Company: AIBT
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001096906-25-000861
Chunk: 19

Company: AIBOTICS, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 8
Chunk 19
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 the shares.
 
During the three months ended March 31, 2025, the Company issued 500,000 shares of common stock to settle $53,000 of accrued expenses. There was no gain or loss recorded on the issuance of the shares.
 
During the three months ended March 31, 2025, the Company issued 422,958 shares of common stock to settle $28,761 of accrued expenses. There was no gain or loss recorded on the issuance of the shares.
 
Series A Preferred Stock
 
As of March 31, 2025 and December 31, 2024 we were authorized to issue 1 and 0 shares of Series A Preferred Stock, $0.001 par value. The holder of the Series A Preferred is entitled to cast that number of votes on all matters presented for stockholder vote to the stockholders of the Corporation that when taking into account the votes entitled to be cast by the Series A Preferred stockholder is equal to seventy-five percent (75%) of the total shares authorized to vote on such matter(s) and such holder shall vote along with holders of the Corporation’s Common Stock on such matters. Additionally, the Series A Preferred Stock is convertible into 9,793,754 shares of Company common stock at the option of the holder. 
 
On July 29, 2024, the Company entered into an Exchange Agreement with Ehave, Inc., its largest shareholder, whereby the Company agreed to issue Ehave, Inc. one share of Series A Preferred Stock in exchange for 9,793,754 shares of common stock.
 
Series B Preferred Stock - Mezzanine Equity
 
The Series B Preferred Stock is recorded as mezzanine equity in accordance with ASC 480, “Distinguishing Liabilities from Equity”. The Series B Shares are recorded as mezzanine equity in accordance with ASC 480 because the Company may be obligated to issue a variable number of shares at a fixed price known at inception and there is no maximum number of shares that could potentially be issued upon conversion. In this instance, cash settlement would be presumed and the Series B Shares are classified as mezzanine equity in accordance with ASC 480-10-S99. Immediately upon effectiveness of the registration statement registering for resale of all the common stock issuable under the Series B Shares, all outstanding Series B Shares shall automatically convert into common stock. As of March 31, 2025 and December 31, 2024 the Company was authorized to issue 1,500,