly unrelated to the respective
company's underlying performance. Although the specific cause of such volatility is unclear, our anticipated public float may amplify
the impact the actions taken by a few stockholders have on the price of our stock, which may cause our stock price to deviate, potentially
significantly, from a price that better reflects the underlying performance of our business. Our Common Stock may experience run-ups and
declines that are seemingly unrelated to our actual or expected operating performance and financial condition or prospects, making it
difficult for prospective investors to assess the rapidly changing value of our Common Stock. In addition, investors of shares of our
Common Stock may experience losses, which may be material, if the price of our Common Stock declines after this offering or if such investors
purchase shares of our Common Stock prior to any price decline.
We may not be able to maintain a listing
of our Common Stock on Nasdaq.
Assuming that our Common Stock is listed on Nasdaq,
we must meet certain financial and liquidity criteria to maintain such listing. If we violate Nasdaq's listing requirements, or
if we fail to meet any of Nasdaq's listing standards, our Common Stock may be delisted. In addition, our board of directors may
determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting
of our Common Stock from Nasdaq may materially impair our shareholders' ability to buy and sell our Common Stock and could have
an adverse effect on the market price of, and the efficiency of the trading market for, our Common Stock. The delisting of our Common
Stock could significantly impair our ability to raise capital and the value of your investment.
If securities or industry analysts do not
publish research or publish inaccurate or unfavorable research about our business, the market price for the shares and trading volume
could decline.
The trading market for our Common Stock will depend
in part on the research and reports that securities or industry analysts publish about us or our business. If research analysts do not
establish and maintain adequate research coverage or if one or more of the analysts who covers us downgrades our Common Stock or publishes
inaccurate or unfavorable research about our business, the market price for our Common Stock would likely decline. If one or more of these
analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets,
which, in turn, could cause the market price or trading volume for our Common Stock to decline.
As our initial public offering price is
substantially higher than our net tangible book value per share, you will experience immediate and substantial dilution.
If you purchase shares in this offering, you will
pay more for your shares of Common Stock than the amount paid by our existing stockholders for their shares on a per share basis. As a
result, you will experience immediate and substantial dilution in net tangible book value per share in relation to the price that you
paid for your shares. We expect the dilution as a result of the offering to be $4.65 per share to new investors purchasing our shares
in this offering if the maximum number of shares being offered are sold, assuming a public offering price of $5 per share, which is the
midpoint, of the estimated range of the initial public offering price shown on the cover page of this prospectus. In addition, you will
experience further dilution to the extent that our shares are issued upon the vesting of restrictive stock or exercise of stock options
under any stock incentive plans. All of the shares issuable under our then stock incentive plans will be issued at a purchase price on
a per share basis that is less than the assumed public offering price per share in this offering. See "
Dilution
" for
a more complete description of how the value of your investment in our shares will be diluted upon completion of this offering.
23
We have broad discretion as to the use of
the net proceeds from this offering and our use of the offering proceeds may not yield a favorable return on your investment. Additionally,
we may use these proceeds in ways with which you may not agree or in the most effective way.
The Company's management will have substantial
discretion in applying the net proceeds to be received by the Company. See "
Use of Proceeds
" for a description of how
we plan to apply the net proceeds. However, based on unforeseen technical, commercial, or regulatory issues, we could spend the proceeds
in ways with which you may not agree. Moreover, the proceeds may not be invested effectively or in a manner that yields a favorable or
any return, and consequently, this could result in financial losses that could have a material adverse effect on our business, financial
condition and results of operations. There can be no assurance that the Company will utilize the net proceeds in a manner that enhances
the value of the Company. If the Company fails to spend the proceeds effectively, the Company's business and financial condition
could be harmed, and there may be the need to seek additional financing sooner than expected.
We have never paid cash dividends on our
stock and do not intend to pay dividends for the foreseeable future.
We have paid no cash dividends on any class of
our stock to date, and we do not anticipate paying cash dividends in the near term. For the foreseeable future, we intend to retain any
earnings to finance the development and expansion of our business, and we do not anticipate paying any cash dividends on our Common Stock.
Accordingly, investors must be prepared to rely on sales of their Common Stock after price appreciation to earn an investment return,
which may never occur. Investors seeking cash dividends should not purchase our Common Stock. Any determination to pay dividends in the
future will be made at the discretion of our board of directors and will depend on our results of operations, financial condition, contractual
restrictions, restrictions imposed by applicable law and other factors our board deems relevant.
Raising additional capital may cause dilution
to our stockholders, including purchasers of Common Stock in this offering or restrict our operations.
Until such time, if ever, as we can generate substantial
product revenues, we expect to finance our cash needs through a combination of equity and/or debt financing and collaborations, licensing
agreements or other strategic arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt
securities, your ownership interest will be diluted, and the terms of such securities may include liquidation or other preferences that
adversely affect your rights as a stockholder.
To the extent that we raise additional capital
through debt financing, it would result in increased fixed payment obligations and a portion of our operating cash flows, if any, being
dedicated to the payment of principal and interest on such indebtedness. In addition, debt financing may involve agreements that include
restrictive covenants that impose operating restrictions, such as restrictions on the incurrence of additional debt, the making of certain
capital expenditures or the declaration of dividends.
We may issue additional debt and equity
securities, which are senior to our Common Stock as to distributions and in liquidation, which could materially adversely affect the market
price of our Common Stock.
In the future, we may attempt to increase our
capital resources by entering into additional debt or debt-like financing that is secured by all or up to all of our assets, or issuing
debt or equity securities, which could include issuances of commercial paper, medium-term notes, senior notes, subordinated notes or shares.
In the event of our liquidation, our lenders and holders of our debt securities would receive a distribution of our available assets before
distribution to our stockholders. In addition, any additional preferred stock, if issued by our company, may have a preference with respect
to distributions and upon liquidation, which could further limit our ability to make distributions to our stockholders. Because our decision
to incur debt and issue securities in our future offerings will depend on market conditions and other factors beyond our control, we cannot
predict or estimate the amount, timing or nature of our future offerings and debt financing.
24
Further, market conditions could require us to
accept less favorable terms for the issuance of our securities in the future. Thus, you will bear the risk of our future offerings reducing
the value of your Common Stock and diluting your interest in our company.
Enforcing legal liability against our directors
and senior management might be difficult.
Although we are organized under the laws of the
State of Nevada and investors are able to affect service of process in the United States upon us, most of the members of our board of
directors and senior management reside outside of the United States and all or a substantial portion of their assets are located outside
the United States. As a result, it may not be possible to serve process on these directors and senior management in the United States
or to enforce court judgments obtained in the United States against these individuals based on the civil liability provisions of the U.S.
federal or state securities laws. In addition, awards of punitive damages in actions brought in the United States or elsewhere may not
be enforceable outside the United States.
The offering price of the primary offering
and resale offering could differ.
The
offering price of shares of our Common Stock in the initial public offering has been determined by negotiations between the Company and
the underwriter.
The offering price in the primary offering bears no relationship to our assets, earnings or book value, or any
other objective standard of value. Additionally, the estimated offering price in the primary offering of $5 per share, which is a midpoint
of the estimated range of the initial public offering price shown on the cover page of this prospectus, is substantially higher than the
prices at which certain selling stockholders acquired their shares ($1.00 per share), and we recently sold stock at prices ($1.00 per
share) substantially less than the primary offering price. Our recent share issuances at prices substantially less than the primary offering
price occurred while we were a non-public company, and the shares we issued were subject to transfer restrictions imposed by the Securities
Act of 1933, as amended, and by lock-up restrictions, whereas shares issued in the primary offering will be issued after we are a public
company and will be issued without restriction.
The selling stockholders may sell the resale shares
at fixed prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices
after the listing of our Common Stock on Nasdaq. Therefore, the offering prices of the initial public offering and resale offering could
differ. As a result, the purchasers in the resale offering could pay more or less than the offering price in the primary offering.
The resale by the selling stockholders may
cause the market price of our Common Stock to decline.
The resale of shares of our Common Stock by the
selling stockholders in the resale offering could result in resales of our Common Stock by our other shareholders concerned about selling
volume. In addition, the resale by the selling stockholders could have the effect of depressing the market price for our Common Stock.
We will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, and our stockholders
could receive less information than they might expect to receive from more mature public companies.
Upon the completion of this offering, we will
be required to publicly report on an ongoing basis as an "emerging growth company" (as defined in the JOBS Act) under the
reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain
exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth
companies, including but not limited to:
●
not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act;
●
being permitted to comply with reduced disclosure obligations regarding executive compensation in our
periodic reports and proxy statements; and
●
being exempt from the requirement to hold a non-binding advisory vote on executive compensation and stockholder
approval of any golden parachute payments not previously approved.
In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.
25
We expect to take advantage of these reporting
exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, although
if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would
cease to be an emerging growth company as of the following December 31.
Because we will be subject to ongoing public reporting
requirements that are less rigorous than Exchange Act rules for companies that are not emerging growth companies, our stockholders could
receive less information than they might expect to receive from more mature public companies. We cannot predict if investors will find
our Common Stock less attractive if we elect to rely on these exemptions, or if taking advantage of these exemptions would result in less
active trading or more volatility in the price of our Common Stock.
We are a smaller
reporting company within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements
available to smaller reporting companies, this could make our securities less attractive to investors and may make it more difficult to
compare our performance with other public companies.
Rule 12b-2 of the Exchange Act defines a "smaller
reporting company" as an issuer that is not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent
that is not a smaller reporting company and that:
●
had a public float of less than $250 million as of the last business day of its most recently completed
second fiscal quarter, computed by multiplying the aggregate worldwide number of shares of its voting and non-voting common equity held
by non-affiliates by the price at which the common equity was last sold, or the average of the bid and asked prices of common equity,
in the principal market for the common equity; or
●
in the case of an initial registration statement under the Securities Act or the Exchange Act for shares
of its common equity, had a public float of less than $250 million as of a date within 30 days of the date of the filing of the registration
statement, computed by multiplying the aggregate worldwide number of such shares held by non-affiliates before the registration plus,
in the case of a Securities Act registration statement, the number of such shares included in the registration statement by the estimated
public offering price of the shares; or
●
in the case of an issuer whose public float as calculated under paragraph (1) or (2) of this definition
was zero or whose public float was less than $700 million, had annual revenues of less than $100 million during the most recently completed
fiscal year for which audited financial statements are available.
As a smaller reporting company, we will not be
required and may not include a Compensation Discussion and Analysis section in our proxy statements; we will provide only two years of
financial statements; and we need not provide the table of selected financial data. We also will have other "scaled" disclosure
requirements that are less comprehensive than issuers that are not smaller reporting companies which could make our Common Stock less
attractive to potential investors, which could make it more difficult for our stockholders to sell their shares.
As a "smaller reporting company,"
we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public shareholders
.
Under Nasdaq rules, a "smaller reporting
company," as defined in Rule 12b-2 under the Exchange Act, is not subject to certain corporate governance requirements otherwise
applicable to companies listed on Nasdaq. For example, a smaller reporting company is exempt from the requirement of having a compensation
committee composed solely of directors meeting certain enhanced independence standards, as long as the compensation committee has at least
two members who do meet such standards. Although we have not yet determined to avail ourselves of this or other exemptions from Nasdaq
requirements that are or may be afforded to smaller reporting companies, while we will seek to maintain our shares on Nasdaq in the future
we may elect to rely on any or all of them. By electing to utilize any such exemptions, our company may be subject to greater risks of
poor corporate governance, poorer management decision-making processes, and reduced results of operations from problems in our corporate
organization. Consequently, our stock price may suffer, and there is no assurance that we will be able to continue to meet all continuing
listing requirements of Nasdaq from which we will not be exempt, including minimum stock price requirements.
If our Common Stock becomes subject to the
penny stock rules, it would become more difficult to trade our shares.
The SEC has adopted rules that regulate broker-dealer
practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00,
other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems,
provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system.
If we do not retain a listing on Nasdaq or another national securities exchange and if the price per share of our Common Stock is less
than $5.00, our Common Stock could be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny
stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition,
the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser's
written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks;
and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the
trading activity in the secondary market for our Common Stock, and therefore shareholders may have difficulty selling their shares.
26
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus contains forward-looking statements
that are based on our management's beliefs and assumptions and on information currently available to us. All statements other than
statements of historical facts are forward-looking statements. The forward-looking statements are contained principally in, but not limited
to, the sections entitled "
Prospectus Summary
," "
Risk Factors
," "
Management's Discussion
and Analysis of Financial Condition and Results of Operations
" and "
Business
." These statements relate to
future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not
limited to, statements about:
●
our ability to introduce new products and services;
●
our ability to obtain additional funding to develop additional products, services and offerings;
●
compliance with obligations under intellectual property licenses with third parties;
●
market acceptance of our new offerings;
●
competition from existing online offerings or new offerings that may emerge;
●
our ability to establish or maintain collaborations, licensing or other arrangements;
●
our ability and third parties' abilities to protect intellectual property rights;
●
our ability to adequately support future growth;
●
our goals and strategies;
●
our future business development, financial condition and results of operations;
●
expected changes in our revenue, costs or expenditures;
●
growth of and competition trends in our industry;
●
the accuracy and completeness of the data underlying our or third-party sources' industry and market
analyses and projections;
●
our expectations regarding demand for, and market acceptance of, our products and services;
●
our expectations regarding our relationships with investors, institutional funding partners and other
parties with whom we collaborate;
●
our expectation regarding the use of proceeds from this offering;
●
fluctuations in general economic and business conditions in the markets in which we operate; and
●
relevant government policies and regulations relating to our industry.
In some cases, you can identify forward-looking
statements by terms such as "may," "could," "will," "should," "would," "expect,"
"plan," "intend," "anticipate," "believe," "estimate," "predict,"
"potential," "project" or "continue" or the negative of these terms or other comparable terminology.
These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and
unknown risks, uncertainties, and other factors, which are, in some cases, beyond our control and which could materially affect results.
Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the
heading "
Risk Factors
" and elsewhere in this prospectus. If one or more of these risks or uncertainties occur, or if
our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the
forward-looking statements. No forward-looking statement is a guarantee of future performance.
The forward-looking statements made in this prospectus
relate only to events or information as of the date on which the statements are made in this prospectus. Although we will become a public
company after this offering and have ongoing disclosure obligations under United States federal securities laws, we do not intend to update
or otherwise revise the forward-looking statements in this prospectus, whether as a result of new information, future events or otherwise.
27
USE OF PROCEEDS
After deducting the estimated underwriters'
discounts and commissions and offering expenses payable by us, we expect to receive net proceeds of approximately $3,955,990 from this
offering (or approximately $4,638,490 if the underwriters exercise the over-allotment option in full), based on an assumed public offering
price of $5 per share, which is the midpoint of the estimated range of the initial public offering price shown on the cover page of this
prospectus.
We plan to use the net proceeds of this offering
as follows:
●
66.7% of the net proceeds (approximately $2,638,645, or approximately $3,093,872 if the underwriters exercise
the over-allotment option in full) for acquisitions of alcoholic beverage brands;
●
20% of the net proceeds (approximately $791,198, or approximately $927,698 if the underwriters exercise the over-allotment option in full) to invest in marketing of existing brands, including SWOL;
●
10% of the net proceeds (approximately $395,599, or approximately $463,849 if the underwriters exercise
the over-allotment option in full) for working capital and general corporate purposes; and
●
3.3% of the net proceeds (approximately $130,547, or approximately $153,070 if the underwriters exercise
the over-allotment option in full) to compensate certain executive officers.
Each $1.00 increase or decrease in the assumed
initial public offering price of $5 per share, which is the midpoint of the estimated range of the initial public offering price shown
on the cover page, of this prospectus would increase or decrease the net proceeds that we receive from this offering by approximately
$910,000, respectively, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the
same and after deducting the estimated underwriting discounts and commissions payable by us.
The foregoing represents our current intentions
to use and allocate the net proceeds of this offering based upon our present plans and business conditions. Our management, however, will
have broad discretion in the way that we use the net proceeds of this offering. We have not identified nor developed any plans to acquire
any specific alcoholic beverage brand at this time. Pending the final application of the net proceeds of this offering, we intend to invest
the net proceeds of this offering in short-term, interest-bearing, investment-grade securities. See "
Risk Factors — Risks
Related to This Offering and Ownership of Our Common Stock — We have broad discretion as to the use of the net proceeds from this
offering and our use of the offering proceeds may not yield a favorable return on your investment. Additionally, we may use these proceeds
in ways with which you may not agree or in the most effective way.
"
28
DIVIDEND POLICY
We have never declared or paid cash dividends
on our capital stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business
and do not anticipate paying any cash dividends in the near future. We may also enter into credit agreements or other borrowing arrangements
in the future that will restrict our ability to declare or pay cash dividends. Any future determination to declare dividends will be made
at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, contractual
restrictions, general business conditions and other factors that our board of directors may deem relevant.
See
also "
Risk Factors —
Risks Related to This Offering and Ownership of Our Common Stock
—
We have never paid cash dividends on our stock and do not intend to pay dividends for the foreseeable future.
"
29
CAPITALIZATION
The following table sets forth our capitalization
as of March 31, 2023:
●
on an actual basis; and
●
on a pro forma basis to reflect the sale of 955,000 shares of Common Stock at a price of $1.00 per share
subsequent to March 31, 2023, in private placements; and
●
on a pro forma basis to reflect the issuance of 3,000,000 shares of Common Stock subsequent to March 31,
2023, in the form of advisor agreements; and
●
on a pro forma basis to reflect the cancellation of 3,000,000 shares of Common Stock subsequent to March
31, 2023, previously purchased by four entities pursuant to four stock purchase agreements; and
●
on a pro forma as adjusted basis to reflect the pro forma adjustment as described above and the sale of
1,000,000 shares by us in this offering at the estimated price to the public of $5 per share, which is the midpoint of the estimated range
of the initial public offering price shown on the cover page of this prospectus, resulting in estimated net proceeds to us of approximately
$3,955,990 after deducting (i) underwriter commissions, discounts, accountable and non-accountable expenses of $679,500 (assuming no exercise
of the over-allotment option) and (ii) our estimated other offering expenses of $364,509.26.
The pro forma information below is illustrative
only and our capitalization following the completion of this offering is subject to adjustment based on the initial public offering price
of our Common Stock and other terms of this offering determined at pricing. You should read this table together with our financial statements
and the related notes included elsewhere in this prospectus and the information under "
Management's Discussion and Analysis
of Financial Condition and Results of Operations
."
As of March 31, 2023
Actual
Pro Forma
Pro Forma
As
Adjusted
$
$
$
Cash and cash equivalents
23,581
978,581
5,249,081
Common Stock, $0.0001 par
value, 350,000,000 shares authorized, 9,200,434 shares issued and outstanding, actual, 10,155,434 shares issued and outstanding, pro
forma, 11,155,434 shares issued and outstanding, pro forma as adjusted
920
1,016
1,116
Additional paid-in capital
5,843,622
6,798,526
11,009,667
Accumulated deficit
(4,126,975
)
(4,126,975
)
(4,126,975
)
Total shareholder's equity
1,717,567
2,672,567
6,883,808
Total capitalization
1,717,567
2,672,567
6,883,808
Each $1.00 increase or decrease in the assumed
offering price per share of $5 per share, which is the midpoint of the estimated range of the initial public offering price shown on the
cover page, assuming no change in the number of shares to be sold, would increase or decrease the net proceeds that we receive in this
offering and each of total shareholders' equity and total capitalization by approximately $910,000 after deducting (i) estimated
underwriter commissions and (ii) offering expenses, in each case, payable by us.
The table above is based on 9,200,434 shares of
our Common Stock
outstanding
as of March 31, 2023, and excludes:
●
1,250,000 shares of Common Stock that are reserved for issuance to our directors, director nominees, and
officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;
●
50,000 shares of Common Stock (57,500 shares of Common Stock if the underwriters exercise the over-allotment
option in full) issuable upon exercise of a warrant to be issued to the underwriters in connection with this offering; and
●
150,000 shares of Common Stock issuable upon the underwriters' exercise of the over-allotment option
in full.
30
DILUTION
Dilution in net tangible book value per share
to new investors is the amount by which the offering price paid by the purchasers of the shares of our Common Stock sold in this offering
exceeds the pro forma net tangible book value per share of Common Stock after this offering. Net tangible book value per share is determined
at any date by subtracting our total liabilities from the total book value of our tangible assets and dividing the difference by the number
of shares of Common Stock deemed to be outstanding at that date.
Our net tangible book value as of March 31, 2023,
was $(362,525), or approximately $(0.04) per share of Common Stock.
Pro forma as adjusted net tangible book value
dilution per share to new investors represents the difference between the amount per share paid by purchasers of our Common Stock in this
offering and the pro forma as adjusted net tangible book value per share of Common Stock immediately after completion of this offering.
Investors participating in this offering will incur immediate, substantial dilution. After giving effect to our sale of 1,000,000 shares
of our Common Stock in this offering at an assumed initial public offering price of $5 per share, which is the midpoint of the estimated
range of the initial public offering price shown on the cover page, and after deducting the estimated underwriting discounts and commissions
and estimated offering expenses, and adjusting for the change in our pro forma net tangible book value subsequent to March 31, 2023 due
to the sale of 955,000 shares of Common Stock at a price of $1 per share subsequent to March 31, 2023 in private placements and the issuance
of 3,000,000 shares of Common Stock pursuant to advisor agreements, our pro forma as adjusted net tangible book value as of March 31,
2023 would have been approximately $3,907,975, or approximately $0.35 per share of Common Stock. This amount represents an immediate increase
in pro forma net tangible book value of $0.39 per share of Common Stock to existing shareholders and an immediate dilution in pro forma
net tangible book value of $4.65 per share of Common Stock to purchasers of our Common Stock in this offering, as illustrated in the following
table.
Assumed public offering price per share of Common Stock
$
5.00
Historical net tangible book value (deficit) per share as of March 31, 2023
$
(0.04
)
Increase in pro forma net tangible book value per share attributable to the offering
0.39
Pro forma as-adjusted net tangible book value (deficit) per share as of March 31, 2023
0.35
Dilution per share to new investors purchasing shares of Common Stock in this offering
$
4.65
If the underwriters exercise their over-allotment
option in full, the pro forma as adjusted net tangible book value per share of Common Stock, as adjusted to give effect to this offering,
would be $0.41 per share, and the dilution in pro forma net tangible book value per share to new investors purchasing shares of Common
Stock in this offering would be $4.59 per share.
The following table sets forth, as of March 31,
2023, the total number of shares of Common Stock previously issued and sold to existing investors, the total consideration paid for the
foregoing and the average price per share of Common Stock paid, or to be paid, by existing owners and by the new investors. The calculation
below is based on the assumed initial public offering price of $5 per share, which is the midpoint of the estimated range of the initial
public offering price shown on the cover page, before deducting estimated underwriter commissions and offering expenses, in each case
payable by us, and assumes no exercise of the over-allotment option.
Shares Purchased
Total Consideration
Average
Price
Number
Percent
Amount
Percent
Per Share
Existing Stockholders
9,200,434
90.2
%
$
4,035,472
44.7
%
$
0.44
New investors
1,000,000
9.8
%
$
5,000,000
55.3
%
$
5.00
Total
10,200,434
100.0
%
$
9,035,472
100.0
%
$
0.89
The table above is based on 9,200,434 shares of
our Common Stock
outstanding
as of March 31, 2023, and excludes:
●
1,250,000 shares of Common Stock that are reserved for issuance to our directors, director nominees, and
officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;
●
50,000 shares of Common Stock (57,500 shares of Common Stock if the underwriters exercise the over-allotment
option in full) issuable upon exercise of a warrant to be issued to the underwriters in connection with this offering; and
●
150,000 shares of Common Stock issuable upon the underwriters' exercise of the over-allotment option
in full.
To the extent
that any outstanding options or warrants are exercised, new options, restricted stock units or other securities are issued under our stock-based
compensation plans, or new shares of
Common Stock
in the future, there will be further dilution
to investors participating in this offering.
31
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis summarizes
the significant factors affecting our operating results, financial condition, liquidity and cash flows of our company as of and for the
periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related
notes thereto included elsewhere in this prospectus. The discussion contains forward-looking statements that are based on the beliefs
of management, as well as assumptions made by, and information currently available to, our management. Actual results could differ materially
from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and elsewhere
in this prospectus, particularly in the sections titled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking
Statements".
Overview
Our company, LQR House Inc., intends to become
the full-service digital marketing and brand development face of the alcoholic beverage space. We also intend to integrate the supply,
sales, and marketing facets of the alcoholic beverage space into one easy to use platform and become the one-stop-shop for everything
related to alcohol. To date, our primary business includes the development of premium limited batch spirit brands, establishing an exclusive
wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. We believe that
the marketing and brand management services we provide to our wholly owned and third-party clients will increase brand recognition thereof,
and drive sales thereof through our e-commerce platform partner.
Our Historical Performance
The Company's independent registered public
accounting firm has expressed substantial doubt as to the Company's ability to continue as a going concern. As of March 31, 2023,
and December 31, 2022, and 2021, we had $23,581, $7,565 and $1,116,101 in cash, respectively. During the three months ended March 31,
2023 and 2022, we had net losses of $322,074 and $701,128, respectively. The Company's cash balance and revenues generated are not
currently sufficient and cannot be projected to cover its operating expenses and obligations for the next 12 months. The Company expects
to fund its operations for the next 12 months through equity financing arrangements and sales of its services. However, the Company may
not be able to raise adequate funds for capital expenditures, working capital and other cash requirements from capital markets on acceptable
terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company's failure to raise capital as
and when needed and generate significantly higher revenues than operating expenses to achieve profitability would impact its going concern
status and would have a negative impact on its financial condition and its ability to pursue its business strategy and continue as a going
concern. For further discussion, see "
Management's Discussion and Analysis of Financial Condition and Results of Operations
– Liquidity and Capital Resources – Going Concern
".
Recent Developments
Private Placement
On June 1, 2023, we conducted a private placement
of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in Section 2(a)(15)
of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons made in compliance
with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000 shares of Common
Stock at $1.00 per share for a total of $955,000.
Principal Factors Affecting Our Financial Performance
Our operating results are primarily affected by
the following factors:
●
our ability to acquire new customers and users or retain existing customers and users;
●
our ability to offer competitive pricing;
●
our ability to broaden product or service offerings;
32
●
industry demand and competition;
●
our ability to leverage technology and use and develop efficient processes;
●
our ability to attract and maintain a network of influencers with a relevant audience;
●
our ability to attract and retain talented employees and contractors; and
●
market conditions and our market position.
Emerging Growth Company
We qualify as an "emerging growth company"
under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long
as we are an emerging growth company, we will not be required to:
●
have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of
the Sarbanes-Oxley Act;
●
comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding
mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial
statements (i.e., an auditor discussion and analysis);
●
submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay"
and "say-on-frequency;" and
●
disclose certain executive compensation related items such as the correlation between executive compensation
and performance and comparisons of the chief executive officer's compensation to median employee compensation.
In addition, Section 107 of the JOBS Act also
provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities
Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain
accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits
of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such
new or revised accounting standards.
We will remain an emerging growth company for
up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.235
billion, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would
occur if the market value of our Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of our most
recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during
the preceding three year period.
Results of Operations
Comparison of Three Months Ended March 31,
2023 and 2022
The following table sets forth key components
of our results of operations during the three months ended March 31, 2023 and 2022.
Three Months Ended March 31,
2023
2022
$
% of
Revenue
$
% of
Revenue
Revenue – services
$
150,563
100
%
$
28,250
100
%
Total revenues
150,563
100
%
$
28,250
100
%
Cost of revenue – services
102,997
68
%
312,955
1108
%
Total cost of revenue
102,997
68
%
312,955
1108
%
Gross profit (loss)
47,566
32
%
(284,705
)
-1008
%
Operating expenses:
Sales and marketing
48,323
32
%
162,886
577
%
General and administrative
321,317
213
%
253,537
897
%
Total operating expenses
369,640
246
%
416,423
1474
%
Loss from operations
(322,074
)
-214
%
(701,128
)
-2482
%
Provision for income taxes
-
0
%
-
0
%
Net loss
$
(322,074
)
-214
%
$
(701,128
)
-2482
%
33
Revenue
For the three months ended March 31, 2023 and
2022, service revenues were $150,565 and $28,250, respectively. Service revenues are earned as we contract with third-party alcoholic
beverage brands to utilize access to the CWS Platform, as well as vault memberships beginning in late 2022. Service revenues increased
by $122,313 as we grew our marketing customer base with beverage brands.
Cost of Revenue
For the three months ended March 31, 2023 and
2022, service cost of revenues were $102,997 and $312,995, respectively. Cost of revenues decreased by $209,958 in 2023 due to our ability
to support marketing campaigns via dedicated personnel and ceased certain digital ad costs to support campaigns.
Sales and Marketing
For the three months ended March 31, 2023 and
2022, sales and marketing expenses were $48,323 and $162,886, respectively. The decrease of $114,563 was primarily due to other cost-cutting
measures related to our marketing efforts in 2023.
General and Administrative
For the three months ended March 31, 2023 and
2022, general and administrative expenses were $321,317 and $253,537, respectively. The increase of $67,780 was primarily due to professional
fees incurred as our operations scaled.
Net Loss
Net loss for the three months ended March 31,
2023 and 2022 was $322,074 and $701,128, respectively.
Comparison of Years Ended December 31, 2022
and 2021
The following table sets forth key components
of our results of operations during the years ended December 31, 2022 and 2021.
Years Ended December 31,
2022
2021
$
% of
Revenue
$
% of
Revenue
Revenue – services
$
470,359
78
%
$
182,765
58
%
Revenue – product
130,772
22
%
132,527
42
%
Total revenues
601,131
100
%
315,292
100
%
Cost of revenue – services
668,654
111
%
520,193
165
%
Cost of revenue – product
134,490
22
%
157,254
50
%
Total cost of revenue
803,144
134
%
677,447
215
%
Gross (loss)
(202,013
)
-34
%
(362,155
)
-115
%
Operating expenses:
Sales and marketing
655,151
109
%
464,011
147
%
General administrative
985,011
164
%
1,136,560
360
%
Total operating expenses
1,640,162
273
%
1,600,571
508
%
Loss from operations
(1,842,175
)
-306
%
(1,962,726
)
-623
%
Provision for income taxes
-
0
%
-
0
%
Net loss
$
(1,842,175
)
-306
%
$
(1,962,726
)
-623
%
34
Revenue
We derive our revenue primarily from marketing
services as well as distribution of our SWOL Tequila product to CWS. Revenue is reported net of discounts.
For the years ended December 31, 2022 and 2021,
service revenues were $470,359 and $182,764, or 78% and 58% of total revenues, all respectively. Service revenues are earned as we contract
with third-party alcoholic beverage brands to utilize access to the CWS Platform, as well as vault memberships beginning in late 2022.
Service revenues increased by $287,594 as we grew our marketing customer base with beverage brands.
For the years ended December 31, 2022 and 2021,
product revenues were $130,772 and $132,527, or 22% and 42% of total revenues, all respectively. Product revenues are earned as we facilitate
all efforts to get the SWOL product delivered to CWS for distribution in the United States, including advancing costs for production,
shipping and other importing and delivery charges. We receive a payment of cost plus an additional 20% on each bottle of SWOL Tequila
sold via the CWS Platform or in any CWS retail location. Product revenues decreased by $1,755 in 2022 due to less SWOL bottles sold. All
product revenues were to CWS, a related party of the Company.
Total revenues for the years ended December 31,
2022 and 2021 were $601,131 and $315,292, respectively.
Cost of Revenue
Cost of revenue consists of all direct costs attributable
to performing marketing services and our SWOL distribution efforts. Cost of revenue includes affiliate payouts and contracted marketing
services, product costs, packaging, shipping and other importing and delivery charges. Cost of revenue also includes customer service
personnel and amortization of our marketing license asset.
For the years ended December 31, 2022 and 2021,
service cost of revenues were $668,654 and $520,193, or 111% and 165% of total revenues, all respectively. Service cost of revenues includes
$250,000 and $166,667, respectively, in amortization of our marketing license asset. For the years ended December 31, 2022 and 2021, product
cost of revenues were $134,490 and $157,254, or 22% and 50% of total revenues, all respectively. Total cost of revenues for the years
ended December 31, 2022 and 2021 were $803,144 and $677,446, respectively. Cost of revenues increased by $125,597 in 2022 due to the amortization
of our marketing license asset, partially offset by lower marketing and product costs compared to 2021.
Gross loss was $(202,013) and $(362,155) for the
years ended December 31, 2022 and 2021, respectively.
Sales and Marketing
Sales and marketing costs primarily consisted
of advertising, promotional expenses and marketing consulting and advisory services. Sales and marketing expenses was $655,151 and $464,011,
respectively, for the years ended December 31, 2022 and 2021. The increase of $191,140 in 2022 was primarily due to increased advertising
and commission expenses as we scaled up our marketing operations.
35
General and Administrative
General and administrative expenses primarily
consisted of payroll and consulting fees, including stock-based compensation, as well as legal and professional fees. General and administrative
expenses was $985,011 and $1,136,560, respectively, for the years ended December 31, 2022 and 2021. The decrease of $151,549 in 2022 was
primarily due to less consulting and legal fees. For the years ended December 31, 2022 and 2021, general and administrative expenses included
stock-based compensation of $301,875 and $300,875, respectively.
Net Loss
Net loss for the years ended December 31, 2022
and 2021 was $1,842,175 and $1,962,726, respectively.
Liquidity and Capital Resources
As of March 31, 2023 and December 31, 2022, we
had cash and cash equivalents of $23,581 and $7,565, respectively. To date, we have financed our operations primarily through contributed
capital and sales of our products and services. However, in order to meet our growth expectations, we will need to raise funds beyond
our current working capital balance in order to finance future development of services and meet any debt obligations until such time as
future profitable revenues are achieved. We will seek to fund our operations through public offerings, including this offering, private
equity offerings, debt financings, and government or other third-party funding. Adequate additional financing may not be available to
us on acceptable terms, or at all. Advances from an officer or stockholder may likewise be unavailable. Our failure to raise capital as
and when needed would impact our going concern status and would have a negative impact on our financial condition and our ability to pursue
our business strategy and continue as a going concern. We will need to generate significant revenues to achieve profitability, and we
may never do so.
Going Concern
The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has not generated profits since inception, has sustained a net loss of $322,074 and $701,128 for the three months
ended March 31, 2023 and 2022, and $1,842,175 and $1,962,726 for the years ended December 31, 2022 and 2021, respectively. The Company
has had negative cash flows from operations for each period. As a result, there is substantial doubt about the Company's ability
to continue as a going concern.
The Company's ability to continue as a going
concern is dependent upon its ability to generate profitable operations in the future and/or obtain the necessary financing to meet its
obligations and repay its liabilities arising from normal business operations when they come due. Management has plans to seek additional
capital through public offerings, including this offering, private equity offerings, debt financings, and government or other third-party
funding. These plans, if successful, will mitigate the factors which raise substantial doubt about the Company's ability to
continue as a going concern.
The sale of additional equity securities could
result in dilution to our shareholders. The incurrence of indebtedness would result in increased debt service obligations and could require
us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms
acceptable to us, if at all. Any failure by us to raise additional funds on terms favorable to us, or at all, could limit our ability
to expand our business operations and could harm our overall business prospects.
Summary of Cash Flow
As of March 31, 2023, December 31, 2022, and 2021,
we had cash and cash equivalents of $23,581, $7,565 and $1,116,101, respectively, and working capital (deficit) of $(362,525), $(43,692)
and $1,230,608, respectively.
Since our inception, we have generated limited
revenues and have primarily funded our operations through the sale of our Common Stock.
36
The following table provides detailed information
about our net cash flow for all financial statement periods presented in this prospectus:
Cash Flow
Three Months Ended
March 31,
Year Ended
December 31,
2023
2022
2022
2021
(Unaudited)
Net cash used in operating activities
$
(233,433
)
$
(617,028
)
$
(918,197
)
$
(1,479,014
)
Net cash provided by (used in) investing activities
308,708
(42,658
)
(190,339
)
(124,427
)
Net cash provided by (used in) financing activities
(59,259
)
-
-
2,719,542
Net change in cash and cash equivalents
$
16,016
$
(659.686
)
$
(1,108,536
)
$
1,116,101
Net Cash Used in Operating Activities
Net cash used in operating activities for the
three months ended March 31, 2023 was $233,433, primarily due to our net loss of $322,074 partially offset by non-cash charges of $62,500
and changes in our operating assets and liabilities of $26,141.
Net cash used in operating activities for the
three months ended March 31, 2022 was $617,028, primarily due to our net loss of $701,128 partially offset by non-cash charges of $128,125.
Net cash used in operating activities for the
year ended December 31, 2022 was $918,197, primarily due to our net loss of $1,842,175 partially offset by non-cash charges of $567,875
and changes in our operating assets and liabilities of $356,103. Changes in our operating assets and liabilities was due to an increase
in accounts payable and related party accounts payable of $287,619 and an increase in accrued expenses of $199,256, partially offset by
an increase in accounts receivable of $130,772.
Net cash used in operating activities for the
year ended December 31, 2021 was $1,479,014, primarily due to our net loss of $1,962,726 partially offset by non-cash charges of $473,792
and changes in our operating assets and liabilities of $9,920. Changes in our operating assets and liabilities was due to an increase
in accounts payable and related party accounts payable of $103,840 partially offset by an increase in accounts receivable of $93,920.
Net Cash Provided by (Used in) Investing Activities
Net cash provided by (used in) investing activities
for the three months ended March 31, 2023 and 2022 were $308,708 and ($42,658), respectively, which was due to repayments from (advances
to) CWS.
Net cash used in investing activities for the
years ended December 31, 2022, and 2021 were $190,339 and $124,427, respectively, which was due to advances made to CWS.
Net Cash Provided By (Used in) Financing Activities
Net cash used in financing activities for the
three months ended March 31, 2023 and 2022 was $59,259 and $0, respectively, which included deferred offering costs in 2023.
Net cash provided by financing activities for
the year ended December 31, 2022 was $0.
Net cash provided by financing activities for
the year ended December 31, 2021 was $2,719,542, including $3,070,072 in proceeds from the sale of our Common Stock, $10,400 in proceeds
from the issuance of founders' shares, partially offset by $360,930 in cash spent on our common control acquisitions of SWOL and
Soleil Vino.
Contractual Obligations
During the three months ended March 31, 2023 and
2022 and fiscal years ended December 31, 2022, and 2021, we had no significant cash requirements for capital expenditures or other cash
needs under any contractual or other obligations
.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues
or expenses, results of operations, liquidity, capital expenditures or capital resources.
37
Critical Accounting Policies
This discussion and analysis of our financial
condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted
accounting principles in the United States ("GAAP"). The preparation of these financial statements requires us to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at
the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based
on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates under different assumptions or conditions. While our significant accounting policies are
described in more detail in the notes to our financial statements included elsewhere in this prospectus, we believe that the following
accounting policies are critical to understanding our historical and future performance, as these policies relate to the more significant
areas involving management's judgments and estimates. We believe our most critical accounting policies and estimates relate to the
following:
Revenue Recognition
In accordance with FASB ASC 606,
Revenue from
Contracts with Customers
, the Company determines revenue recognition through the following steps:
●
Identification of a contract with a customer;
●
Identification of the performance obligations in the contract;
●
Determination of the transaction price;
●
Allocation of the transaction price to the performance obligations in the contract; and
●
Recognition of revenue when or as the performance obligations are satisfied.
Revenue is recognized when performance obligations
are satisfied through the transfer of control of promised goods to our customers in an amount that reflects the consideration expected
to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability to direct
the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession,
the risks and rewards of ownership, and customer acceptance.
Service revenue is recognized over a period time,
as the marketing services are being continually provided on a daily and monthly basis over the life of an agreed upon campaign. Product
revenue is recognized at the point in the products are delivered to CWS, when LQR House has fulfilled its performance obligation.
Impairment of Long-Lived Assets
We continually monitor events and changes in circumstances
that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present,
we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted
expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment
loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower
of the carrying amount or the fair value less costs to sell.
Variable Interest Entities
We evaluate our relationships with other entities
to identify whether they are variable interest entities as defined by Financial Accounting Standards Board ("FASB") Accounting
Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the primary beneficiary
of such entities. If the determination is made that we are the primary beneficiary, then that entity is consolidated. We evaluated whether
it was the primary beneficiary in its common control asset acquisitions and related party agreements and determined we are not the primary
beneficiary of any entities.
Related Parties
Related parties are any entities or individuals
that, through employment, ownership, or other means, possess the ability to direct or cause the direction of the management and policies
of the Company. We disclose related party transactions that are outside of normal compensatory agreements, such as salaries. We follow
ASC 850,
Related Party Disclosures
, for the identification of related parties and disclosure of related party transactions.
38
Stock-Based Compensation
Stock-based compensation is accounted for in accordance
with ASC Topic 718-10,
Compensation-Stock Compensation
("ASC 718-10"). The Company measures all equity-based awards
granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation
expense for those awards over the requisite service period, which is generally the vesting period of the respective award.
We classify stock-based compensation expense in
its statement of operations in the same manner in which the award recipient's payroll costs are classified or in which the award
recipient's service payments are classified.
Income Taxes
We use the liability method of accounting for
income taxes as set forth in ASC 740,
Income Taxes
. Under the liability method, deferred taxes are determined based on the temporary
differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the
years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will
not be realized. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation
of the facts, circumstances, and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where
there is a greater than 50% likelihood that a tax benefit will be sustained, our policy will be to record the largest amount of tax benefit
that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information.
For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized
in the financial statements.
39
CORPORATE HISTORY AND STRUCTURE
Our Corporate History
Our company was incorporated in the State of Delaware on January 11,
2021, under the name LQR House Inc., which we refer to as LQR House Delaware. On February 3, 2023, we changed our state of incorporation
to the State of Nevada by converting into LQR House Inc., a Nevada corporation. On February 3, 2023, in accordance with our reincorporation
to Nevada, our authorized capital stock changed from 100,000,000 shares of Common Stock, $0.001 par value, to 350,000,000 shares, consisting
of 300,000,000 shares of Common Stock, par value $0.0001 per share, and 50,000,000 shares of "blank check" preferred stock,
par value $0.0001 per share. At the same time, we also completed a 1-for-6 reverse stock split of our outstanding Common Stock through
the merger by issuing one share of our Common Stock for every 6 previously outstanding shares of Common Stock of our predecessor Delaware
company. As a result, our issued and outstanding Common Stock decreased from 55,252,424 shares to 9,200,434 shares.
Dual Class Share Structure
On March 29, 2023, the Company amended its articles
of incorporation to institute a dual class share structure consisting of Class A Common Stock, and Class B Common Stock, and any number
of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes per share on proposals requiring or requesting shareholder
approval, and Class B Common Stock was entitled to one (1) vote on any such matter. A share of Class A Common Stock could have been voluntarily
converted into a share of Class B Common Stock. A transfer of a share of Class A Common Stock would have resulted in its automatic conversion
into Common Stock upon such transfer, subject to certain exceptions, including that the transfer of shares of Class A Common Stock to
another holder of Class A Common Stock would not have resulted in such automatic conversion. Class B Common Stock was not convertible.
Other than as to voting and conversion rights, Class A Common Stock and Class B Common Stock had the same rights and preferences and ranked
equally, shared ratably and were identical in all respects as to all matters.
Due to this amendment, the Company's authorized
capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of Common Stock, par value $0.0001 per share, of which
20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and 280,000,000 shares were designated as Class B
Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock, $0.0001 par value per share. All 9,200,434 shares
of Common Stock issued and outstanding at the time of the amendment became shares of Class B Common Stock.
2023 Private Placement
On June 1, 2023, we conducted a private placement
of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in Section 2(a)(15)
of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons made in compliance
with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000 shares of Common
Stock at $1.00 per share for a total of $955,000.
Single Common Stock Structure
On June 5, 2023, the Company further amended its
articles of incorporation to amend the share structure by (i) eliminating a dual class share structure consisting of the Class A Common
Stock and Class B Common Stock and establishing a single Common Stock structure consisting of shares of Common Stock only, with 350,000,000
authorized shares being all designated as Common Stock with a par value of $0.0001 per share, entitled to one (1) vote per share; and
by (ii) eliminating all authorized shares of preferred stock. All 13,155,434 shares of Class B Common Stock issued and outstanding at
the time of the amendment became shares of Common Stock.
40
Our Key Agreements
The following agreements and the partnerships
detailed therein are material to the operation of our business:
SWOL Branding.
On March 19, 2021,
we entered into an asset purchase agreement with Dollinger Innovations Inc., Dollinger Holdings LLC, and Sean Dollinger, our founder,
Chief Executive Officer and President, pursuant to which we acquired the assets related to the online or in-person sale of original and
other SWOL branded products, which we refer to as the SWOL Acquisition. Prior to the SWOL Acquisition, the SWOL brand activity was minimal
and consisted of product testing to gauge consumer preferences. The transaction included the assignment of various contracts to LQR House
Inc., including:
●
Shared Responsibility & Bonding Agreement dated March 19, 2021, by and between Dollinger Innovations and Leticia Hermosillo Raverero, which we refer to as Casa Cava de Oro S.A., relating to production of original SWOL tequila for exclusive importation into the United States by Dollinger Innovations or its assigns.
●
Exclusive License Agreement dated May 18, 2020, by and between Dollinger Holdings and Dollinger Innovations
by which Dollinger Innovations licenses to Dollinger Holdings certain intellectual property, including trademarks for the brand SWOL,
awarded pursuant to and under the jurisdiction of Mexican law.
●
Product Distribution Agreement dated July 1, 2020, by and between Dollinger Holdings and Country Wine
& Spirits Inc., or CWS, by which SWOL branded products may be marketed and sold through online channels including www.cwspirits.com,
or the CWS Platform, and through brick and mortar stores to the general public.
We also acquired all of the intellectual property
assets and registrations to conduct the business of selling SWOL products. See "
Business — Intellectual Property
"
for the complete list of intellectual property acquired.
Exclusive Marketing Agreement with Country
Wine & Spirits Inc. and Ssquared Spirits, LLC.
On April 1, 2021, LQR House Delaware, CWS, and Ssquared Spirits, LLC, or Ssquared,
one of our affiliates, entered into an Exclusive Marketing Agreement. Pursuant to this agreement CWS and Ssquared granted us the exclusive
right to promote and market spirits and other beverage products through the CWS Platform for sale to customers located within the United
States. We also gained the sole right to manage and make decisions with regard to user facing content on the platform, including the placement
and removal of products and the creation and management of promotional initiatives. Neither CWS nor Ssquared will directly or indirectly,
promote or advertise any products on the platform themselves or grant to any third party any right to promote or advertise products on
the website.
Soleil Vino Wine Subscription Service.
On May 31, 2021, LQR House Delaware and Dollinger Holdings entered into an Asset Purchase Agreement pursuant to which we became the successor
to all sourcing agreements with third party vendors, whether oral or written, for all Soleil Vino and related branded products. In addition,
we received all the intellectual property assets and registrations to conduct the business of selling Soleil Vino products. See "
Business
— Intellectual Property
" for the complete list of intellectual property acquired.
Advisor Agreements.
On June 1, 2023,
we entered into advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate advice in
connection with the Offering to the Company. In consideration for the advisor's services, the Company issued 500,000 shares of Common
Stock to six individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.
Organizational Structure Following This Offering
The following diagram depicts our organizational structure following
the completion of this offering. This diagram includes the stockholders of Common Stock, as a group, and the public stockholders that
will receive shares of Common Stock in this offering, as a group. The shares of Common Stock held by public offering investors (including
selling stockholders) is based on an assumed public offering price of $5 per share, which is the midpoint of the estimated range of the
initial public offering price shown on the cover page, and assumes that the underwriters do not exercise the over-allotment option.
41
BUSINESS
Overview
Our company, LQR House Inc., intends to become
the full-service digital marketing and brand development face of the alcoholic beverage space. We also intend to integrate the supply,
sales, and marketing facets of the alcoholic beverage space into one easy to use platform and become the one-stop-shop for everything
related to alcohol. To date, our primary business includes the development of premium limited batch spirit brands, establishing an exclusive
wine club, and marketing internal and external brands through an exclusive agreement with a U.S.-based e-commerce portal. We believe that
the marketing and brand management services we provide to our wholly owned and third-party clients will increase brand recognition thereof,
and drive sales thereof through our e-commerce platform partner.
Our Key Partnerships with CWS and Ssquared
We have an exclusive marketing agreement with
Country Wine & Spirits Inc. and Ssquared Spirits Inc., which we refer to as CWS and Ssquared, respectively, and which together own
and operate one of the largest online retailers of liquor in the United States, located at www.cwspirits.com, which we refer to as the
CWS Platform. In this three-way business relationship, Ssquared operates the CWS Platform on a day-to-day basis, for example, by ensuring
timely stocking of product and communicating with the CWS influencer network; Rilo Import & Export Inc. by CWS provide import, fulfillment,
and distribution services for all products sold on the CWS Platform; and our company handles 100% of the promotion of the sale of spirits
and other beverage products via the CWS Platform through the internet and through various social media channels.
Specifically, our company obtained the sole right
to manage and make decisions regarding user-facing content on the CWS Platform, including the placement and removal of products and the
creation and management of promotional initiatives. The grant of rights to our company is exclusive such that, during the term of this
agreement, April 1, 2021, through April 1, 2031, Ssquared and CWS shall not grant to any third party any right to promote or advertise
products on the CWS Platform and shall not shall directly or indirectly promote or advertise any products themselves. This agreement may
be terminated upon a material breach by a party thereto that goes uncured for longer than 30 days or at any time by our company with thirty
days written notice to each of CWS and Ssquarred. For additional information about the consideration due under the agreement, please see
"
Certain Relationships and Related Party Transactions
–
Transactions with Related Persons
".
Our relationship with CWS and Ssquared is the
cornerstone of our business. Under our agreement with CWS and Ssquared, we can focus on our competitive strengths, which include marketing
and brand promotion. Our relationship and agreement with CWS and Ssquared provide us access to approximately 241,000 customers via the
CWS mailing lists and recurring traffic on the CWS Platform. This agreement also allows us to market our brands on the CWS Platform and
have them sold and distributed by our partners, CWS and Ssquared. Moreover, any third-party brand seeking to have their products marketed
on the CWS Platform can only do so by becoming a client of the Company.
Our Business Model
Since our inception in January 2021, we have put
our business model to the test and believe it is our path towards future success. First, we create marketing content on the CWS Platform
for our brands and the brands of our marketing services clients. Second, when consumers purchase products on the CWS Platform like Tequila
with our SWOL brand, a subscription to Vault or to the Soleil Vino wine club, or the products of our marketing service clients, CWS will
perform the distribution services related to the sale of those products. Simultaneously, Ssquared will manage the backend e-commerce operations
related to the CWS Platform. Our company is the only authorized advertiser on the CWS Platform and will derive significant revenue from
all sales made to our marketing partners via the CWS Platform and subscriptions offered through the CWS Platform. Moreover, we will derive
significant revenue from the sale of alcohol that bears our SWOL trademark. The objective of these activities is to generate recurring
monthly revenue through subscriptions and product placements.
We believe that our business model will result
in multiple, highly sustainable revenue sources and an opportunity to capitalize on the growth in demand for liquor in the United States.
To date, sales of alcoholic beverages have been generated through our exclusive arrangement with CWS who sells these products. This includes
third-party brands hiring the Company to market their alcoholic beverage products, subscriptions through our membership programs, and
the product sale of tequila branded with our trademark, "SWOL," bearing application number 2345291 and registration number
2141431. We intend to further diversify our revenue streams and anticipate that the diversity of our revenue streams will continue to
grow as our internal brands gain market recognition and penetration, our marketing services abilities become well known, and our subscription
services become popular.
42
Our Historical Performance
The Company's independent registered public
accounting firm has expressed substantial doubt as to the Company's ability to continue as a going concern. The Company has not
generated profits since inception, has sustained net losses of $1,842,175 and $1,962,726 for the periods ended December 31, 2022 and 2021,
and has negative cash flows from operations for the periods ended December 31, 2022 and 2021. The Company's cash balance and revenues
generated are not currently sufficient and cannot be projected to cover its operating expenses and obligations for the next 12 months.
The Company expects to fund its operations for the next 12 months through equity financing arrangements and sales of its services. However,
the Company may not be able to raise adequate funds for capital expenditures, working capital and other cash requirements from capital
markets on acceptable terms, or at all. Advances from an officer or stockholder may likewise be unavailable. The Company's failure
to raise capital as and when needed and generate significantly higher revenues than operating expenses to achieve profitability would
impact its going concern status and would have a negative impact on its financial condition and its ability to pursue its business strategy
and continue as a going concern. For further discussion, see "
Management's Discussion and Analysis of Financial Condition
and Results of Operations – Liquidity and Capital Resources – Going Concern
".
Industry Overview
We plan to address market demand by aligning with
key industry trends and by utilizing strategic relationships to source, brand, finance and distribute products. Specifically, we will
focus initially on tequila, wine, and other specialty products by utilizing e-commerce and technology to drive sales. The market for alcohol
includes beverages such as spirits, wines, and beer. Our focus is on the United States market.
As set forth in the above chart, the United States,
which is estimated to consume a total of approximately $283.8 billion worth of alcoholic beverages in 2023, represents one of the largest
global markets for all alcoholic beverage category sales (Statista,
Alcoholic Drinks – Worldwide
, January 2023). This demonstrates
a considerable amount of consumption and a large and stable market that is continuing to evolve. Spirits and wine account for approximately
50.6% of total consumption as of January 2023, as set forth in the following chart (Statista,
Alcoholic Drinks – Revenue –
United States
, January 2023).
43
Moreover, we believe e-commerce is increasingly
becoming a driver of demand for at-home consumption of alcoholic products, driven in part by the recent pandemic. Due to this shift, people
who used to go to a bar or a restaurant to consume alcohol are now buying products increasingly online or even going to the manufacturer
directly where the law permits, and we believe that this trend will continue even as the impact of the pandemic begins to lessen. We also
believe that this demonstrates a great potential for continued market expansion and the relevance of e-commerce platforms for alcohol.
In particular, the United States has shown a strong uptrend in the purchase of alcohol online, as set forth in the chart below (Vaimo,
Martin Hjalm,
Alcohol Ecommerce: Trends, Strategies, and Markets in 2023
, January 2023).
In addition to sustained demand for the largest
product categories (beer, wine and spirts) and increased prominence of e-commerce, the demand for quality and novel products continues
to increase as well (Forbes, Joseph Micallef,
The Top Ten Trends Shaping The Adult Beverage Market In 2021
, January 2021). Within
this market, the consumption of products is increasing due to several market trends, including the demand for new categories of beverages,
such as specialty spirits, flavored wines and sparkling wines, and premixed carbonated drinks. A survey of 1,600 adult U.S. consumers
by PwC Consumer Segment Survey sets forth this trend with 54% of those buying alcoholic beverages responding "I am buying new brands
even when my usual brands are available" (PwC,
M&A breathes new life into brand portfolios for spirits companies
, 2021)
as opposed to only 47% of those buying non-alcoholic beverages.
44
As seen in the following graph, the transactional
market for alcohol products has seen a considerable amount of activity with over $45 billion of transactions valued across 97 deals from
January 1, 2016, to December 31, 2020 (PwC,
M&A breathes new life into brand portfolios for spirits companies
, 2021). We believe
this transactional activity within the alcoholic beverage space also represents a key market trend related to the emergence of new specialty
brands, as larger companies seek to gain access to new brands to continue to maintain their market position in a market of evolving consumer
preferences.
Market Trends
We believe the following trends, as discussed
in a Forbes interview of the Head of Consumer Insights at Drizly (Forbes, Joseph Micallef,
The Top Ten Trends Shaping The Adult Beverage
Market In 2021
, January 2021), will continue to shape the alcoholic beverage market:
●
Consumers are likely to continue to shop more online for adult beverages.
●
Tequila and mezcal will continue to grow in popularity. Tequila surpassed bourbon in retailers'
expectations for growth among best-selling spirits, while mezcal is ready for its own (smoky) spotlight.
●
Premiumization in the industry will accelerate as consumers reallocate funds from experiences to at-home
indulgences.
●
Craft seltzer will start to gain in market share, marked by more upscale ingredients, artisanal flavors
and elevated packaging.
●
Consumers are likely to continue to be more conscious of brand ownership and values.
We anticipate all these market trends will positively
impact our business and present an opportunity to continue expanding. Specifically, we align with market trends by focusing our marketing
and distribution efforts online and we expect to bring new and exciting premium products to market across categories. In addition, we
generate online promotional activities around holidays and life events, while always being mindful of ethically sourcing products for
distribution.
45
The Services and Brands
We provide marketing services with respect to the following products
and services. Marketing these brands constitutes the core elements of our business model and allow us to serve every type of customer
in the alcohol industry, including individual consumers, wholesalers, and third-party alcohol brands:
SWOL
is a trademark, bearing application
number 2345291 and bearing registration number 2141431 that was granted by the Mexican Institute of Industrial Property ("IMPI")
to Dollinger Innovations and which was later purchased by LQR House Inc. pursuant to the asset purchase agreement, dated March 19, 2021,
among LQR House Inc. and Dollinger Innovations Inc., Dollinger Holdings LLC and Sean Dollinger.
SWOL Tequila
is a limited-edition
blend of Añejo Tequila made in exclusive batches of up to 10,000 bottles and represents the first installment under our "SWOL"
trademarked alcohol branding. Through our partnership with CWS, we market Tequila bearing the "SWOL" trademark, which we call
"SWOL Tequila," on the CWS Platform, which distributes SWOL Tequila throughout the United States. SWOL Tequila is produced
by Casa Cava de Oro S.A., an authentic tequila distillery in Jalisco, Mexico, sold by LQR House Inc. to CWS before it is imported from
Mexico into the United States, and is imported into the United States through Rilo Import & Export Inc. by CWS. All marketing and
branding for SWOL Tequila is led by our marketing team, who has led the way on all branding efforts from conceptualizing the bottle shape
and size, to overseeing the design of the labels. We also work with the producers in Mexico on all product development, including the
original SWOL Añejo and the additions of Peach and Cristalino.
When product testing was initiated for the label
with the trademark SWOL on it, which we call "SWOL," a campaign was created around a "Mystery Tequila" where CWS's
network of influencers promoted SWOL without showing the bottle or label. We believe that this marketing tactic generated customer excitement
for the product and led to an increase in anticipation for its reveal. Since then, we have seen continuous growth in SWOL customer interest
and have taken steps to expand the product line to match that interest. With each product, we focus on creating unique labels, each with
the signature SWOL sew-on patch, which accompanies each hand-numbered bottle. The patch can be peeled off and sewn onto clothing or accessories.
We believe that our focus on our unique brand
identity and product innovation will allow us to continue generating consumer interest and hype for each addition to the product line
bearing the SWOL trademark. Moreover, SWOL has been developed to align with current consumer preferences and trends within the market.
Essentially, we generate SWOL products that maintain the high-quality ingredients from the Tequila region of Mexico and combine that tradition
of quality with new and exciting flavors. CWS is offering the following products bearing the SWOL trademark at competitive price points:
●
SWOL Añejo Tequila
is an extremely limited-edition tequila that is bottled in glass blown
flasks inscribed with a unique ID number and adorned with our patch that displays a unique label specific to the Añejo Tequila
line. Each bottle contains a tequila produced using artisanal Mexican and modern techniques that impart each drink with a smoky, rich,
sweet flavor. The SWOL Añejo Tequila is currently priced at $89.99 (MRSP).
46
●
SWOL Peach Tequila
is an amber, dark coppery tequila that is bottled in glass blown flasks inscribed
with a unique ID number and adorned with our patch that displays a unique label specific to the Peach Tequila line. The production imparts
an authentic tequila taste with notes of peach, toasted nuts and oak. Through market analysis and sales data, our peach products are often
in high demand, and we expect this trend to continue. The SWOL Peach Tequila is currently priced at $79.99 (MRSP).
●
SWOL Cristalino Tequila
is a crystalline tequila bottled glass blown flasks, inscribed with a unique
ID number and adorned with our patch that displays a unique label specific to the Cristalino Tequila line. The tequila displays light
blue crystalline flashes and production imparts an authentic tequila taste with notes of fruity oak, toasted nuts and light spice. The
SWOL Cristalino Tequila is currently priced at $79.99 (MRSP).
Vault
is the exclusive membership
program for CWS customers. Through the CWS Platform, users can sign up for this exclusive membership where they will have access to all
products available through CWS combined with special membership benefits including: (i) 10% off all products site wide; (ii) free ground
shipping (2-5 business days) on orders over $50 (limited to three shipping addresses); (iii) access to special promotional offers; and
(iv) free mystery vault gifts in every shipment. The monthly membership costs customers $19.95 and requires an initial 3-month start-up
commitment. The objective is to create a loyal customer based that provide us with recurring monthly subscription revenue. Vault also
provides us with the means to provide customers special discounts to marketing partner brands, which we make solely available to Vault
members. We market this membership program on the CWS Platform and are entitled to 50% of the revenue from the subscriptions.
47
Soleil
Vino
will be a wine subscription service that is marketed on the CWS Platform and will offer a unique selection of vintage and
limited production wines. Through the CWS Platform, users will sign up for this exclusive membership where they will have access to curated
selections of wine from around the world. With Soleil Vino, we intend to create the premium wine subscription service on the market with
the highest quality, and diverse selections of wine offerings, which we refer to as our Wine Club. We expect our Wine Club to have three
membership options based on different wine quality and price. Within each membership, our customers will select whether they want to
receive two or four bottles each month, and whether they want white wine only, red wine only, or a variety box. Members will also get
access to a members-only dashboard, where they can access informational blogs written by in-house wine experts. They will also receive
monthly newsletters with additional information, and various discounts for other products on the CWS Platform. Membership fees for Soleil
Vino will be charged monthly and can be cancelled at any time after the initial three months of subscription service. We are responsible
for launching the Wine Club through a series of ads, social and email campaigns, and all exclusive content and wine selection for members
will be handled by in-house wine experts. We will market the Wine Club on the CWS Platform and are entitled to all the revenue from the
subscriptions. The Wine Club is expected to have three subscription membership options based on different wine quality, price, and quantity.
The
following table is representative of the Soleil Vino membership options:
Membership
    Option
Select
    Membership
Classic
    Membership
Premier
    Membership
Description
This package features, popular,
    value priced wines and consumer favorites.
This membership will feature
    quality vintage wine from well-known producers.
This membership includes hand-picked
    bottles of wine from award winning wineries
Fee
    for 2 bottles per month
$45.00
    / month
$55.00
    / month
$75.00
    / month
Fee
    for 4 bottles per month
$85.00
    / month
$105.00
    / month
$145.00
    / month
LQR
House Marketing
is a marketing service in which we utilize our marketing expertise to help our wholly owned brands and third-party
clients market their products to consumers. For example, by engaging LQR House for its marketing services, our clients gain the ability
to advertise and sell their brand on the CWS Platform. We generally charge a monthly fee for our marketing services and often enter into
multi-month programs with clients. Monthly program costs generally range from $5,000 to $10,000 depending on the program options selected
by the client. Our services also include the creation of a creative marketing campaign strategy, and the development of promotional materials.
Key features of the marketing offering include:
●
Leveraging
                                            multiple advertising campaigns to bring affordability to advertising methods such as influencer
                                            marketing, incentive based sales, or product placement advertising.
●
Combining
                                            multiple campaigns into one media buy.
●
Leveraging
                                            specific assets available to LQR House such as the CWS Platform and email distribution list.
●
Advertising
                                            with targeted banners.
●
Leveraging
                                            LQR House online campaigns.
●
Creating
                                            branding and product placement campaigns that elevate a brand's reach to targeted demographics.
●
Creating
                                            a brand around an influencer's following and reach to leverage viewership and monetize
                                            their growth.
48
Central
to the business model, we offer access to an exclusive network of industry influencers or brand ambassadors. Engaging with us provides
clients with the opportunity to select a tailored list of influencers to promote their brand to an ideal target market. LQR House currently
has relationships with 327 influencers, which is a significant differentiator and underscores the uniqueness of our company as a marketing
platform. Influencers are provided a commission based on the number of products they sell and drive traffic to the CWS website. Commissions
paid are solely the responsibility of CWS. The more an influencer generates in sales for a brand, the more the influencer makes in commissions.
This directly aligns the objectives of the brand, influencer and LQR House. Key elements of a typical influencer program include:
●
Minimum
                                            of 100 posts per month from a minimum of 15 influencers.
●
Monthly
                                            posts will include content from an influencer list with a cumulative following of at least
                                            1.5 million followers. For example, a typical influencer mix would be as follows: (i) 2-3
                                            Major Influencers, influencers with more than 500,000 followers, (ii) 3-5 Top-Tier Influencers,
                                            influencers with more than 100,000 followers, (iii) 5-10 Micro Influencers, influencers with
                                            10,000 to 100,000 followers, and (iv) 3-5 Beginner Influencers, influencers with less than
                                            10,000 followers.
●
Posts
                                            presented on multiple social media platforms, including cross posting where the same video
                                            or content may be shared several times to capture many different audiences, targeting social
                                            media platforms such as Facebook and Facebook Reels, Instagram and Instagram Reels, YouTube
                                            and YouTube Shorts, Pinterest and Pinterest Idea Pins, Twitter, Khal Media, Clapper, LinkedIn,
                                            Reddit, Twitch, Tumblr, etc.
●
1-2
                                            email blasts per month from the influencer featuring the brand.
●
Placement
                                            of brand on the main sliding banner on the CWS Platform homepage or mobile app, in the category
                                            page and Spirits dropdown of the website, and in our holiday gift guide.
Within
5 days of the end of the month, we will generate a summary report of the influencer program which includes the following types of data:
(i) the total sales of product on the CWS Platform with basic customer location data, (ii) a list of posts per influencers with links
to content across platforms, and (iii) a description of product placements on the CWS Platform.
Our
Relationships with Third-Party Alcohol Brands
To
date, we have engaged with over 11 brands to bring their product to our customer base. We have engaged with brands including, but not
limited to, Cocktail Caviar, Soda Jerk, Bake Sale and Just the Tipsy to market and sell their products on the CWS Platform. Our clients
generally include newer alcohol brands that produce small batch and craft spirits. Many customers return for additional marketing programs
after the initial engagement and elect to enter multiple month arrangements. The following graphics contain advertisements we created
for some of our clients, to be run on the CWS Platform.
49
Our
Competition and Competitive Strengths
The
market for online sales and promotions of alcohol is competitive. This includes large online retailers such as Amazon, specialty e-commerce
sites and direct sales from producers. These companies are often larger than us, and have considerable financial, technical and human
capital resources. However, we believe that we have the following competitive strengths that will allow us to capitalize on the growing
alcoholic beverage industry and alcohol e-commerce:
●
Unique
                                            platform
. We believe that our branding style, and the branding services we provide
                                            to our clients, allow us to market directly to the millennial market demographic. We believe
                                            we accomplish this marketing through our ad campaigns and marketing materials that have a
                                            sleek and modern look and feel. By implementing this targeted approach, we provide a unique
                                            and modern customer experience that helps us capture a key market in the alcoholic beverage
                                            industry. Our search engine optimization, or SEO, has been developed over many years and
                                            provides customers with premium placement opportunities they often cannot source anywhere
                                            else.
●
Extensive influencer network
. We believe that our team has created one of the most extensive influencer relationship lists within the alcohol industry for small batch and exclusive brands. We have around 500 unique influencer relationships that differentiates us from many other online marketing channels available to brands.
●
Extensive
                                            e-commerce and marketing expertise
. Our team has decades of experience in e-commerce
                                            and implementing online strategies to maximize the benefit of marketing campaigns. This includes
                                            unique online promotional campaigns that drive sales of products.
●
Working
                                            with highly differentiated brands
. We vet the external brands we promote to ensure
                                            that all of the products we market align with our own brand and strategy. We believe our
                                            vetting process allows us to maximize the value we provide to our clients, while also allowing
                                            us to provide consumers with exclusive options not available from larger distributors.
●
Strategic
                                            relationships
. We believe we have developed and solidified relationships with multiple
                                            groups that can deliver value to external brand customers, such as the exclusive marketing
                                            agreement with CWS and Ssquared. This includes marketing, import, storage and retail/wholesale
                                            distribution relationships.
In
addition to online competition, we face competition from other emerging products, as the market can be characterized as highly fragmented
with many new brands coming to market. We believe we differentiate our wholly-owned brands in several ways:
●
Development
                                            of unique products
. We focus our product development on unique flavors and variations
                                            of products that are not generally available in the market. This differentiation aligns with
                                            current market trends and results in alignment with modern consumer preference for new and
                                            exciting brand products that expand the profile of legacy products. For example, SWOL Peach
                                            Tequila.
●
Setting
                                            ideal price points
. We believe we set a competitive price point, which aligns with
                                            the uniqueness and quality of the products offered by the Company. This price point is important
                                            in the context of differentiating legacy or generic products in the industry. This comes
                                            from years of experience within the industry and significant data points about comparable
                                            products within the market.
●
Focus
                                            on quality
. We believe all our products are sourced from the highest quality producers,
                                            and we vet our producers by visiting locations to verify quality and control procedures.
●
Unique
                                            labelling and marketing promotions
. We have crafted unique labelling which aligns
                                            with our branding but also includes a removable patch that can be affixed to other items.
                                            This serves as continued marketing for our products, as the patch remains after the bottle
                                            has been consumed.
50
Our
Growth Strategies
Marketing
We
have developed three primary methods for facilitating deals through our marketing division:
●
Channel
                                            Partners/Influencers.
Our most successful service to date is the ability for liquor brands
                                            to have their product displayed by a social media influencer team via product placement,
                                            promotion and usage in advertorial collaborations. These influencers are often approached
                                            by new brands independently, which are then referred to us. We built up our own group (network)
                                            of influencers from scratch (bartenders, alcohol personalities, restaurateurs, social media
                                            personalities, alcohol representatives). These influencers have a direct line to qualified
                                            customers who are looking to buy products that they recommend. After signing a marketing
                                            client, we send their products to our influencers who then create client specific content
                                            that directs their followers to the CWS website to buy the product. The influencers are only
                                            paid on a percentage of sales.
●
Direct
                                            Inbound Lead Generation.
Due to the surge in demand for marketing companies that specialize
                                            in liquor and alcohol promotion, we have been contacted by an influx of new brands and medium-sized
                                            companies that are looking to scale via resources and available services. This is also being
                                            driven based on past successes with brands that refer their industry relationships to LQR
                                            House. For example, when we first launched the program, we contracted with four to five clients
                                            on a monthly basis. Since then, we have at least 8 clients utilizing our marketing services
                                            on a monthly basis. As we continue to grow our operations and increase our service offerings,
                                            we intend to increase the inbound marketing via Google Ads, social media promotion and search
                                            engine optimization to ensure new leads flowing in.
●
Liquor
                                            Brand Development.
Through our exclusive marketing agreements with external brands, we
                                            are developing a reputation as a premium marketer and advertiser for liquor brands, and one
                                            that offers efficient and cost-effective services. Brands that are looking to establish themselves
                                            often find the Company through web properties of those lines, such as swoltequila.com, which
                                            has proven to become a lead generation tool.
We
believe that by continuing to develop leading brands for up-and-coming companies and, by aligning with celebrities and influencers with
significant followings, we will continue to offer quality work-product that will attract start-ups looking to establish an online marketing
presence. Moreover, we believe that we are developing a portfolio of successful marketing campaigns that will positively influence our
word-of-mouth and referral lead generation and overall reputation in the industry, such as Soda Jerk, which have referred Betini to us,
which has become our largest campaign to date.
Brands
We intend to continue expanding and developing
our existing brands, like those associated with our SWOL trademark, in two ways. First, we plan to purchase larger amounts of SWOL products,
which will allow us to sell to more customers and increase our brand recognition at a quicker rate. Second, we plan on increasing the
marketing presence for SWOL, as well as our Wine Club. Moreover, we will continue developing new flavors, like SWOL Cristalino and SWOL
Peach, that align us with current market trends and evolving consumer preferences.
Acquisitions
We
intend to pursue opportunistic acquisitions of the following types of companies involved in the alcoholic beverage industry, or companies
that could be beneficial if integrated into our current business model:
●
Existing
                                            Brands
. We intend to target up-and-coming unique alcohol brands with initial market penetration
                                            and the potential to expand with additional marketing and distribution expertise. Our focus
                                            will be on the spirits, wine and specialty mixed drink segments of the market. One potential
                                            source of acquisitions would include approaching existing marketing clients to gauge their
                                            interest in becoming a majority owned subsidiary of our company.
●
Technologies
.
                                            We will also seek to acquire applications, analytics and distribution tools that can be utilized
                                            to complement our existing operations. Our technology acquisitions will focus on platforms
                                            that we believe will gain additional market insights and advertising opportunities for internal
                                            and external brands that we are developing, or plan to develop in the future.
●
Distribution
                                            Licenses and Physical Storage Locations
. We intend to target companies with importation
                                            licenses and storage facilities that will allow us to physically import and store our brands
                                            and our clients' brands.
51
We
expect to utilize a formal acquisition process for the identification and analysis of targets in the context of strategic alignment to
our business objectives, approaching targets for solicitation of interest in a transaction, completing financial, legal and technical
due diligence, and negotiating the terms of a transaction and related legal documentation. The core objective of this process is to scale
our revenue and earnings and complement our existing operational activities. Each of our management team members has completed significant
financial transactions over the course of their careers, and has with experience working with corporate issuers, investment and merchant
banks, and law firms, and we believe that our management's experience will help us achieve our business goals. As of the date of
this offering, we do not have any acquisitions in progress, nor have we identified any potential acquisitions.
Intellectual
Property
We consider intellectual property to be important to the operation
of our business, and critical to driving growth in our commercial revenue. We acquired trademarks pursuant to the Asset Purchase Agreement
in connection with SWOL between LQR House Inc. as the Buyer and Dollinger Innovations Inc., Dollinger Holdings LLC, and Sean Dollinger
as the Sellers dated as of March 19, 2021 and pursuant to the Asset Purchase Agreement in connection with Soleil Vino among LQR House
Inc. as the Buyer and Dollinger Holdings LLC as the Sellers dated as of May 31, 2021. We consider our intellectual property to be a key
business asset and therefore have rights to use and market the following portfolio of intellectual property in the United States:
SWOL
Intellectual Property
●
Trademarks:
                                            SWOL and Design and all associated trade dress and intellectual property rights.
●
All
                                            labels, logos and other branding bearing the SWOL and Design marks or any mark substantially
                                            similar to the same.
Soleil
Vino Intellectual Property
●
Trademarks
                                            regardless of registration status for Soleil Vino and all associated trade dress and intellectual
                                            property rights.
●
All
                                            labels, logos and other branding bearing the Soleil Vino marks or any mark substantially
                                            similar to the same.
●
Website
                                            and all related digital and social media content including but not limited to influencer
                                            networks, http://www.soleilvino.com, and all related content, and all related sales channels.
Enforcement
of our trademark rights is important in maintaining the value of each of our brands. While it would be cost-prohibitive to act in all
instances, our aim is to consistently reduce trademark infringements by carrying out coordinated, cost-effective enforcement actions
following investigation of suspected trademark infringements. Enforcement action takes a variety of forms, such as working with authorities
to seize counterfeit goods and stop the activities of unauthorized sellers to taking direct legal action against infringers, for example,
by issuing cease and desist letters. In relation to materials for which copyright protection is available, our current practice is generally
to secure copyright ownership where possible and appropriate.
Human
Capital
As
of June 9, 2023, we had three full-time employees. We will add another full-time employee upon the consummation of this offering per
Sean Dollinger's employment agreement. See
Executive Compensation – Executive Employment and Consulting Agreements
.
Our independent contractors include third-party service providers who staff our organization and supplement our teams as needed. None
of our personnel are represented by labor unions, and we believe that we have an excellent relationship with everyone who works with
us. We operate the Company under remote-first principles.
52
Seasonality
Seasonality
has some impact on our business via the levels at which customers engage with our products and brand. For example, we have traditionally
seen lower total sales in the post-holiday and winter months. Our marketing strategies, which may be informed by these seasonal trends,
will also impact our quarterly results of operations. These trends may cause our cash requirements to vary from quarter to quarter depending
on the variability in the volume and timing of sales. We believe that these seasonal trends have affected and will continue to affect
our quarterly results.
Facilities
The Company owns an office lease pursuant to a commercial lease agreement
between South Doll LLC and LQR House Inc at 6800 Indian Creek Dr., Suite 1E, Miami Beach, FL, 33141 (the "premises"). The
premises are used as a corporate office address and as the registered office address for the Company. The lease commenced on February
15, 2023 and will expire on February 28, 2025. Our total office space pursuant to this agreement is approximately [*] square feet. We
believe our office space is adequate for at least the next 12 months.
Legal
Proceedings
From
time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However,
litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may
harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect
on our business, financial condition, or operating results.
Key
Agreements with Suppliers
In accordance with a certain asset purchase agreement
dated March 19, 2021, by and between the Company, as buyer, and Dollinger Innovations Inc., Dollinger Holdings LLC, and Sean Dollinger,
our Chief Executive Officer, as sellers, the Company became assignee to that certain Shared Responsibility & Bonding Agreement dated
March 19, 2021, between Leticia Hermosillo Ravelero and Dollinger Innovations Inc., which we refer to as the Shared Responsibility &
Bonding Agreement. That agreement provides that Leticia Hermosillo Ravelero, who we refer to as the Producer, undertakes the production
of the alcoholic beverage denominated "Tequila made 100% of agave," bottled and labeled at the factory located in Km 32 of
the International Highway Guadalajara-Nogales, El Arenal Municipality, Postal Code 45350, Jalisco, Mexico, supplied by the Producer in
accordance with the Shared Responsibility & Bonding Agreement. That agreement also provides that Dollinger Innovations Inc., and Sean
Dollinger as the administrative manager of Dollinger Innovations Inc., who we refer to as the Distributor, undertakes to carry out the
activities of distribution and sale of that beverage in Mexico or overseas in compliance with the laws and regulations that are applicable
in the place where it will be marketed. The Producer is granted the exclusive right to produce tequila under the SWOL trademark, and that
any tequila produced by Supplier will qualify as "Tequila 100% of Agave," as authorized by the General Directorate of Norms
from Secretary of Economy of Mexico, the Regulatory Council of Tequila A.C., and the Tequila Origin Denomination No. DOT-194 issued according
to applicable legislation of the Mexican Institute of Industrial Property, body belonging to Government of the Mexican United States.
The Shared Responsibility & Bonding Agreement will terminate on March 19, 2026, unless terminated prior by either party with at least
30 days advance written notice. The cost and amount of each batch of tequila produced by Supplier will be determined in advance of the
production of each batch by agreement between Supplier and the Company.
Per the Packaging of Origin Co-Responsibility
Agreement, between Leticia Hermosillo Ravelero ( the "Producer") and Dollinger Innovations Inc. and Sean Dollinger as the
legal representative of Dollinger Innovations Inc. (the "Distributor"), the Producer undertakes to supply to the Distributor,
bottled product of origin that strictly complies with the "Official Standard of Tequila" issued by the Conformity Assessment
Body in this case the Regulatory Council of Tequila, A.C. ("CRT"), the Producer undertakes to prepare for, and deliver exclusively
to the Distributor, the Aged Tequila bottle of origin that strictly complies with the Official Standard of Tequila, the Producer undertakes
to prepare for and deliver exclusively to the Distributor, Tequila flavored in the flavors that from time to time the Distributor orders,
and the Distributor undertakes to use the Appellation of Origin "Tequila" and to distribute the product of the same name,
supplied by the Producer exclusively in the containers bearing the trademark SWOL.
Government
Regulation
The
Alcohol Industry
A
complex multi-jurisdictional regime governs alcoholic beverage manufacturing, distribution, sales, and marketing in the United States.
The alcoholic beverages industry in which we operate is subject to extensive regulation by the Alcohol and Tobacco Tax and Trade Bureau
(and other federal agencies), each state's liquor authority, and potentially local authorities depending on location. These regulations
and laws dictate such matters as licensing requirements, production, importation, ownership restrictions, trade, and pricing practices,
permitted distribution channels, delivery, and prohibitions on sales to minors, permitted, and required labeling, and advertising and
relations with wholesalers and retailers. These laws, regulations and licensing requirements may, and sometimes are, interpreted and
applied in a manner that is inconsistent from one jurisdiction to another and may conflict with other legal mandates or with the Company's
business practices. Further, these laws, rules, regulations, and interpretations are constantly changing because of litigation, legislation,
and agency priorities, and could result in increased regulation. The Company's actual or asserted non-compliance with any such
law, regulation or requirement could expose us to investigations, claims, litigation, injunctive proceedings and other criminal or civil
proceedings by private parties and regulatory authorities, as well as license suspension, license revocation, substantial fines, and
negative publicity, any of which could adversely affect our results of operations, financial condition, and business.
53
The
Internet
We
are subject to several laws and regulations that affect companies conducting business on the Internet, many of which are still evolving
and could be interpreted in ways that could harm our business. The way existing laws and regulations will be applied to the Internet
and how they will relate to our business are often unclear. For example, we often cannot be certain how existing laws will apply in the
e-commerce and online context, including with respect to such topics as privacy, defamation, pricing, credit card fraud, advertising,
taxation, sweepstakes, promotions, content regulation, quality of products and services, and intellectual property ownership and infringement.
Numerous
laws and regulatory schemes have been adopted at the national and state level in the United States, and in some cases internationally,
that have a direct impact on our business and operations. For example:
The
Credit Card Accountability Responsibility and Disclosure Act of 2009, or CARD Act, and similar laws and regulations adopted by several
states regulate credit card and gift certificate use fairness, including expiration dates and fees. Our business also requires that we
comply with payment card industry data security and other standards. We are subject to payment card association operating rules, certification
requirements, and rules governing electronic funds transfers, which could change or be reinterpreted to make it difficult or impossible
for us to comply. If we fail to comply with these rules or requirements, or if our data security systems are breached or compromised,
we may be liable for card issuing banks' costs, subject to fines and higher transaction fees, and lose our ability to accept credit
and debit card payments from our customers, process electronic funds transfers, or facilitate other types of online payments, and our
business and results of operations could be adversely affected.
The
Digital Millennium Copyright Act (DMCA) provides relief for claims of circumvention of copyright protected technologies and includes
a safe harbor intended to reduce the liability of online service providers for hosting, listing, or linking to third-party content that
infringes copyrights of others.
The
California Consumer Privacy Act (CCPA), which went into effect on January 1, 2020, provides consumers the right to know what personal
data companies collect, how it is used, and the right to access, delete, and opt out of the sale of their personal information to third
parties. It also expands the definition of personal information and gives consumers increased privacy rights and protections for that
information. The CCPA also includes special requirements for California consumers under the age of 16. In addition, the European Union
and United Kingdom have adopted the General Data Protection Regulation (GDPR), which likewise impose significant data protection obligations
on enterprises, including limitations on data uses and constraints on certain uses of sensitive data. Effective January 1, 2023, we will
also become subject to the California Privacy Rights Act, which expands upon the consumer data use restrictions, penalties and enforcement
provisions under the California Consumer Privacy Act, and Virginia's Consumer Data Protection Act, another comprehensive data privacy
law. Effective July 1, 2023, we will also become subject to the Colorado Privacy Act and Connecticut's An Act Concerning Personal
Data Privacy and Online Monitoring, which are also comprehensive consumer privacy laws. Effective December 31, 2023, we will also become
subject to the Utah Consumer Privacy Act, regarding business handling of consumers' personal data.
COVID-19
Pandemic
On
March 11, 2020, the World Health Organization declared the novel coronavirus COVID-19 a global pandemic and recommended containment and
mitigation measures worldwide. From our founding, we have been a highly efficient remote-first company, which has been able to continue
to function as normal even with pandemic-related stay at home orders and other regulations. We have also exploited certain trends related
to the COVID-19 pandemic, including its acceleration of global growth in e-commerce. Additionally, the COVID-19 pandemic has had a far-reaching
impact on the alcoholic beverage industry. The closure of many bars and restaurants has meant that home consumption of alcoholic beverages
has skyrocketed. Some categories of wines and spirits have seen significant market share gains while others have stagnated. More importantly,
consumer trends that were expected to play out over the next decade were instead accelerated into a few months. While a return to some
measure of normalcy may reverse or modify some of those changes, most of the trends observed in the beverage market over 2022 and 2021
are expected to continue, although possibly at a reduced rate of growth. However, the COVID-19 pandemic has adversely impacted global
economic activity and has contributed to significant volatility and negative pressure in financial markets. The resulting global deterioration
in economic conditions and financial volatility may have an adverse impact on discretionary consumer spending or investing and could
also impact our business and demand for our services. We cannot predict the extent to which the ongoing COVID-19 pandemic or related
regulatory activity or legislative may impact us.
54
MANAGEMENT
Directors
and Executive Officers
Set
forth below is information regarding our directors and executive officers as of the date of this prospectus.
Name
Age
Position
Sean Dollinger
42
Chief Executive Officer, Secretary, and Director
Kumar Abhishek
46
Chief Financial Officer
Jaclyn Hoffman
33
Chief Marketing Officer
Alexandra Hoffman
34
Director
Darren Collins
39
Director
Holiday Russell
57
Director Nominee
(1)
Guy Dollinger
51
Director Nominee
(1)
James Huber
54
Director Nominee
(1)
James O'Brien
37
Director
    Nominee
(1)
(1)
To
be appointed to our board of directors immediately upon the effectiveness of the registration statement of which this prospectus forms
a part.
Sean
Dollinger
has served as our Chief Executive Officer, Secretary, and as a member of our board of directors since January 2023,
and he founded our company in January 2021. Mr. Dollinger has also been on the board of directors of Veg House Holdings Inc. since December
2022 and has served as its Chief Executive Officer since January 2023. Since December 2019 to, Mr. Dollinger was involved in the founding
and development of PlantX Life Inc. (CSE: VEGA), an exchange listed and public company in Canada. From June 2015 to February 2019, Mr.
Dollinger acted as the Founder, Chief Executive Officer, and President of Lifeist Wellness Inc. (formerly Namaste Technologies Inc.,
or Namaste), a registered company under the Canadian securities laws that is a portfolio of wellness companies, where he oversaw the
day-to-day operations of the company and its growth strategies. In October 2018, Mr. Dollinger became a part of a British Columbia Securities
Commission compliance review of Namaste, a Canadian class action lawsuit, and a United States class action lawsuit, by way of his position
as Chief Executive Officer and President of Namaste. For more information, see the risk factor that starts "
Our Chief Executive
Officer and Director, Sean Dollinger, has been the subject of a compliance review that was initiated by the British Columbia Securities
Commission, and has not formally been concluded...
" Mr. Dollinger has a wealth of experience in e-commerce, where he has had
success across numerous different digital markets. We believe that Mr. Dollinger is qualified to serve on our board of directors due
to his extensive operational experience, background in ecommerce, and international capital markets experience.
Kumar
Abhishek
has served as our Chief Financial Officer since May 2023. Prior to joining our company as Chief Financial Officer, Mr.
Abhishek was the owner and director of Boston Crest Private Limited, a knowledge processing output company located in India, where he
simultaneously oversaw multiple companies' financial and daily operations and was responsible for managing a team of 10+ accountants
who assisted controllers and auditors in ensuring the financial success of each company. Through his work at Boston Crest, Mr. Abhishek
served as our director of finance and operations from January 2021 to May 2023, as the director of finance and operations at PlantX Life
Inc., a publicly listed company in Canada, from January 2020 to May 2023. Moreover, at Aspen Communications Pvt LTD, another knowledge
processing output company in India, he served as director of finance and operations at Lifeist Wellness Inc. (formerly Namaste Technologies
Inc.) from January 2015 to January 2020. Mr. Abhishek holds a Bachelor of Computer Applications degree from Ranchi University, Ranchi,
Jharkhand, India.
Jaclyn
Hoffman
has served as the Chief Marketing Officer for LQR House since January 2021, where she oversees internal design projects,
as well as design projects for partnering brands. She is also responsible for brand development, brand communication, and digital campaigns.
Since October 2021, Jaclyn has worked as the Creative Director at PlantX Life Inc, where she oversees all creative projects for PlantX
and its subsidiaries. This role includes working closely with teams of graphic designers, copywriters, web developers, and email marketing
specialists to support the overall marketing strategy with creative content. From November 2019 until September 2021, Ms. Hoffman worked
as a Web Design and Development Manager for Falcon Marketing, LLC, a marketing and search engine optimization agency, where she worked
with graphic designers and web developers to create optimized websites for a wide range of clients. From October 2018 to November 2019,
Ms. Hoffman worked as a Branding Consultant for Joyva Corp, a specialty candy company founded in 1907, where she helped modernize the
brand's identity. From September 2016 to August 2018, Ms. Hoffman worked as a graphic designer for Lakeside Photoworks, a print,
photo and signage shop in New Orleans, LA, where she was responsible for building the brand identity of several local businesses. Ms.
Hoffman holds a Bachelor of Arts from McGill University in Montreal, QC, and an Associate in Graphic Design degree from Delgado Community
College in New Orleans, LA.
55
Darren
Collins
has served as a member of our board of directors since January 2021. From January 2021 to August 2022 and from January
1, 2023 to May 1, 2023, Mr. Collins also served as our Chief Financial Officer. Prior to joining us, Mr. Collins was the Chief Financial
Officer and Advisor for Khiron Life Sciences Corp. from January 2017 to July 2020 and oversaw over $100 million in capital raises as
well as the listing of the company of the TSV Venture Exchange. In that position he was responsible for capital markets relationships,
budgeting, financial reporting and mergers and acquisitions. Since January 2022, Mr. Collins has worked as the Chief Executive Officer
and Director of US Critical Metals Corp, a Canadian publicly listed company. From January 2008 to present date, he has also served as
a director of Dalvay Capital, a merchant bank focused on early-stage companies. In this capacity, he has held several executive and board
appointments. Mr. Collins has a Bachelor of Commerce degree in Finance from Dalhousie University, located in Halifax, Nova Scotia, a
Province of Canada. We believe that Mr. Collins is qualified to serve on our board of directors due to his extensive managerial experience,
financial literacy and international capital markets and board experience.
Alexandra
Hoffman
has served as a member of our board of directors since April 2023. Additionally, on May 1, 2023, Ms. Hoffman entered
into an employment agreement with the Company as a Technical Writer. Since January 2023, she has served as the Chief Marketing Officer
of Veg House Holdings Inc. where she oversees all marketing activities from branding to web design and messaging both print and digital.
Since August 2020, Ms. Hoffman has served as Chief Marketing Officer and Director at PlantX Life Inc. (CSE: VEGA), where she oversees
all marketing activities, manages design & development teams, digital marketing teams, and PlantX Life's overall branding and
messaging for all of its subsidiaries. Additionally, since July 2018, Ms. Hoffman has served as a Director of Marketing and Technical
Writer at Falcon Marketing LLC, a marketing and search engine optimization agency, where she oversees all marketing activities within
the agency and is responsible for Falcon Marketing's overall strategy as well as tailored strategies for its clients. From May
2017 to July 2018, Ms. Hoffman served as a technical Writer and Marketing Manager at Fabuwood Cabinetry Corporation, a kitchen cabinet
fabrication company, where she managed a team of designers and developers, wrote strategic content for marketing manuals and search engine
optimization. Ms. Hoffman holds a Bachelor of Commerce degree from Concordia University in Montreal, Quebec. We believe that Ms. Hoffman
is qualified to serve on our board of directors due to her background in branding and product / platform positioning as well as her previous
experience as a senior member of other public companies.
Holiday
Russell
has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Holiday Russell is an attorney licensed by The Florida Bar, who was admitted to practice
in 1992. With over 30 years of experience, Mr. Russell is the principal of Holiday Hunt Russell PLLC since forming that bespoke law firm
in 2017 and has represented hundreds of high-net-worth individuals and companies, both private and public, in many areas of the law.
These areas include complex commercial and business litigation, corporate and business architecture, intellectual property rights, real
estate transactions and litigation, and debtor/creditor rights including bankruptcy, to name a few. Mr. Russell is admitted to practice
law in all Florida courts, as well as in the United States District Courts for the Southern, Middle and Northern Districts of Florida,
the United States Bankruptcy Courts for the Southern and Middle Districts of Florida, the United States Bankruptcy Court for the District
of Colorado, and the United States Eleventh Circuit Court of Appeals. He received his Juris Doctor degree from Nova Southeastern University
in 1992 and was awarded the degree of Bachelor of Science in Biology from Florida International University in 1989. A native Floridian,
Mr. Russell resides in South Florida with his family. We believe that Mr. Russell is qualified to serve on our board of directors due
to his extensive corporate legal background.
Guy
Dollinger
has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Mr. Dollinger has served as Vice President and partner in DZD Hardwood Inc, a global
hardwood lumber business, since 1990. His responsibilities include overseeing operations, finance, exports, and the procurement of raw
materials. Mr. Dollinger's extensive knowledge of supply chains and manufacturing as well as his ability to build client relationships
has been paramount in DZD's growth. Mr. Dollinger attended Concordia University majoring in accounting. We believe that Mr. Dollinger
is qualified to serve on our board of directors due to his extensive managerial experience, financial literacy and shipping and logistics
expertise.
56
James
Huber
has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Starting in October 2021, Mr. Huber has worked as a Senior Vice President of Strategic
Accounts at Siemens. From April 2014 to October 2021, Mr. Huber worked as a Vice President of Strategic Accounts at Siemens. From January
2012 to April 2014, Mr. Huber worked as an Executive VP of Major Accounts at Caradigm, a GE Healthcare and Microsoft Joint Venture. From
August 2009 to January 2012, Mr. Huber worked as a Vice President of National Accounts at Microsoft Health Solutions Group. From December
2006 – August 2009, Mr. Huber Worked as an Account executive at Microsoft Health Solutions Group. From April 2002 to November 2006,
Mr. Huber worked as a Vice President of Enterprise IT Sales at GE Healthcare IT. From November 2000 to April 2002, Mr. Huber Worked as
an Account Manager of Clinical Systems at GE Healthcare. From July 1999 to July 2004, Mr. Huber owned his own retail store in Vail, Colorado,
named Brighton Collectibles. From November 1993 to November 2000, Mr. Huber worked in the Western Territory Sales Department at Leegin
Leather. Mr. Huber has a Bachelor of Science in Marketing from DePaul University, located in Chicago, Illinois. We believe that Mr. Huber
is qualified to serve on our board of directors due to his experience in sales, marketing and strategy and business planning.
James
O'Brien
has been nominated to serve as a member of our board of directors effective as of the effective date of the registration
statement of which this prospectus forms a part. Since January 2019, Mr. O'Brien has been a partner at MLT Aikins LLP, one of Western
Canada's leading law firms, where he practices primarily in the areas of corporate and commercial law with a specific focus on
mergers and acquisitions and corporate finance and securities. Before that, he joined MLT Aikins LLP as an associate attorney in 2012.
Mr. O'Brien received his Bachelor of Laws degree from the University of Manitoba in 2010. He also received his Bachelor of Science
degree from the University of Manitoba in 2007. Mr. O'Brien is admitted to practice law in Manitoba, Canada and has passed Levels
1 and 2 of the Chartered Financial Analyst programs. We believe that Mr. O'Brien is qualified to serve on our board of directors
due to the combination of his extensive legal and finance background.
Family
Relationships
Guy
Dollinger, who is a nominee for our board of directors, and Sean Dollinger, our Chief Executive Officer, Secretary and a director, are
uncle and nephew, respectively. Additionally, Alexandra Hoffman, a member of our board of directors, and Jaclyn Hoffman, our Chief Marketing
Officer, are sisters.
Involvement
in Certain Legal Proceedings
To
the best of our knowledge, none of our directors or executive officers has, during the past ten years:
●
been
                                            convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding
                                            traffic violations and other minor offences);
●
had
                                            any bankruptcy petition filed by or against the business or property of the person, or of
                                            any partnership, corporation or business association of which he was a general partner or
                                            executive officer, either at the time of the bankruptcy filing or within two years prior
                                            to that time;
●
been
                                            subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated,
                                            of any court of competent jurisdiction or federal or state authority, permanently or temporarily
                                            enjoining, barring, suspending or otherwise limiting, his involvement in any type of business,
                                            securities, futures, commodities, investment, banking, savings and loan, or insurance activities,
                                            or to be associated with persons engaged in any such activity;
●
been
                                            found by a court of competent jurisdiction in a civil action or by the Securities and Exchange
                                            Commission or the Commodity Futures Trading Commission to have violated a federal or state
                                            securities or commodities law, and the judgment has not been reversed, suspended, or vacated;
●
been
                                            the subject of, or a party to, any federal or state judicial or administrative order, judgment,
                                            decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement
                                            of a civil proceeding among private litigants), relating to an alleged violation of any federal
                                            or state securities or commodities law or regulation, any law or regulation respecting financial
                                            institutions or insurance companies including, but not limited to, a temporary or permanent
                                            injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent
                                            cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting
                                            mail or wire fraud or fraud in connection with any business entity; or
●
been
                                            the subject of, or a party to, any sanction or order, not subsequently reversed, suspended
                                            or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange
                                            Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the
                                            Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity
                                            or organization that has disciplinary authority over its members or persons associated with
                                            a member.
57
Corporate
Governance
The
Board's Role in Risk Oversight
The
board of directors oversees that the assets of our company are properly safeguarded, that the appropriate financial and other controls
are maintained, and that our business is conducted wisely and in compliance with applicable laws and regulations and proper governance.
Included in these responsibilities is the board's oversight of the various risks facing our company. In this regard, our board
seeks to understand and oversee critical business risks. Our board does not view risk in isolation. Risks are considered in virtually
every business decision and as part of our business strategy. Our board recognizes that it is neither possible nor prudent to eliminate
all risk. Indeed, purposeful and appropriate risk-taking is essential for our company to be competitive on a global basis and to achieve
its objectives.
While
the board oversees risk management, company management is charged with managing risk. Management communicates routinely with the board
and individual directors on the significant risks identified and how they are being managed. Directors are free to, and indeed often
do, communicate directly with senior management.
Our
board administers its risk oversight function as a whole by making risk oversight a matter of collective consideration. Much of this
work has been delegated to committees, which will meet regularly and report back to the full board. The audit committee oversees risks
related to our financial statements, the financial reporting process, accounting and legal matters, the compensation committee evaluates
the risks and rewards associated with our compensation philosophy and programs, and the nominating and corporate governance committee
evaluates risk associated with management decisions and strategic direction.
Independent
Directors
Nasdaq's
rules generally require that a majority of an issuer's board of directors consist of independent directors. Our board of directors
currently consists of three (3) directors, Sean Dollinger, Darren Collins, and Alexandra Hoffman, none of whom are independent within
the meaning of Nasdaq's rules. We intend to enter into independent director agreements with James Huber, Guy Dollinger, Holiday
Russell, and James O'Brien, pursuant to which they will be appointed to serve as independent directors effective immediately upon
the effectiveness of the registration statement of which this prospectus forms a part. As a result of these board changes, our board
of directors will consist of seven (7) directors, four (4) of whom will be independent within the meaning of Nasdaq's rules.
Committees
of the Board of Directors
Our
board has established an audit committee, a compensation committee, and a nominating and corporate governance committee, each with its
own charter approved by the board. The committee charters have been filed as exhibits to the registration statement of which this prospectus
is a part. Upon completion of this offering, we intend to make each committee's charter available on our website at www.lqrhouse.com.
In
addition, our board of directors may, from time to time, designate one or more additional committees, which shall have the duties and
powers granted to it by our board of directors.
Audit
Committee
James
Huber, Guy Dollinger, and Holiday Russell, each of whom satisfies the "independence" requirements of Rule 10A-3 under
the Exchange Act and Nasdaq's rules, will serve on our audit committee upon their appointment to the board, with Guy Dollinger
serving as the chairman. Our board has determined that Guy Dollinger qualifies as an "audit committee financial expert."
The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements of our company.
The
audit committee is responsible for, among other things: (i) retaining and overseeing our independent accountants; (ii) assisting the
board in its oversight of the integrity of our financial statements, the qualifications, independence and performance of our independent
auditors and our compliance with legal and regulatory requirements; (iii) reviewing and approving the plan and scope of the internal
and external audit; (iv) pre-approving any audit and non-audit services provided by our independent auditors; (v) approving the fees
to be paid to our independent auditors; (vi) reviewing with our chief executive officer and principal financial officer and independent
auditors the adequacy and effectiveness of our internal controls; (vii) reviewing hedging transactions; and (viii) reviewing and assessing
annually the audit committee's performance and the adequacy of its charter.
58
Compensation
Committee
James
Huber, Guy Dollinger, and Holiday Russell, each of whom satisfies the "independence" requirements of Rule 10C-1 under
the Exchange Act and Nasdaq's rules, will serve on our compensation committee upon their appointment to the board, with James Huber
serving as the chairman. The members of the compensation committee are also "outside directors" as defined in Section 162(m)
of the Internal Revenue Code of 1986, as amended, or the Code, and "non-employee directors" within the meaning of Section
16 of the Exchange Act. The compensation committee assists the board in reviewing and approving the compensation structure, including
all forms of compensation, relating to our directors and executive officers.
The
compensation committee is responsible for, among other things: (i) reviewing and approving the remuneration of our executive officers;
(ii) making recommendations to the board regarding the compensation of our independent directors; (iii) making recommendations to the
board regarding equity-based and incentive compensation plans, policies and programs; and (iv) reviewing and assessing annually the compensation
committee's performance and the adequacy of its charter.
Nominating
and Corporate Governance Committee
James
Huber, Guy Dollinger, and Holiday Russell, each of whom satisfies the "independence" requirements of Nasdaq's rules,
will serve on our nominating and corporate governance committee upon their appointment to the board, with Holiday Russell, serving as
the chairman. The nominating and corporate governance committee assists the board of directors in selecting individuals qualified to
become our directors and in determining the composition of the board and its committees.
The
nominating and corporate governance committee will be responsible for, among other things: (i) identifying and evaluating individuals
qualified to become members of the board by reviewing nominees for election to the board submitted by shareholders and recommending to
the board director nominees for each annual meeting of shareholders and for election to fill any vacancies on the board; (ii) advising
the board with respect to board organization, desired qualifications of board members, the membership, function, operation, structure
and composition of committees (including any committee authority to delegate to subcommittees), and self-evaluation and policies; (iii)
advising on matters relating to corporate governance and monitoring developments in the law and practice of corporate governance; (iv)
overseeing compliance with the our code of ethics; and (v) approving any related party transactions.
The
nominating and corporate governance committee's methods for identifying candidates for election to our board of directors (other
than those proposed by our shareholders, as discussed below) will include the solicitation of ideas for possible candidates from a number
of sources – members of our board of directors, our executives, individuals personally known to the members of our board of directors,
and other research. The nominating and corporate governance committee may also, from time-to-time, retain one or more third-party search
firms to identify suitable candidates.
In
making director recommendations, the nominating and corporate governance committee may consider some or all of the following factors:
(i) the candidate's judgment, skill, experience with other organizations of comparable purpose, complexity and size, and subject
to similar legal restrictions and oversight; (ii) the interplay of the candidate's experience with the experience of other board
members; (iii) the extent to which the candidate would be a desirable addition to the board and any committee thereof; (iv) whether or
not the person has any relationships that might impair his or her independence; and (v) the candidate's ability to contribute to
the effective management of our company, taking into account the needs of our company and such factors as the individual's experience,
perspective, skills and knowledge of the industry in which we operate.
A
shareholder may nominate one or more persons for election as a director at an annual meeting of shareholders if the shareholder complies
with the notice and information provisions contained in our bylaws. Such notice must be in writing to our company not later than the
close of business on the ninetieth (90
th
) day nor earlier than the close of business on the one-hundred-twentieth (120
th
)
day prior to the first anniversary of the preceding year's annual meeting; provided, however, that in the event that the date of
the annual meeting is advanced more than thirty (30) days prior to or delayed by more than thirty (30) days after the anniversary of
the preceding year's annual meeting, notice by the stockholder to be timely must be so delivered not earlier than the close of
business on the one hundred twentieth (120
th
) day prior to such annual meeting and not later than the close of business on
the later of the ninetieth (90
th
) day prior to such annual meeting or the tenth (10
th
) day following the day on
which public announcement of the date of such meeting is first made or as otherwise required by the Exchange Act. In addition, shareholders
furnishing such notice must be a holder of record on both (i) the date of delivering such notice and (ii) the record date for
the determination of shareholders entitled to vote at such meeting.
Code
of Ethics
We
have adopted a code of ethics that applies to all of our directors, officers and employees, including our principal executive officer,
principal financial officer and principal accounting officer. Such code of ethics addresses, among other things, honesty and ethical
conduct, conflicts of interest, compliance with laws, regulations and policies, including disclosure requirements under the federal securities
laws, and reporting of violations of the code.
A
copy of the code of ethics has been filed as an exhibit to the registration statement of which this prospectus is a part. We are required
to disclose any amendment to, or waiver from, a provision of our code of ethics applicable to our principal executive officer, principal
financial officer, principal accounting officer, controller, or persons performing similar functions. We intend to use our website as
a method of disseminating this disclosure as well as by SEC filings, as permitted or required by applicable SEC rules. Any such disclosure
will be posted to our website within four (4) business days following the date of any such amendment to, or waiver from, a provision
of our code of ethics.
59
EXECUTIVE
COMPENSATION
Summary
Compensation Table - Years Ended December 31, 2022 and 2021
The
following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to the named persons
for services rendered in all capacities during the noted periods. No other executive officers received total compensation in excess
of $100,000.
Name and Principal Position
Year
Salary
($)
Bonus
($)
Stock
Awards
($)
(1)
Option
Awards
($)
All Other
Compensation
($)
Total
($)
Sean Dollinger,
2022
-
-
-
-
144,000
(2)
144,000
Chief Executive Officer, Secretary and Director
2021
-
100,000
(2)
212,500
-
144,000
(2)
456,000
Kumar Abhishek,
2022
-
-
-
-
62,400
(3)
62,400
Chief Financial Officer
2021
-
-
-
-
62,400
(3)
62,400
Jaclyn Hoffman,
2022
-
-
-
-
30,000
(4)
30,000
Chief Marketing Officer
2021
-
-
25,000
-
30,000
(4)
55,000
Darren Collins,
2022
-
-
-
-
72,000
(5)
72,000
Director and former Chief Financial Officer
2021
-
20,000
(5)
50,000
-
72,000
(5)
142,000
Angela Kattoula,
2022
-
-
-
-
-
-
former Chief Executive Officer
2021
-
-
50,000
-
30,000
(6)
80,000
(1)
Award
                                            amounts reflect the aggregate grant date fair value with respect to awards granted, as determined
                                            pursuant to FASB ASC Topic 718. The assumptions used to calculate the aggregate grant date
                                            fair value of option awards are set forth in the notes to the consolidated financial statements
                                            included in this Registration Statement. These amounts do not reflect actual compensation
                                            earned or to be earned by our named executive officers.
(2)
On
                                            January 1, 2021, Sean Dollinger and the Company entered into an independent contractor agreement,
                                            pursuant to which the Company pays Mr. Dollinger $12,000 per month for consulting services.
                                            This agreement is in effect until the consummation of this initial public offering. Mr. Dollinger
                                            also received a $100,000 signing bonus upon the signing of the agreement.
(3)
On
                                            January 1, 2021, the Company entered into an independent contractor agreement with Boston
                                            Crest Pvt. Ltd, a private company limited organized under the laws of India owned by Kumar
                                            Abhishek our Chief Financial Officer as of May 2023, pursuant to which the Company paid Boston
                                            Crest $5,200 per month for its business management consulting services. This agreement was
                                            in effect until May 1, 2023.
(4)
On January 1, 2021, Jaclyn Hoffman and the Company entered into an
independent contractor agreement, pursuant to which the Company paid Ms. Hoffman $2,500 per month for consulting services. This agreement
was in effect until May 1, 2023.
(5)
On January 1, 2021, Darren Collins and the Company entered into an independent contractor agreement, pursuant to which the Company pays Mr. Collins $6,000 per month for consulting services. Mr. Collins also received a signing bonus of $20,000 upon the signing of the agreement. This agreement was terminated on August 24, 2022, when Darren Collins resigned as Chief Financial Officer of the Company. However, the Company and Darren Collins agreed that the provisions of Schedule 2 of the agreement shall survive termination of the agreement and the Company agreed to continue to pay Darren compensation of $6,000 per month until the date he enters into a non-independent director agreement, which agreement's effective date is expected to be the effective date of the S-1 registration statement.
(6)
On
                                            January 1, 2021, Angela Kattoula and the Company entered into an independent contractor agreement,
                                            pursuant to which the Company paid Ms. Kattoula $2,500 per month for consulting services.
                                            This agreement was in effect until July 5, 2022, when she resigned from the position of the
                                            CEO of the Company.
60
Executive
Employment and Consulting Agreements
We
have executed the following employment agreements and consulting agreements with our named executive officers. The material terms of
each of those arrangements are summarized below. The summaries are not complete description of all provisions of the employment arrangements
and are qualified in their entirety by reference to the written employment arrangements, each filed as an exhibit to the registration
statement of which this prospectus is a part.
Under our employment agreement dated March 29, 2023 with our Chief
Executive Officer, Sean Dollinger, effective as of the date of the consummation of this initial public offering, we agreed that, for a
1-year term renewed automatically, unless terminated earlier in accordance with its terms, we will pay Mr. Dollinger an annual base salary
(the "Base Salary") of $250,000, which will increase by no less than 5% on each anniversary of his employment. Mr. Dollinger
will also be entitled to an annual incentive bonus as determined by the Board of Directors within thirty (30) days of filing of the Company's
annual reports.
Mr.
Dollinger is entitled to 3 weeks of paid vacation for the first year of his employment and 4 weeks of paid vacation for the second and
third years of his employment. The Company will also provide standard indemnification and directors' and officers' insurance
as of the consummation of this offering in addition to the ability to participate in standard employee benefits, such as health, medical,
dental and visions insurance. Mr. Dollinger can be terminated without cause and upon death or disability. Mr. Dollinger is also subject
to certain confidentiality and non-competition provisions.
If Mr. Dollinger's employment agreement
is terminated by the Company without cause, all compensation payable to Mr. Dollinger shall cease as of the date of termination specified
in the Company's notice and the Company shall pay Mr. Dollinger, the following sums: (i) the Base Salary on the date of termination specified
in the Company's notice (the "Termination Date") for the shorter of (x) six months and (y) the remainder of the term
of the employment agreement (the "Term") (the applicable period being referred to as the "Severance Period"),
payable in monthly installments; (ii) benefits under group health and life insurance plans in which Mr. Dollinger participated prior to
termination through the Severance Period; (iii) all previously earned, accrued, and unpaid benefits from the Company and its employee
benefit plans, including any such benefits under the Company's pension, disability, and life insurance plans, policies, and programs;
and (iv) so long as the Company has achieved its budgeted EBITDA level for the period commencing with the end of the Company's immediately
previous fiscal year through the Termination Date, an amount equal to the product of the bonus paid to Mr. Dollinger in respect of the
immediately preceding fiscal year times the quotient obtained by dividing (x) the number of full calendar months occurring since the end
of the immediately previous fiscal year through the Termination Date, by (y) 12.
If, prior to the date on which the Company's
obligations to pay Mr. Dollinger the Base Salary on the Termination Date cease, Mr. Dollinger certain covenants as listed in his employment
agreement, then the Company shall have no obligation to make any of the payments that remain payable by the Company in the form of Base
Salary or benefits on or after the date of such violation. The payment of severance may be conditioned by the Company on the delivery
by Mr. Dollinger of a release of any and all claims that Mr. Dollinger may have against the Company.
If the Employment Agreement is terminated by the Company for cause,
death or disability, Mr. Dollinger (or his estate or representative as applicable) shall not receive the Base Salary but will receive
all other sums.
Under our employment agreement dated May 1, 2023 with our Chief Marketing
Officer, Jaclyn Hoffman effective as of May 1, 2023, we agreed that, for a 1-year term renewed automatically, unless terminated earlier
in accordance with its terms, we will pay Ms. Hoffman an annual base salary (the "Base Salary") of $63,000, which will increase
by no less than 5% on each anniversary of her employment. Ms. Hoffman will be eligible to receive an annual incentive bonus as determined
by the Board of Directors within thirty (30) days of filing of the Company's annual reports. Ms. Hoffman is entitled to 3 weeks
of paid vacation for the first year of her employment and 4 weeks of paid vacation for the second and third years of her employment. The
Company will also provide standard indemnification and directors' and officers' insurance as of the consummation of this offering
in addition to the ability to participate in standard employee benefits, such as health, medical, dental and visions insurance. Ms. Hoffman
can be terminated without cause and upon death or disability. Ms. Hoffman will also be entitled to certain severance payments if her employment
is terminated with or without cause and on death or disability. Ms. Hoffman is also subject to certain confidentiality and non-competition
provisions.
61
If Ms. Hoffman's employment agreement is
terminated by the Company without cause, all compensation payable to Ms. Hoffman shall cease as of the date of termination specified in
the Company's notice (the "Termination Date") and the Company shall pay Ms. Hoffman, the following sums: (i) the Base Salary
on the Termination Date for the shorter of (x) six months and (y) the remainder of the term of the employment agreement (the "Term")
(the applicable period being referred to as the "Severance Period"), payable in monthly installments; (ii) benefits under
group health and life insurance plans in which Ms. Hoffman participated prior to termination through the Severance Period; (iii) all previously
earned, accrued, and unpaid benefits from the Company and its employee benefit plans, including any such benefits under the Company's
pension, disability, and life insurance plans, policies, and programs; and (iv) so long as the Company has achieved its budgeted EBITDA
level for the period commencing with the end of the Company's immediately previous fiscal year through the Termination Date, an amount
equal to the product of the bonus paid to Ms. Hoffman in respect of the immediately preceding fiscal year times the quotient obtained
by dividing (x) the number of full calendar months occurring since the end of the immediately previous fiscal year through the Termination
Date, by (y) 12.
If, prior to the date on which the Company's obligations
to pay Ms. Hoffman the Base Salary on the Termination Date cease, Ms. Hoffman certain covenants as listed in her Employment Agreement,
then the Company shall have no obligation to make any of the payments that remain payable by the Company in the form of Base Salary or
benefits on or after the date of such violation. The payment of severance may be conditioned by the Company on the delivery by Ms. Hoffman
of a release of any and all claims that Ms. Hoffman may have against the Company.
If the employment agreement is terminated by the
Company for cause, death or disability, Ms. Hoffman (or her estate or representative as applicable) shall not receive the Base Salary
but will receive all other sums.
Under our employment agreement dated May 1, 2023
with our Chief Financial Officer, Kumar Abhishek, effective as of May 1, 2023, we agreed that, for a 1-year term renewed automatically,
unless terminated earlier in accordance with its terms, we will pay Mr. Abhishek an annual base salary (the "Base Salary")
of $72,000, which will increase by no less than 5% on each anniversary of his employment. Mr. Abhishek will be eligible to receive an
annual incentive bonus as determined by the Board of Directors within thirty (30) days of filing of the Company's annual reports.
Mr. Abhishek is entitled to 3 weeks of paid vacation for the first year of his employment and 4 weeks of paid vacation for the second
and third years of his employment. The Company will also provide standard indemnification and directors' and officers' insurance
as of the consummation of this offering in addition to the ability to participate in standard employee benefits, such as health, medical,
dental and visions insurance. Mr. Abhishek can be terminated without cause and upon death or disability. Mr. Abhishek will also be entitled
to certain severance payments if his employment is terminated with or without cause and on death or disability. Mr. Abhishek is also subject
to certain confidentiality and non-competition provisions. Mr. Abhishek's employment agreement with the Company is conditioned upon
him working at least 35 hours per week as our Chief Financial Officer.
If Mr. Abhishek's employment agreement
is terminated by the Company without cause, all compensation payable to Mr. Abhishek shall cease as of the date of termination specified
in the Company's notice and the Company shall pay Mr. Abhishek, the following sums: (i) the Base Salary on the date of termination specified
in the Company's notice (the "Termination Date") for the shorter of (x) six months and (y) the remainder of the term
of the employment agreement (the "Term") (the applicable period being referred to as the "Severance Period"),
payable in monthly installments; (ii) benefits under group health and life insurance plans in which Mr. Abhishek participated prior to
termination through the Severance Period; (iii) all previously earned, accrued, and unpaid benefits from the Company and its employee
benefit plans, including any such benefits under the Company's pension, disability, and life insurance plans, policies, and programs;
and (iv) so long as the Company has achieved its budgeted EBITDA level for the period commencing with the end of the Company's immediately
previous fiscal year through the Termination Date, an amount equal to the product of the bonus paid to Mr. Abhishek in respect of the
immediately preceding fiscal year times the quotient obtained by dividing (x) the number of full calendar months occurring since the
end of the immediately previous fiscal year through the Termination Date, by (y) 12.
If,
prior to the date on which the Company's obligations to pay Mr. Abhishek the Base Salary on the Termination Date cease, Mr. Abhishek
certain covenants as listed in his Employment Agreement, then the Company shall have no obligation to make any of the payments that remain
payable by the Company in the form of Base Salary or benefits on or after the date of such violation. The payment of severance may be
conditioned by the Company on the delivery by Mr. Abhishek of a release of any and all claims that Mr. Abhishek may have against the
Company.
If the employment agreement is terminated by the Company for cause,
death or disability, Mr. Abhishek (or his estate or representative as applicable) shall not receive the Base Salary but will receive all
other sums.
62
Under our employment agreement dated May 1, 2023
with our Technical Writer, Alexandra Hoffman effective as of May 1, 2023, we agreed that, for a 1-year term renewed automatically, unless
terminated earlier in accordance with its terms, we will pay Ms. Hoffman an annual base salary (the "Base Salary") of $195,000,
which will increase by no less than 5% on each anniversary of her employment. Ms. Hoffman is also subject to certain confidentiality and
non-competition provisions.
In the event of termination of Ms. Hoffman's
employment, by either party or for any reason or by reason of her death or disability, the Company shall pay Ms. Hoffman (or her beneficiary
in the event of her death) any Base Salary or other compensation earned but not paid to her prior to the effective date of such termination.
All other benefits due Ms. Hoffman following her termination of employment shall be determined in accordance with the plans, policies
and practices of the Company. In the event of termination by the Company other than for cause, the Company shall pay Ms. Hoffman any additional
amount as provided by applicable law.
On
January 1, 2021, Sean Dollinger and the Company entered into an independent contractor agreement, pursuant to which the Company pays
Mr. Dollinger $12,000 per month for consulting services. This agreement is in effect until the consummation of this initial public offering.
Mr. Dollinger also received a $100,000 signing bonus upon the signing of the agreement.
On
January 1, 2021, the Company entered into an independent contractor agreement with Boston Crest Pvt. Ltd, a company formed under the
laws of India, that is owned by Kumar Abhishek. Pursuant to that agreement, the Company paid Boston Crest $5,200 per month for its business
management consulting services. This agreement was in effect until May 1, 2023.
On January 1, 2021, Jaclyn Hoffman and the Company entered into an
independent contractor agreement, pursuant to which the Company pays Ms. Hoffman $2,500 per month for consulting services. This agreement
was in effect until May 1, 2023.
On
January 1, 2021, Darren Collins and the Company entered into an independent contractor agreement, pursuant to which the Company pays
Mr. Collins $6,000 per month for consulting services. Mr. Collins also received a signing bonus of $20,000 upon the signing of the agreement.
This agreement was terminated on August 24, 2022, when Darren Collins resigned as CFO of the company. However, the Company and Darren
Collins agreed that the provisions of Schedule 2 of the agreement shall survive termination of the agreement and the Company agreed to
continue to pay Darren compensation of $6,000 per month until the date he enters into a non-independent director agreement, which agreement's
effective date is expected to be the effective date of the S-1 registration statement.
On
January 1, 2021, Angela Kattoula and the Company entered into an independent contractor agreement, pursuant to which the Company paid
Ms. Kattoula $2,500 per month for consulting services. This agreement was in effect until July 5, 2022.
Outstanding
Equity Awards at Fiscal Year-End
No
executive officer named above had any unexercised options, stock that has not vested or outstanding awards under the 2021 Plan as of
December 31, 2022.
Additional
Narrative Disclosure
Retirement
Benefits
We
have not maintained, and do not currently maintain, a defined benefit pension plan, nonqualified deferred compensation plan or other
retirement benefits.
Potential
Payments Upon Termination or Change in Control
See
"
—Executive Employment and Consulting Agreements
" above.
63
Independent
Director Compensation
None
of the directors of the Company received compensation for their service as a director during the fiscal year ended December 31, 2022.
Under
their independent director agreements with us, the four (4) director nominees, Guy Dollinger, Holiday Russel, James Huber, and James
O'Brien, will receive an annual cash fee and an initial award of restricted Common Stock upon the effectiveness of the registration
statement of which this prospectus forms a part. We will pay the annual cash compensation fee to each director nominee in monthly installments
no later than the fifth business day following the end of each calendar month commencing in the month following the Effective Time of
the registration statement of which this prospectus forms a part. The cash fee to be paid to each director nominee will be $36,000 per
year. Under their agreements, pursuant to the 2021 Plan, following the effective date of the registration statement for the IPO and related
pricing of the IPO (the "Effective Time"), each director nominee shall be granted 50,000 Restricted Stock Units ("RSUs"),
with each RSU corresponding to one share of Common Stock. The RSUs will vest in eight (8) equal quarterly installments commencing in
the quarter following the Effective Time provided that the director nominee remains in continuous service on such dates. If this Agreement
is terminated by the Company or the director nominee prior to the Effective Date, then the RSUs shall automatically terminate in accordance
with its terms and the Director shall have no rights thereunder. We will also reimburse the director nominee for pre-approved reasonable
business-related expenses incurred in good faith in connection with the performance of the director's duties for us. As also required
under the non-independent director agreement, we have separately entered into standard indemnification agreements with the director nominees.
Non-Independent
Director Compensation
Darren
Collins serves as our non-independent director.
Under
his non-independent director agreement with us, Mr. Collins will receive an annual cash fee and an initial award of restricted Common
Stock upon the effectiveness of the registration statement of which this prospectus forms a part. We will pay the annual cash compensation
fee to Mr. Collins in monthly installments no later than the fifth business day following the end of each calendar month commencing in
the month following the date of the Effective Time of the registration statement of which this prospectus forms a part. The cash fee
to be paid to Darren will be $36,000 per year. Under his agreement, pursuant to the 2021 Plan, following the Effective Time, Mr. Collins
shall be granted 50,000 RSUs, with each RSU corresponding to one share of Common Stock. The RSUs will vest in eight (8) equal quarterly
installments commencing in the quarter following the Effective Time provided that Mr. Collins remains in continuous service on such dates.
If this Agreement is terminated by the Company or the director nominee prior to the Effective Date, then the RSUs shall automatically
terminate in accordance with its terms and the Director shall have no rights thereunder. We will also reimburse Mr. Collins for pre-approved
reasonable business-related expenses incurred in good faith in connection with the performance of the director's duties for us.
As also required under the non-independent director agreement, we have separately entered into a standard indemnification agreement with
Mr. Collins.
2021
Stock Option and Incentive Plan
On
February 11, 2021, our board of directors approved, and our majority shareholders ratified, the LQR House Inc. 2021 Stock Option and
Incentive Plan, or the 2021 Plan. Under the 2021 Plan, 10,000,000 shares of Common Stock (on a pre-reverse stock-split basis) were reserved
and available for issuance under the 2021 Plan. On March 10, 2023, our board of directors approved, and our majority shareholders ratified,
Amendment No. 1 to the LQR House Inc. 2021 Stock Option and Incentive Plan, or Amendment No. 1 to the 2021 Plan, which increased the
maximum number of shares of Common Stock that may be issued pursuant to awards under the 2021 Plan from 1,666,667 shares of Common Stock
(on a post-reverse stock-split basis) to 2,850,000 shares of Common Stock in accordance with the Company's Plan of Conversion dated
February 3, 2023.
64
Purpose
of the 2021 Plan
: The purpose of the 2021 Plan is to advance our interests and the interests of our shareholders by providing
an incentive to attract, retain and reward persons performing services for us and by motivating such persons to contribute to our growth
and profitability. The maximum number of shares of Common Stock that may be issued pursuant to awards granted under the 2021 Plan is
2,850,000 shares. As of the date of this prospectus, pursuant to Restricted Stock Unit Award Agreements entered into between the Company
and 11 individuals, we granted 350,000 shares of Common Stock on a post-reverse split basis (2,100,000 shares of Common Stock on a pre-reverse
split basis) in the form of Restricted Stock Awards and/or Restricted Stock Units under the 2021 Plan. All 350,000 shares vested in four
(4) installments, the last installment having vested on September 30, 2022. Prior to this offering, 2,500,000 shares of Common Stock
remain available for issuance under the 2021 Plan.
We expect to grant 1,000,000 RSUs to Sean Dollinger and 50,000 RSUs
each to Darren Collins, Guy Dollinger, Holiday Russell, James Huber, and James O'Brien for a total of 1,250,000 RSUs as disclosed
elsewhere in this prospectus. These 1,250,000 shares of Common Stock in the form of RSUs shall be issued following the Effective Time
and will vest in eight (8) equal quarterly installments commencing in the quarter following the Effective Time. After the grant of these
1,250,000 shares of Common Stock under the 2021 Plan following the Effective Time, 1,250,000 shares of Common Stock will remain available
for issuance under the 2021 Plan.
We
intend that awards granted under the 2021 Plan be exempt from or comply with Section 409A of the Internal Revenue Code, or the Code (including
any amendments or replacements of such section), and the 2021 Plan shall be so construed
.
The
following summary briefly describes the principal features of the 2021 Plan and is qualified in its entirety by reference to the full
text of the 2021 Plan.
Awards
that may be granted include: (a) Incentive Stock Options, (b) Non-Qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted
Stock Units, (e) Restricted Stock Awards, (f) Unrestricted Stock Awards, (g) Cash-Based Awards, and (h) Dividend Equivalent Rights. These
awards offer us and our shareholders the possibility of future value, depending on the long-term price appreciation of our Common Stock
and the award holder's continuing service with us. Awards shall be evidenced by an award certificate, which is a written or electronic
document setting forth the terms and provisions applicable to an award granted under the 2021 Plan. Each award certificate is subject
to the terms and conditions of the 2021 Plan.
Stock
options granted under the 2021 Plan may be either incentive stock options or non-qualified stock options. Incentive stock options may
be granted only to employees of the Company or any Subsidiary that is a "subsidiary corporation" within the meaning of Section
424(f) of the Internal Revenue Code. To the extent that any option does not qualify as an incentive stock option, it shall be deemed
a non-qualified stock option. Stock options granted pursuant to the 2021 Plan shall be subject to the terms and conditions that the administrator
of the plan deems desirable. If the administrator so determines, stock options may be granted in lieu of cash compensation at the optionee's
election, subject to such terms and conditions as the administrator may establish.
Stock
appreciation rights, or SARs, are a type of award entitling the recipient to receive shares of our Common Stock (or cash, to the extent
explicitly provided for in the applicable agreement) having a value equal to the excess of the fair market value of the Common Stock
on the date of exercise over the exercise price of the stock appreciation right multiplied by the number of shares of Common Stock with
respect to which the stock appreciation right shall have been exercised.
Restricted
stock awards are awards of a right to receive shares of our Common Stock on a future date. Restricted Stock Unit Awards are evidenced
by award agreements in such form as our board of directors shall from time to time establish. Restricted stock shares can take the form
of awards of restricted stock, which represent issued and outstanding shares of our Common Stock subject to vesting criteria, or restricted
stock units, which represent the right to receive shares of our Common Stock subject to satisfaction of the vesting criteria. Restricted
shares are forfeitable and non-transferable until the shares vest. The vesting date or dates and other conditions for vesting are established
when the shares are awarded.
A
restricted stock unit is an award of stock units that may be settled in shares of stock (or cash, to the extent explicitly provided for
in the award) upon the satisfaction of such restrictions and conditions at the time of grant. Conditions may be based on continuing employment
(or other service relationship) and/or achievement of pre-established performance goals and objectives. The terms and conditions of each
such award shall be determined by the administrator, and such terms and conditions may differ among individual awards and grantees.
65
A
dividend equivalent right is an award entitling the grantee to receive credits based on cash dividends that would have been paid on the
shares of stock specified in the dividend equivalent right (or other award to which it relates) if such shares had been issued to the
grantee. A dividend equivalent right may be granted under the 2021 Plan to any grantee as a component of an award of restricted stock
units or as a freestanding award. The terms and conditions of dividend equivalent rights shall be specified in the award agreement. Dividend
equivalents credited to the holder of a dividend equivalent right may be paid currently or may be deemed to be reinvested in additional
shares of stock, which may thereafter accrue additional equivalents.
Our
board of directors may grant Common Stock to any eligible recipient as a bonus, or to grant stock or other awards in lieu of obligations
to pay cash or deliver other property under the 2021 Plan or under other plans or compensatory arrangements.
The
2021 Plan also provides for unrestricted stock awards and cash-based awards, representing the right to receive a payment, which may be
in the form of cash, shares of Common Stock, or a combination, based on the attainment of pre-established goals.
All
of the permissible types of awards under the 2021 Plan are described in more detail below.
Administration
of the 2021 Plan:
The 2021 Plan is currently administered by our board of directors who shall have the power and authority
to grant awards consistent with the terms of the 2021 Plan, including the power and authority: (i) to select the individuals to whom
awards may from time to time be granted; (ii) to determine the time or times of grant, and the extent, if any, of incentive stock options,
non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards, cash-based
awards, and dividend equivalent rights, or any combination of the foregoing, granted to any one or more grantees; (iii) to determine
the number of shares of stock to be covered by any award; (iv) to determine and modify from time to time the terms and conditions, including
restrictions, not inconsistent with the terms of the 2021 Plan, of any award, which terms and conditions may differ among individual
awards and grantees, and to approve the forms of award certificates; (v) to accelerate at any time the exercisability or vesting of all
or any portion of any award; (vi) subject to the provisions of the 2021 Plan to extend at any time the period in which stock options
may be exercised; and (vii) at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the 2021
Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the 2021 Plan and any
award (including related written instruments); to make all determinations it deems advisable for the administration of the 2021 Plan;
to decide all disputes arising in connection with the 2021 Plan; and to otherwise supervise the administration of the 2021 Plan. All
decisions and interpretations of the administrator shall be binding on all persons, including the Company and the 2021 Plan grantees.
Eligible
Recipients:
Persons eligible to receive awards under the 2021 Plan include full or part-time officers and other employees,
non-employee directors and consultants of the Company and its subsidiaries as are selected from time to time by the administrator in
its sole discretion.
Shares
Available Under the 2021 Plan:
The shares issuable under the 2021 Plan shall consist of authorized but unissued or reacquired
shares of Common Stock or any combination thereof, subject to adjustment for certain corporate changes affecting the shares, such as
stock splits, merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend. Shares subject
to an award under the 2021 Plan for which the award is canceled, forfeited or expires again become available for grants under the 2021
Plan.
Stock
Options:
General.
Stock
options and SARs shall be evidenced by award certificate specifying the number of shares of Common Stock covered thereby, in such form
as the board of directors shall from time to time establish. Stock options granted under the 2021 Plan may be either incentive stock
options or non-qualified stock options. Incentive stock options may be granted only to employees of the Company or any Subsidiary that
is a "subsidiary corporation" within the meaning of Section 424(f) of the Internal Revenue Code. To the extent that any option
does not qualify as an incentive stock option, it shall be deemed a non-qualified stock option. Stock options granted pursuant to the
2021 Plan shall be subject to the terms and conditions that the administrator of the plan deems desirable. If the administrator so determines,
stock options may be granted in lieu of cash compensation at the optionee's election, subject to such terms and conditions as the
administrator may establish.
66
Option Price.
The exercise price
for each stock option shall be established in the discretion of the board of directors; provided, however, that the exercise price per
share for the stock option shall be not less than the fair market value of a share of Common Stock on the effective date of grant of
the stock option. In the case of an incentive stock option that is granted to a ten percent or more owner of the Company, the option
price of such option shall be not less than one hundred ten percent (110%) of the fair market value on the grant date. Notwithstanding
the foregoing, a stock option may be granted with an exercise price lower than the minimum exercise price set forth above if such stock
option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section 424(a)
of the Code.
Exercise
of Options.
Stock options shall become exercisable at such time or times, whether or not in installments, as shall be determined
by the administrator at or after the grant date. The administrator may at any time accelerate the exercisability of all or any portion
of any stock option. An optionee shall have the rights of a stockholder only as to shares acquired upon the exercise of a stock option
and not as to unexercised stock options. The term of each stock option shall be fixed by the administrator, but no stock option shall
be exercisable more than ten years after the date the stock option is granted. in the case of an incentive stock option that is granted
to a ten percent or more owner of the Company, the term of such stock option shall be no more than five years from the date of grant.
Stock options may be exercised in whole or in part, by giving written or electronic notice of exercise to the Company, specifying the
number of shares to be purchased, unless stated otherwise on the award certificate.
Stock
Appreciation Rights
: A stock appreciation right is an award entitling the recipient to receive shares of stock (or cash, to the
extent explicitly provided for in the applicable award certificate) having a value equal to the excess of the fair market value of a
share of stock on the date of exercise over the exercise price of the stock appreciation right multiplied by the number of shares of
Stock with respect to which the stock appreciation right shall have been exercised. The exercise price of a stock appreciation right
shall not be less than one hundred percent (100%) of the fair market value of the stock on the date of grant. stock appreciation rights
may be granted by the administrator independently of any stock option.
Restricted
Stock Awards:
A restricted stock award is any award of restricted shares subject to such restrictions and conditions as
the administrator may determine at the time of grant. Conditions may be based on continuing employment (or other service relationship)
and/or achievement of pre-established performance goals and objectives. Upon the grant of the restricted stock award and payment of any
applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the restricted shares and receipt
of dividends; provided that if the lapse of restrictions with respect to the restricted stock award is tied to the attainment of performance
goals, any dividends paid by the company during the performance period shall accrue and shall not be paid to the grantee until and to
the extent the performance goals are met with respect to the restricted stock award. Restricted Shares may not be sold, assigned, transferred,
pledged, or otherwise encumbered or disposed of except as specifically provided herein or in the restricted stock award certificate.
The administrator at the time of grant shall specify the date or dates and/or the attainment of pre-established performance goals, objectives,
and other conditions on which the non-transferability of the restricted shares and the company's right of repurchase or forfeiture
shall lapse. Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions,
the shares on which all restrictions have lapsed shall no longer be restricted shares and shall be deemed vested.
Restricted
Stock Units
: A restricted stock unit is an award of stock units that may be settled in shares of stock (or cash, to the
extent explicitly provided for in the award) upon the satisfaction of such restrictions and conditions at the time of grant. Conditions
may be based on continuing employment (or other service relationship) and/or achievement of pre-established performance goals and objectives.
The terms and conditions of each such award shall be determined by the administrator, and such terms and conditions may differ among
individual awards and grantees. Except in the case of restricted stock units with a deferred settlement date that complies with Section
409A of the Internal Revenue Code, at the end of the vesting period, the restricted stock units, to the extent vested, shall be settled
in the form of shares of stock. restricted stock units with deferred settlement dates are subject to Section 409A and shall contain such
additional terms and conditions as the administrator shall determine in its sole discretion in order to comply with the requirements
of Section 409A. The administrator may, in its sole discretion, permit a grantee to elect to receive a portion of future cash compensation
otherwise due to such grantee in the form of an award of restricted stock units. Any such election shall be made in writing and shall
be delivered to the Company no later than the date specified by the administrator and in accordance with Section 409A and such other
rules and procedures established by the administrator. The administrator shall have the sole right to determine whether and under what
circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the administrator deems
appropriate. Any restricted stock units that are elected to be received in lieu of cash compensation shall be fully vested, unless otherwise
provided in the award certificate. A grantee's right in all restricted stock units that have not vested shall automatically terminate
upon the grantee's termination of employment (or cessation of service relationship) with the Company and its subsidiaries for any
reason.
67
Unrestricted
Stock and Cash-Based Awards in Lieu of Obligations.
The board of directors may grant Common Stock to any eligible recipient
as a bonus, or to grant Common Stock or other awards in lieu of obligations to pay cash or deliver other property under the 2021 Plan
or under other plans or compensatory arrangements, or vice versa, provided that, in the case of participants subject to Section 16 of
the Exchange Act, the amount of such grants remains within the discretion of the board of directors to the extent necessary to ensure
that acquisitions of Common Stock or other awards are exempt from liability under Section 16(b) of the Exchange Act. Common Stock or
awards granted hereunder shall be subject to such other terms as shall be determined by the board of directors.
Dividend
Equivalent Rights:
a dividend equivalent right is an award entitling the grantee to receive credits based on cash dividends that
would have been paid on the shares of stock specified in the dividend equivalent right (or other award to which it relates) if such shares
had been issued to the grantee. A dividend equivalent right may be granted hereunder to any grantee as a component of an award of restricted
stock units or as a freestanding award. Dividend equivalents credited to the holder of a dividend equivalent right may be paid currently
or may be deemed to be reinvested in additional shares of stock, which may thereafter accrue additional equivalents. Any such reinvestment
shall be at fair market value on the date of reinvestment, or such other price as may then apply under a dividend reinvestment plan sponsored
by the Company, if any. Dividend equivalent rights may be settled in cash or shares of stock or a combination thereof, in a single installment
or installments. A dividend equivalent right granted as a component of an award of restricted stock units shall provide that such dividend
equivalent right shall be settled only upon settlement or payment of, or lapse of restrictions on, such other award, and that such dividend
equivalent right shall expire or be forfeited or annulled under the same conditions as such other award. Except as may otherwise be provided
by the administrator either in the award certificate or the plan, a grantee's rights in all dividend equivalent rights shall automatically
terminate upon the grantee's termination of employment (or cessation of service relationship) with the Company and its subsidiaries
for any reason.
Other
Material Provisions:
Awards will be evidenced by a written agreement, in such form as may be approved by the administrator.
In the event of various changes to the capitalization of our company, such as stock splits, stock dividends and similar re-capitalizations,
an appropriate adjustment will be made by the administrator to the number of shares covered by outstanding awards or to the exercise
price of such awards. The administrator is also permitted to include in the written agreement provisions that provide for certain changes
in the award in the event of a change of control of our company, including acceleration of vesting. Except as otherwise determined by
the administrator at the date of grant, awards will not be transferable, other than by will or the laws of descent and distribution.
Prior to any award distribution, we are permitted to deduct or withhold amounts sufficient to satisfy any employee withholding tax requirements.
Our board of directors also has the authority, at any time, to discontinue the granting of awards. The board also has the authority to
alter or amend the 2021 Plan or any outstanding award or may terminate the 2021 Plan as to further grants, provided that no amendment
will, without the approval of our stockholders, to the extent that such approval is required by law or the rules of an applicable exchange,
increase the number of shares available under the 2021 Plan, change the persons eligible for awards under the 2021 Plan, extend the time
within which awards may be made, or amend the provisions of the 2021 Plan related to amendments. No amendment that would adversely affect
any outstanding award made under the 2021 Plan can be made without the consent of the holder of such award.
68
CERTAIN
RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Transactions
with Related Persons
The
following includes a summary of transactions since the beginning of our 2022 fiscal year, or any currently proposed transaction, in which
we were or are to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of
our total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect
material interest (other than compensation described under "
Executive Compensation
" above). We believe the terms obtained
or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms
available or the amounts that would be paid or received, as applicable, in arm's-length transactions.
●
We, as buyer, and Dollinger Holdings LLC, Dollinger Innovations Inc., and Sean Dollinger, our Chief Executive Officer, Secretary, and a director, as sellers, are parties to an asset purchase agreement, the SWOL Tequila Asset Purchase, dated March 19, 2021. Dollinger Holdings LLC and Dollinger Innovations Inc. are wholly owned by Sean Dollinger. Pursuant to the asset purchase agreement, the purchase price was equal to $4,000,000 (in addition to the assumption of assumed liabilities) consisting of (i) 16,000,000 shares of our Common Stock (2,666,667 shares of common stock on a post-split basis) and (ii) US$220,000 in cash payable to Dollinger Holdings, LLC, and we obtained ownership of the assets and liabilities that constitute the SWOL brand and SWOL Tequila Branding. The assets and liabilities constituting the SWOL Brand and SWOL Tequila Branding were held in part by Dollinger Holdings LLC and Dollinger Innovations Inc.
●
We,
                                            CWS, and Ssquared are parties to an Exclusive Marketing Agreement dated April 1, 2021. Pursuant
                                            to that agreement, CWS and Ssquared granted us exclusive marketing rights regarding any of
                                            CWS and Ssquared's products. Pursuant to that agreement, Sean Dollinger, our Chief
                                            Executive Officer, Secretary and a director, and 50% owner of Ssquared, received 2,000,000
                                            shares of our Common Stock (333,333 shares of Common Stock on a post-split basis), and KBros,
                                            LLC, the owner of CWS and 50% owner of Ssquared, received 8,000,000 shares of our Common
                                            Stock (1,333,334 shares of Common Stock on a post-split basis).
●
We
                                            and Dollinger Holdings LLC are parties to an asset purchase agreement, the Soleil Vino Asset
                                            Purchase Agreement, dated May 31, 2021. Pursuant to that agreement, we purchased the assets
                                            and liabilities associated with the Soleil Vino wine club and its products, and Dollinger
                                            Holding LLC, wholly owned by Sean Dollinger, received $100,000 in cash, Sean Dollinger received
                                            3,800,000 shares of our Common Stock (633,334 shares of Common Stock on a post-stock split
                                            basis), and Andrea Cooke received 200,000 shares of our Common Stock (33,334 shares of Common
                                            Stock on a post-stock split basis). In conjunction with the acquisition the Company entered
                                            into a finder's fee agreement with a third party in which 400,000 shares of our Common
                                            Stock were issued (66,667 shares of Common Stock on a post-stock split basis).
●
Certain
                                            of the Company's directors, executive officers, and principal owners, including immediate
                                            family members, are users of the Company's services. Fees charged to these users are
                                            on terms no more favorable than terms generally available to an unaffiliated third party
                                            under the same or similar circumstances.
●
Ms.
                                            Alexandra Hoffman, the Company's Director, is also employed by the Company as a Technical
                                            Writer since May 1, 2023. See
Executive Compensation – Executive Employment and
                                            Consulting Agreements.
●
Mr. Gregory Hoffman, a brother of Ms. Alexandra Hoffman, our director, has entered into an advisor agreement with the Company on June 1, 2023, pursuant to which the Company issued to Mr. Hoffman 500,000 shares of Common Stock.
Private
Placement
On
June 1, 2023, we conducted a private placement of our Common Stock and entered into certain subscription agreements with a number of
(i) accredited investors as defined in Section 2(a)(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon
the exemption contained in Section 4(a)(2) of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable
state securities laws or (ii) non-U.S. persons made in compliance with the provisions of Regulation S promulgated under the Securities
Act. Pursuant to the agreements, we issued 955,000 shares of Common Stock at $1.00 per share for a total of $955,000.
2023
Advisor Agreements
On
June 1, 2023, we entered into advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate
advice in connection with the Offering to the Company. In consideration for the advisor's services, the Company issued 500,000
shares of Common Stock to six individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.
Promoters
and Certain Control Persons
Sean
Dollinger, our Chief Executive Officer, Secretary, and a member of our board of directors, and Darren Collins, a member of our board
of directors, may be deemed "promoters" as defined by Rule 405 of the Securities Act. For information regarding compensation,
including items of value, that have been provided or that may be provided to these individuals, please refer to "
Executive Compensation
"
above.
69
PRINCIPAL
SHAREHOLDERS
The
following table sets forth certain information with respect to the beneficial ownership of our Common Stock as of the date of this prospectus
for (i) each of our named executive officers, directors and director nominees; (ii) all of our executive officers and directors as a
group; and (iii) each other shareholder known by us to be the beneficial owner of more than 5% of any class of our outstanding voting
securities. The following table assumes that the underwriters have not exercised the over-allotment option.
Beneficial
ownership is determined in accordance with SEC rules and generally includes voting or investment power with respect to securities. For
purposes of this table, a person or group of persons is deemed to have "beneficial ownership" of any shares of Common Stock
that such person or any member of such group has the right to acquire within sixty (60) days of the date of this prospectus. For purposes
of computing the percentage of outstanding shares of our Common Stock held by each person or group of persons named above, any shares
that such person or persons has the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding
for such person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion
herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.
Unless
otherwise indicated, the address of each beneficial owner listed in the table below is c/o our company, LQR House Inc., 6800 Indian Creek
Dr. Suite 1E, Miami Beach, FL 33141.
Common Stock Beneficially Owned
Prior to this Offering
(1)
Common Stock Beneficially Owned
After this Offering
(2)
Name of Beneficial Owner
Common Stock
Percent of Common Stock
(%)
Total
Voting
Power
(%)
Common Stock
Percent of Common Stock
(%)
Total
Voting
Power
(%)
Sean Dollinger, Chief Executive Officer, Secretary, and Director
(3)
1,941,667
19.12
%
19.12
%
1,941,667
17.41
%
17.41
%
Kumar Abhishek, Chief Financial Officer
16,667
*
*
16,667
*
*
Jaclyn Hoffman, Chief Marketing Officer
58,334
*
*
58,334
*
*
Darren Collins, Director
(4)
300,000
2.95
%
2.95
%
300,000
2.69
%
2.69
%
Alexandra Hoffman, Director
33,334
*
*
33,334
*
*
Guy Dollinger, Director Nominee
(5)
25,000
*
*
25,000
*
*
Holiday Russell, Director Nominee
(6)
-
-
-
-
*
*
James Huber, Director Nominee
(7)
-
-
-
-
*
*
James O'Brien, Director Nominee
(8)
-
-
-
-
*
*
All directors and executive officers as a group (9 persons)
(9)
2,375,002
25.41
%
25.41
%
2,375,002
21.29
%
21.29
%
KBROS, LLC
(10)
1,333,334
13.13
%
13.13
%
-
-
-
Joel Abbo
(11)
816,667
8.04
%
8.04
%
66,667
*
*
Index Equity US LLC
(12)
750,000
7.39
%
7.39
%
-
-
-
Kiranjit Sidhu
600,000
5.91
%
5.91
%
-
-
-
2200049 AB Inc.
(13)
591,000
5.82
%
5.82
%
-
-
-
*
Less
than 1%.
(1)
Based
on 10,155,434 shares of Common Stock issued and outstanding as of the date of this prospectus.
70
(2)
Based on 11,155,434 shares of Common Stock issued and outstanding after
this offering, assuming no exercise of the underwriters' over-allotment option. Immediately after the consummation of this offering,
we will file a Registration Statement on Form S-8 with the SEC to register Common Stock and restricted stock that were issued or that
we plan to issue to certain of our employees, consultants, officers and directors pursuant to the 2021 Plan. See "
Business—Our
Corporate History and Structure
" and "
Executive Compensation — 2021 Stock Option and Incentive Plan
".
For purposes of this table, a total of 1,250,000 shares of Common Stock which will be granted to certain directors and executive officers
of the Company shortly after the filing of the Registration Statement on Form S-8 is included in the number, percentage and voting power,
as applicable, of shares of Common Stock that are beneficially owned after this offering.
(3)
Our board of directors determined it was in the best interest of the Company and its stockholders to grant Sean Dollinger an award of 1,000,000 RSUs, under the Company's 2021 Plan, to compensate him for his employment with the Company. Following the Effective Time, Mr. Dollinger shall be granted an award of 1,000,000 RSUs under the Company's 2021 Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will vest in eight (8) equal quarterly installments commencing in the quarter following the Effective Time provided that Mr. Dollinger remains in continuous service on such dates, and the grant is subject to forfeiture for termination without case. These 1,000,000 RSUs are not reflected in Mr. Dollinger's "Common Stock Beneficially Owned After this Offering" number as the RSUs are contingent on a vesting schedule.
(4)
Under
                                            the non-independent director agreement between Darren Collins and the Company, following
                                            the Effective Time, Mr. Collins shall be granted an award of 50,000 RSUs under the Company's
                                            2021 Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will
                                            vest in eight (8) equal quarterly installments commencing in the quarter following the Effective
                                            Time provided that Mr. Collins remains in continuous service on such dates, and the grant
                                            is subject to forfeiture for termination without case. These 50,000 RSUs are not reflected
                                            in Mr. Collins' "Common Stock Beneficially Owned After this Offering" number
                                            as the RSUs are contingent on a vesting schedule.
(5)
Under
                                            the independent director agreement between Guy Dollinger and the Company, following the Effective
                                            Time, Mr. Dollinger shall be granted an award of 50,000 RSUs under the Company's 2021
                                            Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will vest
                                            in eight (8) equal quarterly installments commencing in the quarter following the Effective
                                            Time provided that Mr. Dollinger remains in continuous service on such dates, and the grant
                                            is subject to forfeiture for termination without case. These 50,000 RSUs are not reflected
                                            in Mr. Dollinger's "Common Stock Beneficially Owned After this Offering"
                                            number as the RSUs are contingent on a vesting schedule.
(6)
Under
                                            the independent director agreement between Holiday Russell and the Company, following the
                                            Effective Time, Mr. Russell shall be granted an award of 50,000 RSUs under the Company's
                                            2021 Plan, with one (1) RSU corresponding to one (1) share of common stock. The RSUs will
                                            vest in eight (8) equal quarterly installments commencing in the quarter following the Effective
                                            Time provided that Mr. Russell remains in continuous service on such dates, and the grant
                                            is subject to forfeiture for termination without case. These 50,000 RSUs are not reflected
                                            in Mr. Russell's "Common Stock Beneficially Owned After this Offering"
                                            number as the RSUs are contingent on a vesting schedule.
(7)
Under
                                            the independent director agreement between James Huber and the Company, following the Effective
                                            Time, Mr. Huber shall be granted an award of 50,000 RSUs under the Company's 2021 Plan,
                                            with one (1) RSU corresponding to one (1) share of common stock. The RSUs will vest in eight
                                            (8) equal quarterly installments commencing in the quarter following the Effective Time provided
                                            that Mr. Huber remains in continuous service on such dates, and the grant is subject to forfeiture
                                            for termination without case. These 50,000 RSUs are not reflected in Mr. Huber's "Common
                                            Stock Beneficially Owned After this Offering" number as the RSUs are contingent on
                                            a vesting schedule.
(8)
Under
                                            the independent director agreement between James O'Brien and the Company, following
                                            the Effective Time, Mr. O'Brien shall be granted an award of 50,000 RSUs under the
                                            Company's 2021 Plan, with one (1) RSU corresponding to one (1) share of common stock.
                                            The RSUs will vest in eight (8) equal quarterly installments commencing in the quarter following
                                            the Effective Time provided that Mr. O'Brien remains in continuous service on such
                                            dates, and the grant is subject to forfeiture for termination without case. These 50,000
                                            RSUs are not reflected in Mr. O'Brien's "Common Stock Beneficially Owned
                                            After this Offering" number as the RSUs are contingent on a vesting schedule.
71
(9)
The
                                            number of executive officers and directors will increase to 9 persons upon the consummation
                                            of this initial public offering.
(10)
Shawn
                                            Kattoula is deemed the beneficial owner of the 1,333,334 shares of Common Stock held by KBros,
                                            LLC, a California limited liability company. Mr. Kattoula is the manager of KBros, LLC, and
                                            has sole voting and dispositive powers over the company. KBros, LLC's business address
                                            is 23658 San Vicente Road, Ramona, CA 92065.
(11)
Joel
                                            Abbo has beneficial ownership over 750,000 shares of Common Stock held in the name of Joel
                                            Abbo. Joel Abbo additionally has beneficial ownership over 66,667 shares of Common Stock
                                            held in the name of Jobel Foundation, a Panama corporation. Joel Abbo is deemed to beneficially
                                            own the shares of Common Stock owned by Jobel Foundation because he has sole voting and dispositive
                                            powers over the company. Jobel Foundation's business address is Punta Pacifica, Bellagio
                                            Tower, Apt 1-B Panama, Republic of Panama.
(12)
Bjarne
                                            Borg owns Index Equity US LLC. Bjarne Borg is deemed to beneficially own the shares of Common
                                            Stock owned by Index Equity US LLC because he has sole voting and dispositive powers over
                                            the company. Index Equity US LLC's business address is 1000 N US Hwy One, Suite 902,
                                            Jupiter, FL 33477, United States.
(13)
Greg
                                            Bealer owns 2200049 Alberta Inc., an Alberta Corporation. Greg Bealer is deemed to beneficially
                                            own the shares of Common Stock owned by 2200049 Alberta Inc. because he has sole voting and
                                            dispositive powers over the company. 2200049 Alberta Inc.'s business address is 16
                                            Wolf Willow Point, Edmonton, AB T5T 1E3, Canada.
Prior to the commencement of this offering, there
will be 10,155,434 shares of Common Stock outstanding representing voting power of 10,155,434 votes. Following this offering, there will
be 11,155,434 shares of Common Stock outstanding representing voting power of 11,155,434 votes.
72
DESCRIPTION
OF SECURITIES
General
The
Company's authorized capital stock is 350,000,000 shares of Common Stock, par value $0.0001 per share.
The
following description summarizes important terms of our capital stock. This summary does not purport to be complete and is qualified
in its entirety by the provisions of our articles of incorporation, amendments thereto, and our bylaws which have been filed as exhibits
to the registration statement of which this prospectus is a part.
As
of the date of this prospectus, there are 10,155,434 shares of Common Stock issued and outstanding.
Common
Stock
The
holders of our Common Stock are entitled to one (1) vote for each share of Common Stock held of record on all matters submitted to a
vote of the shareholders.
Under
our articles of incorporation, as amended, and bylaws, any corporate action to be taken by vote of shareholders other than for election
of directors shall be authorized by the affirmative vote of the majority of votes cast. Directors are elected by a plurality of votes.
Shareholders do not have cumulative voting rights.
Subject
to preferences that may be applicable to any then-outstanding preferred stock, holders of Common Stock are entitled to receive ratably
those dividends, if any, as may be declared from time to time by the Board of Directors out of legally available funds. In the event
of our liquidation, dissolution or winding up, holders of Common Stock will be entitled to share ratably in the net assets legally available
for distribution to shareholders after the payment of all of our debts and other liabilities and the satisfaction of any liquidation
preference granted to the holders of any then-outstanding shares of preferred stock.
Holders
of Common Stock have no preemptive, conversion or subscription rights and there are no redemption or sinking fund provisions applicable
to the Common Stock. The rights, preferences, and privileges of the holders of Common Stock are subject to, and may be adversely affected
by, the rights of the holders of shares of any series of preferred stock.
Representative's
Warrant
Upon
the closing of this offering, there will be up to 50,000 shares of Common Stock issuable upon exercise of the representative's
warrant (57,500 shares of Common Stock if the underwriters exercise the over-allotment option in full), assuming a public offering price
of $5 per, which is the midpoint of the estimated range of the initial public offering price shown on the cover page. See "
Underwriting—Representative's
Warrants
" below for a description of the representative's warrants.
Stock
Options
On
February 11, 2021, we adopted the 2021 Plan. The purpose of the 2021 Plan is to grant restricted stock and stock options to our officers,
employees, directors, advisors, and consultants. On March 10, 2023, our board of directors approved, and our majority shareholders ratified,
Amendment No. 1 to the 2021 Plan, which increased the maximum number of shares of Common Stock that may be issued pursuant to awards
under the 2021 Plan from 1,666,667 shares (on a post-reverse stock-split basis) to 2,850,000 shares. For further information, please
see "
Executive Compensation – 2021 Stock Option and Incentive Plan
".
73
Anti-Takeover
Provisions
The
provisions of the Nevada Revised Statutes, our articles of incorporation and our bylaws could have the effect of delaying or preventing
a third-party from acquiring us, even if the acquisition would benefit our stockholders. Such provisions of the Nevada Revised Statutes,
our articles of incorporation and our bylaws are intended to enhance the likelihood of continuity and stability in the composition of
our board of directors and in the policies formulated by the board of directors and to discourage certain types of transactions that
may involve an actual or threatened change of control of our company. These provisions are designed to reduce our vulnerability to an
unsolicited proposal for a takeover that does not contemplate the acquisition of all our outstanding shares, or an unsolicited proposal
for the restructuring or sale of all or part of our company.
Single
Common Stock Structure
On
March 29, 2023, the Company amended its articles of incorporation to institute a dual class share structure consisting of Class A Common
Stock, and Class B Common Stock, and any number of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes
per share on proposals requiring or requesting shareholder approval, and Class B Common Stock was entitled to one (1) vote on any such
matter. A share of Class A Common Stock could have been voluntarily converted into a share of Class B Common Stock. A transfer of a share
of Class A Common Stock would have resulted in its automatic conversion into Common Stock upon such transfer, subject to certain exceptions,
including that the transfer of shares of Class A Common Stock to another holder of Class A Common Stock would not have resulted in such
automatic conversion. Class B Common Stock was not convertible. Other than as to voting and conversion rights, Class A Common Stock and
Class B Common Stock had the same rights and preferences and ranked equally, shared ratably and were identical in all respects as to
all matters.
Due
to this amendment, the Company's authorized capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of Common
Stock, par value $0.0001 per share, of which 20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and
280,000,000 shares were designated as Class B Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock,
$0.0001 par value per share. All 9,200,434 shares of Common Stock issued and outstanding at the time of the amendment became shares of
Class B Common Stock.
On
June 5, 2023, the Company further amended its articles of incorporation to amend the share structure by (i) eliminating a dual class
share structure consisting of the Class A Common Stock and Class B Common Stock and establishing a single Common Stock structure consisting
of shares of Common Stock only, with 350,000,000 authorized shares being all designated as Common Stock with a par value of $0.0001 per
share, entitled to one (1) vote per share; and by (ii) eliminating all authorized shares of preferred stock. All 13,155,434 shares of
Class B Common Stock issued and outstanding at the time of the amendment became shares of Common Stock.
Prior to the commencement of this offering, there
will be 10,155,434 shares of Common Stock outstanding representing voting power of 10,155,434 votes. Following this offering, there will
be 11,155,434 shares of Common Stock outstanding representing voting power of 11,155,434 votes.
Nevada
Anti-Takeover Statutes
Pursuant
to our articles of incorporation, we have elected not to be governed by the terms and provisions of Nevada's control share acquisition
laws (Nevada Revised Statutes 78.378 - 78.3793), which prohibit an acquirer, under certain circumstances, from voting shares of a corporation's
stock after crossing specific threshold ownership percentages, unless the acquirer obtains the approval of the issuing corporation's
stockholders. The first such threshold is the acquisition of at least one-fifth but less than one-third of the outstanding voting power.
Pursuant
to our articles of incorporation, we have also elected not to be governed by the terms and provisions of Nevada's combination with
interested stockholders statute (Nevada Revised Statutes 78.411 - 78.444) which prohibits an "interested stockholder" from
entering into a "combination" with the corporation, unless certain conditions are met. An "interested stockholder"
is a person who, together with affiliates and associates, beneficially owns (or within the prior two years, did beneficially own) 10%
or more of the corporation's voting stock, or otherwise has the ability to influence or control such corporation's management
or policies.
74
Bylaws
In
addition, various provisions of our bylaws may also have an anti-takeover effect. These provisions may delay, defer or prevent a tender
offer or takeover attempt of the Company that a stockholder might consider in his or her best interest, including attempts that might
result in a premium over the market price for the shares held by our stockholders. Our bylaws may be adopted, amended or repealed by
the affirmative vote of the holders of at least a majority of our outstanding shares of capital stock entitled to vote for the election
of directors, and except as provided by Nevada law, our board of directors shall have the power to adopt, amend or repeal the bylaws
by a vote of not less than a majority of our directors. Any bylaw provision adopted by the board of directors may be amended or repealed
by the holders of a majority of the outstanding shares of capital stock entitled to vote for the election of directors. Our bylaws also
contain limitations as to who may call special meetings as well as require advance notice of stockholder matters to be brought at a meeting.
Additionally, our bylaws also provide that no director may be removed by less than a two-thirds vote of the issued and outstanding shares
entitled to vote on the removal. Our bylaws also permit the board of directors to establish the number of directors and fill any vacancies
and newly created directorships. These provisions will prevent a shareholder from increasing the size of our board of directors and gaining
control of our board of directors by filling the resulting vacancies with its own nominees.
Our
bylaws establish an advance notice procedure for shareholder proposals to be brought before an annual meeting of our shareholders, including
proposed nominations of persons for election to the board of directors. Shareholders at an annual meeting will only be able to consider
proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the board of directors
or by a shareholder who was a shareholder of record on the record date for the meeting, who is entitled to vote at the meeting and who
has given us timely written notice, in proper form, of the shareholder's intention to bring that business before the meeting. Although
our bylaws do not give the board of directors the power to approve or disapprove shareholder nominations of candidates or proposals regarding
other business to be conducted at a special or annual meeting, our bylaws may have the effect of precluding the conduct of certain business
at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation
of proxies to elect its own slate of directors or otherwise attempting to obtain control of our company.
Authorized
but Unissued Shares
Our
authorized but unissued shares of Common Stock are available for our board of directors to issue without stockholder approval. We may
use these additional shares for a variety of corporate purposes, including raising additional capital, corporate acquisitions and employee
stock plans. The existence of our authorized but unissued shares of Common Stock could render it more difficult or discourage an attempt
to obtain control of the Company by means of a proxy context, tender offer, merger or other transaction since our board of directors
can issue large amounts of capital stock as part of a defense to a take-over challenge.
Supermajority
Voting Provisions
Nevada
Law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation's
articles of incorporation or bylaws, unless a corporation's articles of incorporation or bylaws, as the case may be, require a
greater percentage. Although our articles of incorporation and bylaws do not currently provide for such a supermajority vote on any matters,
our board of directors can amend our bylaws and we can, with the approval of our stockholders, amend our articles of incorporation to
provide for such a super-majority voting provision.
Cumulative
Voting
Furthermore,
the holders of our Common Stock do not have cumulative voting rights in the election of our directors. The combination of the present
ownership by a few shareholders of a significant portion of our issued and outstanding Common Stock and lack of cumulative voting makes
it more difficult for other shareholders to replace our board of directors or for a third party to obtain control of our company by replacing
its board of directors.
Transfer
Agent and Registrar
We
have appointed VStock Transfer, LLC, 18 Lafayette Place, Woodmere, New York 11598, telephone 212-828-8436, as the transfer agent for
our Common Stock.
75
SHARES ELIGIBLE FOR FUTURE SALE
Before this offering, there has not been a public
market for shares of our Common Stock. Future sales of substantial amounts of shares of our Common Stock, including shares issued upon
the conversion of convertible notes, the exercise of outstanding options and warrants, in the public market after this offering, or the
possibility of these sales occurring, could cause the prevailing market price for our Common Stock to fall or impair our ability to raise
equity capital in the future.
Immediately following the closing of this offering,
at an assumed initial public offering price of $5 per share, which is the midpoint of the estimated range of the initial public offering
price shown on the cover page of this prospectus, we will have 11,155,434 shares of Common Stock issued and outstanding. In the event
the underwriters exercise the over-allotment option in full, we will have 11,305,434 shares of Common Stock issued and outstanding. The
Common Stock sold in this offering will be freely tradable without restriction or further registration or qualification under the Securities
Act.
Previously issued shares of Common Stock that
were not offered and sold in this offering, as well as shares issuable upon the exercise of warrants and subject to employee stock options,
are or will be upon issuance, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These
restricted securities are eligible for public sale only if such public resale is registered under the Securities Act or if the resale
qualifies for an exemption from registration under Rule 144 or Rule 701 under the Securities Act, which are summarized below.
Rule 144
In general, a person who has beneficially owned
restricted shares of our Common Stock for at least twelve months, or at least six months in the event we have been a reporting company
under the Exchange Act for at least ninety (90) days before the sale, would be entitled to sell such securities, provided that such person
is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the ninety (90) days
preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person
would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:
●
1%
                                            of the number of shares of our Common Stock then outstanding; or
●
1%
                                            of the average weekly trading volume of our Common Stock during the four calendar weeks preceding
                                            the filing by such person of a notice on Form 144 with respect to the sale;
provided that, in each case, we are subject to
the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the
manner of sale, notice and other provisions of Rule 144, to the extent applicable.
Rule 701
In general, Rule 701 allows a shareholder who
purchased shares of our capital stock pursuant to a written compensatory plan or contract and who is not deemed to have been an affiliate
of ours during the immediately preceding 90 days to sell those shares in reliance upon Rule 144, but without being required to comply
with the public information, holding period, volume limitation or notice provisions of Rule 144. All holders of Rule 701 shares, however,
are required to wait until ninety (90) days after the date of this prospectus before selling shares pursuant to Rule 701.
76
Lock-up Agreements
We will not, without the prior written consent
of the representative, from the date of execution of the Underwriting Agreement and continuing for a period of six (6) months after the
close of the IPO (the "Lock-Up Period"), (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares
of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering
of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital
stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a
traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above
is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise.
Our officers, directors, and any holders of our
Common Stock have agreed to be locked up for a period of six (6) months during the Lock-Up Period. During the lock-up period, our officers,
directors, and holders of our Common Stock shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or
indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of
capital stock of the Company, subject to customary exceptions.
Notwithstanding the above, we and the underwriters
have agreed to waive the lock-up requirement for shares of Common Stock being offered for sale by the selling stockholders named in the
Resale Prospectus. See "
Shares Eligible For Future Sale – Lock-Up Agreements
".
77
MATERIAL U.S. FEDERAL TAX CONSIDERATIONS
FOR NON-U.S. HOLDERS OF OUR COMMON STOCK
The following is a summary of the material U.S.
federal income tax consequences of the ownership and disposition of our Common Stock that is being issued pursuant to this offering, but
does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and
gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This summary is based on provisions of the Internal
Revenue Code of 1986, as amended, or the Code, applicable U.S. Treasury Regulations and administrative and judicial interpretations, all
as in effect or in existence on the date of this prospectus. Subsequent developments in U.S. federal income tax law, including changes
in law or differing interpretations, which may be applied retroactively, could alter the U.S. federal income tax consequences of owning
and disposing of our Common Stock as described in this summary. There can be no assurance that the Internal Revenue Service, or IRS, will
not take a contrary position with respect to one or more of the tax consequences described herein and we have not obtained, nor do we
intend to obtain, a ruling from the IRS with respect to the U.S. federal income tax consequences of the ownership or disposition of our
Common Stock.
This summary is limited to Non-U.S. Holders (as
defined below) that hold our Common Stock as a capital asset within the meaning of Section 1221 of the Code (generally, property held
for investment) for U.S. federal income tax purposes. This summary does not discuss all of the aspects of U.S. federal income taxation
that may be relevant to a Non-U.S. Holder in light of the Non-U.S. Holder's particular investment or other circumstances. Accordingly,
all prospective Non-U.S. Holders should consult their own tax advisors with respect to the U.S. federal, state, local and non-U.S. tax
consequences of the ownership and disposition of our Common Stock.
This summary does not consider any specific facts
or circumstances that may apply to a Non-U.S. Holder and does not address any special tax rules that may apply to particular Non-U.S.
Holders, including, without limitation:
●
a
                                            Non-U.S. Holder that is a financial institution, insurance company, tax-exempt organization,
                                            pension plan, broker, dealer or trader in securities, dealer in currencies, U.S. expatriate,
                                            controlled foreign corporation, passive foreign investment company or a foreign trust with
                                            US person beneficiaries;
●
a
                                            Non-U.S. Holder holding our Common Stock as part of a conversion, constructive sale, wash
                                            sale or other integrated transaction or a hedge, straddle or synthetic security;
●
a
                                            Non-U.S. Holder that holds or receives our Common Stock pursuant to the exercise of any employee
                                            stock option or otherwise as compensation; or
●
a
                                            Non-U.S. Holder that at any time owns, directly, indirectly or constructively, 5% or more
                                            of our outstanding Common Stock.
If an entity or arrangement treated as a partnership
for U.S. federal income tax purposes holds our Common Stock, the tax treatment of a partner in such a partnership generally will depend
upon the status of the partner, the activities of the partnership and certain determinations made at the partner level. Partnerships,
and partners in partnerships, that hold our Common Stock should consult their own tax advisors as to the particular U.S. federal income
tax consequences of owning and disposing of our Common Stock that are applicable to them.
THIS DISCUSSION IS NOT TAX ADVICE. INVESTORS
SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS
AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP, AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE
OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME
TAX TREATY.
78
As used in this summary, the term "Non-U.S.
Holder" means a beneficial owner of our Common Stock that is not, for U.S. federal income tax purposes:
●
an
                                            individual who is a citizen or resident of the United States;
●
a
                                            corporation (or other entity classified as a corporation) created or organized in or under
                                            the laws of the United States, any state thereof, or the District of Columbia;
●
an
                                            entity or arrangement treated as a partnership;
●
an
                                            estate whose income is includible in gross income for U.S. federal income tax purposes regardless
                                            of its source; or
●
a
                                            trust, if (1) a U.S. court is able to exercise primary supervision over the trust's
                                            administration and one or more "United States persons" (as defined in the Code)
                                            has the authority to control all of the trust's substantial decisions, or (2) the
                                            trust has a valid election in effect under applicable U.S. Treasury Regulations to be treated
                                            as a United States person.
Each Non-U.S. Holder should consult its own
tax advisor regarding the U.S. federal, state, local and non-U.S. income and other tax consequences of owning and disposing of our Common
Stock.
Distributions on Our Common Stock
We do not currently expect to pay any cash dividends
on our Common Stock. If we make distributions of cash or property (other than certain pro rata distributions of our Common Stock) with
respect to our Common Stock, any such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax rules. If a distribution exceeds
our current and accumulated earnings and profits, the excess will be treated as a nontaxable return of capital to the extent of the Non-U.S.
Holder's adjusted tax basis in our Common Stock and will reduce (but not below zero) such Non-U.S. Holder's adjusted tax basis
in our Common Stock. Any remaining excess will be treated as gain from a disposition of our Common Stock subject to the tax treatment
described below in "
— Dispositions of Our Common Stock
."
Subject to the discussion below on effectively
connected income, dividends paid to a Non-U.S. Holder will be subject to U.S. federal withholding tax at a rate of
30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes
a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower
treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced
treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should
consult their tax advisors regarding their entitlement to benefits under any applicable tax treaties.
Distributions on our Common Stock that are treated
as dividends and that are effectively connected with a Non-U.S. Holder's conduct of a trade or business in the United States will
be taxed on a net income basis at the regular graduated rates and in the manner applicable to United States persons. An exception may
apply if the Non-U.S. Holder is eligible for, and properly claims, the benefit of an applicable income tax treaty and the dividends are
not attributable to a permanent establishment maintained by the Non-U.S. Holder in the United States. In such case, the Non-U.S. Holder
may be eligible for a lower rate under an applicable income tax treaty between the United States and its jurisdiction of tax residence.
Dividends that are effectively connected with a Non-U.S. Holder's conduct of a trade or business in the United States will not be
subject to the U.S. withholding tax if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form W-8ECI
(or other applicable form) in accordance with the applicable certification and disclosure requirements. A Non-U.S. Holder treated as a
corporation for U.S. federal income tax purposes may also be subject to a "branch profits tax" at a 30% rate (unless the Non-U.S.
Holder is eligible for a lower rate under an applicable income tax treaty) on the Non-U.S. Holder's earnings and profits (attributable
to dividends on our Common Stock or otherwise) that are effectively connected with the Non-U.S. Holder's conduct of a trade or business
within the United States. The amount of taxable earnings and profits is generally reduced by amounts reinvested in the operations of the
U.S. trade or business and increased by any decline in its equity.
The certifications described above must be provided
to the applicable withholding agent prior to the payment of dividends and must be updated periodically. A Non-U.S. Holder may obtain a
refund or credit of any excess amounts withheld by timely filing an appropriate claim for a refund with the IRS. Non-U.S. Holders should
consult their own tax advisors regarding their eligibility for benefits under any relevant income tax treaty and the manner of claiming
such benefits.
The foregoing discussion is subject to the discussions
below under "
—Backup Withholding and Information Reporting
" and "
—FATCA Withholding
."
79
Dispositions of Our Common Stock
Subject to the discussion below regarding backup
withholding, a Non-U.S. Holder generally will not be subject to U.S. federal income tax (including U.S. withholding tax) on gain recognized
on any sale or other disposition of our Common Stock unless:
●
the
                                            gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business
                                            in the United States (and, if required by an applicable income tax treaty, is attributable
                                            to a permanent establishment maintained by the Non-U.S. Holder in the United States);
                                            in such case, the gain would be subject to U.S. federal income tax on a net income basis
                                            at the regular graduated rates and in the manner applicable to United States persons
                                            (unless an applicable income tax treaty provides otherwise) and, if the Non-U.S. Holder is
                                            treated as a corporation for U.S. federal income tax purposes, the "branch profits
                                            tax" described above may also apply;
●
the
                                            Non-U.S. Holder is an individual who is present in the United States for 183 days
                                            or more in the taxable year of the disposition and meets certain other requirements; or
●
we
                                            are or have been a "United States real property holding corporation," or USRPHC,
                                            for U.S. federal income tax purposes at any time during the shorter of (i) the five-year
                                            period ending on the date of disposition and (ii) the period that the Non-U.S. Holder held
                                            our Common Stock.
Generally, a corporation is a USRPHC if the fair
market value of its "United States real property interests" equals or exceeds 50% of the sum of the fair market value of its
worldwide real property interests plus its other assets used or held for use in a trade or business. We believe that we are not currently,
and we do not anticipate becoming in the future, a USRPHC. However, because the determination of whether we are a USRPHC is made from
time to time and depends on the relative fair market values of our assets, there can be no assurance in this regard. If we were a USRPHC,
the tax relating to disposition of stock in a USRPHC generally will not apply to a Non-U.S. Holder whose holdings, direct, indirect and
constructive, constituted 5% or less of our Common Stock at all times during the applicable period, provided that our Common Stock is
"regularly traded on an established securities market" (as provided in applicable U.S. Treasury Regulations) at any time during
the calendar year in which the disposition occurs. However, no assurance can be provided that our Common Stock will be regularly traded
on an established securities market for purposes of the rules described above. Non-U.S. Holders should consult their own tax advisors
regarding any possible adverse U.S. federal income tax consequences to them if we are, or were to become, a USRPHC.
The foregoing discussion is subject to the discussions
below under "
—Backup Withholding and Information Reporting
" and "
—FATCA Withholding
."
Backup Withholding and Information Reporting
Backup withholding (currently at a rate of 24%)
may apply to dividends paid by U.S. corporations in some circumstances, but will not apply to payments of dividends on our Common Stock
to a Non-U.S. Holder if the Non-U.S. Holder provides to the applicable withholding agent a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person or is otherwise
entitled to an exemption. However, the applicable withholding agent generally will be required to report to the IRS (and to such Non-U.S.
Holder) payments of dividends on our Common Stock and the amount of U.S. federal income tax, if any, withheld from those payments. In
accordance with applicable treaties or agreements, the IRS may provide copies of such information returns to the tax authorities in the
country in which the Non-U.S. Holder resides.
80
The gross proceeds from sales or other dispositions
of our Common Stock may be subject, in certain circumstances discussed below, to U.S. backup withholding and information reporting. If
a Non-U.S. Holder sells or otherwise disposes of any of our Common Stock outside the United States through a non-U.S. office of a non-U.S.
broker and the disposition proceeds are paid to the Non-U.S. Holder outside the United States, the U.S. backup withholding and information
reporting requirements generally will not apply to that payment. However, U.S. information reporting, but not U.S. backup withholding,
will apply to a payment of disposition proceeds, even if that payment is made outside the United States, if a Non-U.S. Holder sells our
Common Stock through a non-U.S. office of a broker that is a United States person or has certain enumerated connections with the United
States, unless the broker has documentary evidence in its files that the Non-U.S. Holder is not a United States person and certain other
conditions are met or the Non-U.S. Holder otherwise qualifies for an exemption.
If a Non-U.S. Holder receives payments of the
proceeds of a disposition of our Common Stock to or through a U.S. office of a broker, the payment will be subject to both U.S. backup
withholding and information reporting unless the Non-U.S. Holder provides to the broker a properly executed IRS Form W-8BEN or W-8BEN-E
(or other applicable form) certifying under penalties of perjury that the Non-U.S. Holder is not a United States person, or the Non-U.S.
Holder otherwise qualifies for an exemption.
Backup withholding is not an additional tax. Any
amounts withheld under the backup withholding rules may be credited against the Non-U.S. Holder's U.S. federal income tax liability
(which may result in the Non-U.S. Holder being entitled to a refund), provided that the required information is timely furnished to the
IRS.
FATCA Withholding
The Foreign Account Tax Compliance Act and related
Treasury guidance (commonly referred to as FATCA) impose U.S. federal withholding tax at a rate of 30% on payments to certain foreign
entities of (i) U.S.-source dividends (including dividends paid on our Common Stock) and (ii) the gross proceeds from the sale
or other disposition of property that produces U.S.-source dividends (including sales or other dispositions of our Common Stock). This
withholding tax applies to a foreign entity, whether acting as a beneficial owner or an intermediary, unless such foreign entity complies
with (i) certain information reporting requirements regarding its U.S. account holders and its U.S. owners and (ii) certain
withholding obligations regarding certain payments to its account holders and certain other persons. Accordingly, the entity through which
a Non-U.S. Holder holds its Common Stock will affect the determination of whether such withholding is required. While withholding under
FATCA would have also applied to payments of gross proceeds from the sale or other disposition of our Common Stock on or after January
1, 2019, U.S. Treasury Regulations proposed in December 2018 eliminate such withholding on payments of gross proceeds entirely. Taxpayers
generally may rely on these proposed U.S. Treasury Regulations until final U.S. Treasury Regulations are issued. Non-U.S. Holders are
encouraged to consult their tax advisors regarding FATCA.
81
UNDERWRITING
In connection with this offering, we expect to
enter into an underwriting agreement with EF Hutton, division of Benchmark Investments, LLC, as the representative of the underwriters
named in this prospectus, with respect to the Common Stock in this offering. Under the terms and subject to the conditions contained in
the underwriting agreement, the representative will agree to purchase from us on a firm commitment basis the respective number of shares
of Common Stock at the public price less the underwriting discounts set forth on the cover page of this prospectus, and each of the underwriters
has severally and not jointly agreed to purchase, and we have agreed to sell to the underwriters, at the public offering price per shares
less the underwriting discounts set forth on the cover page of this prospectus, the number of shares of Common Stock listed next to its
name in the following table:
Underwriter
Number of
Shares
EF Hutton, division of Benchmark Investments, LLC
1,000,000
Total
1,000,000
The shares of Common Stock sold by the underwriters
to the public will initially be offered at the initial public offering price range set forth on the cover page of this prospectus. Any
shares of Common Stock sold by the underwriters to securities dealers may be sold at a discount from the initial public offering price
not to exceed $[*] per share. If all of the shares are not sold at the initial offering price, the representative may change the offering
price and the other selling terms. The representative has advised us that the underwriters do not intend to make sales to discretionary
accounts.
If the underwriters sell more shares of Common
Stock than the total number set forth in the table above, we have granted to the representative an option, exercisable for 45 days from
the date of this prospectus, to purchase up to 150,000 additional shares of Common Stock at the public offering price less the underwriting
discount, constituting 15% of the total number of shares of Common Stock to be offered in this offering (excluding shares subject to this
option). The representative may exercise this option solely for the purpose of covering over-allotments in connection with this offering.
This offering is being conducted on a firm commitment basis.  Any shares of Common Stock issued or sold under the option will be
issued and sold on the same terms and conditions as the other shares of Common Stock that are the subject of this offering.
In connection with this offering, the underwriters
may engage in stabilizing transactions, over-allotment transactions, syndicate covering transactions and penalty bids in compliance with
Regulation M under the Exchange Act, as described below:
●
Stabilizing
                                            transactions permit bids to purchase securities so long as the stabilizing bids do not exceed
                                            a specified maximum.
●
Over-allotment
                                            transactions involve sales by the underwriters of securities in excess of the number of securities
                                            the underwriters are obligated to purchase, which creates a syndicate short position. The
                                            short position may be either a covered short position or a naked short position. In a covered
                                            short position, the number of securities over-allotted by the underwriters is not greater
                                            than the number of securities that they may purchase in the over-allotment option. In a naked
                                            short position, the number of securities involved is greater than the number of securities
                                            in the over-allotment option. The underwriters may close out any covered short position by
                                            either exercising their over-allotment option and/or purchasing securities in the open market.
●
Syndicate
                                            covering transactions involve purchases of securities in the open market after the distribution
                                            has been completed in order to cover syndicate short positions. In determining the source
                                            of securities to close out the short position, the underwriters will consider, among other
                                            things, the price of securities available for purchase in the open market as compared to
                                            the price at which they may purchase securities through the over-allotment option. A naked
                                            short position occurs if the underwriters sell more securities than could be covered by the
                                            over-allotment option. This position can only be closed out by buying securities in the open
                                            market. A naked short position is more likely to be created if the underwriters are concerned
                                            that there could be downward pressure on the price of the securities in the open market after
                                            pricing that could adversely affect investors who purchase in this offering.
●
Penalty
                                            bids permit the underwriters to reclaim a selling concession from a syndicate member when
                                            securities originally sold by the syndicate member are purchased in a stabilizing or syndicate
                                            covering transaction to cover syndicate short positions.
82
These stabilizing transactions, syndicate covering
transactions and penalty bids may have the effect of raising or maintaining the market price of our securities or preventing or retarding
a decline in the market price of the securities. As a result, the price of our shares of Common Stock may be higher than the price that
might otherwise exist in the open market. These transactions may be discontinued at any time.
Discounts and Expenses
The following table shows the underwriting discounts
payable to the underwriters by us in connection with this offering (assuming both the exercise and non-exercise of the over-allotment
option that we have granted to the representative), based on the assumed initial public offering price of $5 per share, which is the midpoint
of the estimated range of the initial public offering price shown on the cover page of this prospectus:
Per Share
Total Without
Over-Allotment
Option
Total With
Entire Over-
Allotment
Option
Assumed initial public offering price
$
5.00
$
5,000,000
$
5,750,000
Underwriting discounts and commissions (8%)
$
0.40
$
400,000
$
460,000
Proceeds, before expenses, to us
$
4.60
$
4,600,000
$
5,290,000
Non-accountable expense allowance (1%)
$
0.05
$
50,000
$
57,500
We have agreed to pay a non-accountable expense
allowance to the representative equal to 1% of the gross proceeds received at the closing of the offering.
We will be also responsible for and will pay all
expenses relating to the offering, including, without limitation, (a) all filing fees and expenses relating to the registration of the
securities with the Commission; (b) all fees and expenses relating to the listing of the Company's Common Stock; (c) all fees, expenses
and disbursements relating to the registration or qualification of the securities under the "blue sky" securities laws of
such states and other jurisdictions as the representative may reasonably designate (including, without limitation, all filing and registration
fees, and the reasonable fees and disbursements of the Company's "blue sky" counsel, which will be the underwriters'
counsel) unless such filings are not required in connection with the Company's proposed listing on a national exchange, if applicable;
(d) all fees, expenses and disbursements relating to the registration, qualification or exemption of the securities under the securities
laws of such foreign jurisdictions as the representative may reasonably designate; (e) the costs of all mailing and printing of the offering
documents; (f) transfer and/or stamp taxes, if any, payable upon the transfer of securities from the Company to the underwriters; and
(g) the fees and expenses of the Company's accountants; (h) all filing fees and communication expenses associated with the review
of this offering by FINRA; (i)a maximum of $229,500 for fees and expenses including "road show," diligence, and reasonable
legal fees and disbursements for the underwriters' counsel. The Company shall be responsible for underwriters' external counsel
legal costs irrespective of whether or not the offering is consummated, subject to a maximum of $50,000 in the event that it is not consummated.
Additionally, the Company shall provide the representative
an expense advance (the "Advance") of $50,000 upon execution of the letter of engagement with the representative. The Advance
shall be applied towards out-of-pocket accountable expense set forth herein and any portion of the Advance shall be returned to the Company
to the extent not actually incurred in compliance with FINRA Rule 5110(g)(4)(A).
Representative's Warrant
We have agreed to issue a warrant to the representative
to purchase a number of shares of Common Stock equal to 5% of the aggregate number of shares sold in this offering at an exercise price
per share equal to 100.0% of the public offering price per share sold in this offering. The underwriters' warrants will be exercisable
at any time and from time to time, in whole or in part, during the four and a half-year period commencing six (6) months from the effective
date of the Offering. The underwriters' warrants also provide for registration rights (including a one-time demand registration
right and unlimited piggyback rights) and customary anti-dilution provisions (for stock dividends and splits and recapitalizations) and
anti-dilution protection (adjustment in the number and price of such warrants and the shares underlying such warrants) resulting from
corporate events (which would include dividends, reorganizations, mergers, etc.) and future issuance of Common Stock or Common Stock equivalents
at prices (or with exercise and/or conversion prices) below the Offering price as permitted under FINRA Rule 5110(f)(2)(G).
83
The underwriters' warrant and the underlying
shares may be deemed to be compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule
5110(e)(1), neither the underwriters' warrant nor any of our shares of Common Stock issued upon exercise of the underwriters'
warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or
call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days immediately
following the commencement date of sales in this offering, subject to certain exceptions. The underwriters' warrant to be received
by the Representative and related persons in connection with this offering: (i) fully comply with lock-up restrictions pursuant to FINRA
Rule 5110(e)(1); and (ii) fully comply with transfer restrictions pursuant to FINRA Rule 5110(e)(2).
Determination of Offering Price
In determining the initial public offering price,
we and the representative have considered a number of factors, including:
●
the
                                            information set forth in this prospectus and otherwise available to the representative;
●
our
                                            prospects and the history and prospects for the industry in which we compete;
●
an
                                            assessment of our management;
●
our
                                            prospects for future revenue and earnings;
●
the
                                            general condition of the securities markets at the time of this offering;
●
the
                                            recent market prices of, and demand for, publicly traded securities of generally comparable
                                            companies; and
●
other
                                            factors deemed relevant by the Representative and us.
The estimated initial public offering price set
forth on the cover page of this preliminary prospectus is subject to change as a result of market conditions and other factors. Neither
we nor the representative can assure investors that an active trading market will develop for our shares of Common Stock, or that the
shares will trade in the public market at or above the initial public offering price. We have agreed to indemnify the representative and
the other underwriters against certain liabilities, including liabilities under the Securities Act. If we are unable to provide this indemnification,
we will contribute to payments that the representative and the other underwriters may be required to make for these liabilities.
Right of First Refusal
We have agreed to provide the representative the
right of first refusal for 12 months after the date the Offering is completed or the termination or expiration of the engagement with
the representative to act as financial advisor or to act as sole investment banker, sole book-runner, and/or sole placement agent, at
EF Hutton's sole discretion, for each and every future public and private equity and debt offering, including all equity linked
financings (each, a "Subject Transaction"), during such twelve (12) month period, of the Company, or any successor to or any
current or future subsidiary of the Company, on terms and conditions customary to EF Hutton for such Subject Transactions. EF Hutton shall
have the sole right to determine whether any other broker dealer shall have the right to participate in a Subject Transaction and the
economic terms of such participation. For the avoidance of any doubt, the Company shall not retain, engage or solicit any additional investment
banker, book-runner, financial advisor, underwriter and/or placement agent in a Subject Transaction without the express written consent
of EF Hutton. In the event that we engage the representative to provide such services, the representative will be compensated consistent
with our engagement agreement with the representative, unless we mutually agree otherwise.
Tail Rights
During the Engagement Period as defined in the
Engagement letter between the Company and EF Hutton or within the twelve (12) month period following the termination or expiration of
our engagement agreement with the representative, the representative shall be entitled to success fees, equal to 8% of gross proceeds
received, in accordance with our engagement agreement if the Company completes a transaction with a party who became aware of the Company
or who became known to the Company and the Company has direct knowledge of such party's participation in the offering during the
Engagement Period or within the twelve (12) month period following the termination or expiration of our engagement agreement with the
representative.
84
Lock-Up Agreements
We will not, without the prior written consent
of the representative, from the date of execution of the Underwriting Agreement and continuing for a period of six (6) months after the
close of the IPO (the "Lock-Up Period"), (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares
of capital stock of the Company; (ii) file or caused to be filed any registration statement with the Commission relating to the offering
of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital
stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a
traditional bank, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above
is to be settled by delivery of shares of capital stock of the Company or such other securities, in cash or otherwise.
Our officers, directors, and any holders of our
Common Stock have agreed to be locked up for a period of six (6) months during the Lock-Up Period. During the lock-up period, our officers,
directors, and holders of our Common Stock shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or
indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of
capital stock of the Company, subject to customary exceptions.
Notwithstanding the above, we and the underwriters
have agreed to waive the lock-up requirement for shares of Common Stock being offered for sale by the selling stockholders named in the
Resale Prospectus. See "
Shares Eligible For Future Sale – Lock-Up Agreements
".
Electronic Offer, Sale, and Distribution of
Shares of Common Stock
A prospectus in electronic format may be made
available on the websites maintained by the representative. In addition, shares of Common Stock may be sold by the representative to securities
dealers who resell shares of Common Stock to online brokerage account holders. Other than the prospectus in electronic format, the information
on the representative's website and any information contained in any other website maintained by the representative is not part
of the prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or
the representative in its capacity as representative and should not be relied upon by investors.
Selling Restrictions
No action has been taken in any jurisdiction (except
in the United States) that would permit a public offering of the shares of Common Stock, or the possession, circulation or distribution
of this prospectus or any other material relating to us or the shares of Common Stock, where action for that purpose is required. Accordingly,
the shares of Common Stock may not be offered or sold, directly or indirectly, and neither this prospectus nor any other offering material
or advertisements in connection with the shares of Common Stock may be distributed or published, in or from any country or jurisdiction
except in compliance with any applicable rules and regulations of any such country or jurisdiction.
Offer Restrictions Outside the United States
Other than in the United States, no action has
been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction
where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly,
nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities
be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and
regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe
any restrictions relating to this offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell
or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation
is unlawful.
85
LEGAL MATTERS
Nauth LPC, Ontario, Canada, has acted as our counsel
in connection with the preparation of this prospectus. Certain legal matters with respect to the validity of the securities being
offered by this prospectus will be passed upon by Sherman & Howard LLC, Phoenix, Arizona. Carmel, Milazzo & Feil LLP, New York,
New York, is acting as counsel for the representative of the underwriters with respect to this offering.
EXPERTS
The financial statements of our company appearing
elsewhere in this prospectus have been included herein in reliance upon the report of dbb
mckennon
, an independent registered public
accounting firm, appearing elsewhere herein (which contains an explanatory paragraph describing conditions that raise substantial doubt
about our ability to continue as a going concern as described in Note 2 to the financial statements), and upon the authority of said firm
as experts in accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities we are offering by this prospectus. This prospectus does not contain
all of the information included in the registration statement. For further information about us and our securities, you should refer to
the registration statement and the exhibits and schedules filed with the registration statement. Whenever we make reference in this prospectus
to any of our contracts, agreements or other documents, the references are materially complete but may not include a description of all
aspects of such contracts, agreements or other documents, and you should refer to the exhibits attached to the registration statement
for copies of the actual contract, agreement or other document.
Upon completion of this offering, we will be subject
to the information requirements of the Exchange Act and will file annual, quarterly and current event reports, proxy statements and other
information with the SEC. You can read our SEC filings, including the registration statement, over the Internet at the SEC's website
at www.sec.gov.
86
FINANCIAL STATEMENTS
Index to Consolidated Financial Statements
Unaudited Financial Statements for the Three Months Ended March 31, 2023 and 2022
Page
Balance Sheets (Unaudited)
F-2
Statements of Operations (Unaudited)
F-3
Statement of Changes in Stockholders' Equity (Unaudited)
F-4
Statements of Cash Flows (Unaudited)
F-5
Notes to Unaudited Financial Statements
F-6
Financial Statements for the Year Ended December 31, 2022 and Period from January 11, 2021 (inception) to December 31, 2021
Page
Report of Independent Registered Public Accounting Firm (PCAOB ID #3501)
F-
14
Balance Sheets
F-
15
Statements of Operations
F-
16
Statement of Stockholders' Equity
F-
17
Statements of Cash Flows
F-
18
Notes to Financial Statements
F-
19
F-
1
LQR HOUSE INC.
BALANCE SHEETS
UNAUDITED
March 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
23,581
$
7,565
Accounts receivable, related party
8,794
224,692
Advances to related party
6,058
314,766
Prepaid expenses
31,579
-
Total current assets
70,012
547,023
Intangible assets, net
2,020,833
2,083,333
Deferred offering costs
59,259
-
Total assets
$
2,150,104
$
2,630,356
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
290,967
$
287,457
Accounts payable, related party
69,214
104,002
Accrued expenses
72,356
199,256
Total liabilities
432,537
590,715
Stockholders' equity:
Preferred stock, $0.0001 par value, 50,000,000 shares authorized, no shares issued or outstanding as of March 31, 2023 and December 31, 2022
-
-
Class A Common Stock, $0.0001 par value, 20,000,000 shares authorized, no shares issued or outstanding as of March 31, 2023 and December 31, 2022
-
-
Class B Common Stock, $0.0001 par value, 280,000,000 shares authorized, 9,200,434 and 0 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
920
-
Common stock, $0.0001 par value, no shares and 300,000,000 authorized, 0 and 9,200,405 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
-
920
Additional paid-in capital
5,843,622
5,843,622
Accumulated deficit
(4,126,975
)
(3,804,901
)
Total stockholders' equity
1,717,567
2,039,641
Total liabilities and stockholders' equity
$
2,150,104
$
2,630,356
The accompanying notes are an integral part
of these financial statements.
F-
2
LQR HOUSE INC
STATEMENTS OF OPERATIONS
UNAUDITED
Three Months Ended
March 31,
2023
2022
Revenue - services
$
150,563
$
28,250
Total revenues
150,563
28,250
Cost of revenue - services
102,997
312,955
Total cost of revenue
102,997
312,955
Gross profit (loss)
47,566
(284,705
)
Operating expenses:
General and administrative
321,317
253,537
Sales and marketing
48,323
162,886
Total operating expenses
369,640
416,423
Loss from operations
(322,074
)
(701,128
)
Net loss
$
(322,074
)
$
(701,128
)
Weighted average common shares outstanding - basic and diluted
9,200,406
8,950,544
Net loss per common share - basic and diluted
$
(0.04
)
$
(0.08
)
The accompanying notes are an integral part
of these financial statements.
F-
3
LQR HOUSE INC.
STATEMENT OF STOCKHOLDERS' EQUITY
UNAUDITED
Class
    A
Class B
Additional
Total
Preferred
    Stock
Common
    Stock
Common
    Stock
Common
    Stock
Paid-in
Accumulated
Stockholders'
Shares
Amount
Shares
Amount
Shares
Amount
Shares
Amount
Capital
Deficit
Deficit
Balance
    at December 31, 2021
-
$
-
-
$
-
-
$
-
8,937,905
$
894
$
5,525,773
$
(1,962,726
)
$
3,563,941
Vesting
    of restricted stock units
-
-
-
-
-
-
87,500
9
65,616
-
65,625
Net
    loss
-
-
-
-
-
-
-
-
-
(701,128
)
(701,128
)
Balances
    at March 31, 2022
-
$
-
-
$
-
-
$
-
9,025,405
$
903
$
5,591,389
$
(2,663,854
)
$
2,928,438
Balances
    at December 31, 2022
-
$
-
-
$
-
-
$
-
9,200,405
$
920
$
5,843,622
$
(3,804,901
)
$
2,039,641
Recapitalization
    (Note 5)
-
-
-
-
9,200,434
920
(9,200,405
)
(920
)
-
-
-
Net
    loss
-
-
-
-
-
-
-
-
-
(322,074
)
(322,074
)
Balances
    at March 31, 2023
-
$
-
-
$
-
9,200,434
$
920
-
$
-
$
5,843,622
$
(4,126,975
)
$
1,717,567
The accompanying notes are an integral part
of these financial statements.
F-
4
LQR HOUSE INC.
STATEMENTS OF CASH FLOWS
UNAUDITED
Three Months
Ended
March 31,
2023
2022
Cash flows from operating activities:
Net loss
$
(322,074
)
$
(701,128
)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization
62,500
62,500
Vesting of restricted stock units
-
65,625
Changes in operating assets and liabilities:
Accounts receivable, related party
215,898
(25,421
)
Prepaid expenses
(31,579
)
(56,865
)
Accounts payable
3,510
42,075
Accounts payable, related party
(34,788
)
(3,813
)
Accrued expenses
(126,900
)
-
Net cash used in operating activities
(233,433
)
(617,028
)
Cash flows from investing activities:
Net repayments from (advances to) related party
308,708
(42,658
)
Net cash provided by (used in) investing activities
308,708
(42,658
)
Cash flows from financing activities:
Deferred offering costs
(59,259
)
-
Net cash used in financing activities
(59,259
)
-
Net change in cash and cash equivalents
16,016
(659,686
)
Cash and cash equivalents at beginning of period
7,565
1,116,101
Cash and cash equivalents at end of period
$
23,581
456,415
Supplemental disclosure of cash flow information:
Cash paid for income taxes
$
-
$
-
Cash paid for interest
$
-
$
-
The accompanying notes are an integral part
of these financial statements.
F-
5
LQR HOUSE INC.
NOTES TO FINANCIAL STATEMENTS
UNAUDITED
1.
NATURE OF OPERATIONS
LQR House Inc. ("LQR" or the "Company")
was incorporated on January 11, 2021, in the state of Delaware. The Company operates primarily in the beverage alcohol industry owning
specialty brands, providing marketing and distribution services.
As of March 31, 2023, the Company has not achieved
its planned level of operations. The Company's activities since inception have been limited and consisted of formation activities,
commencement of operations and capital raising activities. The Company has preparations to further raise capital and increase its operational
activity. To date, the Company has only generated limited amounts of revenue subsequent to the asset acquisitions and it has just begun
to scale its marketing revenue related efforts. The Company is dependent upon additional capital resources for the scaling of its planned
principal operations and is subject to significant risks and uncertainties; including failing to secure additional funding to operationalize
the Company's planned operations or failing to profitably operate the business.
On February 3, 2023, the Company changed its state
of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation. On February 3, in accordance with our reincorporation
to Nevada, the Company's authorized capital stock changed from 100,000,000 shares of common stock, $0.001 par value, to 350,000,000
shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value
$0.0001 per share. At the same time, the Company also completed a 6-for-1 reverse stock split of our outstanding common stock through
the merger by issuing one share of common stock for every six previously outstanding shares of common stock of the predecessor Delaware
company. The accompanying financial statements and related disclosures have been presented to retroactively reflect the Reorganization.
2.
GOING CONCERN
The Company has evaluated whether there are certain
conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going
concern within one year after the date that the financial statements are issued.
The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has not generated profits since inception, has sustained net losses of $322,074 and $701,128 for the three months
ended March 31, 2023 and 2022, and has negative cash flows from operations for the three months ended March 31, 2023 and 2022. The Company's
cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses and obligations
for the next 12 months from the date of these financial statements. These factors among others raise substantial doubt about the Company's
ability to continue as a going concern for a reasonable period of time.
The Company's ability to continue as a going
concern is dependent upon its ability to obtain the necessary financing and generate future profitable operations to meet its obligations
and repay its liabilities arising from normal business operations when they come due. Management has in the past, and is expected to in
the future, arrange additional equity or debt financing and grow revenues that may assist in addressing these issues. No assurance can
be given that management's actions will result in additional financing or profitable operations or the resolution of its liquidity
problems. The accompanying financial statements do not include any adjustments that might result should the Company be unable to continue
as a going concern.
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounting and reporting policies of the Company
conform to accounting principles generally accepted in the United States of America ("GAAP"). The Company's fiscal year
end is December 31.
The Company is an emerging growth company as the
term is used in The Jumpstart Our Business Startups Act and has elected to comply with certain reduced public company reporting requirements,
however, the Company may adopt accounting standards based on the effective dates for public entities when early adoption is permitted.
F-
6
Unaudited Interim Financial Information
The unaudited interim financial statements and
related notes have been prepared in accordance with U.S. GAAP for interim financial information, within the rules and regulations of the
United States Securities and Exchange Commission (the "SEC"). Certain information and disclosures normally included in the
annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and in the opinion
of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results
for the interim periods presented and of the financial condition as of the date of the interim balance sheet. The financial data and the
other information disclosed in these notes to the interim financial statements related to the three-month periods are unaudited. Unaudited
interim results are not necessarily indicative of the results for the full fiscal year. These unaudited interim financial statements should
be read in conjunction with the financial statements of the Company for the periods ended December 31, 2022 and 2021 and notes thereto
that are included in the Company's Registration Statement.
Use of Estimates
The preparation of the Company's financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include,
but are not limited to, revenue recognition, related party and common control transactions and valuations of common stock. The Company
bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be
reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts
and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
Significant Risks and Uncertainties
The Company is subject to customary risks and
uncertainties including, but not limited to, the need for protection of proprietary technology, dependence on key personnel, costs of
services provided by third parties, the need to obtain additional financing, and limited operating history.
Variable Interest Entities
The Company evaluates its relationships with other
entities to identify whether they are variable interest entities as defined by Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the
primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated.
The Company evaluated whether it was the primary beneficiary in its common control asset acquisitions (Note 4) and related party agreements
(Note 5) and determined it is not the primary beneficiary of any entities.
Concentrations of Credit Risk
The Company's ability to derive revenue
from marketing services is reliant on its relationship and marketing license agreement with
Ssquared
Spirits LLC, a related party entity, and Country Wine & Spirits ("CWS") who fulfills sales for the products sold by clientele
using our marketing services. The discontinuance of such relationships or termination of the marketing license agreement would have a
material negative impact on the Company's operations.
Concentrations
The Company's ability to derive revenue
from marketing services is reliant on its relationship and marketing license agreement with
Ssquared
Spirits LLC, a related party entity, and CWS who fulfills sales for the products sold by clientele using our marketing services. The discontinuance
of such relationships or termination of the marketing license agreement would have a material negative impact on the Company's operations.
Furthermore, the Company relies and expects to
continue to rely on a small number of vendors. The loss of one of these vendors may have a negative short-term impact on the Company's
operations. However, the Company believes there are acceptable substitute vendors that can be utilized longer term.
F-
7
Cash and Cash Equivalents
The Company considers all highly liquid investments
with maturities of three months or less at the date of purchase to be cash equivalents.
Fair Value Measurements
Certain assets and liabilities of the Company
are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs
and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed
in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered
unobservable:
●
Level
                                            1—Quoted prices in active markets for identical assets or liabilities.
●
Level
                                            2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active
                                            markets for similar assets or liabilities, quoted prices in markets that are not active for
                                            identical or similar assets or liabilities, or other inputs that are observable or can be
                                            corroborated by observable market data.
●
Level
                                            3—Unobservable inputs that are supported by little or no market activity that are significant
                                            to determining the fair value of the assets or liabilities, including pricing models, discounted
                                            cash flow methodologies and similar techniques.
The carrying values of the Company's accounts
receivable and accounts payable approximate their fair values due to the short maturity of these instruments. The Company believes the
carrying amount of its advances to related parties approximate fair value due to its short-term maturity.
Accounts Receivable
Accounts receivable are derived from services
and products delivered to customers and are stated at their net realizable value. Each month, the Company reviews its receivables on a
customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection
issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have
been exhausted and the potential for recovery is considered remote.
Intangible Assets
The Company capitalized the value of stock issued
related to the Company's April 2021 exclusive marketing agreement with CWS (see Note 4). The license is amortized on a straight-line
basis over the life of the agreement, which is ten years.
Impairment of Long-Lived Assets
The Company continually monitors events and changes
in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances
are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will
be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of
those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. The Company did not record
any impairment losses on its long-lived assets as of March 31, 2023 or December 31, 2022.
Related Parties
Related parties are any entities or individuals
that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies
of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries.
The Company follows ASC 850,
Related Party Disclosures
, for the identification of related parties and disclosure of related party
transactions.
F-
8
Revenue Recognition
In accordance with FASB ASC 606,
Revenue from
Contracts with Customers
¸ the Company determines revenue recognition through the following steps:
●
Identification
                                            of a contract with a customer;
●
Identification
                                            of the performance obligations in the contract;
●
Determination
                                            of the transaction price;
●
Allocation
                                            of the transaction price to the performance obligations in the contract; and
●
Recognition
                                            of revenue when or as the performance obligations are satisfied.
Revenue is recognized when performance obligations
are satisfied through the transfer of control of promised goods to the Company's customers in an amount that reflects the consideration
expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability
to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical
possession, the risks and rewards of ownership, and customer acceptance.
The Company derives its revenue from marketing
services and distribution of its SWOL Tequila product to CWS, and subscription-based membership revenue. Revenue is reported net of discounts.
Marketing Services
The Company contracts with third-party alcoholic
beverage brands to utilize access to the CWS alcoholic beverage website (the "CWS Platform). The Company and the brands enter into
a commercial relationship. The Company performs services such as creating a marketing campaign strategy, developing promotional materials
and advertising promotional materials through the CWS Platform. Revenue is recognized over a period time, as the marketing services are
being continually provided on a daily and monthly basis over the life of an agreed upon campaign. Marketing campaigns generally range
from one to three months.
Product Sales
The Company wholly owns SWOL Tequila, a tequila
made in limited batches from a third-party producer located in Mexico. The Company facilitates all efforts to get the product delivered
to CWS for retail distribution in the United States, including advancing costs for production, shipping and other importing and delivery
charges. The Company is entitled to payment of cost plus an additional 20% on each bottle of SWOL Tequila sold to CWS. Revenue is recognized
at the point in which the products are delivered to CWS, when LQR has fulfilled its performance obligation. Due to certain restrictions
on the delivery and custodianship of alcoholic beverage, CWS is required to take ownership of the product at time of delivery, and there
is no recourse or right of return. The Company records gross revenue as it's the primary obligor in the transaction.
Vault
Vault is the exclusive membership program for
CWS customers. Through the CWS Platform, users can sign up for membership where they will have access to all products available through
CWS combined with special membership benefits including discounted products, free shipping and promotional offers.  The Company markets
this membership program on the CWS Platform and is entitled to 50% of the revenue from the subscriptions.  Members are charged monthly
membership fees, and the Company recognizes the 50% fee it is entitled to from CWS as net revenue. The Company records revenue on
transactions when the user initially subscribes or renews their membership, as the Company is the agent of the transaction and do not
typically provide significant post transaction services to the user or bear responsibility for the promised goods or services included
in the membership.  The Company records a reserve for chargebacks and cancellations at the time of the transaction based on historical
experience. During the three months ended March 31, 2023, revenue from Vault memberships totaled $8,794.
Contract Balances
Accounts receivable represent amounts owed from
marketing and product sales invoiced, but not yet received,
Contract liabilities represent obligations to
transfer services to a customer for which the Company has already received consideration. Payments for marketing services are generally
received upfront in advance of the Company satisfying the related performance obligation and are recorded as a deferred revenue liability.
The deferred revenue is reduced as the services are performed and the revenue is recognized. As of March 31, 2023 and December 31, 2022,
the Company had $0 in deferred revenue.
F-
9
Cost of Revenue
Cost of revenue consists of all direct costs attributable
to performing marketing services and the Company's product sales. Cost of revenue includes affiliate payouts, contracted marketing
services, direct advertising costs for marketing campaigns, product costs, packaging, shipping and other importing and delivery charges.
Cost of revenue also includes customer service personnel and amortization of the Company's marketing license asset (see Note 4).
Sales and Marketing
Sales and marketing costs primarily consist of
advertising, promotional expenses and marketing consulting and advisory services. Sales and marketing costs also include sales commissions.
Deferred Offering Costs
The Company complies with the requirements of FASB ASC 340-10-S99-1
with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are
charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the
offering is not completed. As of March 31, 2023, the Company had capitalized $59,259 in deferred offering costs.
Stock-Based Compensation
Stock-based compensation is accounted for in accordance
with ASC Topic 718-10,
Compensation-Stock Compensation
("ASC 718-10"). The Company measures all equity-based awards
granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation
expense for those awards over the requisite service period, which is generally the vesting period of the respective award.
The Company classifies equity-based compensation
expense in its statement of operations in the same manner in which the award recipient's payroll or contractor costs are classified
or in which the award recipient's service payments are classified.
Net Loss per Share
Net earnings or loss per share is computed by
dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to
redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share
reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities
outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would
be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of March 31, 2023 and 2022, diluted net loss per share is
the same as basic net loss per share for each year. Potentially dilutive common stock equivalents outstanding as of March 31, 2022 include
175,000 unvested restricted stock units, which vested in 2022 (see Note 6).
Recently Issued and Adopted Accounting Pronouncements
Management does not believe that any other recently
issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting
pronouncements are issued, the Company will adopt those that are applicable under the circumstances.
4.
INTANGIBLE ASSETS
CWS Exclusive Marketing Agreement
On April 1, 2021, the Company, CWS, and another
related entity, Ssquared Spirits LLC ("Ssquared"), entered into an exclusive marketing agreement (the "CWS Agreement").
Pursuant to this agreement, CWS and Ssquared granted the Company the exclusive right to promote and market spirits and other beverage
products through the CWS website (cwspirtis.com) for sale to customers located within Canada, Mexico and the United States. The Company
has the sole right to manage and make decisions with regard to user facing content on the website, including the placement and removal
of products and the creation and management of promotional initiatives. The term of the CWS Agreement is ten years. Pursuant to the agreement,
the Company issued 1,666,667 shares of common stock to the members of Ssquared.
F-
10
The Company capitalized the fair value of the
consideration transferred, $2,500,000 (or $1.50 per share), as an intangible asset which will be amortized over the term agreement of
ten (10) years. During the three months ended March 31, 2023 and 2022, the Company amortized $62,500 and $62,500, respectively which is
included in cost of revenue – services in the statement of operations. As of March 31, 2023 and December 31, 2022, the unamortized
balance was $2,020,833 and $2,083,333, respectively. Annual amortization expense is expected to be $250,000.
5.
STOCKHOLDERS' EQUITY
Prior to the Reorganization described in Note 1, the Company was authorized
to issue up to 100,000,000 shares of common stock, par value $0.001 per share. Upon the Reorganization in February 2023, the Company was
authorized to issue 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.0001 per share, as further
described below.
Amendments to Articles of Incorporation
Dual Class Share Structure
On March 29, 2023, the Company amended its articles
of incorporation to institute a dual class share structure consisting of Class A Common Stock, and Class B Common Stock, and any number
of classes of preferred stock. Class A Common Stock was entitled to twenty (20) votes per share on proposals requiring or requesting shareholder
approval, and Class B Common Stock was entitled to one (1) vote on any such matter. A share of Class A Common Stock could have been voluntarily
converted into a share of Class B Common Stock. A transfer of a share of Class A Common Stock would have resulted in its automatic conversion
into Common Stock upon such transfer, subject to certain exceptions, including that the transfer of shares of Class A Common Stock to
another holder of Class A Common Stock would not have resulted in such automatic conversion. Class B Common Stock was not convertible.
Other than as to voting and conversion rights, Class A Common Stock and Class B Common Stock had the same rights and preferences and ranked
equally, shared ratably and were identical in all respects as to all matters.
Due to this amendment, the Company's authorized
capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of common stock, par value $0.0001 per share, of which
20,000,000 shares were designated Class A Common Stock, $0.0001 par value per share, and 280,000,000 shares were designated as Class B
Common Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of preferred stock, $0.0001 par value per share. All 9,200,434 shares
of common stock issued and outstanding at the time of the amendment became shares of Class B Common Stock.
Single Common Stock Structure
On June 5, 2023, the Company further amended its
articles of incorporation to amend the share structure by (i) eliminating a dual class share structure consisting of the Class A Common
Stock and Class B Common Stock and establishing a single common stock structure consisting of shares of common stock only, with 350,000,000
authorized shares being all designated as common stock with a par value of $0.0001 per share (the "Single Common Stock Structure"),
entitled to one (1) vote per share; and by (ii) eliminating all authorized shares of preferred stock. All shares of Class B Common Stock
issued and outstanding at the time of the amendment became shares of common stock.
Restricted Stock Units
On March 18, 2021, the Company implemented its
2021 Stock Option and Incentive Plan (the "Plan"). The maximum number of shares of common Stock issuable under The Plan is
1,666,667. In March 2021, the Company granted 350,000 restricted stock units ("RSUs") to certain key employees, directors,
consultants, and advisors of the Company pursuant to the Company's 2021 Stock Option and Incentive Plan (the "Plan").
Each unit was to vest in 25% increments every six months for a period of two years from the date of issuance. The RSUs had a grant-date
fair value of $525,000.
During the three months ended March 31, 2022,
an additional 87,500 RSUs vested for total stock-based compensation expense of $65,625, of which $62,500 was included in general and administrative
expenses and $3,125 was included in sales and marketing expenses in the statement of operations.
F-
11
In September 2022, the Company accelerated the
vesting of the remaining 87,500 unvested restricted stock units and therefore an aggregate of 262,500 shares were vested during 2022.
Upon this, all 350,000 RSUs granted in 2021 were vested and outstanding shares of common stock.
As
of December 31, 2022, all restricted stock units were vested.
Regulation A Offering
In March 2022, the Company received its notice
of qualification from the Securities and Exchange Commission under Regulation A. The offering was terminated in June 2022. No securities
were sold under the offering.
6.
RELATED PARTY TRANSACTIONS
CWS and Ssquared Spirits LLC
The Company's founder and controlling stockholder
has an economic interest in Ssquared Spirits LLC, the e-commerce affiliate of CWS. The spouse of the Company's former Chief Executive
Officer and director is the President and controlling stockholder of CWS and the managing member and director of Ssquared Spirits LLC.
In 2022, the former Chief Executive Officer resigned from the Company.
SWOL Tequila
As of December 31, 2022, the Company had $224,692
in accounts receivable with CWS pertaining to SWOL product revenues. This amount was collected in the three months ended March 31, 2023.
Vault
During the three months ended March 31, 2023,
revenue from Vault memberships totaled $8,794, which is included in accounts receivable as of March 31, 2023.
Advances to CWS
During the three months ended March 31, 2023 and 2022, the Company
paid certain costs pertaining to alcoholic products on behalf of CWS in order finance the purchase of brand product for which the Company
was promoting through marketing services. The advances totaled $6,058 and $42,658, respectively, during the three months ended March 31,
2023 and 2022. As of March 31, 2023 and December 31, 2022, $6,058 and $314,766, respectively, remained unpaid and outstanding from CWS.
The advances are non-interest bearing, unsecured and due on demand. The advances owed as of December 31, 2022 was collected in the three
months ended March 31, 2023.
Dollinger Holdings LLC
Dollinger Holdings LLC is an entity under common
control with the Company's founder and controlling stockholder.
As of March 31, 2023 and December 31, 2022, the
Company had accounts payable of $69,214 and $101,250, respectively, with this entity.
See Note 4 for acquisition of assets from Dollinger
Holdings, LLC.
Other
See Note 8 for disclosure related to a private sale of shares held
by the Company's founder, Sean Dollinger, and subsequent cancellation of such shares.
7.
COMMITMENTS AND CONTINGENCIES
The Company may be subject to pending legal proceedings
and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the
Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its
business, financial condition or results of operations.
Warrant
In February 2022, the Company granted a warrant
to an advisor in connection with Company's potential Regulation A financing. The number of warrants granted equals $2,000,000 ("Equity
Value") divided by the Regulation A offering price. The warrant was to vest immediately upon qualification of the Form 1-A filing
in connection with the Regulation A financing. The warrant was to terminate on the earliest of five years or the termination of the advisory
agreement. In March 2022, the Company was qualified under its Form 1-A filing. On March 17, 2023, the Company and advisor entered into
a Warrant Surrender Agreement whereby the advisor agreed to the cancellation of the warrants and to the surrender of all of its right
for no consideration. As there was no derived value related to these warrants based on subsequent cancellation, no expense was recognized.
F-
12
8. SUBSEQUENT EVENTS
Engagement Agreements
On December 1, 2022, the Company entered into
an engagement agreement with Boustead Securities, LLC to assist in the private placement of securities ("pre-IPO Financing")
and the initial public offering or other registered securities offerings ("IPO") in the United States listing on NASDAQ. This
agreement was terminated on May 23, 2023.
On May 24, 2023, the Company entered into an engagement
agreement with EF Hutton, division of Benchmark Investments, LLC ("EF Hutton"), to assist in the initial public offering or
other registered securities offerings ("IPO"). The agreement is for the earlier of (i) twelve (12) months from May 24, 2023,
or (ii) the final closing, in an IPO transaction, if any, subject to certain termination clauses as defined by the agreement. The Company
has agreed to compensate EF Hutton with an underwriting discount in an IPO transaction, warrants, and compensation for advisory services.
EF Hutton is also entitled to Tail Financing, a Right of First Refusal, and Lock-Up Agreements as defined in the agreement.
2023 Private Placement
Subsequent to March 31, 2023, we conducted a private
placement of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in
Section 2(a)(15) of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2)
of the Securities Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons
made in compliance with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000
shares of Common Stock at $1.00 per share for a total of $955,000.
2023 Advisor Agreements
Subsequent to March 31, 2023, we entered into
advisor agreements with certain advisors, pursuant to which the advisors will provide business and corporate advice in connection with
the Offering to the Company. In consideration for the advisor's services, the Company issued 500,000 shares of Common Stock to six
individuals and entities, for an aggregate of 3,000,000 shares of Common Stock.
Single Common Stock Structure
See Note 5 for amendments to the Company's
authorized, issued and outstanding shares subsequent to March 31, 2023.
Cancellation of 3,000,000 Shares of Common
Stock
Subsequent to March 31, 2023, the Company entered
into a Cancellation Agreement with four stockholders, who each owned 750,000 shares of Common Stock or an aggregate of 3,000,000 shares
of Common Stock. The stockholders purchased these shares from Mr. Dollinger pursuant to a stock purchase agreement on January 12, 2023,
between Mr. Dollinger and each of these four stockholders. As of the date these financial statements were available to be issued these
shares were either cancelled or pending cancellation with the transfer agent.
Management has evaluated subsequent events through
June 12, 2023, the date the financial statements were available to be issued. Based on this evaluation, no additional material events
were identified which require adjustment or disclosure in these financial statements.
F-
13
REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
LQR House, Inc.
Opinion on the Financial Statements
We have audited the accompanying
balance sheets of LQR House, Inc., (the "Company") as of December 31, 2022 and 2021, and the related statements of operations,
stockholders' equity, and cash flows for the year ended December 31, 2022 and the period from January 11, 2021 (Inception) to December
31, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and
the results of its operations and its cash flows for the year ended December 31, 2022 and the period from Inception to December 31, 2021,
in conformity with accounting principles generally accepted in the United States of America
Going Concern
The accompanying financial
statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the financial statements,
the Company has sustained net losses and negative cash flow from operations since Inception which raises substantial doubt about its ability
to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements
do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements
are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based
on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits
in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the 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 audit we are required to obtain
an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of
the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing
procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the
financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for
our opinion.
/s/
dbb
mckennon
We have served as the Company's auditor since 2021
Newport Beach, California
April 5, 2023
F-
14
LQR HOUSE INC.
Balance Sheets
December 31,
2022
2021
ASSETS
Current assets:
Cash and cash equivalents
$
7,565
$
1,116,101
Accounts receivable, related party
224,692
93,920
Advances to related party
314,766
124,427
Total current assets
547,023
1,334,448
Intangible assets, net
2,083,333
2,333,333
Total assets
$
2,630,356
$
3,667,781
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
287,457
$
70,175
Accounts payable, related party
104,002
33,665
Accrued expenses
199,256
-
Total liabilities
590,715
103,840
Stockholders' equity:
Common stock, $0.0001 par value, 300,000,000 shares authorized, 9,200,405 and 8,937,905 shares issued and outstanding as of December 31, 2022 and 2021, respectively
920
894
Additional paid-in capital
5,843,622
5,525,773
Accumulated deficit
(3,804,901
)
(1,962,726
)
Total stockholders' equity
2,039,641
3,563,941
Total liabilities and stockholders' equity
$
2,630,356
$
3,667,781
The accompanying notes are an integral part
of these financial statements.
F-
15
LQR HOUSE INC.
Statements of Operations
Year Ended
December 31,
2022
For the
Period from
January 11,
2021
(inception) to
December 31,
2021
Revenue - services
$
470,359
$
182,765
Revenue - product
130,772
132,527
Total revenues
601,131
315,292
Cost of revenue - services
668,654
520,193
Cost of revenue - product
134,490
157,254
Total cost of revenue
803,144
677,447
Gross profit (loss)
(202,013
)
(362,155
)
Operating expenses:
Sales and marketing
655,151
464,011
General and administrative
985,011
1,136,560
Total operating expenses
1,640,162
1,600,571
Loss from operations
(1,842,175
)
(1,962,726
)
Provision for income taxes
-
-
Net loss
$
(1,842,175
)
$
(1,962,726
)
Weighted average common shares outstanding - basic and diluted
9,015,023
7,443,489
Net loss per common share - basic and diluted
$
(0.20
)
$
(0.26
)
The accompanying notes are an integral part
of these financial statements.
F-
16
LQR HOUSE INC.
Statement of Stockholders' Equity
Additional
Total
Common Stock
Paid-in
Accumulated
Stockholders'
Shares
Amount
Capital
Deficit
Equity
Balances at January 11, 2021 (inception)
-
$
-
$
-
$
-
$
-
Issuance of founders' stock
1,733,333
173
10,227
-
10,400
Issuance of common stock for cash
2,050,404
205
3,069,867
-
3,070,072
Issuance of common stock and other consideration pursuant to common control asset acquisitions
3,333,334
333
(361,263
)
-
(360,930
)
Issuance of common stock pursuant to marketing license agreement
1,666,667
167
2,499,833
-
2,500,000
Common shares issued for services
66,667
7
99,993
-
100,000
Vesting of restricted stock units
87,500
9
207,116
-
207,125
Net loss
-
-
-
(1,962,726
)
(1,962,726
)
Balances at December 31, 2021
8,937,905
894
5,525,773
(1,962,726
)
3,563,941
Vesting of restricted stock units
262,500
26
317,849
-
317,875
Net loss
-
-
-
(1,842,175
)
(1,842,175
)
Balances at December 31, 2022
9,200,405
$
920
$
5,843,622
$
(3,804,901
)
$
2,039,641
The accompanying notes are an integral part
of these financial statements.
F-
17
LQR HOUSE INC.
Statements of Cash Flows
Year Ended
December 31,
2022
For the
Period from
January 11,
2021
(inception) to
December 31,
2021
Cash flows from operating activities:
Net loss
$
(1,842,175
)
$
(1,962,726
)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization
250,000
166,667
Common shares issued for services
-
100,000
Vesting of restricted stock units
317,875
207,125
Changes in operating assets and liabilities:
Accounts receivable
(130,772
)
(93,920
)
Accounts payable
217,282
70,175
Accounts payable, related party
70,337
33,665
Accrued expenses
199,256
-
Net cash used in operating activities
(918,197
)
(1,479,014
)
Cash flows from investing activities:
Advances to related party
(190,339
)
(124,427
)
Net cash used in investing activities
(190,339
)
(124,427
)
Cash flows from financing activities:
Issuance of founders' stock
-
10,400
Issuance of common stock for cash
-
3,070,072
Common control acquisitions
-
(360,930
)
Net cash provided by financing activities
-
2,719,542
Net change in cash and cash equivalents
(1,108,536
)
1,116,101
Cash and cash equivalents at beginning of period
1,116,101
-
Cash and cash equivalents at end of period
$
7,565
$
1,116,101
Supplemental disclosure of cash flow information:
Cash paid for income taxes
$
-
$
-
Cash paid for interest
$
-
$
-
Supplemental disclosure of non-cash investing and financing activities:
Intangible assets acquired for stock from related party
$
-
$
2,500,000
Liabilities assumed in common control asset acquisition
$
-
$
40,930
The accompanying notes are an integral part
of these financial statements.
F-
18
LQR HOUSE INC.
Notes to Financial Statements
1.
NATURE OF OPERATIONS
LQR House Inc. ("LQR" or the "Company")
was incorporated on January 11, 2021, in the state of Delaware. The Company operates primarily in the beverage alcohol industry owning
specialty brands, providing marketing and distribution services.
As of December 31, 2022, the Company has not achieved
its planned level of operations. The Company's activities since inception have been limited and consisted of formation activities,
commencement of operations and capital raising activities. The Company has preparations to further raise capital and increase its operational
activity. To date, the Company has only generated limited amounts of revenue subsequent to the asset acquisitions disclosed in Note 4
related to product sales, and it has just begun to scale its marketing revenue related efforts. The Company is dependent upon additional
capital resources for the scaling of its planned principal operations and is subject to significant risks and uncertainties; including
failing to secure additional funding to operationalize the Company's planned operations or failing to profitably operate the business.
On February 3, 2023, the Company changed its state
of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation (the "Reorganization"). On February
3, 2023, in accordance with our reincorporation to Nevada, the Company's authorized capital stock changed from 100,000,000 shares
of common stock, $0.001 par value, to 350,000,000 shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share,
and 50,000,000 shares of preferred stock, par value $0.0001 per share. At the same time, the Company also completed a 6-for-1 reverse
stock split of our outstanding common stock through the merger by issuing one share of common stock for every six previously outstanding
shares of common stock of the predecessor Delaware company (See Note 10). Accordingly, all share and per share amounts of the Company
for all periods presented in the accompanying financial statements and notes thereto have been adjusted retroactively, where applicable,
to reflect this stock split. See Note 10 for additional amendments in 2023.
2.
GOING CONCERN
The Company has evaluated whether there are certain
conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going
concern within one year after the date that the financial statements are issued.
The accompanying financial statements have been
prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course
of business. The Company has not generated profits since inception, has sustained net losses of $1,842,175 and $1,962,726 for the periods
ended December 31, 2022 and 2021, and has negative cash flows from operations for the periods ended December 31, 2022 and 2021. The Company's
cash balance and revenues generated are not currently sufficient and cannot be projected to cover its operating expenses and obligations
for the next 12 months from the date of these financial statements. These factors among others raise substantial doubt about the Company's
ability to continue as a going concern for a reasonable period of time.
The Company's ability to continue as a going
concern is dependent upon its ability to obtain the necessary financing and generate future profitable operations to meet its obligations
and repay its liabilities arising from normal business operations when they come due. Management has in the past, and is expected to in
the future, arrange additional equity or debt financing and grow revenues that may assist in addressing these issues. No assurance can
be given that management's actions will result in additional financing or profitable operations or the resolution of its liquidity
problems. The accompanying financial statements do not include any adjustments that might result should the Company be unable to continue
as a going concern.
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accounting and reporting policies of the Company
conform to accounting principles generally accepted in the United States of America ("GAAP"). The Company's fiscal year
end is December 31.
F-
19
The Company is an emerging growth company as the
term is used in The Jumpstart Our Business Startups Act and has elected to comply with certain reduced public company reporting requirements,
however, the Company may adopt accounting standards based on the effective dates for public entities when early adoption is permitted.
Use of Estimates
The preparation of the Company's financial
statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include,
but are not limited to, revenue recognition, related party and common control transactions and valuations of common stock. The Company
bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be
reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts
and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.
Significant Risks and Uncertainties
The Company is subject to customary risks and
uncertainties including, but not limited to, the need for protection of proprietary technology, dependence on key personnel, costs of
services provided by third parties, the need to obtain additional financing, and limited operating history.
Variable Interest Entities
The Company evaluates its relationships with other
entities to identify whether they are variable interest entities as defined by Financial Accounting Standards Board ("FASB")
Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the
primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated.
The Company evaluated whether it was the primary beneficiary in its common control asset acquisitions (Note 4) and related party agreements
(Note 5) and determined it is not the primary beneficiary of any entities.
Concentrations of Credit Risk
The Company maintains its cash with a major financial
institution located in the United States of America which it believes to be credit worthy. Balances are insured by the Federal
Deposit Insurance Corporation up to $250,000. At times, the Company maintains balances in excess of the federally insured limits.
Concentrations
A significant portion of the Company's revenue
generating activities were with a related party customer, Country Wine & Spirts ("CWS"). During the periods ended December
31, 2022 and 2021, 25% and 42% of the Company's revenue, respectively, was with CWS, including all product related revenues. As
of December 31, 2022 and 2021, CWS accounted for 100% of the Company's account receivable.
The Company's ability to derive revenue
from marketing services is reliant on its relationship and marketing license agreement with
Ssquared
Spirits LLC, a related party entity, and CWS who fulfills sales for the products sold by clientele using our marketing services. The discontinuance
of such relationships or termination of the marketing license agreement would have a material negative impact on the Company's operations.
Furthermore, the Company relies and expects to
continue to rely on a small number of vendors. The loss of one of these vendors may have a negative short-term impact on the Company's
operations. However, the Company believes there are acceptable substitute vendors that can be utilized longer-term.
F-
20
Cash and Cash Equivalents
The Company considers all highly liquid investments
with maturities of three months or less at the date of purchase to be cash equivalents.
Fair Value Measurements
Certain assets and liabilities of the Company
are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer
a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between
market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs
and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed
in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered
unobservable:
●
Level 1—Quoted prices in active markets for identical
assets or liabilities.
●
Level 2—Observable inputs (other than Level 1 quoted
prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for
identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.
●
Level 3—Unobservable inputs that are supported by little
or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted
cash flow methodologies and similar techniques.
The carrying values of the Company's accounts
receivable and accounts payable approximate their fair values due to the short maturity of these instruments.  The Company believes
the carrying amount of its advances to related parties approximate fair value due to its short-term maturity.
Accounts Receivable
Accounts receivable are derived from services
and products delivered to customers and are stated at their net realizable value. Each month, the Company reviews its receivables on a
customer-by-customer basis and evaluates whether an allowance for doubtful accounts is necessary based on any known or perceived collection
issues. Any balances that are eventually deemed uncollectible are written off against the allowance after all means of collection have
been exhausted and the potential for recovery is considered remote.
Intangible Assets
The Company capitalized the value of stock issued
related to the Company's April 2021 exclusive marketing agreement with CWS (see Note 5). The license is amortized on a straight-line
basis over the life of the agreement, which is ten years.
Impairment of Long-Lived Assets
The Company continually monitors events and changes
in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances
are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will
be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of
those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.
Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. The Company did not record
any impairment losses on its long-lived assets as of December 31, 2022 or 2021.
Related Parties
Related parties are any entities or individuals
that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies
of the Company. The Company discloses related party transactions that are outside of normal compensatory agreements, such as salaries.
The Company follows ASC 850,
Related Party Disclosures
, for the identification of related parties and disclosure of related party
transactions.
F-
21
Revenue Recognition
In accordance with FASB ASC 606,
Revenue from
Contracts with Customers
¸ the Company determines revenue recognition through the following steps:
●
Identification of a contract with a customer;
●
Identification of the performance obligations in the contract;
●
Determination of the transaction price;
●
Allocation of the transaction price to the performance obligations
in the contract; and
●
Recognition of revenue when or as the performance obligations
are satisfied.
Revenue is recognized when performance obligations
are satisfied through the transfer of control of promised goods to the Company's customers in an amount that reflects the consideration
expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability
to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical
possession, the risks and rewards of ownership, and customer acceptance.
The Company derives its revenue from marketing
services, distribution of its SWOL Tequila product to CWS, and subscription-based membership revenue. Revenue is reported net of discounts.
Marketing Services
The Company contracts with third-party alcoholic
beverage brands to utilize access to the CWS alcoholic beverage website (the "CWS Platform). The Company and the brands enter into
a commercial relationship. The Company performs services such as creating a marketing campaign strategy, developing promotional materials
and advertising promotional materials through the CWS Platform. Revenue is recognized over a period time, as the marketing services are
being continually provided on a daily and monthly basis over the life of an agreed upon campaign. Marketing campaigns generally range
from one to three months.
Product Sales
The Company wholly owns SWOL Tequila, a tequila
made in limited batches from a third-party producer located in Mexico. The Company facilitates all efforts to get the product delivered
to CWS for retail distribution in the United States, including advancing costs for production, shipping and other importing and delivery
charges. The Company is entitled to payment of cost plus an additional 20% on each bottle of SWOL Tequila sold to CWS. Revenue is recognized
at the point in which the products are delivered to CWS, when LQR has fulfilled its performance obligation. Due to certain restrictions
on the delivery and custodianship of alcoholic beverage, CWS is require to take ownership of the product at time of delivery, and there
is no recourse or right of return. The Company records gross revenue as it's the primary obligor in the transaction.
During the periods ended December 31, 2022 and
2021, all SWOL Tequila product revenue was earned with CWS, a related party which makes up all product sales in the accompanying statement
of operations.
Vault
Vault is the exclusive membership program for
CWS customers. Through the CWS Platform, users can sign up for membership where they will have access to all products available through
CWS combined with special membership benefits including discounted products, free shipping and promotional offers.  The Company markets
this membership program on the CWS Platform and is entitled to 50% of the revenue from the subscriptions.  Members are charged monthly
membership fees, and the Company recognizes the 50% fee it is entitled to from CWS as net revenue. The Company records revenue on
transactions when the user initially subscribes or renews their membership, as the Company is the agent of the transaction and do not
typically provide significant post transaction services to the user or bear responsibility for the promised goods or services included
in the membership.  The Company records a reserve for chargebacks and cancellations at the time of the transaction based on historical
experience. During the year ended December 31, 2022, revenue from Vault memberships totaled $20,524, which was earned with a related
party CWS.  Such amounts were included in advances to related party as a receivable, and collected subsequent to December 31, 2022.
F-
22
Contract Balances
Accounts receivable represent amounts owed from
marketing and product sales invoiced, but not yet received,
Contract liabilities represent obligations to
transfer services to a customer for which the Company has already received consideration. Payments for marketing services are generally
received upfront in advance of the Company satisfying the related performance obligation and are recorded as a deferred revenue liability.
The deferred revenue is reduced as the services are performed and the revenue is recognized. As of December 31, 2022 and 2021, the Company
had $0 in deferred revenue.
Cost of Revenue
Cost of revenue consists of all direct costs attributable
to performing marketing services and the Company's product sales. Cost of revenue includes affiliate payouts, contracted marketing
services, direct advertising costs for marketing campaigns, product costs, packaging, shipping and other importing and delivery charges.
Cost of revenue also includes customer service personnel and amortization of the Company's marketing license asset (see Note 5).
Sales and Marketing
Sales and marketing costs primarily consist of
advertising, promotional expenses and marketing consulting and advisory services. Sales and marketing costs also include sales commissions.
Deferred Offering Costs
The Company complies with the requirements of
FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred
offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or
to expense if the offering is not completed.
Stock-Based Compensation
Stock-based compensation is accounted for in accordance
with ASC Topic 718-10,
Compensation-Stock Compensation
("ASC 718-10"). The Company measures all equity-based awards
granted to employees, independent contractors and advisors based on the fair value on the date of the grant and recognizes compensation
expense for those awards over the requisite service period, which is generally the vesting period of the respective award.
The Company classifies equity based compensation
expense in its statement of operations in the same manner in which the award recipient's payroll or contractor costs are classified
or in which the award recipient's service payments are classified.
Income Taxes
The Company uses the liability method of accounting
for income taxes as set forth in ASC 740, Income Taxes. Under the liability method, deferred taxes are determined based on the temporary
differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the
years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will
not be realized. We assess our income tax positions and record tax benefits for all years subject to examination based upon our evaluation
of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where
there is a greater than 50% likelihood that a tax benefit will be sustained, our policy will be to record the largest amount of tax benefit
that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information.
For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized
in the financial statements.
Net Loss per Share
Net earnings or loss per share is computed by
dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to
redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share
reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities
outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would
be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2022 and 2021, diluted net loss per share
is the same as basic net loss per share for each year. Potentially dilutive common stock equivalents outstanding as of December 31, 2021
include 262,500 unvested restricted stock units, which vested in 2022 (see Note 6).
F-
23
Recently Issued and Adopted Accounting Pronouncements
In February 2016, the Financial Accounting Standards
Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02,
Leases
(ASC 842). This ASU requires a
lessee to recognize a right-of-use asset and a lease liability under most operating leases in its balance sheet. The ASU is effective
for annual and interim periods beginning after December 15, 2021. Early adoption is permitted. The Company elected to early adopt ASC
842 upon inception. The Company does not have any long-term leases that are recorded in accordance with ASC 842.
Management does not believe that any other recently
issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting
pronouncements are issued, the Company will adopt those that are applicable under the circumstances.
4.
COMMON CONTROL ASSET ACQUISITIONS
SWOL Asset Acquisition
On March 19, 2021, the Company entered into an
agreement (the "SWOL Agreement") with Dollinger Holdings LLC, a company under common control, pursuant to which the Company
acquired assets related to the online or in-person sale of original tequila and other products branded SWOL (the "SWOL Division").
Prior to the acquisition, the SWOL Division activity was minimal and consisted of test runs to determine viability. The SWOL Agreement
included the assignment of contracts relating to production of original tequila for exclusive importation into the United States and a
distribution agreement by which SWOL branded products are marketed and sold through online channels by the Company. In addition, the Company
received all the intellectual property assets and registrations to conduct the business of selling SWOL products. Pursuant to the terms
of the agreement, the Company paid Dollinger Holdings LLC $220,000 in cash and 2,666,667 shares of common stock of the Company. Additionally,
the Company paid $40,930 in cash pursuant to SWOL's existing liabilities.
The Company determined that the SWOL Agreement
should be accounted for as an asset acquisition under common control, and therefore the transaction should be recognized at carrying value
and prospectively applied. The Company determined there was no carrying value associated with the assets acquired under the SWOL Agreement.
The total consideration issued was $261,197, consisting of the cash payments and the par value of the common shares issued. This amount
was recorded as a reduction in additional paid-in capital on the statement of stockholders' equity.
Soleil Vino Asset Acquisition
On May 31, 2021, the Company entered into an agreement
(the "Soleil Agreement") with Dollinger Holdings LLC, a company under common control, pursuant to which the Company received
(a) all sourcing agreements with third party vendors for all Soleil Vino and related branded products, (b) all trademarks for Soleil Vino
and all associated trade dress and intellectual property rights, (c) all labels, logos and other branding bearing the Soleil Vino marks
and (d) website and all related digital and social media content including but not limited to influencer networks, domain and all related
content and all related sales channels. Prior to the acquisition, Soleil Vino had no business activity. Pursuant to the terms of the agreement,
the Company paid Dollinger Holding LLC $100,000 in cash and issued 666,667 common shares of the Company.
The Company determined that the Soleil Agreement
should be accounted for as an asset acquisition under common control, and therefore the transaction should be recognized at carrying value
and prospectively applied. The Company determined there was no carrying value associated with the assets acquired under the Soleil Agreement.
The total consideration issued was $100,067, consisting of the cash payments and the par value of the common shares issued. This amount
was recorded as a reduction in additional paid-in capital on the statement of stockholders' equity.
5.
INTANGIBLE ASSETS
CWS Exclusive Marketing Agreement
On April 1, 2021, the Company, CWS, and another
related entity, Ssquared Spirits LLC ("Ssquared"), entered into an exclusive marketing agreement (the "CWS Agreement").
Pursuant to this agreement, CWS and Ssquared granted the Company the exclusive right to promote and market spirits and other beverage
products through the CWS website (cwspirtis.com) for sale to customers located within Canada, Mexico and the United States. The Company
has the sole right to manage and make decisions with regard to user facing content on the website, including the placement and removal
of products and the creation and management of promotional initiatives. The term of the CWS Agreement is ten years. Pursuant to the agreement,
the Company issued 1,666,667 shares of common stock to the members of Ssquared.
F-
24
The Company capitalized the fair value of the
consideration transferred, $2,500,000 (or $1.50 per share), as an intangible asset which will be amortized over the term agreement of
ten (10) years. During the periods ended December 31, 2022 and 2021, the Company amortized $250,000 and $166,667, respectively which is
included in cost of revenue – services in the statement of operations. As of December 31, 2022 and 2021, the unamortized balance
was $2,083,333 and $2,333,333, respectively. Annual amortization expense is expected to be $250,000.
In connection with the CWS Agreement, the Company
paid finders' fees of $150,000, which was included in general and administrative expenses in the statement of operations.
6.
STOCKHOLDERS' EQUITY
Prior to the Reorganization described in Note 1, the Company was authorized
to issue up to 100,000,000 shares of common stock, par value $0.001 per share. Upon the Reorganization described in Note 1, the Company
is authorized to issue 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.0001 per share (see Note
10).
As of December 31, 2022 and 2021, there were 9,200,405
and 8,937,905 shares of common stock issued and outstanding, respectively, after the 1-for-6 reverse stock split in connection with the
Reorganization. The accompanying financial statements and related disclosures have been presented to retroactively reflect the Reorganization.
The holders of outstanding shares of common stock
are entitled to one vote for each share of Common stock held at all meetings of stockholders.
In January 2021, the Company issued 1,733,333
shares to its founders for $10,400 in proceeds, which was the original par value of the issuances.
In February 2021, the Company entered into several
stock purchase and subscription agreements and issued 2,033,737 shares of common stock at a price of $1.50 per share for a total amount
of $3,020,072, net of transaction costs.
Pursuant to the SWOL Agreement in March 2021,
the Company issued 2,666,667 shares to Dollinger Holdings LLC in a common control transaction (see Note 4).
Pursuant to the CWS Agreement in April 2021, the
Company issued 1,666,667 shares to the members of Squared, which includes our Chief Executive Officer, for a fair value of $2,500,000,
or $1.50 per share (see Note 4).
In April 2021, the Company entered two stock purchase
and subscription agreements and issued 16,667 shares of common stock at a price of $3.00 per share for a total amount of $50,000.
Pursuant to the Soleil Vino acquisition in May
2021, the Company issued 666,667 shares to Dollinger Holdings LLC (see Note 4). In conjunction with the Soleil Vino Agreement, the Company
entered into a finder's fee agreement with a third-party whereby Company issued 66,667 shares of common stock valued at $100,000.
The fair value of common stock issued in 2021
equity-based transactions was determined based on the predominate selling price of shares to third parties during the period.
Restricted Stock Units
On March 18, 2021, the Company implemented its
2021 Stock Option and Incentive Plan (the "Plan"). The maximum number of shares of common Stock issuable under The Plan is
1,666,667. In March 2021, the Company granted 350,000 restricted stock units ("RSUs") to certain key employees, directors,
consultants, and advisors of the Company pursuant to the Company's 2021 Stock Option and Incentive Plan (the "Plan").
Each unit was to vest in 25% increments every six months for a period of two years from the date of issuance. As of December 31, 2021,
87,500 RSUs vested and were issued and outstanding shares of common stock, and 262,500 remained unvested. The RSUs had a grant-date fair
value of $525,000. During the period ended December 31, 2021, the Company recognized $207,813 in stock-based compensation, of which $197,917
was included in general and administrative expenses and $9,896 was included in sales and marketing expenses in the statement of operations.
F-
25
In September 2022, the Company accelerated the
vesting of the remaining 87,500 unvested restricted stock units and therefore an aggregate of 262,500 shares were vested during 2022.
Upon this, all 350,000 RSUs granted in 2021 were vested and outstanding shares of common stock.
During
the year ended December 31, 2022, the Company recognized $317,875 in stock-based compensation, of which $301,875 was included in general
and administrative expenses and $16,000 was included in sales and marketing expenses in the statement of operations.
As of December 31, 2022, all restricted stock
units were vested.
Regulation A Offering
In March 2022, the Company received its notice
of qualification from the Securities and Exchange Commission under Regulation A. The offering was terminated in June 2022. No securities
were sold under the offering.
7.
RELATED PARTY TRANSACTIONS
CWS and Ssquared Spirits LLC
The Company's founder and controlling stockholder
has an economic interest in Ssquared Spirits LLC, the e-commerce affiliate of CWS. The spouse of the Company's former Chief Executive
Officer and director, is the President and controlling stockholder of CWS and the managing member and director of Ssquared Spirits LLC.
In 2022, the former Chief Executive Officer resigned from the Company.
Pursuant to the terms of the CWS Agreement, the
Company issued an aggregate of 1,666,667 shares of common stock, consisting of 333,333 shares to our founder who is the Chief Executive
Officer and a Director of the Company, and 1,333,334 shares of common stock to an entity owned by the CWS President and managing member
of Ssquared Spirits LLC.
SWOL Tequila
During the periods ended December 31, 2022 and
2021, the Company earned product revenues of $130,772 and $132,527, respectively from CWS. As of December 31, 2022 and 2021, the Company
had $224,692 and $93,920, respectively, in accounts receivable with CWS. Such amounts were collected subsequent to December 31, 2022.
Vault
During the year ended December 31, 2022, the Company
earned service revenues of $20,524 pertaining to Vault memberships from CWS.
Advances to CWS
During the periods ended December 31, 2022 and
2021, the Company paid certain costs pertaining to alcoholic products on behalf of CWS in order finance the purchase of brand product
for which the Company was promoting through marketing services. The advances totaled $190,340 and $124,427, respectively, during the periods
ended December 31, 2022 and 2021. As of December 31, 2022 and 2021, $314,766 and $124,427, respectively, remained unpaid and outstanding
from CWS. The advances are non-interest bearing, unsecured and due on demand. All advances were collected subsequent to December 31, 2022.
Dollinger Holdings LLC
Dollinger Holdings LLC is an entity under common
control with the Company's founder and controlling stockholder.
As of December 31, 2022 and 2021, the Company
had accounts payable of $101,250 and $33,665, respectively, with this entity.
See Note 4 for acquisition
of assets from Dollinger Holdings, LLC.
F-
26
8.
INCOME TAXES
For the periods ended December 31, 2022 and
2021, the Company did not record a current or deferred income tax expense or benefit due to current and historical losses incurred by
the Company. The Company's losses before income taxes consist solely of losses from domestic operations.
Deferred taxes are recognized for temporary differences
between the basis of assets and liabilities for financial statement and income tax purposes. The following table presents the deferred
tax assets and liabilities by source:
December 31,
2022
2021
Deferred tax assets:
Net operating loss carryforwards
$
765,808
$
409,616
Valuation allowance
(765,808
)
(409,616
)
Net deferred tax assets
$
-
$
-
The Company recognizes deferred tax assets to
the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers
all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable
income, tax-planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance against its
net deferred tax assets and determined a full valuation allowance is required due, cumulative losses through December 31, 2022, and no
history of generating taxable income. Therefore, valuation allowances of $765,808 and $409,616, respectively, were recorded as of December
31, 2022. Valuation allowance increased by $356,192 during the year ended December 31, 2022. Deferred tax assets were calculated using
the Company's combined effective tax rate, which it estimated to be approximately 28.0%. The effective rate is reduced to 0% for
2022 and 2021 due to the full valuation allowance on its net deferred tax assets.
The Company's ability to utilize net operating
loss carryforwards will depend on its ability to generate adequate future taxable income. At December 31, 2022 and 2021, the Company had
net operating loss carryforwards available to offset future taxable income in the amounts of approximately $2,740,000 and $1,465,000,
respectively, which can be carried forward indefinitely. Certain changes in ownership can result in a limitation on the amount of net
operating loss and tax credit carryovers that can be utilized each year. As of December 31, 2022, management has not determined the extent
of any such limitations, if any.
The Company has evaluated its income tax positions
and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any
uncertain tax positions through its income tax expense.
The Company is subject to taxation in the U.S.
and various state jurisdictions. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though all tax
years from 2021 on remain open to examination.
9.
COMMITMENTS AND CONTINGENCIES
The Company may be subject to pending legal proceedings
and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the
Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its
business, financial condition or results of operations.
Warrant
In February 2022, the Company granted a warrant
to an advisor in connection with Company's potential Regulation A financing. The number of warrants granted equals $2,000,000 ("Equity
Value") divided by the Regulation A offering price. The warrant was to vest immediately upon qualification of the Form 1-A filing
in connection with the Regulation A financing. The warrant was to terminate on the earliest of five years or the termination of the advisory
agreement. In March 2022, the Company was qualified under its Form 1-A filing. On March 17, 2023, the Company and advisor entered into
a Warrant Surrender Agreement whereby the advisor agreed to the cancellation of the warrants and to the surrender of all of its right
for no consideration. As there was no derived value related to these warrants based on subsequent cancellation, no expense was recognized.
F-
27
Engagement Letter
On December 1, 2022, the Company entered into
an engagement letter with Boustead Securities, LLC to assist in the private placement of securities ("pre-IPO Financing")
and the initial public offering or other registered securities offerings ("IPO") in the United States listing on NASDAQ. Boustead
will act as exclusive financial advisor, placement agent and underwriter in connection with the Company's pre-IPO Financing and
IPO. The Company has agreed to pay Boustead certain commissions based on future financings as defined in the agreement.
10.
SUBSEQUENT EVENTS
Conversion to Nevada Corporation
On February 3, 2023, the Company changed its state
of incorporation to the State of Nevada by merging into LQR House Inc., a Nevada corporation. On February 3, in accordance with our reincorporation
to Nevada, the Company's authorized capital stock changed from 100,000,000 shares of common stock, $0.001 par value, to 350,000,000
shares, consisting of 300,000,000 shares of common stock, par value $0.0001 per share, and 50,000,000 shares of preferred stock, par value
$0.0001 per share. At the same time, the Company also completed a 6-for-1 reverse stock split of our outstanding common stock through
the merger by issuing one share of common stock for every six previously outstanding shares of common stock of the predecessor Delaware
company.
The accompanying financial statements and related disclosures have been
presented to retroactively reflect the Reorganization.
Amendment to Articles of Incorporation
On March 29, 2023, the Company amended its articles
of incorporation to institute a dual class share structure consisting of Class A Common Stock, and Class B Common Stock, and any number
of classes of Preferred Stock. Class A Common Stock is entitled to twenty (20) votes per share on proposals requiring or requesting shareholder
approval, and Class B Common Stock is entitled to one (1) vote on any such matter. A share of Class A Common Stock may be voluntarily
converted into a share of Class B Common Stock. A transfer of a share of Class A Common Stock will result in its automatic conversion
into Class B Common Stock upon such transfer, subject to certain exceptions, including that the transfer of shares of Class A Common Stock
to another holder of Class A Common Stock will not result in such automatic conversion. Class B Common Stock is not convertible. Other
than as to voting and conversion rights, Class A Common Stock and Class B Common Stock have the same rights and preferences and rank equally,
share ratably and are identical in all respects as to all matters.
Due to this amendment, the Company's authorized
capital stock became 350,000,000 shares, consisting of: (i) 300,000,000 shares of common stock, par value $0.0001 per share, of which
20,000,000 shares are designated Class A Common Stock, $0.0001 par value per share, and 280,000,000 shares are designated Class B Common
Stock, $0.0001 par value per share; and (ii) 50,000,000 shares of "blank check" preferred stock, $0.0001 par value per share.
All shares of common stock issued and outstanding at the time of the amendment became shares of Class B Common Stock.
Management has evaluated subsequent events through
April 5, 2023, the date the financial statements were available to be issued. Based on this evaluation, no additional material events
were identified which require adjustment or disclosure in these financial statements.
F-
28
LQR House Inc.
Shares of Common Stock
PROSPECTUS
,
2023
Until and including               , 2023 (the 25th day after
the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering,
may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an
underwriter and with respect to an unsold allotment or subscription.
The
information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement
filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not
soliciting offers to buy these securities in any state where the offer or sale is not permitted.
SUBJECT
TO COMPLETION
PRELIMINARY
PROSPECTUS DATED June 14, 2023
LQR House Inc.
5,381,668 Shares of Common Stock
This prospectus relates to 5,381,668 shares of
Common Stock, $0.0001 par value per share, or the Common Stock, of LQR House Inc. that may be sold from time to time by the selling stockholders
named in this prospectus.
We will not receive any proceeds from the sales
of outstanding common stock by the selling stockholders.
Prior to this offering, there has been no public
market for our shares. We are in the process of applying to list our shares of Common Stock on the Nasdaq Capital Market tier operated
by The Nasdaq Stock Market LLC, or Nasdaq, under the symbol "LQR". Nasdaq might not approve such application, and if our application
is not approved, this offering cannot be completed.
We are an "emerging growth company",
as defined in the Jumpstart Our Business Startups Act of 2012, under applicable U.S. federal securities laws, and are eligible for reduced
public company reporting requirements. See "
Risk Factors—Risks Related to This Offering and Ownership of Common Stock—We
will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not emerging
growth companies, and our stockholders could receive less information than they might expect to receive from more mature public companies
."
for more information.
The selling stockholders may offer and sell the
Common Stock being offered by this prospectus from time to time in public or private transactions, or both. These sales will occur at
a fixed price of $5 per share until our Common Stock is listed on Nasdaq. Thereafter, these sales will occur at fixed prices, at market
prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. The selling stockholders
may sell shares to or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions
or commissions from the selling stockholders, the purchasers of the shares, or both. Any participating broker-dealers and any selling
stockholders who are affiliates of broker-dealers may be deemed to be "underwriters" within the meaning of the Securities
Act of 1933, as amended, and any commissions or discounts given to any such broker-dealer or affiliates of a broker-dealer may be regarded
as underwriting commissions or discounts under the Securities Act of 1933, as amended. The selling stockholders have informed us that
they do not have any agreement or understanding, directly or indirectly, with any person to distribute their common stock. See "
Plan
of Distribution
" for a more complete description of the ways in which the shares may be sold.
Investing in our securities is highly speculative
and involves a high degree of risk.  See "
Risk Factors
" beginning on page
11
for a discussion of information that should be considered in connection with an investment in our securities.
Neither the U.S. Securities and Exchange Commission
nor any state or provincial securities commission has approved or disapproved of these securities or determined if this prospectus is
truthful or complete.  Any representation to the contrary is a criminal offense.
The date of this prospectus is [   ].
[Alternate
Page for Resale Prospectus]
The
Offering
Common stock offered by the selling stockholders:
This prospectus relates to 5,381,668 shares of Common Stock that may be sold from time to time by the selling stockholders named in this prospectus.
Shares outstanding as of the date of this prospectus:
10,155,434 shares of Common Stock.
Shares outstanding after the offering: (1)
11,155,434 shares of Common Stock (or 11,305,434 shares if the underwriters exercise the over-allotment option in full).
Use of proceeds:
We will not receive any proceeds from the sales of outstanding Common Stock by the selling stockholders.
Risk factors:
Investing in our Common Stock involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "Risk Factors" section beginning on page 11 before deciding to invest in our Common Stock.
Trading market and symbol:
We have applied to list our Common Stock on Nasdaq under the symbol "LQR".  We believe that upon the completion of this offering, we will meet the standards for listing on Nasdaq.  The closing of this offering is contingent upon the successful listing of our Common Stock on Nasdaq.
(1)
The number of shares of common stock outstanding immediately
following this offering is based on 10,155,434 shares of Common Stock
outstanding
as of the date of this prospectus, and excludes:
●
1,250,000 shares of Common Stock that are reserved for issuance
to our directors, director nominees, and officers under the LQR House Inc. 2021 Stock Option and Incentive Plan, or the 2021 Plan;
●
50,000 shares of Common Stock (57,500 shares of Common Stock
if the underwriters exercise the over-allotment option in full) issuable upon exercise of a warrant to be issued to the underwriters
in connection with this offering; and
●
150,000 shares of Common Stock issuable upon the underwriters'
exercise of the over-allotment option in full.
USE OF PROCEEDS
We will not receive any proceeds from the sale
of Common Stock by the selling stockholders.
The selling stockholders will pay any underwriting
discounts and commissions and expenses incurred by them for brokerage, accounting, tax or legal services or any other expenses incurred
by them in disposing of the shares. We will bear all other costs, fees and expenses incurred in effecting the registration of the shares
covered by this prospectus, including, without limitation, all registration and filing fees and fees and expenses of our counsel and our
accountants.
Alt-
1
[Alternate Page for Resale
Prospectus]
SELLING STOCKHOLDERS
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. Except for the ownership of these securities
or as otherwise disclosed below, the selling stockholders have not had any position, office, or other material relationship with us or
any of our predecessors or affiliates within the past three years, and based on the information provided to us by the selling stockholders,
no selling stockholder is a broker-dealer or an affiliate of a broker-dealer.
Beneficial ownership is determined in accordance
with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities.
For purposes of this table, a person or group of persons is deemed to have "beneficial ownership" of any shares of common
stock that such person or any member of such group has the right to acquire within sixty (60) days of the date of this prospectus. For
purposes of computing the percentage of outstanding shares of our common stock held by each person or group of persons named below, any
shares that such person or persons has the right to acquire within sixty (60) days of the date of this prospectus are deemed to be outstanding
for such person, but not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion
herein of any shares listed as beneficially owned does not constitute an admission of beneficial ownership by any person.
The table below lists the selling stockholders
and other information regarding the beneficial ownership of the shares of common stock by each of the selling stockholders. The second
column lists the number of shares of Common Stock beneficially owned by each selling stockholder. The third column lists the shares of
Common Stock being offered by this prospectus by the selling stockholders.
The selling stockholders can offer all, some or
none of their shares of Common Stock. See "
Plan of Distribution
." We therefore have no way of determining the number
of shares of Common Stock each selling Stockholder will hold after this offering. Therefore, the fourth and fifth columns assume that
each selling stockholder will sell all shares of Common Stock covered by this prospectus.
Common Stock
Beneficially Owned
Prior to this Offering
Number of
Shares Being
Offered in this
Common Stock
Beneficially Owned
After this Offering
Name of Selling Stockholder
Shares
Percent
(1)
Offering
Shares
Percent
(2)
KBROS, LLC
(3)
1,333,334
13.13
%
1,333,334
-
-
Index Equity US LLC
(4)
750,000
7.39
%
750,000
-
-
Joel Abbo
(5)
816,667
8.04
%
750,000
66,667
0.95
%
Kiranjit Sidhu
(6)
600,000
5.91
%
600,000
-
-
2200049 AB Inc.
(7)
591,000
5.82
%
591,000
-
-
1000038756 Ontario Inc.
(8)
500,000
4.92
%
500,000
-
-
Gregory Hoffman
(9)
500,000
4.92
%
500,000
-
-
14847156 Canada Inc.
(10)
250,000
2.46
%
250,000
-
-
Lorne Rapkin
(11)
123,334
1.21
%
100,000
23,334
0.33
%
Myron Rapkin
(12)
7,334
0.07
%
7,334
-
-
Total
5,471,669
53.87
%
5,381,668
90,001
1.28
%
(1)
Applicable
percentage ownership is based on 10,155,434 shares of Common Stock deemed to be outstanding as of the date of this prospectus.
(2)
Applicable
percentage ownership is based on 11,155,434 shares of Common Stock which will be deemed to be outstanding following this offering.
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(3)
KBROS, LLC is owned by Shawn Kattoula. Shawn Kattoula is
deemed to beneficially own the shares of Common Stock owned by KBROS, LLC because he has voting and investment control over the shares.
KBROS, LLC's address is 1771 Burwell Ln El Cajon, CA 92019, United States.
(4)
Index Equity US LLC is owned by Bjarne Borg. Bjarne Borg
is deemed to beneficially own the shares of Common Stock owned by Index Equity US LLC because he has voting and investment control over
the shares. Index Equity US LLC's address is 1000 North US Highway One, Ste 902, Jupiter, FL 33477, United States.
(5)
Consists of 750,000 shares of Common Stock held in the name
of Joel Abbo, which are being offered in this offering, and 66,667 shares of Common Stock held in the name of Jobel Foundation. Jobel
Foundation, a Panama corporation, is owned by Joel Abbo. Joel Abbo is deemed to beneficially own the shares of Common Stock owned by
Jobel Foundation because he has voting and investment control over the shares. Jobel Foundation's business address is Punta Pacifica,
Bellagio Tower, Apt 1-B Panama, Republic of Panama.
(6)
The Selling Stockholder has voting and investment control
over the shares. The address of the Selling Stockholder is 130 West Clark Street, Medford, OR 97501, United States.
(7)
2200049 AB Inc. is owned by Greg Bealer. Greg Bealer is deemed
to beneficially own the shares of Common Stock owned by 2200049 AB Inc. because he has voting and investment control over the shares.
2200049 AB Inc.'s address is 16 Wolf Willow Point, Edmonton AB, T5T 1E3, Canada.
(8)
1000038756 Ontario Inc. is owned by Kristen Kiernander. Kristen
Kiernander is deemed to beneficially own the shares of Common Stock owned by 1000038756 Ontario Inc. because she has voting and investment
control over the shares. 1000038756 Ontario Inc.'s address is 217 Queen St. W, Toronto, ON, M5V 0R2, Canada.
(9)
The Selling Stockholder has voting and investment control
over the shares. The address of the Selling Stockholder is 1945 S Ocean Dr Suite 805, Hallandale Beach, FL 33009, United States.
(10)
Consists of 250,000 shares of Cmmon Stock held in the name
of 14847156 Canada Inc., which are being offered in this offering. 14847156 Canada Inc. is owned by Carla Kavalec and Wendy Nickless,
each owning 50% of the company. Carla Kavalec and Wendy Nickless are deemed to beneficially own the shares of Common Stock owned by 14847156
Canada Inc. because, each of them owning 50% of the company, together have 100% voting and investment control over the shares. 14847156
Canada Inc.'s address is 450 Roland Godard, St. Jerome, QB, J7Y 4G8, Canada. Not included are the 16,667 shares of Common Stock
owned solely by Carla Kavalec. Not included are the 16,667 shares of Common Stock owned solely by Wendy Nickless.
(11)
Consists of 100,000 shares of Common Stock held in the name
of Lorne Rapkin, which are being offered in this offering, and 23,334 shares of Common Stock held in the name of BSL Consulting Inc.
Lorne Rapkin owns BSL Consulting Inc, an Ontario Corporation. Lorne Rapkin is deemed to beneficially own the shares of Common Stock owned
by BSL Consulting Inc. because he has voting and investment control over the shares. BSL Consulting Inc.'s business address is
28 Northmount Avenue, Toronto, ON, M3H 1N4, Canada.
(12)
The Selling Stockholder has voting and investment control
over the shares. The address of the Selling Stockholder is 217 Ridley Blvd., Suite 706, Toronto, ON, M5M 4N1, Canada.
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PLAN OF DISTRIBUTION
Each selling stockholder and any of
their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on any
stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales will occur at fixed
prices, at market prices prevailing at the time of sale, at prices related to prevailing market prices, or at negotiated prices. A selling
stockholder may use any one or more of the following methods when selling securities:
●
ordinary
                                            brokerage transactions and transactions in which the broker-dealer solicits purchasers;
●
block
                                            trades in which the broker-dealer will attempt to sell the securities as agent but may position
                                            and resell a portion of the block as principal to facilitate the transaction;
●
purchases
                                            by a broker-dealer as principal and resale by the broker-dealer for its account;
●
an
                                            exchange distribution in accordance with the rules of the applicable exchange;
●
privately
                                            negotiated transactions;
●
settlement
                                            of short sales;
●
in
                                            transactions through broker-dealers that agree with the selling stockholders to sell a specified
                                            number of such securities at a stipulated price per security;
●
through
                                            the writing or settlement of options or other hedging transactions, whether through an options
                                            exchange or otherwise;
●
a
                                            combination of any such methods of sale; or
●
any
                                            other method permitted pursuant to applicable law.
Notwithstanding anything to the contrary stated
above, until trading of the Common Stock commences on Nasdaq, sales by the selling stockholders will occur at a fixed price, which will
be the assumed offering price of $5.00 per share. The selling stockholders may also sell securities under Rule 144 or any other exemption
from registration under the Securities Act of 1933, as amended, or the Securities Act, if available, rather than under this prospectus.
Broker-dealers engaged by the selling stockholders
may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders
(or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except
as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission
in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.
In connection with the sale of the
securities or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or other financial institutions,
which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The selling stockholders
may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities to broker-dealers
that in turn may sell these securities. The selling stockholders may also enter into option or other transactions with broker-dealers
or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other
financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).
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The selling stockholders and any broker-dealers
or agents that are involved in selling the securities may be deemed to be "underwriters" within the meaning of the Securities
Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale
of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each selling stockholder
has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute
the securities. Each selling stockholder has represented and warranted to us that it acquired the securities subject to this prospectus
in the ordinary course of such selling stockholder's business and, at the time of its purchase of such securities such selling stockholder
had no agreements or understandings, directly or indirectly, with any person to distribute any such securities.
We are required to pay certain fees
and expenses incurred by us incident to the registration of the securities, but we will not receive any proceeds from the sale of our
Common Stock. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.
The resale securities covered hereby will be sold
only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states,
the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or
an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and regulations under
the Securities Exchange Act of 1934, as amended, or the Exchange Act, any person engaged in the distribution of the resale securities
may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined
in Regulation M, prior to the commencement of the distribution. In addition, the selling stockholders will be subject to applicable provisions
of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales
of the common stock by the selling stockholders or any other person. We will make copies of this prospectus available to the selling
stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the
sale (including by compliance with Rule 172 under the Securities Act).
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LEGAL MATTERS
Nauth LPC has acted as our counsel in connection
with the preparation of this prospectus. The validity of the securities covered by this prospectus will be passed upon by Sherman
& Howard L.L.C., Phoenix, Arizona.
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PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution
The following table sets forth the costs and expenses,
other than underwriting discounts and commissions, payable by us in connection with the sale of shares of Common Stock being registered.
All amounts, other than the SEC registration fee, Nasdaq listing fee and FINRA filing fee, are estimates. We will pay all these expenses.
Amount
SEC registration fee
$
4,356.76
Nasdaq listing fee
$
50,000.00
FINRA filing fee
$
6,430.25
Accounting fees and expenses
$
100,000.00
Legal fees and expenses
$
198,542.25
Transfer agent fees and expenses
$
3,000.00
Printing and related fees
$
2,000.00
Miscellaneous
$
0.00
Total
$
364,509.26
*
To be filed by amendment.
Item 14. Indemnification of Directors and Officers
We are a Nevada corporation. The Nevada Revised
Statutes and certain provisions of our bylaws under certain circumstances provide for indemnification of our officers, directors and controlling
persons against liabilities which they may incur in such capacities. A summary of the circumstances in which such indemnification is provided
for is contained herein, but this description is qualified in its entirety by reference to our bylaws and to the statutory provisions.
In general, any officer, director, employee or
agent may be indemnified against expenses, fines, settlements or judgments arising in connection with a legal proceeding to which such
person is a party, if that person's actions were in good faith, were believed to be in our best interest, and were not unlawful.
Unless such person is successful upon the merits in such an action, indemnification may be awarded only after a determination by independent
decision of our board of directors, by legal counsel, or by a vote of our stockholders, that the applicable standard of conduct was met
by the person to be indemnified.
The circumstances under which indemnification
is granted in connection with an action brought on our behalf is generally the same as those set forth above; however, with respect to
such actions, indemnification is granted only with respect to expenses actually incurred in connection with the defense or settlement
of the action. In such actions, the person to be indemnified must have acted in good faith and in a manner believed to have been in our
best interest, and have not been adjudged liable for negligence or misconduct.
Indemnification may also be granted pursuant to
the terms of agreements which may be entered in the future or pursuant to a vote of stockholders or directors. The Nevada Revised Statutes
also grant us the power to purchase and maintain insurance which protects our officers and directors against any liabilities incurred
in connection with their service in such a position, and such a policy may be obtained by us.
To the maximum extent permitted by law, our articles
of incorporation eliminate or limit the liability of our directors to us or our shareholders for monetary damages for breach of a director's
fiduciary duty as a director.
We have entered or intend to enter into separate
indemnification agreements with our directors and officers. Each indemnification agreement will provide, among other things, for indemnification
to the fullest extent permitted by law and our articles of incorporation and bylaws against any and all expenses, judgments, fines, penalties
and amounts paid in settlement of any claim. The indemnification agreements will provide for the advancement or payment of all expenses
to the indemnitee and for reimbursement to us if it is found that such indemnitee is not entitled to such indemnification under applicable
law and our articles of incorporation and bylaws.
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We are in the process of obtaining standard policies
of insurance under which coverage is provided (a) to our directors and officers against loss rising from claims made by reason of
breach of duty or other wrongful act, and (b) to us with respect to payments which we may make to such officers and directors pursuant
to the above indemnification provision or otherwise as a matter of law.
The underwriting agreement, filed as Exhibit 1.1
to this registration statement, will provide for indemnification, under certain circumstances, by the underwriter of us and our officers
and directors for certain liabilities arising under the Securities Act or otherwise.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been
informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore
unenforceable.
Item 15. Recent Sales of Unregistered Securities
During the past three years, we issued the following
securities, which were not registered under the Securities Act.
2021 Formation Transactions
On March 19, 2021, we, as buyer, and Dollinger
Holdings LLC, Dollinger Innovations Inc., and Sean Dollinger, our Chief Executive Officer and Secretary, as sellers, engaged in an asset
purchase agreement, the SWOL Tequila Asset Purchase. Pursuant to that agreement, Dollinger Holdings LLC, which is wholly owned by Sean
Dollinger, received $220,000 in cash, Sean Dollinger received 16,000,000 shares of our common stock, (2,666,667 shares of common stock
on a post-stock split basis) and we obtained ownership of the assets and liabilities that constitute the SWOL brand and SWOL Tequila Branding.
The assets and liabilities constituting the SWOL Brand and SWOL Tequila Branding were held in part by Dollinger Holdings LLC and Dollinger
Innovations.
On April 1, 2021, we, CWS, and Ssquared entered
into an Exclusive Marketing Agreement. Pursuant to that agreement, CWS and Ssquared granted us exclusive marketing rights regarding any
of CWS and Ssquared's products, and Sean Dollinger, our Chief Executive Officer and 50% owner of Ssquared received 2,000,000 shares
of our common stock (333,334 shares of common stock on a post-stock split basis), and KBros, LLC, the owner of CWS and 50% owner of Ssquared,
received 8,000,000 shares of our common stock. (1,333,334 shares of common stock on a post-stock split basis).
On May 31, 2021, we engaged in an asset purchase
agreement, the Soleil Vino Asset Purchase Agreement, with Dollinger Holdings LLC. Pursuant to that agreement, we purchased the assets
and liabilities associated with the Soleil Vino wine club and its products, and Dollinger Holding LLC, wholly owned by Sean Dollinger,
received $100,000 in cash and Sean Dollinger, or Chief Executive Officer, received 3,800,000 shares of our common stock (633,334 shares
of common stock on a post-stock split basis), and Andrea Cooke received 200,000 shares of our common stock (33,334 shares of common stock
on a post-stock split basis). In conjunction with the acquisition the Company entered into a finder's fee agreement with a third
party which 400,000 shares of our common stock were issued (66,667 shares of common stock on a post-stock split basis).
2021 Private Placements
On January 20, 2021, we issued 10,400,000 shares
of our common stock (1,733,334 shares of common stock on a post-stock split basis) at a price of $0.001 per share, for a total of $10,400.
On February 12, 2021, we issued 10,148,424 shares
of our common stock (1,691,404 shares of common stock on a post-stock split basis) at a price of $0.25 per share, for a total of $2,537,106.
On February 19, 2021, we issued 1,800,000 shares
of our common stock (300,000 shares of common stock on a post-stock split basis) at a price of $0.25 per share, for a total of $450,000.
On February 22, 2021, we issued 254,000 shares
of our common stock (42,334 shares of common stock on a post-stock split basis) at a price of $0.25 per share, for a total of $63,500.
On April 26, 2021, we issued 100,000 shares of
our common stock (16,667 shares of common stock on a post-stock split basis) at a price of $0.50 per share, for a total of $50,000.
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Equity Award Conversions
On September 18, 2021, 525,000 of our restricted
stock units (87,500 restricted stock units on a post-stock split basis), which were issued on March 18, 2021, were converted into 525,000
shares of our common stock (87,500 shares of common stock on a post-stock split basis).
On July 11, 2022, 525,000 of our restricted stock
units (87,500 restricted stock units on a post-stock split basis), which were issued on March 18, 2021, were converted into 525,000 shares
of our common stock (87,500 shares of common stock on a post-stock split basis).
On September 30, 2022, 1,050,000 of our restricted
stock units (175,000 restricted stock units on a post-stock split basis), which were issued on March 18, 2021, were converted into 1,050,000
shares of our common stock (175,000 shares of common stock on a post-stock split basis).
2023 Private Placement
On June 1, 2023, we conducted a private placement
of our Common Stock and entered into certain subscription agreements with a number of (i) accredited investors as defined in Section 2(a)(15)
of the Securities Act, and Rule 501 promulgated thereunder, in reliance upon the exemption contained in Section 4(a)(2) of the Securities
Act, and Rule 506(b) of Regulation D promulgated thereunder, and applicable state securities laws or (ii) non-U.S. persons made in compliance
with the provisions of Regulation S promulgated under the Securities Act. Pursuant to the agreements, we issued 955,000 shares of Common
Stock at $1.00 per share for a total of $955,000.
2023 Advisor Agreements
On June 1, 2023, we entered into advisor agreements
with certain advisors, pursuant to which the advisors will provide business and corporate advice in connection with the Offering to the
Company. In consideration for the advisor's services, the Company issued 500,000 shares of Common Stock to six individuals and entities,
for an aggregate of 3,000,000 shares of Common Stock.
Other
In February 2022, we issued a contingent warrant
to Issuance Inc. pursuant to a consulting agreement, dated September 27, 2021, between Issuance Inc. and the Company. The warrant was
exercisable on a cashless basis for a number of shares of our common stock equaling $2,000,000, based on the offering price of a proposed
Regulation A offering which was qualified on March 7, 2022, and withdrawn on June 27, 2022. The term of the warrant is five years. However,
because the Regulation A offering was withdrawn, and no securities were sold thereunder, the warrant was cancelled.
Unless otherwise stated above, the issuances of
these securities were made in reliance upon exemptions provided by Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation
D thereunder for the offer and sale of securities not involving a public offering.
No underwriter was engaged in connection with
the foregoing sales of securities. The Company has reason to believe that all of the foregoing purchasers were familiar with or had access
to information concerning the operations and financial condition of the Company, and all of those individuals or entities purchasing securities
represented that they were accredited investors, acquiring the shares for investment and without a view to the distribution thereof. At
the time of issuance, all of the foregoing securities were deemed to be restricted securities for purposes of the Securities Act and the
certificates representing such securities bore legends to that effect.
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Item 16. Exhibits.
(a) Exhibits.
Exhibit No.
Description
1.1*
Form of Underwriting Agreement
2.1
Plan of Conversion of LQR House Inc., dated as of January 26, 2023
3.1
Articles of Incorporation of LQR House Inc. filed on February 3, 2023
3.2
Certificate of Amendment to Articles of Incorporation of LQR House Inc. filed on March 29, 2023
3.3
Certificate of Amendment to Articles of Incorporation of LQR House Inc. filed on June 5, 2023
3.4
Certificate of Correction to the Certificate of Amendment to Articles of Incorporation filed on April 11, 2023
3.5
Bylaws of LQR House Inc.
4.1*
Form of Representative's Warrant (included in Exhibit 1.1)
4.2*
Form of Placement Agent's Warrant
5.1*
Opinion of Sherman & Howard LLC
10.1
Form of Private Placement Subscription Agreement 2021
10.2
Form of Private Placement Subscription Agreement 2023
10.3
Packaging of Origin Co-Responsibility Agreement dated July 6, 2020, between Leticia Hermosillo Ravelero and Sean Dollinger
10.4
Shared Responsibility & Bonding Agreement dated March 19, 2021, between Leticia Hermosillo Ravelero and Dollinger Innovations Inc.
10.5
Exclusive License Agreement dated May 18, 2020 by and between Dollinger Holdings and Dollinger Innovations
10.6
Product Distribution Agreement, dated July 1, 2020, between Dollinger Holdings and Country Wine & Spirits Inc.
10.7
Asset Purchase Agreement, dated May 31, 2021, between LQR House Inc. and Dollinger Holdings LLC
10.8
Asset Purchase Agreement, dated March 19, 2021, among LQR House Inc. and Dollinger Innovations Inc., Dollinger Holdings LLC and Sean Dollinger
10.9
Exclusive Marketing Agreement, dated April 1, 2021, by and among Country Wine & Spirits, Inc., Ssquared Spirits, LLC, and LQR House, Inc.
10.10†
Employment Agreement between LQR House Inc. and Sean Dollinger, dated March 29, 2023
10.11†
Employment Agreement between LQR House Inc. and Kumar Abhishek, dated May 1, 2023
10.12†
Employment Agreement between LQR House Inc. and Jaclyn Hoffman, dated May 1, 2023
10.13
†
Employment Agreement between LQR House Inc. and Alexandra Hoffman, dated May 1, 2023
10.14
†
Form of Independent Director Agreement between LQR House Inc. and each director nominee
10.15†
Form of Non-Independent Director Agreement between LQR House Inc. and Non-Independent Director
10.16
Form of Director and Officer Indemnification Agreement between LQR House Inc. and each officer or director
10.17†
LQR House Inc. 2021 Stock Option and Incentive Plan
10.18†
Amendment No. 1 to the LQR House Inc. 2021 Stock Option and Incentive Plan
10.19†
Form of Incentive Stock Option Agreement (included in Exhibit 10.17)
10.20†
Form of Non-Qualified Stock Option Agreement for Non-Employee Directors (included in Exhibit 10.17)
10.21†
Form of Non-Qualified Stock Option Agreement for Company Employees (included in Exhibit 10.17)
10.22†
Form of Non-Qualified Stock Option Agreement for Non-Employee Consultants (included in Exhibit 10.17)
10.23†
Form of Restricted Stock Award Agreement (included in Exhibit 10.17)
10.24†
Form of Restricted Stock Unit Award Agreement for Non-Employee Directors (included in Exhibit 10.17)
10.25†
Form of Restricted Stock Unit Award Agreement for Company Employees (included in Exhibit 10.17)
10.26
Form of Advisor Agreement
10.27
Commercial Lease Agreement
14.1
Code of Ethics and Business Conduct
21.1
List of Subsidiaries
23.1
Consent of dbb
mckennon
23.2*
Consent of Sherman & Howard LLC (included in Exhibit 5.1)
24.1
Power of Attorney (included on the signature page of this registration statement)
99.1
Audit Committee Charter
99.2
Compensation Committee Charter
99.3
Nominating and Corporate Governance Committee Charter
99.4
Consent of Guy Dollinger to be named as a director nominee
99.5
Consent of Holiday Russell to be named as a director nominee
99.6
Consent of James Huber to be named as a director nominee
99.7
Consent of James O'Brien to be named as a director nominee
107
Filing Fee Table
*
To be filed by amendment.
†
Executive compensation plan or arrangement.
(b) Financial Statement Schedules.
All financial statement schedules are omitted
because the information called for is not required or is shown either in the financial statements or in the notes thereto.
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Item 17. Undertakings
The undersigned registrant hereby undertakes to
provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered
in such names as required by the underwriters to permit prompt delivery to each purchaser.
(a)
The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933 (the "Act");
(ii)
To reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in this registration statement; notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent
no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of 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 this registration statement or any material change to such information in this registration statement.
(2)
That, for the purpose of determining any liability under
the Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein,
and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.
(4)
That, for the purpose of determining liability under the Act to any purchaser, each prospectus filed pursuant
to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or
other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of
the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that
is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement
or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement
or made in any such document immediately prior to such date of first use.
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(5)
That, for the purpose of determining liability of the registrant under the Act to any purchaser in the
initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned
registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser,
if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will
be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required
to be filed pursuant to Rule 424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant
or used or referred to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information
about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
(b)
Insofar as indemnification for liabilities arising under the Act may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 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.
(c)
The undersigned registrant hereby undertakes that:
(i)
For purposes of determining any liability under the Act, the information omitted from the form of prospectus
filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant
pursuant to Rule 424(b)(1) or (4) or 497(h) under the Act shall be deemed to be part of this registration statement as of the time it
was declared effective.
(ii)
For purposes of determining any liability under the Act, each post-effective amendment that contains a
form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial bona fide offering thereof.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Vancouver, Province of British Columbia, on June 14, 2023.
LQR House Inc.
By:
/s/ Sean Dollinger
Name:
Sean Dollinger
Title:
Chief Executive Officer and Secretary
POWER OF ATTORNEY
Each person whose signature appears below constitutes
and appoints each of Sean Dollinger and Kumar Abhishek as his or her true and lawful attorneys-in-fact and agents with full power of substitution
and resubstitution, for him and his name, place and stead, in any and all capacities, to sign any or all amendments (including post-effective
amendments) to this registration statement and to file a new registration statement under Rule 461, and to file the same, with all exhibits
thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact
and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the
foregoing, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents, or their substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
SIGNATURE
TITLE
DATE
/s/ Sean Dollinger
Chief Executive Officer
June 14, 2023
Sean Dollinger
(Principal Executive Officer), Secretary and Director
/s/ Kumar Abhishek
Chief Financial Officer
June 14, 2023
Kumar Abhishek
(Principal Financial and Accounting Officer)
/s/ Alexandra Hoffman
Director
June 14, 2023
Alexandra Hoffman
/s/ Darren Collins
Director
June 14, 2023
Darren Collins
II-7