Company: AGGI
Filing Date: 2025-10-31
Form Type: 10-12G
Source: 0001683168-25-007875
Chunk: 95

Company: Allied Energy, Inc.
Filing Date: 2025-10-31
Form: 10-12G
Chunk 95
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exercised stock options totaling $39,900, resulting in the issuance of 124,580 shares of the subsidiary’s common stock. Total cash
proceeds of $110,243 were received by the subsidiary in connection with these exercises. Such proceeds are included within Cash proceeds
from subscription receivables in the consolidated statements of stockholders’ equity / (deficit), and are also reflected as a financing
activity in the consolidated statements of cash flows. All of the stock options issued under the BILI, Inc. plan were converted into shares
of the Company’s Series B Preferred Stock pursuant to the Equity Exchange Agreement, and the stock option plan was terminated in
September 24, 2024 by the board of directors of BILI, Inc. No options were issued and outstanding as of June 30, 2025.

The cost of stock-based compensation related to
these options is recognized by the subsidiary over the vesting period in accordance with ASC 718, Compensation – Stock Compensation,
and is included in the Company’s consolidated statements of operations. The corresponding increase in equity is reflected in additional
paid-in capital in the consolidated balance sheets.

Reclassification of Negative Additional Paid-in Capital

During the three-month period ended March 31, 2025, in connection with
the conversion of all outstanding Series B Preferred Stock into common stock, the Company recorded a negative balance of $16,668,801 in
Additional Paid-in Capital (“APIC”). The conversion eliminated the preferred stock and related APIC balances, and the resulting
debit balance in APIC was reclassified to Accumulated Deficit to properly present the components of stockholders’ equity.

This reclassification is reflected in the consolidated
statements of stockholders’ equity as a transfer between APIC and accumulated deficit. It did not affect net loss, total stockholders’
equity (deficit), or cash flows for the periods presented. The adjustment is a presentation matter only and does not constitute a quasi-reorganization
under ASC 852-20, Reorganizations, as no assets or liabilities were revalued and no other equity accounts were impacted.

NOTE 8 – STOCK-BASED COMPENSATION

The Company’s wholly owned subsidiary, BILI
Inc., maintained an equity incentive plan that provided for the issuance of stock options to employees, directors, and consultants. Options
typically vested over service periods ranging from immediate to two years and expired one to two years from the grant date.

For the six months ended June 30, 202