# EDGAR Filing Document

**Accession Number:** 0001838432
**File Stem:** 0001104659-25-087856
**Filing Date:** 2025-9
**Character Count:** 176644
**Document Hash:** 00157e0aaca4ed932c46849c85b493c1
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-087856.hdr.sgml**: 20250905

**ACCESSION NUMBER**: 0001104659-25-087856

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20241231

**FILED AS OF DATE**: 20250905

**DATE AS OF CHANGE**: 20250905

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AtomBeam Technologies Inc.
- **CENTRAL INDEX KEY:** 0001838432
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 822545888
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00963
- **FILM NUMBER:** 251297232

**BUSINESS ADDRESS:**
- **STREET 1:** 1036 COUNTRY CLUB DR, SUITE 200
- **CITY:** MORAGA
- **STATE:** CA
- **ZIP:** 94556
- **BUSINESS PHONE:** (925) 588-1866

**MAIL ADDRESS:**
- **STREET 1:** 1036 COUNTRY CLUB DR, SUITE 200
- **CITY:** MORAGA
- **STATE:** CA
- **ZIP:** 94556

## Part

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. FORM 1-K**

**ANNUAL REPORT PURSUANT TO REGULATION A**

For the fiscal year ended <u>December 31, 2024</u>

**AtomBeam Technologies Inc.**

(Exact name of issuer as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **82-2545888** |
| (Jurisdiction of incorporation/organization) | (I.R.S. Employer Identification No.) |

---

**1036 Country Club Dr, Suite 200**

**Moraga, CA 94556**

(Address of Principal Executive Offices)

**(415) 404-9888**

(Phone)

**Common Stock**

(Title of each class of securities issued pursuant to Regulation A)

**Item 1.** **Business**

**Overview**

AtomBeam Technologies Inc. was organized in Delaware on August 17, 2017 as Drivewarp, LLC, the name under which it operated until January 29, 2019, when it changed its name and corporate form to a Delaware corporation. AtomBeam is a California-based software company with a sophisticated technology that we believe has the potential to change the way data generated by the "Internet of Things", or IoT, is transmitted and stored. The Company's intellectual property is protected by 99 issued and 26 allowed patents.

AtomBeam's first product, Neurpac, is a software technology that, based on our testing, typically reduces IoT data by an average of 75% compared to the original data for low entropy data. Compression algorithms are generally not effective on IoT data messages, which are typically too small for compression to find repetitions of patterns within a single file, a requisite for compression algorithms to be effective without "batching" multiple IoT data messages together. Batching increases the effective size of the file to be compressed, but waiting for a sufficient number of messages to be generated and batched incurs latency, and thus compression is impractical for real time applications involving batching. Also, unlike compressed files, Neurpac-encoded ("Compacted") files are readable, searchable and randomly accessible in a planned new feature, and are also more secure due to the deep obfuscation natively provided by Neurpac. We believe that this combination of benefits of Neurpac makes it differentiated from compression algorithms in important ways, and also enables the potential use of Neurpac to benefit certain artificial intelligence ("AI") applications.

We believe that Neurpac technology's *data-as-codewords* capabilities may make entire computer networks and systems more efficient and secure by enabling stored, reduced-size data to be searchable and randomly accessible. Achieving system-wide utilization of Neurpac will require many years of development, capital and expertise, but has been recognized as a possibility by AtomBeam's data scientists, who have demonstrated efficacy of the capability in proof of concept models and deployed software. Also, this feature of Neurpac may have possible benefits for artificial intelligence, including large language model AI, such as ChatGPT. For adoption in AI applications, AtomBeam will require the assistance of a large corporate partner, and has begun the process of seeking such a partner to augment the Company's limited research capabilities, however, there can be no guarantee that the Company will find such corporate partner.

The Company's second product, Neurcom, is still in development. Neurcom is an AI, neural net based software algorithm that has demonstrated in testing conducted by the University of Missouri, the Company's partner in development of Neurcom under a United States Air Force contract, the capability to reduce the size of certain sensor-generated images by a factor of more than double that provided by state of the art image compression algorithms. For other images, however, Neurcom has demonstrated significantly less reduction compared to standard compression, and is still undergoing further development efforts to improve and make more consistent its reduction performance. Neurcom's AI may be applicable to not only image files but also to video and audio files. Neurcom does not replace, but instead enhances the capabilities of video and audio "codecs", which are standard algorithms used to reduce the size of image, video and audio files.

**Products and Technology**

AtomBeam is currently focused on three products:

&nbsp;&nbsp;&nbsp;&nbsp;· Neurpac, currently released as a software as a service product as well as
in a Neurpac Software Development Kit ("SDK") version,

&nbsp;&nbsp;&nbsp;&nbsp;· Neurcom, which is currently in development, and

&nbsp;&nbsp;&nbsp;&nbsp;· The Persistent Cognitive Machine ("PCM"), which is also in development.

 

*Neurpac*

We believe that AtomBeam's Neurpac technology is a significant departure from conventional data reduction, known as data compression. We further believe that Neurpac can dramatically reduce the amount of data that is sent and makes communication faster, and it may also confer other benefits not possible with legacy compression algorithms. Compression is generally ineffective for sending IoT files in real time, since they are typically too small to have many repeated patterns within one file; for AtomBeam, however, file size is virtually irrelevant, with the product achieving similar reduction ratios in both very small and large files. We believe that this makes AtomBeam's technology a potential broadly used approach to machine-to-machine communication, which primarily involve very small data files.

In addition to reducing the size of data for transmission and storage, Neurpac's algorithmic structure provides for the potential to change how data is managed throughout a network. Among numerous potential capabilities that are unique to the technology, the Company believes that the five most significant are listed below. Some of these capabilities have not yet been developed, and are still theoretical, and may never be released as a commercial product or feature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Data reduction and implications for networks. Neurpac reduces the size of small individual datagrams, or messages, that are typical of machine, or IoT data. Because based on our internal testing, the Neurpac executable runtime software is fast, reducing files an average of 75% for low entropy data, and typically requires only microseconds to encode a message, effective data rate for machine data is, on average, increased by 4x. In addition, Neurpac-encoded data streams have shown in testing to be significantly less vulnerable to transmission errors than compressed data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Potential benefits for AI. Neurpac's features and fundamental structure make it a potentially significant contributor to the development of AI algorithms. Neurpac may be able to significantly increase the speed and efficiency of AI algorithms because of its combination of very fast runtime execution speed, reduced file sizes and its random access feature. Research by the Company on the potential application of Neurpac to AI is in its early stages, and there can be no assurance that it will be successful, or it will be released as a commercial product or feature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Searchability and random access. Data that has been encoded using Neurpac is searchable and randomly accessible, unlike most compressed data, and therefore we believe has the potential to significantly improve access to stored data, which could resolve a major issue that concerns many companies and organizations: making the massive amount of stored IoT data useful. Commercialization of such a capability will entail significant time and investment of resources. There can be no assurance that it will be successful, or it will be released as a commercial product or feature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Security. Neurpac in standard form confers a kind of security that does not, unlike standard encryption, require any additional computing steps, new hardware, added latency or other computational burden. In the same computational step as data is reduced, Neurpac's process relies on "codebooks" particular to the data source that substitutes representations, or indexes, for patterns in data messages. This substitution of the original message's content with indexes makes the messages unreadable to anyone who does not have the codebook that was used to encode the message. The security natively provided by Neurpac is not encryption, and no standards organization or governmental certifications have been sought or awarded with respect to Neurpac security. Consequently, the Company cannot advertise it as such. A version of Neurpac is under development that may be considered to incorporate encryption, but no assurance can be made that such version will be successfully developed or if developed, that it will prove to be of economic value to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Intrusion detection potential. The Company has postulated mathematical principles that would allow a user to detect an intrusion of Neurpac-encoded data streams. If the Company were to successfully implement these principles and develop this feature, the Company believes that many potential commercial customers and the U.S. Government may be interested in its adoption. Moreover, since this capability would only be available to users of Neurpac, if it were to be developed it may encourage the wider adoption of Neurpac, especially for customers for whom intrusion detection is of key interest. Many other intrusion detection software products are on the market, but the approach the Company plans to adopt is fundamentally different from existing techniques and may be complementary to other such technologies. There can be no assurance that the development of intrusion detection will be successful, or that it will be released as a commercial product or feature.

*Neurcom*

AtomBeam's second product in development, Neurcom, uses a unique artificial intelligence software to reduce the size of images that are generated by modern sensors, like light detection and ranging, or LiDAR, which builds images using lasers and is used in many autonomous vehicles, as well as synthetic aperture radar images generated by satellites and aircraft and other sensor-generated images. These are big files, and Neurcom has been shown in early testing to improve the performance of compression in testing performed in conjunction with the U.S. Air Force Research Laboratory. The core of Neurcom's intellectual property is its artificial intelligence software, which has been demonstrated to be applicable not only to specialized sensor image files, but is believed also to be applicable to other "lossy" compression algorithms to improve their performance, such as electro-optical images and audio files. Early research and testing have demonstrated that the technology may apply to these other use cases, but more work is required to prove its efficacy in a broad range of applications.

Neurcom's approach to data reduction is "lossy", and therefore does not apply to the data types for which Neurpac, which is "lossless", is appropriate, such as telemetry, geolocation, control data and other data for which no loss of fidelity is acceptable. Compression algorithms used for images, video and audio files for most uses are necessarily lossy, since the original, uncompressed files cannot be reduced sufficiently by "lossless" data reduction for such applications as consumer video and audio and most commercial uses, and the lossy compression is designed to retain only the data that is perceptible to human consumers of images and audio. Lossy compression algorithms first eliminate most, usually over 90%, of the video or audio file with various techniques prior to compressing the remainder. Neurcom adds another layer to this process based on its patent pending artificial intelligence algorithm that processes the file *before* it reaches the lossy compression, reducing the amount of data that needs to be compressed, resulting in a file that is smaller than what would be achievable without Neurcom's pre-processing.

**Complementary Applications of Neurpac and Neurcom**

Many data streams from IoT devices consist simply of telemetry, geolocation and other data for which the entire file must be reproduced, for which the use of Neurpac may be effective. In many instances, however, machine data streams that include data that is appropriate for Neurpac also incorporate images, video, or audio, for which lossy compression is appropriate. Consequently, in many instances, we believe that the combination of Neurpac and Neurcom may add significant effective bandwidth to a data stream of mixed data types. Many companies and governments devote significant resources to increasing available bandwidth, through improving hardware, eliminating bottlenecks with software, and other means that are generally more costly than Neurpac and Neurcom are likely to be. Consequently, if the Company is successful in building and fielding a product that combines Neurpac and Neurcom, Management believes that such a product would be in demand by many users.

**Platforms**

AtomBeam offers its customers its Neurpac software in two formats:

&nbsp;&nbsp;&nbsp;&nbsp;· Software as a Service, or SaaS, to which a user
"subscribes" their devices to a cloud-based service

&nbsp;&nbsp;&nbsp;&nbsp;· An SDK, which includes a copy of Neurpac software,
manuals, testing software, and other components used by customers for in-depth testing and integration into their solution. This is a
useful solution for situations in which the customer is a company that makes hardware products in which Neurpac can be added to the "software
stack" of the hardware device.

Further, in the longer term, the Company intends for this product to be integrated onto semiconductors.

In the Company's view, for its products to be widely used, they must be made to be invisible to the end user, and also very simple for an engineer to incorporate AtomBeam software in a product to be sold to an end user. The first step the Company has undertaken to make its products easily incorporated in devices, operating invisibly to end users, with maintenance and updating all in the background is its SaaS offering. To this end, the Company's close partnership with Viasat has enabled the Company to undertake the deep integration into the Amazon Web Service ("AWS") cloud that is required to make Neurpac, and later potentially Neurcom, available to makers of devices as the Company's cloud-based SaaS. The Company's SaaS product was released in its first Beta version in April 2024, with the production version 1.0 released in January 2025, and it is too early to determine its commercial viability.

Incorporation of its products in semiconductors is a key long term goal of the Company. The Company has performed early work related to the effort for Neurpac under an Air Force contract and has submitted a proposal to the U.S. Space Force in order to seek funding to continue this work. The Company believes that integrating its products on semiconductors will be the way the Company's technologies could be adopted at the greatest scale. Integration of Neurpac and Neurcom on chips makes possible their inclusion on logic boards, which simplifies their incorporation in devices and enables rapid, low cost, widespread adoption, and such devices, moreover, could communicate with the AtomBeam SaaS. There can be no assurance that incorporation of the Company's products in semiconductors will be successful, or released as a commercial product, and if released, that such semiconductors will be commercially successful.

**Other Developments**

As a software company, we anticipate that we will continue to evolve, and our product innovation policy includes continuing to innovate and develop our current products as well as to opportunistically take advantage of discoveries during the development of those products. For instance, on working on Neurpac's core capabilities, we noticed the potential for a variation on generative AI large language models, such as OpenAI's ChatGPT and Anthropic's Claude. Our variation, which we describe as a Persistent Cognitive Machine ("PCM") is in the process of being built using *data-as-codewords*, and therefore could potentially be trained on any data type, including mixed data types such as time series data, as opposed to language. This codewords-only training model means that our model may be data-type agnostic and could potentially be trained on large collections of Neurpac-encoded data directly, which may not be possible for other models used in generative AI that expect specific data types. Moreover, because codewords effectively compact data size, in limited testing we have been able to operate an early prototype of PCM on a laptop.

The PCM aims to combine advanced language and reasoning models with innovative components to create a "thinking machine." Our design for PCM integrates large language models (LLMs) and reasoning models (RMs) as foundational tools, enhanced by a unique executive system and a "thought cache." The goal will be for the thought cache to function as the machine's memory, enabling it to remember interactions, generalize from experiences, and learn continuously.

It is important to emphasize that the PCM is an exploratory research project at this stage of its development, and it may never become a product or component of a product that ultimately has significant value. As of July 2025, approximately 13 months of effort has been expended on development and early patenting of Atombeam's generative AI technology, with the result that an early prototype has been coded and 23 patents have been issued, 7 patents are allowed and 72 patents are pending related to the potential generative AI technology. Development of robust, reliable generative AI models is highly challenging and requires specialized expertise that may not be available to the Company. The Company believes that the PCM will require significant early investment, which it estimates will be approximately $2.5 million for its initial stage of field testing and advanced development. The Company believes that could take approximately nine to 12 months to complete this initial stage, which would primarily consist of prototype development, patenting costs and field testing to achieve a level of maturity sufficient to demonstrate the PCM to prospective development partners and customers. Currently, the Company intends to allocate approximately 50% of the funds allocated to "Software Development" in the "Use of Proceeds" section above on this development. The Company believes that until it gets the initial stage underway, it is too early to make assessments on this product on how much additional resources it will need to dedicate or whether it is worthwhile to continue this development at all. This project is still at an early stage would be subject to all the risks in developing a new technology including those described in "Risk Factors" and specifically, "Risk Factors – Developing new products and technologies entails significant risks and uncertainties."

**Our Customers**

The Company markets its product to manufacturers and end-users of IoT devices, including for use in cars, heavy machinery, factories, wearables, smart buildings, and much else, with significant engagement with several large corporations and the U.S. Government, including the U.S. Department of Defense. The Company has yet to receive revenue from its Neurpac SaaS product but plans to derive its commercial revenue from one-time payments and annual license and maintenance fees based on the number of connected devices and the amount of data processed. The Company will also seek to license resellers such as cloud service providers, including Amazon Web Services, who are working with the Company to build AtomBeam's Neurpac into their cloud offerings and to offer the combination service to their customers, remitting SaaS fees to AtomBeam. There can be no assurance that the Company's relationships with current and prospective customers or partners will result in revenue to the Company.

The Company is currently in the early revenue stage of development and is currently performing under a Phase II contract and an Other Transaction Authority contract with the U.S. Department of Defense (the "DoD"), each for $1.2 million. The Company's customers consist of two branches of the DoD, the U.S. Air Force and the U.S. Space Force. In addition, the Company has submitted proposals to other Federal agencies and is actively working with members of different branches of the DoD to gain further traction in defense, as well as with large defense contractors.

**Our Partners**

AtomBeam has entered into partnership relationships with several companies including: Ericsson, Viasat, Nvidia, Intel, HPE and Alhamrani Universal. The partnership relationship varies between companies and can include the following: inclusion on a preferred vendor list, invitations to participate in certain forums; listing on the other company's website, and introductions and networking opportunities. At this point, we are using the partnership relationship to expand the knowledge regarding our product and opening up networking opportunities. Currently, none of these relationships involve the purchase or sale of our current and future products.

**Industry and Competition**

The Company's software primarily impacts IoT connectivity, which is estimated to be a $344 billion market in 2025 and expected to grow to $1.8 trillion in 2034, a 20.2% CAGR, according to Expert Market Research Claight report dated December 24, 2024 . For its data reduction capability, AtomBeam's primary competition is increased IoT network capacity, such as the expansion of cellular networks, launching more satellites, and upgrades of private IoT systems. For increased data speed, competition could be construed as edge computing solutions such as those sold by MobiledgeX, Mutable, Edge Gravity, Ori, and others. AtomBeam also provides enhanced IoT security; there are many IoT encryption and security monitoring companies, such as Armis, Claroty, Forescout, NAGRA, and Palo Alto Networks.

**Employees**

The Company currently has 45 full-time employees (including consultants) and 10 part-time employees (including consultants).

**Regulation**

We are and may become subject to a variety of laws and regulations in the United States and abroad that involve matters central to our business and future business plans, many of which are still evolving and being tested in courts, and could be interpreted in ways that could harm our business. These laws and regulations involve matters including technology, software, privacy, data use, data protection and personal information, biometrics, encryption, rights of publicity, content, integrity, intellectual property, advertising, marketing, distribution, data security, data retention and deletion, data localization and storage, data disclosure, artificial intelligence and machine learning, electronic contracts and other communications, competition, protection of minors, consumer protection, civil rights, accessibility, telecommunications, product liability, e-commerce, taxation, economic or other trade controls including sanctions, anti-corruption and political law compliance, securities law compliance, and online payment services. Foreign data protection, privacy, content, competition, consumer protection, and other laws and regulations can impose different obligations, or penalties or fines for non-compliance, or be more restrictive than those in the United States.

These U.S. federal, state, and foreign laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and can be subject to significant change. As a result, the application, interpretation, and enforcement of these laws and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate and intend to operate, and may be interpreted and applied inconsistently from jurisdiction to jurisdiction and inconsistently with our current policies and practices. We are also subject to evolving laws and regulations that dictate whether, how, and under what circumstances we can transfer, process and/or receive certain data that is and/or will be critical to our operations, including data shared between countries or regions in which we currently and/or in the future operate and data shared among our products and services. If we are unable to transfer data between and among countries and regions in which we operate, or if we are restricted from sharing data among our products and services, it could affect our ability to provide our services.

In compliance with industry-specific regulations relevant to the provision of SaaS solutions, our company follows applicable laws and standards, including the Health Insurance Portability and Accountability Act (HIPAA) for healthcare services, the Gramm-Leach-Bliley Act (GLBA) for financial services, and the Family Educational Rights and Privacy Act (FERPA) for educational software. These efforts are aimed at ensuring the confidentiality and security of sensitive information across our varied service offerings. Our approach to compliance is designed to be responsive to the evolving nature of legal requirements in our industry sectors.

**Intellectual Property**

The Company has 99 issued and 26 allowed patents, and has filed an additional 167 pending patents. The Company's patent portfolio relates to both proposed uses of the technology as well as mathematical and architectural approaches that further optimize the Company's software. Potential uses include applications unrelated to IoT, including its use in data centers. Patent filings related to optimization include the application of highly complex mathematical techniques and approaches that are expected to have the effect of increasing execution speed, improving security, and further improving compaction ratios. Certain patent filings of the Company are primarily concerned with its second product, Neurcom, which still under development and for which research continues to provide insights relevant to patenting opportunities. Many of the recent patent filings are related to development of intellectual property related to the PCM.

**Litigation**

The Company is not involved in any litigation, and its management is not aware of any pending or threatened legal actions relating to its intellectual property, conduct of its business activities, or otherwise.

**THE COMPANY'S PROPERTY**

The Company leases office space in Moraga, California. The lease term is month to month. Rent expense was $24,000 and $24,000 as of December 31, 2024 and 2023, respectively.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations** 

***You should read the following discussion and analysis of the financial statements and financial condition of AtomBeam and results of its operations together with its financial statements and related notes appearing at the end of this Offering Circular. This discussion contains forward-looking statements reflecting the Company's current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled "Risk Factors" and elsewhere in this Offering Circular.***

**Overview**

AtomBeam Technologies Inc. is a California-based software company with a sophisticated technology that has the potential to change the way machine/IoT data is transmitted and stored. The Company began receiving revenues and was awarded its first U.S. Government contract in 2021. AtomBeam received revenues from U.S. Government contracts and was awarded additional U.S. Government contracts in 2022, 2023 and 2024. The Company focused on engineering its software to be simple to install and use, including automating tasks otherwise performed manually. Other engineering work included the development of key features demanded by prospects and by the U.S. Department of Defense.

The Company currently receives revenue from its two current contracts one with the U.S. Air Force for the development of Neurcom, and a contract with the Space Development Agency, a unit of the U.S. Space Force, for the development of Neurpac. Both contracts contain provisions in which the Company expects to receive a total of approximately $1.2 million over a period not to exceed 21 months. Each of the contracts contains provisions that provide for payments of $50,000 to $250,000 based on the achievement of milestones.

The operating expenses for the Company consist of (i) cost of sales, (ii) sales and marketing (iii) general and administrative, research and development and depreciation and amortization. General and administrative costs include the costs related to complete filings of patents to protect its intellectual property. Cost of sales consists primarily of labor costs, subcontractor fees, and other direct expenses incurred to fulfill government contracts.The Company emphasizes its commitment to patenting its ideas, which currently total 98 issued, 26 allowed and 167 pending patents, because it believes an extensive portfolio of patents forms a valuable moat against competitors and makes the Company more attractive to a potential acquirer. The Company intends to continue devoting a significant part of its resources to continue building its patent position.

**Restatement**

During preparation of the 2024 financial statements, management reconciled the 2023 comparatives to the audited financial statements dated April 22, 2024 and identified material posting and classification differences. Specifically, the Company bifurcated an embedded conversion feature in its senior convertible notes and recorded a related derivative liability, accrued previously unrecorded interest on those notes, recognized depreciation and amortization that had not been recorded on fixed and intangible assets, corrected the classification of certain working-capital items, and reclassified equity-issuance costs from financing cash flows to additional paid-in capital.

*Description of Restatement Table*

 

The table below quantifies each adjustment to the 2023 financial statements and reconciles the amounts "As Reported" to the amounts "As Restated." All affected primary statements have been revised accordingly, and each 2023 column in the accompanying financial statements is labeled "As Restated."

*Balance Sheet*

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| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| &nbsp;&nbsp;Cash and cash equivalents | $2217114 | $(10) | $2217104 |
| &nbsp;&nbsp;Accounts receivable, net |  | 270987 | 270987 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | - | 30 | 30 |
| &nbsp;&nbsp;Total Current Assets | 2217114 | 271007 | 2488121 |
| &nbsp;&nbsp;Property and equipment, net | 21642 | (8588) | 13054 |
| &nbsp;&nbsp;Intangible assets, net | 550387 | (16751) | 533636 |
| &nbsp;&nbsp;Total Assets | $2789143 | $245668 | $3034811 |
| &nbsp;&nbsp;Accounts payable | $20198 | $- | $20198 |
| &nbsp;&nbsp;Other current liabilities | 31525 | 23000 | 54525 |
| &nbsp;&nbsp;Total Current Liabilities | 51723 | 23000 | 74723 |
| &nbsp;&nbsp;Notes payable | 405330 | 54670 | 460000 |
| &nbsp;&nbsp;Convertible notes payable, net | 1678500 | 50000 | 1728500 |
| &nbsp;&nbsp;Accrued interest payable | 203953 | 126388 | 330341 |
| &nbsp;&nbsp;Derivative liability |  | 418325 | 418325 |
| &nbsp;&nbsp;Government-backed loans payable | 36300 | - | 36300 |
| &nbsp;&nbsp;Total Liabilities | 2324083 | 724106 | 3048189 |
| &nbsp;&nbsp;Common stock | 8587470 | (8587349) | 121 |
| &nbsp;&nbsp;Additional paid-in capital |  | 8611909 | 8611909 |
| &nbsp;&nbsp;Accumulated deficit | (8122409) | (502999) | (8625408) |
| &nbsp;&nbsp;Total Shareholders' Equity (Deficit) | 465061 | (478439) | (13378) |
| &nbsp;&nbsp;Total Liabilities and Shareholders' Equity | $2789143 | $245668 | $3034811 |

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*Statement of Operations*

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| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| &nbsp;&nbsp;Cost of sales | $- | $203271 | $203271 |
| &nbsp;&nbsp;Selling and marketing | 543739 | (94805) | 448934 |
| &nbsp;&nbsp;General and administrative | 2530518 | (1130033) | 1400485 |
| &nbsp;&nbsp;Research and development |  | 1030167 | 1030167 |
| &nbsp;&nbsp;Depreciation and amortization | - | 4968 | 4968 |
| &nbsp;&nbsp;Total Operating Expenses | 3074257 | 13568 | 3087825 |
| &nbsp;&nbsp;Net Loss from Operations | (2461694) | 257419 | (2204275) |
| &nbsp;&nbsp;Depreciation expense | 4968 | (4968) |  |
| &nbsp;&nbsp;Interest expense | 2341 | 92114 | 94455 |
| &nbsp;&nbsp;Change in derivative fair value | - | 133776 | 133776 |
| &nbsp;&nbsp;Net loss | $(2469003) | $36497 | $(2432506) |

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*Statement of Shareholders' Equity (Deficit)*

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| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| &nbsp;&nbsp;Common stock | $8587470 | $(8587349) | $121 |
| &nbsp;&nbsp;Additional paid-in capital |  | 8611909 | 8611909 |
| &nbsp;&nbsp;Accumulated deficit | (8122409) | (502999) | (8625408) |
| &nbsp;&nbsp;Total shareholders' equity (deficit) | $465061 | $(478439) | $(13378) |

---

 

*Statement of Cash Flows*

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| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| &nbsp;&nbsp;Net cash used in operating activities | $(2734292) | $(134912) | $(2869204) |
| &nbsp;&nbsp;Net cash used in investing activities | (295090) | 8618 | (286472) |
| &nbsp;&nbsp;Net cash provided by financing activities | 5076370 | 126284 | 5202654 |
| &nbsp;&nbsp;Net change in cash and equivalents | $2046988 | $(10) | $2046978 |

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**Results of Operations**

***Fiscal Year Ended December 31, 2024 and December 31, 2023***

For the year ended December 31, 2024, the Company generated $1,042,896 in revenues compared to $883,550 for the year ended December 31, 2023, a $159,346 increase. The increase in revenues were due to the progress billings on the U.S. Air Force and U.S. Space Force contracts mentioned above.

For years ended December 31, 2024 and 2023 operating expenses were $8,705,047, and $3,087,825 respectively, an increase of $5,617,222. The increase in expenses was due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An approximately $203,271 increase in cost of sales primarily related to increased consulting costs from the Company's university research partner, and an increase in compensation for the Company's employees and consultants, dedicated to the Company's governmental revenue contracts.

· An approximately $1,398,000 increase in selling and marketing expenses is due to key drivers that include a significant increase of $400,000 in additional headcount and compensation for the Company's employees and contractors in its sales and marketing functions, a $600,000 increase in the Company's advertising and promotion costs, a $260,000 increase in travel, meals, and entertainment costs for its sales and marketing efforts, and a $100,000 increase in website and creative services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An approximately $3,465,000 increase in general and administrative expenses is primarily due to a significant increase of $3,200,000 in additional headcount and compensation for the Company's employees and contractors in its corporate functions.

· An approximately $453,000 increase in research and development is directly attributable to the additional headcount and compensation for the Company's employees and contractors in its research and development functions.

· An approximately $16,000 increase in depreciation and amortization.

For the fiscal years ended December 31, 2024 and 2023, the Company incurred other expenses of $160,946 and $228,231, respectively. The decrease was related to a $15,869 decrease in interest expense due to a conversion of notes payable to equity and a $51,416 decrease in change in derivative fair value.

As a result of the foregoing, the Company generated a net loss of $7,823,097, for the year ended December 31, 2024 compared with a restated net loss of $2,432,506 for the year ended December 31, 2023.

**Liquidity and Capital Resources** 

As of December 31, 2024, the Company's cash on hand was $8,500,580, generated primarily from financing activities including the issuance of shares to investors in the Company's Regulation CF, Regulation A and Regulation D offerings. The Company requires the continued infusion of new capital to continue business operations. The Company has recorded losses since inception. As of December 31, 2024, the Company had an accumulated deficit of $16,448,505.

The Company's current capital resources come from fundraising activities, specifically, as of January 1, 2025, the Company has completed the following capital raising activity:

In 2024, AtomBeam raised net proceeds of approximately $14.3 million under its Regulation A offering on the StartEngine plaform. Previously, AtomBeam raised approximately $8.2 million cumulatively under Regulation Crowdfunding on the StartEngine platform in three capital raises, including one that closed on December 28, 2023. AtomBeam has raised an additional $3.5 million in private placements of convertible notes, $1.7 million of which were converted in 2024 and $1.8 million of which were converted in 2023, $0.5 million in straight long-term debt and $0.4 million in equity under the registration exclusion of Section 4(a)(2) of the Securities Act of 1933. In 2024, AtomBeam raised approximately $1.8 million in its Regulation D offering. As of December 31, 2024 there are no outstanding convertible notes.

From January 1, 2025 through January 31, 2025, AtomBeam raised an additional $4.2 million in its Regulation A offering. From January 1, 2025 through January 31, 2025, AtomBeam raised an additional $0.6 million in its Regulation D offering.

These capital resources have made cash available to the Company for research and development and general operating purposes.

The Company plans to continue to try to raise additional capital through crowdfunding offerings, equity issuances, or any other method available to the Company. Absent additional capital, the Company may be forced to significantly reduce expenses and could become insolvent. The Company estimates that if it raised the maximum amount sought in this offering, it could continue its current rate of operations for approximately 10 months without raising additional capital.

As of December 31, 2024, the Company has 17,476,981 shares of its single class of common stock issued and outstanding. Additionally, and also as of December 31, 2024, the Company's shares of common stock reserved for future issuance on an as-converted basis as of December 31, 2024:

**Indebtedness**

*Notes and Long Term Debt*

The Company entered into multiple non-convertible promissory notes during 2020 and 2022 with an investor of the Company with a total principal of $450,000. The amount outstanding as of December 31, 2024 and 2023 was $450,000 and $460,000, respectively. The promissory notes accrue simple interest at a rate of 5.0% per annum, which is due upon the maturity date of each promissory note. All outstanding principal and accrued interest for the promissory notes is due in 2027. Accrued interest related to these promissory notes totaled approximately $83,000 and $330,000 as of December 31, 2024 and 2023.

The Company also holds an SBA Disaster Loan with the US Small Business Administration. The original SBA Disaster Loan was authorized in June 2020 for $8,400 and was subsequently amended in September 2021 to increase the total loan amount to $36,400. As of December 31, 2024 and 2023, the outstanding principal balances were $35,118 and $36,300, respectively. The SBA Loan accrues interest at a rate of 3.75% per annum, and with a maturity date of June 5, 2050.

**Going Concern**

AtomBeam is not yet profitable, which means that we rely upon funds from investors (along with any profits we make from our business) to pay for our operations. This is common for most startups, and the reason startups like AtomBeam raise money. Over time we aim to grow our revenue and manage our spending to become profitable, but until that happens our ability to stay in business is reliant upon our ability to raise money from investors.

As described in the notes our financial statements, 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 incurred net losses since inception, including a loss of $7,823,097 for the year ended December 31, 2024, and used $6,511,712 of cash in operating activities during that period, approximately $543,000 per month. Although the Company held $8,500,580 of cash and cash equivalents at December 31, 2024, it expects to continue to incur operating losses while it commercializes its technology. These factors raise substantial doubt about the Company's ability to continue as a going concern for the twelve-month period following the date of issuance of these financial statements.

The purpose of this "Going Concern" statements is to alert investors to the fact that the Company does not have enough cash on hand to fund operations for the next 12 months. As such, the Company's ability to stay in business (i.e., remain a "going concern") relies on our ability to raise more money from investors.

**Trend Information**

AtomBeam is a participant in a highly competitive industry, AI-driven software technology. The Company's data reduction products, Neurpac and Neurcom, are differentiated from standard, open source compression products, but users must be convinced that Neurpac and Neurcom will offer them sufficient incremental benefits for them to adopt our technologies. Moreover, to be effective, the Company's technologies must be deeply embedded in the hardware and software of end user devices and networks, which make the Company's sales efforts more challenging compared to products that can be simply downloaded and installed as applications, such as cellular phone "apps". For example, the Company released the SaaS Beta version of its Neurpac product in Q2 2024, and the production version of Neurpac was released in Q1 2025, but we are still working to gain commercial customers. The Company relies upon the widely accepted view that, as greater amounts of data are generated, greater network capacity will commensurately be required, and the current array of options available to users of compression algorithms will be insufficient to satisfy the requirements of a significant number of these users. Such users, the Company believes, will be sufficiently interested in the potential value of the Company's technologies to address their needs in ways that compression cannot. The Company also believes that early commercial adopters will be onboarded and opportunities for expansion may follow.

Economic uncertainty and shifting trade policies continue to affect the tech industry, including software companies. Tariffs, supply chain disruptions, and global market tensions can drive up costs and complicate international operations. At the same time, changes in labor and immigration policies may limit access to skilled talent. These challenges, along with fluctuating customer demand and investment trends, can make it harder to plan for sustained growth.

To date, most of our revenue has come through government contracts. The Company, however has been actively marketing our products to prospective commercial customers. While the Company continues to work toward product adoption through direct sales and strategic partnerships, it also remains open to broader opportunities — including potential strategic transactions, investments, or an acquisition of the Company — that it believes could accelerate growth and assist with broader adoption of our products.

**Item 3.** **Directors and Officers** 

The following table sets out the Company's officers and directors as of December 31, 2024. All of the officers and directors work with the Company on a full-time basis except as indicated below.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term of Office<br> (if indefinite, give date appointed)** | **Approximate<br> hours per week<br> (if part-time)/full-time** |
| **Executive Officers:** | **Executive Officers:** | **Executive Officers:** | **Executive Officers:** | **Executive Officers:** |
| &nbsp;&nbsp;Charles Christopher Yeomans | Chairman, President & CEO | 69 | Appointed 9/01/2017 | Full-time |
| &nbsp;&nbsp;Rajiv Bhagat | CFO | 63 | Appointed 2/12/2024 | 30 hours |
| &nbsp;&nbsp;Joshua Cooper | Chief Scientific Officer | 47 | Appointed 4/14/2022 | 10 hours |
| &nbsp;&nbsp;Chuba Udokwu | Chief Operating Officer | 70 | Appointed 2/12/2024 | Full-time |
| &nbsp;&nbsp;Stephen Collins | Chief Revenue Officer | 62 | Appointed 11/04/2024 | Full-time |
| **Directors:** | **Directors:** | **Directors:** | **Directors:** | **Directors:** |
| &nbsp;&nbsp;Charles Christopher Yeomans | Director | 69 | Appointed 9/01/2017 |  |
| &nbsp;&nbsp;Courtney Monroe Benham | Director | 65 | Appointed 4/1/2019 |  |
| &nbsp;&nbsp;Mojgan Haddad | Director | 59 | Appointed 4/1/2019 |  |
| &nbsp;&nbsp;Christian D. Becker | Director | 59 | Appointed 2/12/2024 |  |
| &nbsp;&nbsp;Greg Caltabiano | Director | 65 | Appointed 2/12/2024 |  |
| &nbsp;&nbsp;Chuba Udokwu | Director | 70 | Appointed 2/12/2024 |  |

---

**Charles Yeomans, Chairman, President & CEO, and Director**

Charles Yeomans serves as AtomBeam's Chairman, President and Chief Executive Officer and has been in this position since 2017. He has over 30 years of experience in both executive management and investment banking. He has been the CEO or COO of three companies, including 2 startups and a $50 million revenue company with 250 employees. He has also been the architect of the founding of several successful companies in the 1990s, including two of the nation's largest insurance brokerages. Mr. Yeomans was also an investment banker at Drexel Burnham Lambert and an intelligence officer in the U.S. Navy. He received an AB degree from Kenyon College and an MBA from Stanford University.

**Rajiv Bhagat, Chief Financial Officer**

Rajiv Bhagat serves as AtomBeam's Chief Financial Officer. Mr. Bhagat has over 30 years of progressive experience in financial management in a wide range of industries, including technology, manufacturing and professional services. His background includes controllership, treasury, fundraising, mergers & acquisitions and financial planning & analysis (FP&A). He has particular experience in the management and development of Software as a Service ("SaaS") and early-stage software companies. Between 2021 and 2023, Mr. Bhagat served as Senior Vice President of Finance and later as a Consultant at Ushur, Inc., where he steered this venture-backed SaaS company through its Series C funding. From 2016 to 2021, he was VP of Finance at rfXcel Corporation, another venture-led SaaS company, where he established the necessary infrastructure for its growth, led the company's Series B funding and was instrumental in its acquisition by Antares Vision S.p.A. He received a B.S. from the University of California, Berkeley and an MBA from the University of Chicago Booth School of Business.

**Chuba Udokwu, Chief Operating Officer and Director**

Chuba Udokwu serves as AtomBeam's Chief Operating Officer. Mr. Udokwu is a seasoned business and technology executive with a proven track record of business and technical management. He has worked at both startup companies and larger established companies and has therefore developed a unique perspective and experiences. From 2018 to 2024, Mr. Udokwu served as the Managing Partner of Equitastech, LLC, a consulting firm focused on the technology and communications industries. Prior to Equitastech, LLC, he served as a Senior Vice President of Engineering at Overture Networks, a Vice President at Alcatel-Lucent, a Vice President at Sonus Networks, and a Vice President at Bell Labs. Mr. Udokwu received a B.S. from Columbia University and an M.S., Operations Research, from Columbia University.

**Stephen Collins, Chief Revenue Officer**

Stephen Collins serves as AtomBeam's Chief Revenue Officer. Mr. Collins is a highly experienced executive with over 25 years of experience in sales and management. From 2021 to 2024, Mr. Collins was the Sales Director, Strategic Accounts of Ribbon Communications. Prior to Ribbon Communications, he served as Vice President, Global Sales at Benu Networks, a Vice President, International Sales at Casa Systems, Inc, a SVP Sales, Communications Solutions at Neustar, Inc., a Vice President, Global Sales at Radisys Corporation and a VP and GM Americas Sales at Sonus Networks. Mr. Byles received a BA from University of Virginia.

**Joshua Cooper, Chief Scientific Officer**

Dr. Joshua Cooper serves as AtomBeam's Chief Scientific Officer and has worked with AtomBeam for approximately 7 years. He has been a Professor at the University of South Carolina since 2006, and specializes in Discrete Mathematics, Combinatorial Algorithms, and Machine Learning. He has over 25 years of experience in a variety of industry roles. In addition to helping dozens of companies design and implement technological solutions informed by modern Data Science, he has led R&D efforts in multiple sectors, including digital signal processing, social media marketing, medical devices, and financial reporting. Dr. Cooper received a B.S., Mathematics and Linguistics from the Massachusetts Institute of Technology, and a PhD in Mathematics (Extremal Combinatorics) from the University of California, San Diego.

**Christian Becker, Director**

Rear Admiral Christian "Boris" Becker is a member of the Board of Directors of AtomBeam. Rear Admiral Becker has over 30 years of military and government service. He is a retired two-star Rear Admiral, and former Commander of the Naval Information Warfare Systems Command, an 11,000-headcount command responsible for acquisition and development of communications and intelligence technology for the U.S. Navy. From 1987 until 2020, Rear Admiral Becker worked for the U.S. Navy in various operational and leadership positions. From 2021 to 2022, he was President of Terran Orbital. From 2020 to present, he was President of Silvergate Consulting, LLC. From 2023 to present, he was a Senior Partner of Elara Nova. From 2023 to present, he was President of OneLight Sensing. Rear Admiral Becker received a B.S., Electrical and Electronics Engineering, from Boston University, an M.S. from The George Washington University, and he completed the Executive Fellows program at Harvard University's Kennedy School of Government. He was commissioned from the Naval Reserve Officers Training Corps program.

**Courtney Benham, Director**

Courtney Benham is a member of the Board of Directors of AtomBeam. He has over 30 years of experience as an entrepreneur. After college, he pursued a career for several years on the professional tennis circuit. By the time his tennis career had ended, his father had added winemaking to his agricultural interests and Courtney went to work for his father's label, Lost Hill. After years in the custom-crush winemaking business, he created Blackstone, his first major label. Courtney built Blackstone into a category leader in under a decade, then sold the brand in order to pursue a new acquisition, Martin Ray. From 1992 to present, he has been the owner of Martin Ray Winery. He received a B.A. from the University of California, Berkeley.

**Greg Caltabiano, Director**

Greg Caltabiano is a member of the Board of Directors of AtomBeam. He is a highly experienced CEO and investor in IoT, AI, network and cloud-based infrastructure companies. From 2019 to present, he was an Operating Partner at HGGC, a private equity fund. He is also a partner of venture capital firm Translational Partners. He has extensive international experience in managing geographically dispersed teams, including multi-year in- country assignments in Japan, Hong Kong/China, Israel, and France. He is skilled in creating and executing growth strategies for venture backed and public companies, and has a successful track record on both sides of M&A transactions. Mr. Caltabiano was the President and CEO of ACCO, the President and CEO of Teknovus, and the President and COO of SOMA Networks Mr. Caltabiano received a B.S., Electrical Engineering, from Princeton University and an MBA from Stanford University.

**Mojgan Haddad, Director**

Mojgan Haddad is a member of the Board of Directors of AtomBeam. Ms. Haddad has 25 years of software engineering and operating experience in the bioinformatics and biomedical industries. From 2021 to present, Ms. Haddad was a Vice President of Engineering at Dotmatics. From 2020 to 2021, she was a Senior Director Software Engineering at Corin Group. From 2015 to 2020, Ms. Haddad worked at Talis Biomedical Corporation. She received a Masters Degree in Computer Science and Artificial Intelligence from Technische Universitat Wien, and a PhD in Computer Science from Technische Universitat Wien. She also completed a Post-Doc in Computational & Mathematical Biology at University of California, San Francisco.

***Compensation of Directors and Executive Officers***

For the fiscal year ended December 31, 2024, we compensated our four highest paid executive officers as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Capacities in which<br> compensation was received** | **Cash <br> compensation ($)** | **Other <br> compensation ($)** | **Total<br> compensation ($)** |
| Charles Yeomans | CEO | $240000 | $18600 | $258600 |
| Stephen Collins | Chief Revenue Officer | $275000 | $0 | $275000 |
| Chuba Udokwu | Chief Operating Officer | $396000 | $0 | $396000 |
| Rajiv Bhagat | Chief Financial Officer | $256375 | $0 | $256375 |

---

In 2024, the Company had six directors. Two of the Company's directors, Christian Becker and Greg Caltabiano, were granted 50,000 RSUs, subject to standard vesting over 24 months and a liquidity event. Our other four directors were not issued any RSUs in 2024 for their capacity as directors.

Mr. Yeomans' annual base salary was increased to $360,000 in December 2024 on achievement of $10 million in equity financing. He also has a targeted bonus of $360,000.

Mr. Bhagat was paid at a rate of $175 per hour and averaged approximately 30 hours per week. His rate was increased to $200 per hour effective January 1, 2025.

**Item 4.** **Security Ownership of Management and Certain Securityholders** 

The following table displays, as of April 30, 2025 the voting securities beneficially owned by (1) any individual director or officer who beneficially owns more than 10% of any class of our capital stock, (2) all executive officers and directors as a group and (3) any other holder who beneficially owns more than 10% of any class of our capital stock:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and address of <br> beneficial owner (1)** | **Amount and nature of<br> beneficial ownership** | **Amount and nature of<br> beneficial ownership<br> acquirable (2)** |  | **Percent of <br> Class (6) (7)** |
| Common Shares | Courtney Benham | 3730423 | 0 |  | 20.1% |
| Common Shares | Asghar Riahi | 2970552 | 0 |  | 16.0% |
| Common Shares | Charles Yeomans | 2709477 | 7974657 | (3) | 57.6% |
| Common Shares | Mojgan Haddad | 2494552 | 0 | (5) | 13.4% |
| Common Shares | All executive officers and directors as a group (9 Persons) | 9550452 | 7974657<br> 285000 | (3)<br> (4)<br> (5) | 94.5% |

---

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| |
|:---|
| (1) The address for all beneficial owners is the Company's address, 1036 Country Club Drive, Moraga, CA 94556. |
| (2) Excludes 2,467,020 Restricted Stock Units owned by Executives and Directors. Restricted Stock Units are not entitled to vote and are only convertible in limited circumstances. The following are the RSUs owned by the named individuals above: Courtney Benham (540000), Charles Yeomans (576000), and Mojgan Haddad (69000). In addition, one of our beneficial owners listed above, Asghar Riahi has 96,000 RSUs. |
| (3) The Proxy Shares are the shares of Common Stock sold in prior Regulation Crowdfunding offerings or private placements, that Mr. Yeomans as CEO, has voting control over pursuant to the subscription agreement governing those offerings. |
| (4) Shares acquirable through the exercise of options granted under the 2019 Equity Incentive Plan. |
| (5) Does not include share information for Dr. Haddad's spouse, Asghar Riahi. |
| (6) Based on 18,552,951 shares of Common Stock outstanding. |
| (7) This calculation is the amount the person owns now, plus the amount that person is entitled to acquire. That amount is then shown as a percentage of the outstanding amount of securities in that class if no other person exercised their rights to acquire those securities. The result is a calculation of the maximum amount that person could ever own based on their current and acquirable ownership, which is why the amounts in this column may not add up to 100% for each class. |

---

**Item 5.** **Interest of Management and Others in Certain Transactions** 

The following companies and persons linked to members of our management are party to related party transactions:

Courtney Benham, a Director of the Company has invested a total of $1,650,200 in the Company through his investment vehicle Wazoo Partners, LLC in the form of equity, convertible notes and debt. The total amount invested through straight promissory notes is $450,000, and the total invested through convertible promissory notes is $800,000, and these convertible notes have been converted into common stock. In addition, Wazoo Partners LLC invested $400,200 in equity when the Company was under its former name and corporate form, Drivewarp LLC. As of December 31, 2025, the only outstanding amounts are for the promissory note of $450,000 in principal and $83,123.29 in accrued interest.

Between April 2019 – October 2020, Dr. Mojgan Haddad, a Director of the Company and her husband Asghar Riahi, invested through the Ali A. Riahi & Mojgan Haddad Family Trust, which invested a total of $135,000 in convertible notes, in 2024, these convertible notes have been converted into 334,552 shares of common stock.

Between April 2019 – October 2020, Charles Yeomans, the Company's Chairman and CEO, invested through the Charles C. Yeomans And J. Desiree LeClerc Family Trust, invested total of $108,500 in convertible notes, and in 2024 these convertible notes have been converted into 269,477 shares of common stock..

The Form of Promissory Note, as amended, Form of Convertible Note, the 2021 Stock Incentive Plan and Form of Notice of Restricted Unit Award have each been filed as exhibits to this annual report.

**Item 6.** **Other Information** 

*Dismissal of Prior Auditor*

 

On October 10, 2024, the Chief Executive Officer of Atombeam Technologies Inc. (the "Company"), notified IndigoSpire CPA Group, LLC ("IndigoSpire") of their dismissal as the Company's independent accounting firm. IndigoSpire issued unqualified opinions on the Company's financial statements for the years ended December 31, 2023 and 2022, respectively.

During the years ended December 31, 2023 and December 31, 2022, and the subsequent interim period preceding such dismissal, (i) there were no disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) between the Company and IndigoSpire on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which, if not resolved to IndigoSpire's satisfaction, would have caused IndigoSpire to make reference to the matter in their report, and (ii) there were no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).

During preparation for financial reporting related to the year ended December 31, 2024, the Company discovered certain errors in previously reported financial statements for the year ended December 31, 2023. The Company's management conducted an investigation with the Company's independent auditors. As a result of this investigation, the Company determined that several accounts required correction to be in accordance with US GAAP. In addition, certain footnotes to such financial statements were required as a result of such changes. Accordingly, the Company made certain corrections to previously reported financial statements for the year ended December 31, 2023, as described above in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations".

On June 6, 2025, the Company re-engaged with IndigoSpire for the limited purpose of re-auditing of its Audited Consolidated Financial Statement for the fiscal year ended December 31, 2023 in light of the errors discovered. IndigoSpire was engaged from June 9, 2025 to June 13, 2025.

The Company has provided IndigoSpire with a copy of this Current Report on Form 1-K and requested that it provide the Company with a letter addressed to the SEC indicating whether or not IndigoSpire agrees with the disclosures contained herein and, if not, the respects in which it is not in agreement, which will be filed as an exhibit to an amendment to this Form 1-K.

*Appointment of New Auditor*

 

On January 6, 2025, the Company approved the appointment of Forvis Mazars, LLP ("Forvis Mazars") as the Company's new independent registered public accounting firm for the year ended December 31, 2024. During the two most recent fiscal years ended December 31, 2023 and 2022, and during the subsequent interim period from January 1, 2024 through January 6, 2025, neither the Company nor anyone acting on its behalf has consulted with Forvis Mazars regarding (i) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Company's financial statements, and neither a written report nor oral advice was provided to the Company that Forvis Mazars concluded was an important factor considered by the Company in reaching a decision as to any accounting, auditing, or financial reporting issue; or (ii) any matter that was either the subject of a "disagreement" or "reportable event" (as each term is defined in Item 304(a)(1)(iv) and (v) of Regulation S-K, respectively).

**Item 7.** **Financial Statements** 

**ATOMBEAM TECHNOLOGIES INC.**

*(a Delaware corporation)*

 

Financial Statements

For the fiscal years ended December 31, 2024 and 2023

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| | |
|:---|:---|
| **TABLE OF CONTENTS** | |
| **[Independent Auditor's Reports](#a_001)** | **[F-3](#a_001)** |
| **[Balance Sheets](#a_002)** | **[F-7](#a_002)** |
| **[Statements of Operations](#a_003)** | **[F-8](#a_003)** |
| **[Statements of Shareholders' Equity (Deficit)](#a_004)** | **[F-9](#a_004)** |
| **[Statements of Cash Flows](#a_005)** | **[F-10](#a_005)** |
| **[Notes to Financial Statements](#a_006)** | **[F-11](#a_006)** |

---

![](image_006.jpg)

**Independent Auditor's Report**

Board of Directors

Atombeam Technologies, Inc.

Moraga, California

***Opinion***

 ****

We have audited the financial statements of Atombeam Technologies, Inc. (Company), which comprise the balance sheet as of December 31, 2024 and the related statements of operations, changes in stockholders' equity (deficit), and cash flows for the year then ended and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

 ****

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

***Substantial Doubt About the Company's Ability to Continue as a Going Concern***

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations, has a net capital deficiency, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the conditions and events and management's plans regarding these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

***Other Matter***

The 2023 financial statements were audited by other auditors and their report thereon, dated September 3, 2025, expressed an unmodified opinion, and included an emphasis-of-matter regarding the Company's ability to continue as a going concern.

 ****

***Emphasis of Matter***

The 2023 financial statements, before they were restated for the matter discussed in Note 2, were audited by other auditors, and their report thereon, dated September 3, 2025, expressed an unmodified opinion. Our opinion is not modified with respect to this matter.

Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited

Board of Directors

Atombeam Technologies, Inc.

***Other Information Included in the Form 1-K***

 ****

Management is responsible for the other information included in the Form 1-K. The other information comprises the information in Items 1-6 of the Form 1-K but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

***Responsibilities of Management for the Financial Statements***

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or 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 these financial statements are available to be issued.

***Auditor's Responsibilities for the Audit of the Financial Statements***

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

Board of Directors

Atombeam Technologies, Inc.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

![](image_007.jpg)

**San Jose, California**

**September 3, 2025** 

![](tm2523911d1_partiiimg02.jpg)

**INDEPENDENT AUDITOR'S REPORT**

To: Board of Directors, AtomBeam Technologies, Inc.

Re: YE 2023 Restated Financial Statement Audit

**Opinion**

We have audited the accompanying restated financial statements of AtomBeam Technologies, Inc. (a corporation) (the "Company"), which comprise the restated balance sheet as of December 31, 2023, and the related restated and statements of income, shareholders' equity, and cash flows for the calendar year periods thus ended, and the related notes to 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, 2023, and the results of its operations, changes in shareholders' equity and its cash flows for the calendar year periods thus ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements**

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or 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 available to be issued.

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Exercise professional judgment and maintain professional skepticism throughout the audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

**Emphasis of Matter**

As discussed in Note 2 to the financial statements, the Company restated the 2023 financial statements. Our opinion is not modified with respect to this matter.

**Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in the Notes to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

Sincerely,

![](tm2523911d1_partiiimg01.jpg)

IndigoSpire CPA, PC

San Jose, CA

September 3, 2025

**ATOMBEAM TECHNOLOGIES INC.**

**BALANCE SHEETS**

**As of December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023<br> (Restated)** |
| **Assets** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $8500580 | $2217104 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 100000 | 270987 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 32755 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 8633335 | 2488121 |
| Property and equipment, net | 25628 | 13054 |
| Intangible assets, net | 2018882 | 533636 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $10677845 | $3034811 |
| **Liabilities and Shareholders' Equity (Deficit)** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $169061 | $20198 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 898754 | 54525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 1067815 | 74723 |
| Notes payable | 450000 | 460000 |
| Convertible notes payable, net of issuance costs |  | 1728500 |
| Accrued interest payable | 83123 | 330341 |
| Derivative liability |  | 418325 |
| Government-backed loans payable | 35118 | 36300 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 1636056 | 3048189 |
| Shareholders' Equity (Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, par value $0.00001, 40,000,000 shares authorized, 17,476,981 and 12,069,854 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 175 | 121 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 27024028 | 8611909 |
| &nbsp;&nbsp;&nbsp;Subscriptions receivable | (1533909) |  |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (16448505) | (8625408) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Shareholders' Equity | 9041789 | (13378) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Shareholders' Equity | $10677845 | $3034811 |

---

See Independent Auditor's Reports and Notes to the Financial Statements

**ATOMBEAM TECHNOLOGIES INC.**

**STATEMENTS OF OPERATIONS**

**For the years ended December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023<br> (Restated)** |
| Revenues | $1042896 | $883550 |
| Operating Expenses: |  |  |
| Cost of sales | 488283 | 203271 |
| Selling and marketing | 1846546 | 448934 |
| General and administrative | 4865918 | 1400485 |
| Research and development | 1483656 | 1030167 |
| Depreciation and amortization | 20644 | 4968 |
| &nbsp;&nbsp;&nbsp;Total Operating Expenses | 8705047 | 3087825 |
| Loss from Operations | (7662151) | (2204275) |
| Other Expenses: |  |  |
| Interest expense | (78586) | (94455) |
| Change in derivative fair value | (82360) | (133776) |
| &nbsp;&nbsp;&nbsp;Total Other Expenses | (160946) | (228231) |
| Loss Before Tax Provision | $(7823097) | $(2432506) |
| Tax provision |  |  |
| Net Loss | $**(7823097)** | $**(2432506)** |

---

See Independent Auditor's Reports and Notes to the Financial Statements

**ATOMBEAM TECHNOLOGIES INC. <br> STATEMENTS OF SHAREHOLDERS' EQUITY <br> (DEFICIT)**

**For the years ended December 31, 2024 and 2023**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid In**<br>**Capital** |<br>**Subscriptions**<br>**Recievable** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Shareholders'**<br>**Equity (Deficit)** |
| **Balance as of January 1, 2023** | **10261135** | $**103** | $**1265889** | $**-** | $**(6192902)** | $**(4926910)** |
| Net loss |  |  |  |  | (2432506) | (2432506) |
| Issuance of common stock from fundraise, net of issuance costs | 992405 | 10 | 5098564 |  |  | 5098574 |
| Conversion of convertible notes | 816314 | 8 | 2247456 | - | - | 2247464 |
| **Balance as of December 31, 2023 (Restated)** | **12069854** | $**121** | $**8611909** | $**-** | $**(8625408)** | $**(13378)** |
| Net Loss |  |  |  |  | (7823097) | (7823097) |
| Issuance of common stock from fundraise, net of issuance costs | 2436224 | 24 | 15858719 | (1533909) |  | 14324834 |
| Conversion of convertible notes | 2970903 | 30 | 2553400 | - | - | 2553430 |
| **Balance as of December 31, 2024** | **17476981** | $**175** | $**27024028** | $**(1533909)** | $**(16448505)** | **9041789** |

---

See Independent Auditor's Reports and Notes to the Financial Statements

**ATOMBEAM TECHNOLOGIES INC.<br> STATEMENTS OF CASH FLOWS**

**For fiscal years ended December 31, 2024 and 2023**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023**<br> **(Restated)** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(7823097) | $(2432506) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 20644 | 4968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in derivative fair value | 82360 | 133776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrase in accounts recievable | 170987 | (270987) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in prepaid expenses and other current assets | (32725) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable | 148863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other current liabilities | 844229 | (91500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in interest payable | 77027 | (212925) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (6511712) | (2869204) |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of fixed assets | (16824) | (18022) |
| &nbsp;&nbsp;&nbsp;Acquisition of intangible assets | (1501640) | (268450) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (1518464) | (286472) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net proceeds from issuance of common stock | 14324834 | 4933914 |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable | (11182) | (231260) |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible note issuance | - | 500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 14313652 | 5202654 |
| Net change in cash and cash equivalents | 6283476 | 2046978 |
| Cash and cash equivalents at beginning of period | 2217104 | 170126 |
| Cash and cash equivalents at end of period | $8500580 | $2217104 |
| **Noncash investing and financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of convertible notes | $2533450 | $2412124 |
| &nbsp;&nbsp;&nbsp;Recievable for common stock issuances | $1533909 | $- |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $- | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $1563 | $2341 |

---

See Independent Auditor's Reports and Notes to the Financial Statements

**ATOMBEAM TECHNOLOGIES INC. <br> NOTES TO FINANCIAL <br> STATEMENTS**

**December 31, 2024 and 2023 (as restated)**

**NOTE 1 – NATURE OF OPERATIONS**

ATOMBEAM TECHNOLOGIES INC. (the "Company") was organized in Delaware on August 17, 2017. The Company develops advanced software technology using machine learning to reduce the size of individual internet of things (IoT) data files.

In 2024, the Company began a Regulation A securities offering, and in 2023, the Company completed a Regulation CF securities offering, to support continued operations and expansion. These financial statements and notes reflect the Company's financial position and operations for the years ended December 31, 2024 and 2023.

The Company has incurred net losses since inception, including a loss of $7,823,097 for the year ended December 31, 2024, and used $6,511,712 of cash in operating activities during that period, approximately $543,000 per month. Although the Company held $8,500,580 of cash and cash equivalents at December 31, 2024, it expects to continue to incur operating losses while it commercializes its technology. These factors raise substantial doubt about the Company's ability to continue as a going concern for the twelve-month period following the date of issuance of these financial statements.

Management is contemplating an equity financing of approximately $5,000,000 under Regulation CF, targeted for launch in the third quarter of 2025. Because the financing has not yet been initiated, the successful execution of this plan is not considered probable as of the date the financial statements are available to be issued. Accordingly, substantial doubt about the Company's ability to continue as a going concern has not been alleviated. If the Company is unable to raise additional capital or further reduce expenditures, it may be required to curtail or cease operations and could seek protection under applicable bankruptcy laws.

The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**NOTE 2 – RESTATEMENT OF PRIOR FINANCIAL STATEMENTS**

During the preparation of the 2024 financial statements, management reconciled the 2023 comparatives to the previously audited financial statements for the year ended December 31, 2023 and identified material posting and classification differences. Specifically, the Company bifurcated an embedded conversion feature in its senior convertible notes and recorded a related derivative liability, accrued previously unrecorded interest on those notes, recognized depreciation and amortization that had not been recorded on fixed and intangible assets, corrected the classification of certain working-capital items, and reclassified equity-issuance costs from financing cash flows to additional paid-in capital.

The table below quantifies each adjustment to the 2023 financial statements and reconciles the amounts As Reported to the amounts As Restated. All affected primary statements have been revised accordingly, and each 2023 column in the accompanying financial statements is labeled "As Restated."

*Balance Sheet*

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| Cash and cash equivalents | $2217114 | $(10) | $2217104 |
| Accounts receivable, net |  | 270987 | 270987 |
| Prepaid expenses and other current assets | - | 30 | 30 |
| Total Current Assets | 2217114 | 271007 | 2488121 |
| Property and equipment, net | 21642 | (8588) | 13054 |
| Intangible assets, net | 550387 | (16751) | 533636 |
| Total Assets | 2789143 | 245668 | 3034811 |
| Accounts payable | 20198 |  | 20198 |
| Other current liabilities | 31525 | 23000 | 54525 |
| Total Current Liabilities | 51723 | 23000 | 74723 |
| Notes payable | 405330 | 54670 | 460000 |
| Convertible notes payable, net | 1678500 | 50000 | 1728500 |
| Accrued interest payable | 203953 | 126388 | 330341 |
| Derivative liability |  | 418325 | 418325 |
| Government-backed loans payable | 36300 | - | 36300 |
| Total Liabilities | 2324083 | 724106 | 3048189 |
| Common stock | 8587470 | (8587349) | 121 |
| Additional paid-in capital |  | 8611909 | 8611909 |
| Accumulated deficit | (8122409) | (502999) | (8625408) |
| Total Shareholders' Equity (Deficit) | 465061 | (478439) | (13378) |
| Total Liabilities and Shareholders' Equity | $2789143 | $245668 | $3034811 |

---

*Statement of Operations*

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| Cost of sales | $- | $203271 | $203271 |
| Selling and marketing | 543739 | (94805) | 448934 |
| General and administrative | 2530518 | (1130033) | 1400485 |
| Research and development |  | 1030167 | 1030167 |
| Depreciation and amortization | - | 4968 | 4968 |
| Total Operating Expenses | 3074257 | 13568 | 3087825 |
| Net Loss from Operations | (2461694) | 257419 | (2204275) |
| Depreciation expense | 4968 | (4968) |  |
| Interest expense | 2341 | 92114 | 94455 |
| Change in derivative fair value | - | 133776 | 133776 |
| Net loss | $(2469003) | $36497 | $(2432506) |

---

*Statement of Shareholders' Equity*

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| Common stock | $8587470 | $(8587349) | $121 |
| Additional paid-in capital |  | 8611909 | 8611909 |
| Accumulated deficit | (8122409) | (502999) | (8625408) |
| Total shareholders' equity (deficit) | $465061 | $(478439) | $(13378) |

---

 

*Statement of Cash Flows*

---

| | | | |
|:---|:---|:---|:---|
|  | **As Reported** | **Adjustment** | **As Restated** |
| Net cash used in operating activities | $(2734292) | $(134912) | $(2869204) |
| Net cash used in investing activities | (295090) | 8618 | (286472) |
| Net cash provided by financing activities | 5076370 | 126284 | 5202654 |
| Net change in cash and equivalents | $2046988 | $(10) | $2046978 |

---

The errors were identified and fully corrected in May 2025, prior to issuance of these financial statements.

**NOTE 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 ("US GAAP"). In the opinion of management, all adjustments considered necessary for the fair presentation of the financial statements for the years presented have been included.

*Use of Estimates*

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and footnotes thereto. Actual results could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

Significant estimates inherent in the preparation of the accompanying financial statements include valuation of equity instruments, stock-based compensation, fair value of embedded derivatives, and deferred income tax assets.

*Risks and Uncertainties*

 

The Company's business and operations are sensitive to general business and economic conditions in the United States. A host of factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn or otherwise, local competition or changes in consumer taste. These adverse conditions could affect the Company's financial condition and the results of its operations.

*Concentration of Credit Risk*

 

Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash with a major financial institution located in the United States of America, which it believes to be creditworthy. The Federal Deposit Insurance Corporation insures balances up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

*Revenue Recognition*

 

Revenue is recognized in accordance with Accounting Standards Codification ("ASC") 606, *Revenue from Contracts with Customers*. Revenue is recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in determining the appropriate amount of revenue to be recognized under each agreement: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied.

The Company earns revenue primarily through milestone-based contracts with government agencies. Each milestone represents a distinct performance obligation. Revenue is recognized at a point in time, upon formal government acceptance of the specific deliverable tied to the milestone. The transaction price consists of fixed contractual amounts for each milestone, with payment for each milestone due upon the formal government acceptance of the specific deliverable tied to each milestone.

Cost of sales consists primarily of labor costs, subcontractor fees, and other direct expenses incurred to fulfill government contracts. These costs are recognized in the same period as the related revenue, consistent with the Company's policy to match contract costs with associated performance obligations.

*Cash and Cash Equivalents*

 

The Company considers short-term, highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. The Company's cash and cash equivalents consist of funds held in the Company's checking account.

*Accounts Receivable*

 

Consideration for the Company's contracts with its government agency customers is paid at or near the date of formal government acceptance of each milestone. The Company held accounts receivable of $100,000 and $270,987 as of December 31, 2024 and 2023, respectively. Effective January 1, 2024, the Company adopted ASC 326, Financial Instruments—Credit Losses ("CECL"). Management estimates expected lifetime credit losses on accounts receivable using historical loss experience, the credit quality of its government customers, and forward-looking information such as federal budget appropriations. Based on this evaluation, the allowance for credit losses was $0 at both December 31, 2024 and 2023, and no receivables were written off during either period.

*Advertising*

 

The Company expenses advertising costs as they are incurred. Advertising costs, included in selling and marketing expenses, were $985,533 and $393,899 for the years ended December 31, 2024 and 2023, respectively.

*Convertible Instruments and Embedded Derivatives*

 

The Company issued convertible promissory notes during prior years, which included embedded conversion and redemption features requiring bifurcation and separate accounting as derivative liabilities under ASC 815, *Derivatives and Hedging*. The Company adopted Accounting Standards Update ("ASU") 2020-06 as of January 1, 2024.

Upon issuance, the proceeds were allocated between the debt host and the bifurcated embedded derivative based on the fair value of the derivative. The derivative liability was remeasured each reporting period. Upon conversion, the notes, as well as any accrued interest and related derivative liabilities, were derecognized and equity was recorded based on the fair value of shares issued. Any difference was recognized as an extinguishment gain or loss.

*Property and Equipment, Net*

 

Property and equipment are recorded at cost less accumulated depreciation and amortization. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Expenditures for maintenance and repairs are charged to expense. When equipment is retired or sold, the cost and related accumulated depreciation are eliminated from the accounts and the resultant gain or loss is reflected in income. Depreciation is provided using the straight-line method, based on useful lives of the assets.

 

*Impairment of Long-Lived Assets*

 

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount exceeds the asset's estimated fair value, an impairment charge is recorded. No impairment losses were recognized on the Company's long-lived assets for the years ended December 31, 2024 and 2023.

*Intangible Assets, Net*

 

Intangible assets primarily consist of capitalized legal and filing costs related to patents. Upon approval of a patent, these assets are amortized on a straight-line basis over their estimated useful lives, which are 20 years. Management evaluates intangible assets for impairment whenever indicators of impairment exist. Legal fees related to patents are capitalized in accordance with the Company's policy.

*Fair Value Measurements*

 

Generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price) and such principles also establish a fair value hierarchy that prioritizes the inputs used to measure fair value using the following definitions (from highest to lowest priority):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Unadjusted
quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 2 – Observable
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly,
including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities
in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or
other means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 3 – Prices
or valuation techniques requiring inputs that are both significant to the fair value measurement and unobservable.

The carrying amounts of certain of the Company's financial instruments, which include cash and cash equivalents, prepaid expenses and other current assets, accounts payable, and other current liabilities, approximate their fair values due to their short maturities.

The embedded conversion features were separately accounted for as a derivative liability, which is remeasured at fair value at each reporting date; changes in fair value are recorded within other (income) expense. At December 31, 2024 and 2023, the derivative liability's fair value was $0 and $418,325, respectively, and it is classified within Level 3 of the fair-value hierarchy.

*Income Taxes*

 

Income taxes are provided for the tax effects of transactions reporting in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the basis of receivables, inventory, property and equipment, intangible assets, and accrued expenses for financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Any deferred tax items of the Company have been fully valued based on the determination of the Company that the utilization of any deferred tax assets is uncertain.

The Company complies with ASC 740, *Income Taxes*, for accounting for uncertainty in income taxes recognized in a company's financial statements, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Based on the Company's evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.

*Stock-Based Compensation*

 

The Company estimates the fair value of its stock options granted to both employees and nonemployees using the Black-Scholes option-pricing model. The grant-date fair value of stock options is recognized as compensation expense on a straight-line basis over the requisite service period, which is typically four years.

The Company estimates the fair value of its restricted stock units ("RSUs") granted as the fair value of the Company's underlying common stock at the grant date. All of the Company's RSUs vest upon the satisfaction of both a service-based vesting condition and a performance-based vesting condition. The fair value of RSUs with service-based and performance-based vesting conditions is recognized as compensation expense using the accelerated attribution method at the date of their related performance conditions is probable of occurring.

The fair value of common stock has been determined based upon a variety of factors, including the Company's financial position and historical financial performance, and the observable price at which investors purchase shares of the Company's common stock.

The interest rate used in the valuation was based on the US Treasury bond rate at the date of grant with a maturity approximately equal to expected term. The Company has estimated the expected term of its stock options using the "simplified" method, whereby, the expected term equals the arithmetic average of the vesting term and the original contractual term of the option due to its lack of sufficient historical data.

Expected volatility for the Company's common stock was based on an average of the historical volatility of a peer group of similar public companies. The assumed dividend yield is based on the Company's expectation of not paying dividends in the foreseeable future.

The Company records forfeitures when they occur for all share-based payment awards.

**NOTE 4 – PROPERTY AND EQUIPMENT, NET**

As of December 31, 2024, the Company's property and equipment, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Property and Equipment**<br>**Gross** | **Accumulated**<br>**Depreciation** | **Property and Equipment**<br>**Net** |
| Computer Equipment | $59103 | $(37671) | $21432 |
| Research Equipment | 4196 | - | 4196 |
| &nbsp;&nbsp;&nbsp;**Total** | $**63299** | $**(37671)** | $**25628** |

---

As of December 31, 2023, the Company's Property and Equipment, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Property and Equipment**<br>**Gross** | **Accumulated**<br>**Depreciation** | **Property and Equipment**<br>**Net** |
| Computer Equipment | $46475 | $(33421) | $13054 |
| &nbsp;&nbsp;&nbsp;**Total** | $**46475** | $**(33421)** | $**13054** |

---

Total depreciation expense was $4,250 and $4,968 for the years ended December 31, 2024 and 2023, respectively.

**NOTE 5 – INTANGIBLE ASSETS, NET**

As of December 31, 2024, the Company's intangible assets, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Intangibles,**<br>**Gross** | **Accumulated**<br>**Amortization** | **Intangibles,**<br>**Net** |
| Patents | $2015730 | $(33115) | $1982615 |
| Trademarks | 36267 | - | 36267 |
| &nbsp;&nbsp;&nbsp;**Total** | $**2051997** | $**(33115)** | $**2018882** |

---

As of December 31, 2023, the Company's intangible assets, net consists of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Intangibles,**<br>**Gross** | **Accumulated**<br>**Amortization** | **Intangibles,**<br>**Net** |
| Patents | $514090 | $(16721) | $497369 |
| Trademarks | 36267 | - | 36267 |
| &nbsp;&nbsp;&nbsp;**Total** | $**550357** | $**(16721)** | $**533636** |

---

The expected amortization of the Company's intangible assets for each of the next five fiscal years and thereafter are as follows:

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| 2025 | $37202 |
| 2026 | 38004 |
| 2027 | 38004 |
| 2028 | 38004 |
| 2029 | 38004 |
| Thereafter | 537749 |
|  | $**726967** |

---

Total amortization expense was $16,393 and $16,721 for the years ended December 31, 2024 and 2023, respectively, and is included as a component of general and administrative expenses in the statements of operations.

Of the Company's gross patent costs as of December 31, 2024, $1,255,245 of these costs relate to patents which are still pending and have not yet been approved. As such, they are not yet subject to amortization as of December 31, 2024.

**NOTE 6 – CONVERTIBLE NOTES PAYABLE**

Since inception, the Company has raised a total of $3,640,624 in convertible notes payable. Of this amount, $1,463,500 was issued directly and $2,177,124 (net of offering costs) was issued through the StartEngine crowdfunding platform. The convertible notes bear interest at 5.00% per annum, with varying maturity dates. The notes convert automatically upon a qualifying equity financing at a discounted price of 80% of the per-share price in that round, subject to varying valuation cap terms set within each convertible note.

In 2023, the Company converted $2,247,464 of convertible notes and accrued interest into 816,314 shares of common stock. The Company also raised $500,000 in additional convertible notes during 2023.

In 2024, the Company converted an additional $1,888,173 of convertible notes and accrued interest into 2,970,903 shares of common stock.

No new convertible notes were issued during 2024, and as of December 31, 2024, no convertible notes remain outstanding.

Certain convertible notes contained embedded features requiring bifurcation as a derivative under ASC 815. These features were accounted for as a compound derivative liability, initially recorded at fair value and remeasured each reporting period. Fair-value changes were recognized in other expense, net, on the statements of operations. The bifurcated derivative was marked to fair value through earnings and recognized with the debt. Any difference between the liabilities and the fair value of shares issued was recorded through earnings.

**NOTE 7 – NONCONVERTIBLE DEBT**

*Promissory Notes*

 

The Company entered into multiple non-convertible promissory notes during 2020 and 2022 with an investor of the Company with a total principal of $450,000. The investor is also a related party. The amount outstanding as of December 31, 2024 and 2023 was $450,000 and $460,000, respectively. The promissory notes accrue simple interest at a rate of 5.0% per annum, which is due upon the maturity date of each promissory note. All outstanding principal and accrued interest for the promissory notes was originally due in 2025. On April 3, 2025, the Company and the investor agreed to extend the maturity date of the promissory notes from December 31, 2025 to January 1, 2027. The stated interest rate and all other terms of the notes remained unchanged. The promissory notes are classified as noncurrent liabilities as of December 31, 2024.

Accrued interest related to these promissory notes totaled approximately $83,000 and $330,000 as of December 31, 2024 and 2023, respectively, and is presented as accrued interest payable in the consolidated balance sheets.

*SBA Loan*

 

The Company also holds an SBA Disaster Loan with the US Small Business Administration. The original SBA Disaster Loan was authorized in June 2020 for $8,400 and was subsequently amended in September 2021 to increase the total loan amount to $36,400. As of December 31, 2024 and 2023, the outstanding principal balances were $35,118 and $36,300, respectively. The SBA Loan accrues interest at a rate of 3.75% per annum, and with a maturity date of June 5, 2050. Principal and interest payments are made on a monthly basis, and principal payments will be made for a total of $2,196 for each of the following 5 years, with the remainder paid thereafter.

*Future Principal Payments on Long-Term Debt*

 

As of December 31, 2024, the future scheduled principal payments are as follows:

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| 2025 | $2196 |
| 2026 | $2196 |
| 2027 | $452196 |
| 2028 | $2196 |
| 2029 | $2196 |
| Thereafter | $24138 |
|  | $**485118** |

---

**NOTE 8 – COMMON STOCK**

The Company is authorized to issue up to 40,000,000 shares of common stock, with a par value of $0.00001 per share. The Company has a single class of common stock, and each share is entitled to one vote. As of December 31, 2024 and 2023, the Company had 17,476,981 and 12,069,854 shares, respectively, of common stock issued and outstanding.

*Regulation A and CF Securities Offerings*

 

In 2023, the Company completed multiple Regulation CF securities offerings through the StartEngine platform, issuing 992,405 shares of common stock for $5,098,574, net of issuance costs. The proceeds were recorded to Common Stock at their par value, with any excess amounts recorded to additional paid-in capital.

In 2024, the Company initiated a Regulation A securities offering through the StartEngine platform, issuing 2,107,764 shares of common stock for gross proceeds of $14,428,192. The Company incurred $1,549,529 in offering costs. The net proceeds were recorded to Common Stock at their par value, with any excess amounts recorded to additional paid-in capital.

*Private Placement Offerings*

 

In 2024, the Company completed private placement offerings with various investors, issuing 328,460 shares of common stock for gross proceeds of $1,822,035, with no issuance costs noted. The proceeds were recorded to Common Stock at their par value, with any excess amounts recorded to additional paid-in capital.

*Convertible Note Conversions*

 

In 2023, the Company issued 816,314 shares of common stock upon the conversion of $2,247,464 of convertible notes and accrued interest.

In 2024, the Company issued 2,970,903 shares of common stock upon the conversion of $2,553,430 of convertible notes.

*Common Stock Reserved for Future Issuance*

 

The following table summarizes the Company's shares of common stock reserved for future issuance on an as-converted basis as of December 31, 2024:

---

| | |
|:---|:---|
| Stock options issued and outstanding | 558750 |
| Restricted stock units issued and outstanding | 3361010 |
| Warrants issued and outstanding | 203370 |
| &nbsp;&nbsp;&nbsp;**Total** | **4123130** |

---

**NOTE 9 – STOCK-BASED COMPENSATION**

The Company maintains two stock incentive plans: the 2019 Stock Incentive Plan and the 2021 Stock Incentive Plan, which provide for the issuance of incentive stock options (ISOs), nonqualified stock options (NSOs), restricted stock awards (RSAs), and restricted stock units (RSUs) to employees, directors, and consultants of the Company.

The 2019 Plan authorized the issuance of up to 2,750,000 shares of common stock. As of December 31, 2024, 558,750 shares were subject to outstanding awards, and 1,242,699 shares remained available for issuance.

The 2021 Plan authorized the issuance of up to 5,500,000 shares of common stock. As of December 31, 2024, 3,217,500 shares were subject to outstanding awards, and 2,282,500 shares remained available for issuance.

*Stock Options*

 

The fair value of options granted under both plans is estimated on the grant date using the Black-Scholes option pricing model and recognized as stock-based compensation expense over the requisite service period. For the years ended December 31, 2024 and 2023, no stock-based compensation expense was recognized, and there is no remaining unrecognized stock-based compensation expense as of December 31, 2024 for the Company's stock options.

A summary of stock option activity and related information is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Shares subject**<br>**to options**<br>**outstanding** | **Weighted-**<br>**average**<br>**exercise**<br>**price** | **Weighted-**<br>**average**<br>**remaining**<br>**contractual life** |<br>**Aggregate**<br>**intrinsic value** |
| Balance as of December 31, 2022 | 558750 | $0.08 | 5.60 | $2989925 |
| Options granted |  |  |  |  |
| Options exercised |  |  |  |  |
| Options forfeited | - | - |  | - |
| Balance as of December 31, 2023 | 558750 | $0.08 | 4.60 | $2989925 |
| Shares authorized |  |  |  |  |
| Options granted |  |  |  |  |
| Options exercised |  |  |  |  |
| Options forfeited | - | - |  | - |
| Balance as of December 31, 2024 | 558750 | $0.08 | 3.60 | $4425913 |
| Exercisable as of December 31, 2024 | 558750 | $0.08 | 3.60 | $4425913 |
| Vested and expected to vest as of December 31, 2024 | 558750 | $0.08 | 3.60 | $4425913 |

---

*RSU's*

 

The fair value of RSU's granted under both plans is estimated as the fair value of the Company's underlying common stock on the grant date.

All of the Company's RSU's are subject to both service-based and performance-based conditions, with the performance-based condition met upon the occurrence of a liquidity event. As of December 31, 2024, this performance-based condition is not determined probable of being met. Therefore, for the years ended December 31, 2024 and 2023, no stock-based compensation expense was recognized.

As of December 31, 2024, there was unrecognized stock-based compensation expense totaling $9,482,419 for the Company's RSU's.

Had the performance-based condition been probable as of December 31, 2024, the Company would have recognized $2,213,305 of stock-based compensation expense relating to the RSUs then outstanding, for which the service-based vesting condition was satisfied or partially satisfied as of December 31, 2024.

A summary of restricted stock unit activity is as follows:

---

| | | |
|:---|:---|:---|
|  | **RSU's** | **RSU's** |
|  | **outstanding** | **outstanding** |
| Balance as of December 31, 2022 |  | 2309500 |
| RSU's granted |  |  |
| RSU's vested |  |  |
| RSU's forfeited | | - |
| Balance as of December 31, 2023 |  | 2309500 |
| RSU's granted |  | 1051510 |
| RSU's vested |  |  |
| RSU's forfeited | | - |
| Balance as of December 31, 2024 |  | 3361010 |

---

The weighted average value of RSUs granted during the year was $7.60.

*Warrants*

 

The Company also granted warrants to purchase the Company's common stock to certain consultants and vendors as compensation for services rendered. The Company granted all outstanding warrants in 2019 and 2021. Two warrants to purchase 113,370 shares of common stock expired on March 14, 2024. On May 10, 2024, On May 10, 2024, the Company issued two new warrants to the same warrants holders that extended the exercise date of the two previously issued warrants to expire on January 15, 2025. All other terms remained unchanged. The fair value of the warrants with extended term was not material to the financial statements.

The fair value of warrants granted is estimated on the grant date using the Black-Scholes option pricing model and recognized as stock-based compensation expense over the requisite service period. For the years ended December 31, 2024 and 2023, no stock-based compensation expense was recognized, and there is no remaining unrecognized stock-based compensation expense as of December 31, 2024 for the Company's warrants.

A summary of warrant activity is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Shares subject**<br>**to warrants**<br>**outstanding** | **Weighted-**<br>**average**<br>**exercise**<br>**price** | **Weighted-**<br>**average**<br>**remaining**<br>**contractual life** |<br>**Aggregate**<br>**intrinsic value** |
| Balance as of December 31, 2022 | 420068 | $0.08 | 1.22 | $2249229 |
| Warrants granted |  |  |  |  |
| Warrants exercised |  |  |  |  |
| Warrants forfeited | - | - |  | - |
| Balance as of December 31, 2023 | 420068 | $0.08 | 0.22 | $2249229 |
| Warrants granted |  |  |  |  |
| Warrants exercised |  |  |  |  |
| Warrants forfeited | (216698) | 0 | 0 | (1149543) |
| Balance as of December 31, 2024 | 203370 | $0.02 | 0.03 | $715500 |
| Exercisable as of December 31, 2024 | 203370 | $0.02 | 0.03 | $715500 |
| Vested and expected to vest as of December 31, 2024 | 203370 | $0.02 | 0.03 | $715500 |

---

**NOTE 10 – FAIR VALUE OF FINANCIAL INSTRUMENTS**

The Company measures certain financial instruments at fair value on a recurring basis. At December 31, 2023, the only such instrument was the compound derivative liability bifurcated from the Company's convertible notes. This liability was derecognized during 2024 upon note conversion; therefore no recurring fair value instruments were outstanding at December 31, 2024. Significant unobservable inputs used in the valuation of the derivative liability included estimated settlement amounts for potential scenarios, probability of such settlement scenarios, estimated term of each settlement scenario, and risk-free interest rates based on U.S. Treasury yields for the corresponding term. These inputs are considered Level 3 under the fair value hierarchy due to the use of unobservable inputs. The Company had no recurring Level 1 or Level 2 fair-value measurements during the periods presented.

The derivative liability is re-measured each reporting date using a probability-weighted option-pricing model. Significant unobservable inputs include expected term, equity volatility, risk-free interest rate, and the discount to the next equity financing round. Changes in fair value are recorded in "Other expense, net."

The following table summarizes the activity related to the derivative liability:

---

| | |
|:---|:---|
|  | **Derivative**<br>**Liability** |
| Balance as of December 31, 2022 | $284549 |
| Change in fair value | 133776 |
| Issuances/bifurcation of new derivatives | - |
| Balance as of December 31, 2023 | $418325 |
| Change in fair value | 82360 |
| Settlements/derecognition on note conversion | (500685) |
| Balance as of December 31, 2024 | $- |

---

Upon conversion of the remaining convertible notes in 2024, the derivative liability was derecognized and the carrying amount of $500,685 was reclassified to additional paid-in capital. Prior to conversion, the liability was presented as a separate line item within current liabilities.

**NOTE 11 – INCOME TAXES**

The components of loss before tax provision were as follows:

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31:** | **Year ended December 31:** |
|  | **2024** | **2023** |
| Domestic | $(7823097) | $(2432506) |
| Foreign |  |  |
| **Total** | $**(7823097)** | $**(2432506)** |

---

*Deferred Tax Assets and Liabilities*

Deferred tax assets and liabilities reflect the tax effect of temporary differences between carrying value of assets and liabilities for financial reporting purposes and the tax basis of these assets and liabilities as measured by income tax law. The income tax effect of temporary differences that give rise to deferred tax assets and (liabilities) consist of the following as of December 31, 2024.

---

| | | |
|:---|:---|:---|
|  | **December 31:** | **December 31:** |
|  | **2024** | **2023** |
| **Deferred Tax Assets:** |  |  |
| Net operating losses | $3395714 | $1820534 |
| Tax credits | 51600 | 79477 |
| Reserves and accruals |  | 8815 |
| Intangibles | 1974 | 2219 |
| Research and experimentation asset, net | 600329 | 243020 |
| Stock-based compensation | 5968 | 5936 |
| &nbsp;&nbsp;Total gross deferred tax asset | 4055585 | 2160001 |
| &nbsp;&nbsp;Less: Valuation allowance | (4051238) | (2155085) |
| Total deferred tax assets | 4347 | 4916 |
| **Deferred Tax Liabilities:** |  |  |
| Fixed assets | (4347) | (4916) |
| &nbsp;&nbsp;Total gross deferred tax liabilities | (4347) | (4916) |
| **Net deferred tax assets (liabilities)** | $**-** | $**-** |

---

The change in amounts of unrecognized tax benefits (gross of federal benefits and excluding interest and penalties at December 31, 2024 and December 31, 2023 are as follows:

---

| | |
|:---|:---|
| **Unrecognized tax benefit** | **Amount** |
| Balance at December 31, 2022 | $- |
| &nbsp;&nbsp;&nbsp;Additions based on tax positions related to the current year |  |
| &nbsp;&nbsp;&nbsp;Additions based on tax positions of prior years |  |
| &nbsp;&nbsp;&nbsp;Reductions for tax positions of prior years |  |
| &nbsp;&nbsp;&nbsp;Settlements | - |
| Balance at December 31, 2023 | $- |
| &nbsp;&nbsp;&nbsp;Additions based on tax positions related to the current year | (18893) |
| &nbsp;&nbsp;&nbsp;Additions based on tax positions of prior years | (46771) |
| &nbsp;&nbsp;&nbsp;Reductions for tax positions of prior years |  |
| &nbsp;&nbsp;&nbsp;Settlements | - |
| Balance at December 31, 2024 | $(65664) |

---

A valuation allowance is recorded when it is more likely than not that some portion of the deferred tax assets will not be realized. As of each reporting date, the Company's management considers all evidence, both positive and negative, that could impact management's view with regard to future realization of deferred tax assets. As of December 31, 2024, a full valuation allowance for deferred tax assets was recorded as management believes it is not more likely than not that all of the deferred tax assets will be realized. At December 31, 2023 and December 31, 2024, the Company has a net operating loss carryforward for federal income tax purposes of approximately $6,500,000 and $12,100,000, respectively. At December 31, 2023 and December 31, 2024, the Company has a net operating loss carryforward for state income tax purposes of approximately $6,500,000 and $12,100,000, respectively. Of the $12,100,000 of federal net operating loss carryovers, $12,100,000 can be carried forward indefinitely but is subject to an 80% taxable income limitation. The Company's state NOL carryforwards begin to expire in 2038.

As of December 31, 2024 and December 31, 2023, the Company has federal research and development income tax credit carryforwards of approximately $64,300 and $26,500, respectively. As of December 31, 2023 and December 31, 2024, the Company has state research and development income tax credit carryforwards of approximately $67,000 and $67,000, respectively. The Federal income tax credits begin to expire in 2040. The California Research and Development credits can be carried forward indefinitely.

The total amount of uncertain tax position on research and development tax credits is $0 and $65,700 as of December 31, 2023 and December 31, 2024, respectively. The Company does not expect any significant change to the UTP balances in the next 12 months.

As of December 31, 2024, the Company had no business interest carryforwards.

**NOTE 12 – COMMITMENTS AND CONTINGENCIES**

 

*Leases*

 

The Company adopted ASC 842, Leases, effective January 1, 2022.

Under ASC 842, the Company determines if an arrangement contains a lease at inception of a contract. The Company recognizes right-of-use lease assets and lease liabilities in the balance sheets on the lease commencement date, based on the present value of the outstanding lease payments over the reasonably certain lease term. The lease term includes the non-cancelable period at the lease commencement date, plus any additional periods covered by the Company's options to extend (or not to terminate) the leases that are reasonably certain to be exercised, or an option to extend (or not to terminate) a lease that is controlled by the lessor.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases, which are defined as leases with a term of 12 months or less. Instead, lease payments for short-term leases are recognized on a straight-line basis over the lease term in rent expense and recorded in general and administrative expenses in the statements of operations.

The Company's only leases consist of short-term leases for office space. Total short-term lease expense for the years ended December 31, 2024 and 2023 was $26,000 and $24,000, respectively.

*Litigation*

The Company is not currently involved with and is unaware of any pending or threatening litigation.

**NOTE 13 – RELATED PARTY TRANSACTIONS**

The Company has or will provide compensation to the shareholder-employees per the Company's employment policies.

During 2020 and 2022, the Company issued non-convertible promissory notes to a related-party investor and common shareholder. The outstanding principal was $450,000 and $460,000 as of December 31, 2024 and 2023, respectively, and accrued interest totaled approximately $83,000 and $330,000 as of those dates. The notes bear simple interest at 5% per annum and are due in 2027.

Additionally, three shareholders and/or directors are both common shareholders as well as holders of convertible notes. All related-party convertible notes with an aggregate principal of $258,500 were converted to common stock during 2024. These notes relate to original founders and investors of the Company, with Note conversion terms consistent with those of other investors. No risk of compensation expense is believed to exist.

As these transactions are between related parties, there is no guarantee that the terms, pricing and conditions of the transactions are comparable to market rates although some (but not all) of the convertible notes held by related parties were acquired in a public offering *pari passu* with other convertible note holders.

**NOTE 14 – SUBSEQUENT EVENTS**

Management has evaluated subsequent events from December 31, 2024, the date of these financial statements, through September 3 2025, which represents the date the financial statements were available for issuance. The Company concluded that no events have occurred that would require recognition or disclosure in the financial statements, except as described below.

*Equity Financing – Regulation A*

 

On January 30, 2025, the Company completed a round of equity financing under Regulation A through StartEngine, resulting in gross proceeds of $4,221,590 and the issuance of 596,885 shares of common stock subsequent to December 31, 2024.

*Equity Financing – Regulation D*

 

Between January 1 and January 31, 2025, the Company completed a private placement pursuant to Regulation D, resulting in gross proceeds of $595,926 and the issuance of 109,154 shares of common stock.

**Item 8.**

**INDEX TO EXHIBITS**

The documents listed in the Exhibit Index of this report are incorporated by reference or are filed with this report, in each case as indicated below.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Exhibit No.** | **Title of Document** | **Form** | **File No.** | **Exhibit** | **Filing Date / Date of Qualification (as applicable)** | **Filed**<br> **Herewith** |
| [2.1](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-1.htm) | [Certificate of Incorporation, as amended\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-1.htm) | 1-A | 024-12417 | [2.1](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-1.htm) | July 19, 2024 |  |
| [2.2](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-2.htm) | [Certificate of Amendment to Certificate of Incorporation\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-2.htm) | 1-A | 024-12417 | [2.2](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-2.htm) | July 19, 2024 |  |
| [2.3](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-3.htm) | [Bylaws\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-3.htm) | 1-A | 024-12417 | [2.3](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex2-3.htm) | July 19, 2024 |  |
| [6.1](https://www.sec.gov/Archives/edgar/data/1838432/000110465924073920/tm248671d4_ex6-1.htm) | [DoD Agreement I#\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924073920/tm248671d4_ex6-1.htm) | 1-A | 024-12417 | [6.1](https://www.sec.gov/Archives/edgar/data/1838432/000110465924073920/tm248671d4_ex6-1.htm) | July 19, 2024 |  |
| [6.2](https://www.sec.gov/Archives/edgar/data/1838432/000110465924073920/tm248671d4_ex6-2.htm) | [DoD Agreement II#\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924073920/tm248671d4_ex6-2.htm) | 1-A | 024-12417 | [6.2](https://www.sec.gov/Archives/edgar/data/1838432/000110465924073920/tm248671d4_ex6-2.htm) | July 19, 2024 |  |
| [6.3](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-3.htm) | [2021 Employee Stock Option Plan\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-3.htm) | 1-A | 024-12417 | [6.3](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-3.htm) | July 19, 2024 |  |
| [6.4](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-4.htm) | [Employment Agreement Charles Yeomans\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-4.htm) | 1-A | 024-12417 | [6.4](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-4.htm) | July 19, 2024 |  |
| [6.5](https://www.sec.gov/Archives/edgar/data/1838432/000110465924064673/tm248671d2_ex6-5.htm) | [MOU with Imarsat (currently Viasat)\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924064673/tm248671d2_ex6-5.htm) | 1-A | 024-12417 | [6.5](https://www.sec.gov/Archives/edgar/data/1838432/000110465924064673/tm248671d2_ex6-5.htm) | July 19, 2024 |  |
| [6.6](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-6.htm) | [Form of Notice of Restricted Stock Unit Award\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-6.htm) | 1-A | 024-12417 | [6.6](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-6.htm) | July 19, 2024 |  |
| [6.7](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-7.htm) | [Form of Convertible Note Agreement\*](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-7.htm) | 1-A | 024-12417 | [6.7](https://www.sec.gov/Archives/edgar/data/1838432/000110465924039206/tm248671d1_ex6-7.htm) | July 19, 2024 |  |
| [6.8](tm2523911d1_ex6-8.htm) | [Form of Promissory Note Agreeement](tm2523911d1_ex6-8.htm) |  |  |  |  | [X](tm2523911d1_ex6-8.htm) |
| [9.1](tm2523911d1_ex9-1.htm) | [Letter from IndigoSpire CPA Group, LLC](tm2523911d1_ex9-1.htm) |  |  |  |  | [X](tm2523911d1_ex9-1.htm) |

---

\* Previously filed.

# Portions of this exhibit have been omitted pursuant to the instructions to Item 17 of Form 1-A.

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Moraga, State of California, on August XX, 2025.

**AtomBeam Technologies Inc.**

---

| | |
|:---|:---|
| By | */s/ Charles Yeomans* |
|  | Charles Yeomans, Co-Founder, Chairman and Chief Executive Officer of AtomBeam Technologies Inc. |
|  | Date: September 5, 2025 |

---

This report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.

---

| |
|:---|
| */s/ Charles Yeomans* |
| Charles Yeomans |
| Chief Executive Officer, Director |
| Date: September 5, 2025 |
| */s/ Rajiv Bhagat* |
| Rajiv Bhagat |
| Chief Financial Officer and Chief Accounting Officer |
| Date: September 5, 2025 |

---

---

| |
|:---|
| */s/ Courtney Benham* |
| Courtney Benham |
| Director |
| Date: September 5, 2025. |
| */s/ Mojgan Haddad* |
| Mojgan Haddad |
| Director |
| Date: September 5, 2025. |
| /s/ *Gregory Caltabiano* |
| Gregory Caltabiano |
| Director |
| Date: September 5, 2025 |
| /s/ *Christian Becker* |
| Christian Becker |
| Director |
| Date: September 5, 2025 |
| /s/ *Chuba Udokwu* |
| Chuba Udokwu |
| Director |
| Date: September 5, 2025 |

---

## Ex1K-6

**Exhibit 6.8**

**AtomBeam Technologies Inc.**

**NOTE PURCHASE AGREEMENT**

**<u>**TABLE OF CONTENTS**</u>**

<u>Page</u>

---

| | | | |
|:---|:---|:---|:---|
| 1. | Definitions | Definitions | 3.0 |
| 2. | Amount and Terms of the Notes | Amount and Terms of the Notes | 4.0 |
|  | 2.1 | Purchase and Sale Notes | 4.0 |
|  | 2.2 | Repayment of Notes | 4.0 |
| 3. | Closing Mechanics | Closing Mechanics | 5.0 |
|  | 3.1 | Closing | 5.0 |
|  | 3.2 | Subsequent Closings | 5.0 |
| 4. | Representations and Warranties of the Company | Representations and Warranties of the Company | 5.0 |
|  | 4.1 | Organization, Good Standing and Qualification | 5.0 |
|  | 4.2 | Authorization | 5.0 |
|  | 4.3 | Compliance with Other Instruments | 5.0 |
| 5. | Representations and Warranties of the Lenders | Representations and Warranties of the Lenders | 6.0 |
|  | 5.1 | Authorization | 6.0 |
|  | 5.2 | Purchase Entirely for Own Account | 6.0 |
|  | 5.3 | Disclosure of Information | 6.0 |
|  | 5.4 | Investment Experience | 6.0 |
|  | 5.5 | Accredited Investor | 6.0 |
|  | 5.6 | Restricted Securities | 6.0 |
|  | 5.7 | Further Limitations on Disposition | 7.0 |
|  | 5.8 | Residence | 7.0 |
|  | 5.9 | Legends | 7.0 |
| 6. | Defaults and Remedies | Defaults and Remedies | 7.0 |
|  | 6.1 | Events of Default | 7.0 |
|  | 6.2 | Remedies | 8.0 |
| 7. | Miscellaneous | Miscellaneous | 8.0 |
|  | 7.1 | Successors and Assigns | 8.0 |
|  | 7.2 | Governing Law | 8.0 |
|  | 7.3 | Counterparts | 8.0 |
|  | 7.4 | Titles and Subtitles | 8.0 |
|  | 7.5 | Notices | 9.0 |
|  | 7.6 | Finder's Fee | 9.0 |
|  | 7.7 | Expenses | 9.0 |
|  | 7.8 | Entire Agreement; Amendments and Waivers | 9.0 |
|  | 7.9 | Effect of Amendment or Waiver | 10.0 |
|  | 7.10 | Severability | 10.0 |
|  | 7.11 | Acknowledgement | 10.0 |
|  | 7.12 | Further Assurance | 10.0 |
|  | 7.13 | Waiver of Potential Conflicts of Interest | 10.0 |

---

EXHIBIT A Form of Note

NOTE PURCHASE AGREEMENT

**THIS NOTE PURCHASE AGREEMENT** (this "<u>Agreement</u>") is made as of _______ , 20__, by and among **AtomBeam Technologies Inc.** a Delaware corporation (the "<u>Company</u>"), and the lenders (each individually a "<u>Lender</u>," and collectively the "<u>Lenders</u>") named Exhibit A attached hereto (the "<u>Promissory Note</u>"). Capitalized terms not otherwise defined in this Agreement shall have the meanings ascribed to them in <u>Section 1</u> below.

**WHEREAS,** each Lender intends to provide certain Consideration to the Company as described for each Lender on the Schedule of Lenders; and

**WHEREAS,** the parties wish to provide for the sale and issuance of Notes in return for the provision by the Lenders of the Consideration to the Company.

**NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Consideration</u>" shall mean the amount of money paid by each Lender pursuant to this Agreement as shown on the Schedule of Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Corporate Transaction</u>" (A) the closing of the sale, transfer or other disposition of all or substantially all of this Company's assets (including, without limitation, the exclusive license of all or a material portion of the Company's intellectual property), (B) the consummation of the merger or consolidation of this Company with or into another entity (except a merger or consolidation in which the holders of capital stock of this Company immediately prior to such merger or consolidation continue to hold at least 50% of the voting power of the capital stock of this Company or the surviving or acquiring entity), (C) the closing of the transfer (whether by merger, consolidation or otherwise), in one transaction or a series of related transactions, to a person or group of affiliated persons (other than an underwriter of this Company's securities), of this Company's securities if, after such closing, such person or group of affiliated persons would hold 50% or more of the outstanding voting stock of this Company (or the surviving or acquiring entity) or (D) a liquidation, dissolution or winding up of this Company; <u>provided, however</u>, that a transaction shall not constitute a Corporate Transaction if its primary purpose is to change the state or country of this Company's incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held this Company's securities immediately prior to such transaction, and <u>provided further</u>, the prior sentence, the sale of shares of preferred stock in a bona fide financing transaction shall not be deemed a "Corporate Transaction."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Equity Securities</u>" shall mean the Company's Common Stock or Preferred Stock or any securities conferring the right to purchase the Company's Common Stock or Preferred Stock or securities convertible into, or exchangeable for (with or without additional consideration), the Company's Common Stock or Preferred Stock, except any security granted, issued and/or sold by the Company to any director, officer, employee or consultant of the Company in such capacity for the primary purpose of soliciting or retaining their services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Initial Public Offering</u>" shall mean the closing of the issuance and sale of shares of Equity Securities of the Company in the Company's first underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "<u>Act</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Majority Note Holders</u>" shall mean the holders of a majority in interest of the aggregate principal amount of Notes issued hereunder, including any Notes issued in any Subsequent Closing (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Maturity Date</u>" shall, with respect to each Note, mean the date that is forty-eight (48) months from the date of issuance of such Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Next Equity Financing</u>" shall mean the next sale (or series of related sales) by the Company of its Equity Securities following the date of this Agreement from which the Company receives gross proceeds of not less than $10,000,000 (excluding the aggregate amount of debt securities converted into Equity Securities upon conversion of the Notes pursuant to <u>Section 2.2</u> below). For the avoidance of doubt, a sale (or series of related sales) by the Company of its Equity Securities from which the Company received gross proceeds of not less than $10,000,000, excluding the aggregate amount of debt securities converted into Equity Securities but including the proceeds of a licensing, partnership or collaboration transaction shall be deemed to be the "Next Equity Financing."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Notes</u>" shall mean the one or more promissory notes issued to each Lender pursuant to <u>Section 2.1</u> below, the form of which is attached hereto as <u>Exhibit A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amount and Terms of the Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Purchase and Sale Notes</u>. In return for the Consideration paid by each Lender, the Company shall sell and issue to such Lender one or more Notes. Each Note shall have a principal balance equal to the portion of the Consideration paid by such Lender for the Note, as set forth in the Schedule of Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Repayment of Notes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Next Equity Financing</u>" shall mean the next sale (or series of related sales) by the Company of its Equity Securities following the date of this Agreement from which the Company receives gross proceeds of not less than $10,000,000 (excluding the aggregate amount of debt securities converted into Equity Securities upon conversion of any convertible promissory notes that convert into Equity Securities of the Company as a result of the Next Equity Financing). For the avoidance of doubt, a sale (or series of related sales) by the Company of its Equity Securities from which the Company received gross proceeds of not less than $10,000,000, excluding the aggregate amount of debt securities converted into Equity Securities but including the proceeds of a licensing, partnership or collaboration transaction shall be deemed to be the "Next Equity Financing."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Corporate Transaction</u>. In the event of a Corporate Transaction or Initial Public Offering prior to (i) full payment of a Note, (ii) the Maturity Date of a Note or (iii) the Next Equity Financing, then each Investor will be entitled, at each such Investor's election which shall be made upon ten business days' advance notice, to repayment in full of principal and interest accrued on such note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Closing Mechanics</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Closing</u>. The initial closing (the "<u>Closing</u>") of the purchase of the Notes in return for the Consideration paid by each Lender shall take place remotely via the exchange of signature pages at such other time and place as the Company and the Lenders agree upon orally or in writing. At the Closing, each Lender shall deliver the Consideration to the Company and the Company shall deliver to each Lender one or more executed Notes in return for the respective Consideration provided to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Subsequent Closings</u>. In any subsequent closing (each a "<u>Subsequent Closing</u>"), the Company may sell additional Notes subject to the terms of this Agreement to any Lender as it shall select, <u>provided</u> that the aggregate amount of Consideration, including amounts paid in the initial closing pursuant to Section 3.1 above, does not exceed $10,000,000. Any subsequent purchasers of Notes shall become a party to and shall be entitled to receive Notes in accordance with this Agreement. Each Subsequent Closing shall take place at such locations and at such times as shall be mutually agreed upon orally or in writing by the Company and such purchasers of additional Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties of the Company</u>. In connection with the transactions provided for herein, the Company hereby represents and warrants to the Lenders that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Organization, Good Standing and Qualification</u>. The Company is a corporation duly organized, validly existing, and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business or properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Authorization</u>. Except for the authorization and issuance of the shares issuable in connection with the Next Equity Financing, all corporate action has been taken on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution and delivery of this Agreement and the Notes. Except as may be limited by applicable bankruptcy, insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors' rights, the Company has taken all corporate action required to make all of the obligations of the Company reflected in the provisions of this Agreement and the Notes, the valid and enforceable obligations they purport to be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Compliance with Other Instruments</u>. Neither the authorization, execution and delivery of this Agreement, nor the issuance and delivery of the Notes, will constitute or result in a material default or violation of any law or regulation applicable to the Company or any material term or provision of the Company's current Certificate of Incorporation or bylaws or any material agreement or instrument by which it is bound or to which its properties or assets are subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Representations and Warranties of the Lenders</u>. In connection with the transactions provided for herein, each Lender hereby represents and warrants to the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Authorization</u>. This Agreement constitutes such Lender's valid and legally binding obligation, enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors' rights and (ii) laws relating to the availability of specific performance, injunctive relief or other equitable remedies. Each Lender represents that it has full power and authority to enter into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Purchase Entirely for Own Account</u>. Each Lender acknowledges that this Agreement is made with Lender in reliance upon such Lender's representation to the Company that the Notes, the Conversion Shares, and any Common Stock issuable upon conversion of the Conversion Shares (collectively, the "<u>Securities</u>") will be acquired for investment for Lender's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that such Lender has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, each Lender further represents that such Lender does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to such person or to any third person, with respect to the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Disclosure of Information</u>. Each Lender acknowledges that it has received all the information it considers necessary or appropriate for deciding whether to acquire the Securities. Each Lender further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Investment Experience</u>. Each Lender is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Accredited Investor</u>. Each Lender is an "accredited investor" within the meaning of Rule 501 of Regulation D of the Securities and Exchange Commission (the "<u>SEC</u>"), as presently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Restricted Securities</u>. Each Lender understands that the Securities are characterized as "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Act only in certain limited circumstances. Each Lender represents that it is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Further Limitations on Disposition</u>. Without in any way limiting the representations and warranties set forth above, each Lender further agrees not to make any disposition of all or any portion of the Securities unless and until the transferee has agreed in writing for the benefit of the Company to be bound by this <u>Section 5</u>, <u>Section 7.11</u> and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There is then in effect a registration statement under the Act covering such proposed disposition and such disposition is made in accordance with such registration statement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Lender has notified the Company of the proposed disposition and has furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition and (ii) if reasonably requested by the Company, Lender shall have furnished the Company with an opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration of such shares under the Act. It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144 except in extraordinary circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Residence</u>. If the Lender is an individual, then such Lender resides in the state or province identified in the address of such Lender set forth on such Lender's signature page hereto; if the Lender is a partnership, corporation, limited liability company or other entity, then the office or offices of such Lender in which its principal place of business is identified in the address or addresses of such Lender set forth on such Lender's signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Legends</u>. It is understood that the Securities may bear the following legend:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Defaults and Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Events of Default</u>. The following events shall be considered Events of Default with respect to each Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall default in the payment of any part of the principal or unpaid accrued interest on the Note for more than thirty (30) days after the Maturity Date or at a date fixed by acceleration or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts as they become due, or shall file a voluntary petition for bankruptcy, or shall file any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment, dissolution or similar relief under any present or future statute, law or regulation, or shall file any answer admitting the material allegations of a petition filed against the Company in any such proceeding, or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of the Company, or of all or any substantial part of the properties of the Company, or the Company or its respective directors or majority stockholders shall take any action looking to the dissolution or liquidation of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within thirty (30) days after the commencement of any proceeding against the Company seeking any bankruptcy reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceeding shall not have been dismissed, or within thirty (30) days after the appointment without the consent or acquiescence of the Company of any trustee, receiver or liquidator of the Company or of all or any substantial part of the properties of the Company, such appointment shall not have been vacated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall fail to observe or perform any other obligation to be observed or performed by it under this Agreement or the Notes, within 30 days after written notice from the Majority Note Holders to perform or observe the obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Remedies</u>. Upon the occurrence of an Event of Default under <u>Section 6.1</u> hereof, at the option and upon the declaration of the holder of a Note, the entire unpaid principal and accrued and unpaid interest on such Note shall, without presentment, demand, protest, or notice of any kind, all of which are hereby expressly waived, be forthwith due and payable, and such holder may, immediately and without expiration of any period of grace, enforce payment of all amounts due and owing under such Note and exercise any and all other remedies granted to it at law, in equity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Successors and Assigns</u>. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties, <u>provided</u>, <u>however</u>, that the Company may not assign its obligations under this Agreement without the written consent of the Majority Note Holders. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Governing Law</u>. This Agreement and the Notes shall be governed by and construed under the laws of the State of California as applied to agreements among California residents, made and to be performed entirely within the State of California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Notices</u>. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, if not so confirmed, then on the next business day, (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with this <u>Section 7.5</u>):

If to the Company:

ATOMBEAM TECHNOLOGIES INC.

1036 Country Club Drive, Suite 200

Moraga, CA 94556

With a copy, which shall not constitute notice, to:

Sheppard, Mullin, Richter & Hampton LLP

333 South Hope Street, 43rd Floor

Los Angeles, California 90071

Attention: Will Sarat Chuchawat

Telephone: (213) 617-5555

E-mail: WChuchawat@SheppardMullin.com

If to Lenders:

At the respective addresses shown on the signature pages hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Finder's Fee</u>. Each party represents that it neither is nor will be obligated for any finder's fee or commission in connection with this transaction. Lender agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which Lender or any of its officers, partners, employees or representatives is responsible. The Company agrees to indemnify and hold harmless Lender from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Expenses</u>. Each party hereto shall pay all costs and expenses that it incurs with respect to the negotiation, execution, delivery and performance of this Agreement. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Entire Agreement; Amendments and Waivers</u>. This Agreement, the Notes and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. The Company's agreements with each of the Lenders are separate agreements, and the sales of the Notes to each of the Lenders are separate sales. Nonetheless, any term of this Agreement or the Notes may be amended and the observance of any term of this Agreement or the Notes may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Majority Note Holders. Any waiver or amendment effected in accordance with this Section shall be binding upon each party to this Agreement and any holder of any Note purchased under this Agreement at the time outstanding and each future holder of all such Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Effect of Amendment or Waiver</u>. Each Lender acknowledges that by the operation of <u>Section 7.8</u> hereof, the Majority Note Holders will have the right and power to diminish or eliminate all rights of such Lender under this Agreement and each Note issued to such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 <u>Severability</u>. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be Exculpation Among Lenders. Each Lender acknowledges that it is not relying upon any person, firm, corporation or stockholder, other than the Company and its officers and directors in their capacities as such, in making its investment or decision to invest in the Company. Each Lender agrees that no other Lender nor the respective controlling persons, officers, directors, partners, agents, stockholders or employees of any other Lender shall be liable for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with the purchase and sale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 <u>Acknowledgement</u>. In order to avoid doubt, each Lender and the Company hereby agree that in connection with any recapitalization, combination or merger transaction, the primary purpose of which is to change the state or country of this Company's incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held this Company's securities immediately prior to such transaction (a "<u>Redomestication Transaction</u>"), upon written request of the Company each Lender will surrender any outstanding Notes in exchange for new notes, which shall have substantially identical terms, which shall be issued by the surviving parent entity after giving effect to the Redomestication Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 <u>Further Assurance</u>. From time to time, the Company shall execute and deliver to the Lenders such additional documents and shall provide such additional information to the Lenders as any Lender may reasonably require to carry out the terms of this Agreement, the Notes and any agreements executed in connection herewith or therewith, or to be informed of the financial and business conditions and prospects of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 <u>Waiver of Potential Conflicts of Interest</u>. Each of the Lenders and the Company acknowledges that Sheppard, Mullin, Richter & Hampton LLP ("<u>SM</u>") may have represented and may currently represent certain of the Lenders. In the course of such representation, SM may have come into possession of confidential information relating to such Lenders. Each of the Lenders and the Company acknowledges that SM is representing only the Company in this transaction. Pursuant to Rule 3-310 of the Rules of Professional Conduct promulgated by the State Bar of California, an attorney must avoid representations in which the attorney has or had a relationship with another party interested in the representation without the informed written consent of all parties affected. By executing this Agreement, each of the Lenders and the Company hereby waives any actual or potential conflict of interest which may arise as a result of SM's representation of such persons and entities, SM's possession of such confidential information and the participation by SM's affiliate in the financing. Each of the Lenders and the Company represents that it has had the opportunity to consult with independent counsel concerning the giving of this waiver.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **ATOMBEAM TECHNOLOGIES INC.** | **ATOMBEAM TECHNOLOGIES INC.** |
| By: |  |
|  | Charles Yeomans |
|  | Chief Executive Officer |

---

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| |
|:---|
| **LENDER:** |
| By (name): |
| If legal entity, name of entity: |
| Title: |

---

**EXHIBIT A**

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. IT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

**ATOMBEAM TECHNOLOGIES INC.**

**PROMISSORY NOTE**

No. PN-xx Date of Issuance <br>

FOR VALUE RECEIVED, **AtomBeam Technologies Inc.** a Delaware corporation (the "<u>Company</u>"), hereby promises to pay to the order of Wazoo Partners, LLC (the "<u>Lender</u>"), the principal sum of ________________ dollars ($_______), together with interest thereon from the date of this Promissory Note (this "<u>Note</u>"). Interest shall accrue at a simple rate of five percent (5%) per annum, calculated on the basis of a 365-day year. The principal and accrued interest shall be due and payable by the Company on demand by the Lender at any time after the earlier of: (i) the Maturity Date and (ii) the closing of the Next Equity Financing.

This Note is one of a series of Notes issued pursuant to the Purchase Agreement, and capitalized terms not defined herein shall have the meaning set forth in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Payments. All payments shall be made in lawful money of the United States of America at the principal office of the Company, or at such other place as the holder hereof may from time to time designate in writing to the Company. Payment shall be credited first to Costs (as defined below), if any, then to accrued interest due and payable and any remainder applied to principal. Prepayment of principal, together with accrued interest, may not be made without the consent of the Majority Note Holders. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. No Security. This Note is a general unsecured obligation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Amendments and Waivers; Resolutions of Dispute; Notice. The amendment or waiver of any term of this Note, the resolution of any controversy or claim arising out of or relating to this Note and the provision of notice shall be conducted pursuant to the terms of the Purchase Agreement. This Note is one of a series of Notes having like tenor and effect issued or to be issued by Company in accordance with the terms of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Successors and Assigns. This Note applies to, inures to the benefit of, and binds the successors and assigns of the parties hereto; provided, however, that the Company may not assign its obligations under this Note without the written consent of the Majority Note Holders. Any transfer of this Note may be effected only pursuant to the Purchase Agreement and by surrender of this Note to the Company and reissuance of a new note to the transferee. The Lender and any subsequent holder of this Note receives this Note subject to the foregoing terms and conditions, and agrees to comply with the foregoing terms and conditions for the benefit of the Company and any other Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Officers and Directors not Liable. In no event shall any officer or director of the Company be liable for any amounts due and payable pursuant to this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Expenses. The Company hereby agrees, subject only to any limitation imposed by applicable law, to pay all expenses, including reasonable attorneys' fees and legal expenses, incurred by the holder of this Note in endeavoring to collect any amounts payable hereunder which are not paid when due, whether by declaration or otherwise ("Costs"). The Company agrees that any delay on the part of the holder in exercising any rights hereunder will not operate as a waiver of such rights. The holder of this Note shall not by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies, and no waiver of any kind shall be valid unless in writing and signed by the party or parties waiving such rights or remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Governing Law. This Note shall be governed by and construed under the laws of the State of California.

[The remainder of this page is intentionally left blank]

IN WITNESS WHEREOF, the parties have executed this Note as of the date first written above.

---

| | |
|:---|:---|
| **ATOMBEAM TECHNOLOGIES INC.** | **ATOMBEAM TECHNOLOGIES INC.** |
| By: |  |
|  | Charles Yeomans |
|  | Chief Executive Officer |

---

## Ex1K-9

**Exhibit 9.1**

September 5, 2025

Securities and Exchange Commission

100 F Street NE

Washington DC 20549

**<u>Re: Atombeam Technologies (the "Company")</u>**

We have read the statements under Item 6 of the Current Report on Form 1-K to be filed with the Securities and Exchange Commission on September 5, 2025 regarding the change of auditors. We agree with all statements pertaining to us. We have no basis to agree or disagree with the other statements made by the Company in the Form 1-K.

*/s/ IndigoSpire CPA, PC*

IndigoSpire CPA, PC

San Jose, CA

September 5, 2025

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001838432

**Issuer CCC:** XXXXXXXX

**Is filer a shell company?:** No

**Is this filing by a successor company?:** No

### Submission Contact Information

**Is this a LIVE or TEST Filing?:** LIVE

**Period:** 12-31-2024

### Item 1: Issuer Information (Tab 1 Notification)

**Type of Report:** Annual Report

**Fiscal Year End:** 12-31-2024

**Exact Name of Issuer:** AtomBeam Technologies Inc.

**CIK:** 0001838432

**Jurisdiction of Incorporation:** DE

**IRS Number:** 82-2545888

**Address:** 1036 COUNTRY CLUB DR, SUITE 200, MORAGA, CA 94556

**Issuer Phone Number:** 415-404-9888

**Title of each class of securities issued pursuant to Regulation A:** Common Stock

### Item 2: Ongoing Reporting Requirements

**Is the issuer relying on the relief provided by Rule 257(d) for this filing?** No